HKEX 'to keep refining IPO system for mainland firms'

Hong Kong Exchanges and Clearing CEO Bonnie Chan announced that the stock exchange will continue refining its initial public offering (IPO) system to better accommodate mainland firms. Speaking on RTHK's On Broadcast Drive, Chan emphasized the HKEX's pivotal role in reinforcing Hong Kong's international financial center status while aligning with the country's 15th Five-Year Plan.

She highlighted the exchange's recent adaptations to simplify the IPO application process for companies in sectors like AI, biotech, and new energy, which typically require significant R&D investments.

Chan explained that the HKEX has shifted its approach, no longer insisting on three consecutive years of profit before allowing listings. Instead, the exchange now tailors its rules to better suit the unique needs of these innovative firms. Looking ahead, Chan stressed that while maintaining stock market liquidity remains a priority, the HKEX is also expanding its multi-asset ecosystem. She noted the growing interest from overseas investors in diversifying portfolios beyond traditional stocks and bonds.

To address this trend, Chan revealed that the HKEX is developing additional investment products, such as yuan-denominated options, to help investors mitigate exchange-rate risks. By broadening the range of available investment vehicles, Chan stated that the HKEX aims to attract a more diverse investor base, further solidifying Hong Kong's position as a leading global financial hub.