Bonnie Chan, Chief Executive Officer of Hong Kong Exchanges and Clearing Limited (HKEX), said on June 10 that A+H listings have become a sustained market trend, while global investor interest in the Hong Kong market, and in using Hong Kong as a gateway to Asia and the mainland, continues to grow.
Speaking at the Bloomberg Invest, Chan noted that critics often question whether the HKEX market is overly dependent on mainland companies. However, she pointed out that among the 120 newly listed companies on HKEX last year, more than half generated revenue from outside the mainland. At the same time, a number of companies have emerged that, while appearing to have mainland backing, already possess highly internationalised business footprints.
Discussing the trend of mainland companies expanding overseas, Chan said the enthusiasm for going global is set to rise further. She cited SpaceX as an example, noting that this high-profile project involves a vast industrial supply chain with many mainland companies playing a role. This reflects the deep integration of the global economy and the extensive reach of China's supply chain. Looking ahead, Chan said that in addition to local enterprises, more companies that are globally oriented from the outset are expected to choose Hong Kong for their listings.
Regarding this year's IPO market performance in Hong Kong, Chan acknowledged that market convention has always seen more active listing activity in the second half of the year than the first. She added that market development is no longer simply about chasing volume; significant changes in market quality have become evident. Discussions with issuers and global investors have become much richer in content. Specifically, about two years ago, HKEX still needed to persuade global investors of the investment value of the Chinese market. Today, that value is widely recognised, and the conversation has shifted to how and when to invest, indicating a much deeper level of dialogue.
On the topic of recent cross-boundary investment regulatory measures, Chan responded that the current regulatory actions are primarily aimed at illegal cross-boundary investment activities. The authorities have explicitly affirmed the legitimacy of legal channels such as the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect.
When asked about HKEX's strategic considerations in expanding into Central Asia and Southeast Asia, Chan pointed out that the Asian region offers an enormous population and economic growth potential, presenting abundant opportunities. As an international financial centre, Hong Kong is well-positioned to capture the benefits of regional development. Currently, many Southeast Asian companies are already listed on their domestic markets, but as their businesses expand, local markets can no longer meet their financing needs. Hong Kong, with its deeper capital market, serves as an important platform for regional companies seeking funding.
Chan also revealed that one Central Asian company successfully listed on HKEX last year, and more listings from both Central Asia and Southeast Asia are expected in the future.
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