Hong Kong aims to revive IPOs with speedy approvals for mainland Chinese firms

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Listing approvals for China’s onshore-listed companies will be streamlined provided they meet certain criteria, HKEX CEO Bonnie Chan says

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HKEX CEO Bonnie Chan Yiting said the exchange has received more than 100 listing applications this year, with many planning to raise at least US$1 billion or more. Photo: Jonathan Wong

Zhang Shidongin Shanghai

Published: 4:01pm, 26 Nov 2024Updated: 4:19pm, 26 Nov 2024

Chinese companies trading on the mainland’s exchanges will be fast-tracked for stock sales in Hong Kong as part of reforms to streamline the listing procedures and revive the initial public offering (IPO) market, according to Hong Kong Exchanges and Clearing (HKEX).

Mainland-listed companies can get the go-ahead for quick listings in Hong Kong as long as they meet certain requirements, CEO Bonnie Chan Yiting said at a forum in Shanghai on Tuesday. She did not give more details.

Chan’s comment is seen as a follow-through of support for China’s onshore and offshore capital markets that was pledged by senior officials from Beijing and Hong Kong recently.

Vice-Premier He Lifeng said last week that China would help more companies to go public in Hong Kong and issue more government bonds to entrench the city’s position as a financial hub. Meanwhile, Hong Kong’s Financial Secretary Paul Chan Mo-po said more reforms would be instituted to help Chinese companies amid heightened geopolitical concerns.

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More listings of Chinese companies trading on the onshore exchanges, also known as the A-share markets, in the city will add to the array of dual-listed firms, such as Industrial and Commercial Bank of China, China Mobile and electric-car maker BYD. Currently, 156 companies have dual-listing status, according to financial data provider Shanghai DZH.