Mainland exchanges step up push to lure companies from Hong Kong listings

Domestic bourses have recently convened meetings with representatives of mainland companies planning Hong Kong listings, particularly targeting first-time issuers and firms operating in sectors backed by national policies, according to a source familiar with the matter. The outreach reflects a concerted push by mainland exchanges after Hong Kong overtook them in fundraising activities in recent years.

Exchanges highlight mainland listing advantages

During these discussions, exchanges emphasized multiple benefits of choosing domestic markets over Hong Kong. They pointed to valuations that are generally higher than in Hong Kong, offering companies better pricing for their shares. Exchanges also stressed a clearer and more controllable listing timetable, along with greater access to policy resources for sectors aligned with Beijing's priorities.

Competition for market rankings intensifies

An intermediary who assists companies with Hong Kong initial public offerings described the lobbying efforts as routine but noted they have intensified recently. The source explained that exchanges are operating as businesses "competing for market rankings," driving the more aggressive approach.

The campaign by mainland China's stock exchanges is part of broader efforts to lobby both companies and regulators to prioritize domestic listings.

Source: South China Morning Post