The Director of the Hong Kong Financial Secretary accepted an exclusive interview with the Global Times to respond to the return of China stocks

[Global Times reporter Zhao Juezhen Chen Qingqing] Alibaba announced on the 26th that it will add Hong Kong as the main place of listing, causing global attention. In 2019, Alibaba carried out the second listing on the Hong Kong Stock Exchange, and then opened the prelude to the listing of Hong Kong listing in the US -China stock market. Chen Maobo, the director of the Hong Kong Financial Secretary, said in an exclusive interview with the Global Times reporter that although there were only more than 20 Chinese stock companies returned, they accounted for more than 70%of the total market value of the Chinese stock market in the United States. At present, the SAR Government is preparing for more new measures to facilitate the return of China stocks to listing in Hong Kong.

Chen Maobo revealed that the SAR government is communicating with relevant Mainland departments, hoping to include Chinese stocks listed in Hong Kong into the "southbound" target. Chen Maobo said that this measure will help return to the liquidity and valuation level of Chinese stocks, thereby increasing the willingness to return the return of Chinese stocks. In addition, the SAR Government will also work hard to provide more convenience for dual listing.

Hong Kong Financial Secretary Chen Maobo. Picture source: Visual China

The ways to return to Hong Kong to list in Hong Kong mainly include privatization before re -listing, double main listing, and secondary marketing. Statistics show that from the second listing of Alibaba in Hong Kong in November 2019 to the 1st of this month, 27 Chinese stocks have returned to Hong Kong stocks in different forms.

Among them, 5 are listed after the privatization delisting, including China Fei Crane, Yaoming Kangde, Yiju China, Sansheng Pharmaceutical and Le Chao Games; 6 are the main listing and 16 for the second time. Many Chinese stocks that have returned to Hong Kong stocks have become the main component stocks of Hong Kong stocks, and companies such as Meituan ranks among the top market value of Hong Kong stocks.

It can attract so many China -stock stocks to go public, which is directly related to Hong Kong's multiple optimization listing systems since 2018. In April 2018, for the first time, the Hong Kong Stock Exchange allowed biotechnology companies without operating income, and a new economic enterprise that adopted the same shares and different authoritative structures was listed in Hong Kong, and China stocks were listed for the second time in Hong Kong. Since then, a series of well -known companies such as Alibaba, Weibo, JD, and Ctrip have returned to Hong Kong for the second time.

Chen Maobo told the Global Times reporter that from the national level, the United States is trying to decompose with China, which brings great political risks to mainland companies listed abroad. Therefore, Hong Kong hopes to adjust some rules in the stock market and welcome these companies to return more conveniently. In addition, although when the listing system is adjusted in 2018, Sino -US relations are not as severe as they are now, but the Hong Kong stock market also needs to add new vitality. "Earlier, most companies listed in Hong Kong are mainly traditional industries, and the development of the Hong Kong stock market must attract new economic enterprises and make the stock market more energetic." Chen Maobo said.

As Chen Maobo said, the reform of the listing system provides new vitality for the development of the financial industry in Hong Kong. After the reform, the Hong Kong stock market shifted from a market -led market to a more diverse capital ecosystem. In 2021, 59 new economic companies were listed in Hong Kong, including 31 companies with different voting rights, medical and health and biotechnology companies.

Since then, the Hong Kong Stock Exchange has continued to optimize and adjust the listing system. In November 2021, the Hong Kong Stock Exchange issued the "Consultation Summary of Optimizing Overseas Publisher Listing System", further relaxing and reducing the threshold for the second listing, broaden the acceptance of dual listing, and opened up the embrace of more China -stock stocks. Among them, for the same stocks and VIE (variable interest entities) structured companies, you can choose to apply for dual major listing directly, without having to fully meet the rules of the Hong Kong Stock Exchange and the guidelines. In January 2022, the aforementioned amendment was officially effective. CICC's research report believes that the Hong Kong Stock Exchange relaxes the dual main listing standards, and has made a clear guidance on the change and reservation of the second listed company's listing status in Hong Kong stocks. Believe better risks.

Chen Maobo previously said in the 2022/2023 fiscal budget of the SAR that the above measures will help further absorb high -quality Chinese stocks to list in Hong Kong, enrich market choices, increase market liquidity, and enhance the competitiveness of Hong Kong's global financing platform.

As an international financial center, international capital and Mainland funds realize the "two -way go" through Hong Kong daily: not only the large amount of international capital flows to the A -share market via Hong Kong, but also the mainland enterprises listed in Hong Kong and the Chinese stock markets have also become the "Hong Kong stock market "Gold absorption magnet". Chen Maobo told the Global Times reporter that in 1997, the total market value of listed companies in Hong Kong was only more than 30 trillion Hong Kong dollars, which has exceeded 40 trillion Hong Kong dollars, an increase of more than 12 times; the number of listed companies has also increased from more than 600 to 2500 to 2500 Many. Among these more than 2,500 listed companies, the number of mainland companies accounts for about half, and the total market value accounts for 70 % of the total market value of Hong Kong stocks.

Not only that, through the Land and Portom mechanism, the steady stream of funds go north and south to provide new impetus for A shares and Hong Kong stocks.According to data from the Hong Kong Stock Exchange, the average daily transaction amount of Hong Kong Stock Connect under the Shanghai -Hong Kong Stock Connect and Shenzhen -Hong Kong Stock Connect in 2021 was HK $ 20.79 billion and HK $ 21.63 billion, respectively, respectively, 54%and 91%from 2020, respectively.The two totaling about HK $ 41.7 billion, the previous year was HK $ 24.4 billion.Chen Maobo also recalled that when the Shanghai -Hong Kong Stock Connect was just open, the average daily turnover was more than 2 billion Hong Kong dollars.The southbound funds also have HK $ 2.1 trillion. "Chen Maobo told the Global Times reporter that the country's economy is constantly developing, and international investors have only increased investment in Chinese assets, bonds, and stocks, which will bring beautiful development prospects to the Hong Kong financial market.The investment of international investors is not only invested funds, but also other investment such as risk management, which will add new vitality to the Hong Kong market.

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