The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Hong Kong: HK exchange feels the pinch

Increasing international competition for China listings, most notably between London’s Alternative Investment Market (AIM) and China’s domestic markets of Shanghai and Shenzhen, is squeezing market leader Hong Kong, say insiders.

Since an unofficial ban by the China Securities and Regulator Commission (CSRC) on most domestic Chinese companies seeking a listing overseas before a domestic offering, senior officials in the Hong Kong government and senior management in the Hong Kong Stock Exchange (SEHK) have been in something of a panic, say insiders, over the potential loss of what has been a hugely lucrative listings business from the mainland.

"The stock exchange and FSTB [Financial Services and Treasury Bureau] are paranoid about losing the China listings business," says an insider. "The exchange is facing massive pressure from the government to attract more foreign listings."

Their concern is understandable. The SEHK 2006 accounts reveal that fees generated from new listings totalled some $60 million for the year, a 13% increase on 2005. More significantly, it is the drive for new listings that also generates long-term growth in turnover-related income that accounts for the bulk of SEHK revenues – some $308 million in 2006.

Any prospect of losing the China listing goldmine is therefore unthinkable.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree