mainland companies have hastened their steps to seek listings on the
Hong Kong bourse over the years, and with its IPO and refinancing
convenience as well as mechanisms such as the stock link programs, the
Hong Kong market will have growing appeal to mainland enterprises,
Data from Hong Kong Exchanges and Clearing showed that by the end of
2016, there were 1,002 mainland enterprises listed on the Hong Kong
market, accounting for about half of the total number of companies
listed on the bourse.
This number compares with 951 companies in 2015 and 152 by the end of
"The rapid increase of mainland companies’ IPOs on the Hong Kong bourse
not only shows that Hong Kong is strengthening its role as the major
offshore financing platform for mainland companies, but also reflects
the huge need for capital among domestic enterprises against the
background of rapid economic growth in the mainland," Cheng Shi, a
senior Hong Kong-based economist at ICBC International Research Ltd,
told the Global Times on Tuesday.
In Hong Kong, it usually takes half that amount of time or less for a
main board IPO.
"For the sake of convenience, mainland companies that want to launch
IPOs often choose to seek listings in Hong Kong first, and then return
to the mainland market to queue up for another listing," said Xi Junyang,
a finance professor at the Shanghai University of Finance and Economics.