How to attract foreign listcos to Hong Kong

Author: Ashley Lee | Published: 27 Nov 2013
  • A recent review of Hong Kong as a financial centre by the Financial Services Development Council noted that the city must attract more international listings;
  • But the liquidity of Hong Kong depositary receipts (HDR) has been limited as most companies list by way of introduction;
  • Panelists speaking at IFLR Asia Capital Markets Forum made several suggestions, such as permitting follow-on offerings, to encourage the development of the HDR market;
  • There were also discussions about the introduction of dual class shares, which has recently been a hot topic in Hong Kong.

The potential IPO of China’s Alibaba raised questions as to the attractiveness of Hong Kong as a listing venue. Market participants outlined how the city-state could encourage more foreign company listings at this week’s IFLR Asia Capital Markets Forum.

The Hong Kong stock exchange (HKEx) was this year the fourth-largest exchange globally by volume of new listings, for...