China tech IPOs weigh Hong Kong against mainland
SCMP · 1 SOURCESabout 4 hours ago2 MIN
Summary
Competition between Hong Kong and mainland China for hi-tech initial public offerings is giving emerging technology companies a dual-track listing decision rather than forcing a simple either-or choice. An executive at Beijing-based Zhongguancun International said firms aiming for global expansion often lean towards Hong Kong, while those seeking richer valuation multiples usually favour mainland markets.
Key Points
- Lu Peng, general manager of Beijing-based Zhongguancun International, said on Thursday that Hong Kong and mainland markets serve different enterprise types and investor bases.
- Lu said companies focused on international expansion tend to prefer Hong Kong, while firms pursuing higher price-to-earnings multiples often remain listed onshore.
- The rivalry has sharpened since 2024, when Beijing began streamlining cross-border approval procedures to facilitate Hong Kong listings by mainland companies.
- Domestic exchanges still offer a deeper capital pool, even as Beijing has eased rather than restricted the latest wave of Hong Kong flotations.
- As of August 31, Beijing-based firms accounted for 484 A-share listings, or 8.72 per cent nationwide, with market value of 23.74 trillion yuan.
Why It Matters
For Hong Kong readers, the debate is less about replacing mainland exchanges than about how the city positions itself as the preferred offshore market for Chinese technology firms with international ambitions. If more companies eventually pursue listings in both venues, Hong Kong’s role could be strengthened by complementing, rather than directly displacing, mainland capital markets.