HKEX and the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) co-hosted a seminar in Beijing today to promote Hong Kong’s capital markets to state-owned and state-holding enterprises.
The Director of SASAC’s Bureau of Property Rights Management Jia Like delivered opening remarks with a look at how Mainland state-owned enterprises (SOE) have utilised Hong Kong’s capital markets to grow their businesses. Since 2018, more than RMB80 billion has been raised through equity and RMB400 billion through debt financing in Hong Kong.
Jia added that SASAC will continue to support SOEs as they further integrate into Hong Kong’s capital markets. Mainland SOEs are encouraged to better understand relevant regulatory policies in Hong Kong, improve their operational and information disclosure capabilities, and strengthen investor relations to better promote themselves to Hong Kong and international investors. Jia believes that Hong Kong will continue to play a pivotal role in cultivating world-class SOEs.
HKEX Managing Director and Head of Mainland Development Mao Zhirong detailed recent developments in Hong Kong’s capital markets and how Mainland companies have benefited from listing in the city. HKEX topped the world's IPO fundraising league table again last year – the sixth time in the last 10 years -- as HKEX welcomed some of the world's biggest listings to Hong Kong, including the homecoming of Alibaba and other new economy and traditional organisations. The stream of listings in Hong Kong also reinforced the market’s strong fundraising capability and its attractiveness to Mainland and global issuers, he said.
The Hong Kong market is also known for its liquidity and flexible refinancing tools. Listed companies are encouraged to fully utilise the market to grow their business sustainably, he added.
Full circulation of H-shares, a programme that will enable major shareholders of all Hong Kong-listed Mainland companies to transform their stock into ordinary tradable shares, was one of the hot topics at the seminar today. The reform was officially announced by the China Securities Regulatory Commission (CSRC) late last year after a year-long trial period. Representatives from H-share companies and financial institutions discussed details of full H-share circulation and shared their experiences during the trial.
Topics in the afternoon session also included investor relations, consolidation and utilisation of offshore and onshore platforms for SOEs, and a teach-in on how to control and manage risks in a volatile macroeconomic environment. More than 130 senior management representatives from state-owned and state-holding H-share companies joined the seminar.
Nina Zhan from the Hong Kong Investor Relations Association (1st from left) moderates a panel on how to communicate with investors effectively to improve market understanding and valuation.
HKEX Senior Vice President of Global Issuer Services Winnie Han (1st from left), discusses how to utilise and consolidate onshore and offshore platforms for SOEs.
