THE status of the Hong Kong stock exchange after 1997 is fairly well established: it will be technically the most advanced exchange in China with a relatively mature base of listings and investors.
The exchange offers an internationally recognised platform for the raising of capital.
Cash from investors will continue to be raised by both Hong Kong and mainland incorporated companies.
To date, the focus of attention at the exchange has been on equity-linked products. This offers mainland enterprises a means of raising capital through new listings and issues of shares.
While other exchanges have managed to attract listings of mainland-linked companies, no other exchange has achieved the kind of liquidity that H shares have attracted.
Some mainland companies are keen to list on an exchange but they are not so keen on being left high and dry with no trading in their shares.
