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Cross-listings possible but changes have to be made

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IN a bid to activate the sluggish B share market it has been suggested that mainland firms which have issued B shares seek secondary listings.

One plan among the many choices available is to allow the companies to seek secondary listings on the Hong Kong stock exchange.

While the proposed secondary listings will enable overseas investors in mainland firms to buy and sell B shares in the territory, they have given rise to several questions.

These centre on whether cross-listings by Shanghai and Shenzhen counters of A and B shares can be made possible, and whether A shares in Shanghai and Shenzhen can seek secondary listing overseas.

But companies first need to improve their management to attract investors. They can do this by regularly presenting financial information, such as balance sheets and results reports, to foreign investors.

Mainland B share companies seeking secondary listings will provide foreign investors with more investment opportunities.

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