As the Shanghai Stock Exchange (SSE) prepares to develop an International Board to attract overseas companies, financial experts say the Hong Kong stock exchange remains well-placed to maintain its leading regional financial status.
Concerns about the Hong Kong Exchanges and Clearing (HKEx) losing ground to Shanghai grew after the central government unveiled a timetable which aims to see Shanghai become an international financial centre by 2020, aside from its role as a national financial centre. While new regulations will help make Shanghai a global financial centre, both the Shanghai Stock Exchange and Shenzhen Stock Exchange impose restrictions on foreign investors.
Terence Ho, Ernst & Young's Greater China strategic growth markets leader, says an emphasis should be placed on growing Hong Kong's attractiveness as an international listing centre.
Ho says expanding Hong Kong's stock exchange by attracting international companies to publicly list in the city requires maintaining the building blocks that have made it a world-class financial centre.
'It is important that Hong Kong maintains its good set of listing rules and mechanisms to make sure that companies and other players involved in the listing process meet compliance [standards],' Ho says. 'High-quality issuers and their intermediaries will always choose to establish a presence in markets where rules provide them with fair treatment.
'The HKEx has done well in two important areas. It has developed an exchange of choice for China issuers looking for international investors. It has also developed an exchange of choice for global issuers and investors looking to tap into the mainland market. We have received a lot of inquires from our clients in Europe, South America and various Asian countries about listing in Hong Kong.'
