Hong Kong lags behind Singapore in attracting listings from international companies, according to a Lingnan University study.
Dr Jesus Seade, who is vice-president and chair professor of economics at the university, said although Hong Kong had been the top initial public offering market in the past two years, it had two major weaknesses - it needed listings by more international companies and many small mainland private enterprises.
Hong Kong was ranked the world's largest IPO market last year, when it raised HK$850.1 billion, after raising HK$642.1 billion in 2009. But the city only has 18 international companies listed here, compared with 43 in Singapore. That figure excludes mainland companies. Hong Kong has more than 500 listed mainland-related firms, higher than Singapore's 150. 'The tendency of mainland state-owned companies to list in Hong Kong is exactly why the city has not focused its attention on getting overseas companies to list here,' Seade said.
In comparison, Singapore has fewer big mainland firms listing there and so has been more aggressive in chasing Southeast Asian companies.
But while Hong Kong attracts large stated-owned enterprises, it has failed to draw many small private companies from the mainland. Many technology companies over the border, for example, would rather list in Nasdaq than Hong Kong.
Seade, who has held senior positions at the International Monetary Fund and the World Trade Organisation for 20 years, said Hong Kong should address these weaknesses.