Hong Kong exchange can collaborate with Beijing bourse to create fundraising platform for Chinese SMEs, advisory body FSDC says

‘Hong Kong’s continued success as an international financial centre depends much on its ability to connect investors to attractive investments at the right price’

The FSDC report also proposes that HKEX revamp second board GEM as an incubator for start-ups

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The Beijing Stock Exchange began trading in November last year with 81 start-ups. Photo: Simon Song

Published: 6:10pm, 3 Mar 2022Updated: 6:37pm, 3 Mar 2022

Hong Kong should collaborate with the newly established Beijing Stock Exchange and create a platform where mainland Chinese small and medium-sized enterprises (SMEs) can raise funds, said a research report released on Thursday.

The proposal was among a range of recommendations made in the report by the Financial Services Development Council (FSDC), a Hong Kong government-backed promotional body, with the aim of promoting Hong Kong’s initial public offering (IPO) market.

The city could leverage its super-connector role to explore possible collaboration and synergies between the two stock exchanges, the report said. The Hong Kong exchange could create a more accessible platform for Chinese SMEs to broaden and diversify their shareholder base, it added.

“Hong Kong’s continued success as an international financial centre depends much on its ability to connect investors to attractive investments at the right price,” said Laurence Li Lu-jen, the FSDC’s chairman.

The Beijing Stock Exchange began trading in November last year with 81 start-ups, underpinning President Xi Jinping’s pledge to support SMEs, which he dubbed the “little giants” of the world’s second-largest economy.

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