More technology companies from across the globe – not just those based in China – are likely to list on Hong Kong’s stock exchange in the next five to 10 years, particularly emerging tech leaders in Southeast Asia, according to Alibaba’s executive vice-chairman Joe Tsai
Non-US investors, as well as sovereign wealth and pension funds, are increasing their allocations to Hong Kong and Asia as they seek to tap future growth in the region, Tsai said at a fireside chat as part of Hong Kong Exchanges and Clearing
’s (HKEX) first Southeast Asia Forum on Thursday. HKEX
is the operator of the Hong Kong bourse.
“Think about that huge capital base coming to Asia, and a lot of that is focused on Hong Kong, because Hong Kong already has a critical mass of high-quality technology companies listed here. Hong Kong is the place to be, because global capital is already here,” Tsai said at the virtual event.
The session was closed to the media, but the HKEX provided a summary
of the chat on its website on Friday.
Sovereign wealth funds are likely to increase their allocation to Asia from about 3 per cent to 10 per cent to 15 per cent over time, with much of that focused on Hong Kong’s equity market, said Tsai, who is a member of the HKEX’s International Advisory Council
Those reforms have included changes that allow technology companies with so-called weighted voting rights and pre-revenue biotech companies to more easily list in the city.
Following the slate of reforms, Alibaba
raised US$12.9 billion last year with a secondary listing on the Hong Kong stock exchange, the first of a series of “homecomings” by companies that initially listed in the US. Alibaba is the parent company of the Post
and ZTO Express
are among a flurry of US-listed companies that have sought secondary listings in Hong Kong this year amid worsening relations between Beijing and Washington.
It is the latest escalation in tensions between the world’s two biggest economies over a variety of issues, including technology, trade and Hong Kong’s autonomy.
, the operator of Alipay and an Alibaba affiliate, had been set to list in Shanghai and in Hong Kong last month in what was expected to be the world’s biggest initial public offering ever, but the IPO was scuttled at the last minute by regulators amid a broader crackdown on the nation’s tech industry
This article appeared in the South China Morning Post print edition as: More leading technology firms seen likely to list in HK over the next decade