Hong Kong bourse operator to cooperate with Beijing Stock Exchange, Ningbo government to attract more start-up listings

HKEX and BSE will support cross-listing and will work together on promotion, investor education, research and personnel exchanges

Brokers believe such tie-ups can help Hong Kong recover from its poor showing in the international IPO rankings so far this year

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HKEX has over 2,600 listed companies worth HK$34.12 trillion (US$4.37 trillion) and a total turnover of HK$82 billion. Photo: Xiaomei Chen

Published: 7:30am, 30 Jun 2023

Hong Kong Exchanges and Clearing, which runs Asia’s third largest stock market, has signed agreements with Beijing Stock Exchange and the government of Ningbo this week to explore ways to make it easier for start-ups and high-quality companies to list here, the bourse operator said on Thursday.

As part of a memorandum of understanding (MOU) with the Beijing bourse, the two exchanges will encourage companies to apply to list in each other’s market, and will work together on promotion, investor education, research and personnel exchanges. HKEX has signed similar agreements with its counterparts in Shanghai and Shenzhen in recent years.

The HKEX’s co-chief operating officer, Bonnie Chan, formerly head of listing, signed the MOU with Beijing Stock Exchange (BSE) deputy CEO Li Yongchun in the Chinese capital on Thursday.

“Our support for issuers to list in the Beijing and Hong Kong markets underscores BSE’s commitment to deepening reforms and further opening up its market, responding to the needs of the market,” said BSE chief executive officer Sui Qiang in a statement.

“It will allow more companies to leverage both markets as they build their scale and internationalise their profile.”

HKEX co-chief operating officer Bonnie Y Chan (left) and BSE deputy CEO Li Yongchun signed an MOU at the ceremony. Photo: Handout

The cooperation between the two bourses will help “Beijing to become an international science and innovation hub, and strengthen Hong Kong’s role as an international financial centre,” Sui added.