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Beijing’s overture to tech firms triggers a tug of war between mainland and Hong Kong bourses

Shanghai Stock Exchange officials say it has prepared a package of services aimed squarely at tempting ‘unicorns’, and has already visited a clutch of high-quality firms to pitch for their listings

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A security guard walks out of the Shanghai Stock Exchange building at the Pudong financial district in Shanghai last month. Photo: Reuters
Daniel Renin Shanghai

The scramble by mainland China’s two stock markets to lure foreign-funded technology firms is firmly back on track, as its financial regulators revisit their plan to create a fast track mechanism for share offerings by what many consider will be the profitmaking stars of the future.

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But this time, their on-off-on-again plan – first revealed way back in 2001 – is set to have greater substance, say commentators, since the leadership is more determined than ever to inject some entrepreneurial vigour into the economy to drive long-term growth.

That will ratchet up the pressure on Hong Kong, as a tug of war over listing resources gradually takes the strain.

People walk on a bridge with a board showing world stock exchange information, in the Lujiazui financial district of Shanghai. Photo: AFP
People walk on a bridge with a board showing world stock exchange information, in the Lujiazui financial district of Shanghai. Photo: AFP

Shanghai Stock Exchange officials said in a statement over the weekend it has prepared a package of services aimed squarely at tempting “unicorns” – unlisted tech firms valued at more than US$1 billion – and has already visited to a clutch of high-quality companies, to pitch for their listing on the bourse.

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“We have invited them to Shanghai, so they can gain first-hand experience (of our facilities and systems),” it said.

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