Hong Kong’s stock exchange operator HKEX topples Chicago’s CME as world’s most valuable as US-China rift brings in more listings

Hong Kong Exchanges and Clearing (HKEX) has overtaken Chicago-based CME Group as the world’s largest bourse by market capitalisation, as hopes of more listings of Chinese technology giants bolsters its prospects.

The race for first place was neck-and-neck for most of last quarter, but HKEX decisively zoomed past CME in the final week of 2020, heading into the new year. The rally has given an added urgency to the board to an eight-month search for a CEO to sustain its advantage, after Charles Li Xiaojia quit on December 31.

A string of major secondary flotations by Chinese technology companies, alongside more money flowing in from mainland traders using the cross-border Stock Connect programme has brightened the outlook for HKEX. After Alibaba Group Holding, owner of the Post, started the trend in 2019, internet giants JD.com and NetEase followed suit with secondary listings in Hong Kong last year.

More Chinese companies trading in the US are expected to come back to the city amid increased hostility from Washington. Hong Kong has been the world’s largest hub for initial public offerings (IPOs) in seven of the past 11 years. A record-breaking listing of Ant Group in November would have catapulted the bourse to the top again in 2020 but for the surprise halt by mainland regulatory authorities.