That followed the mega secondary listing Alibaba last November in the city.
“Netease, just finished last week, and we have JD.com we have a very healthy pipeline. In fact, it took me a little by surprise that all of these intellectual property Offices in spite of all the challenges to come here … They are back at home … many of our clients want to do for their shareholders, ” Charles Li, chief executive officer of Hong Kong Exchanges and Clearing, told CNBC on Wednesday.
“If you look at Netease, even if it is just for a few days, the centre of gravity of the negotiation seems to be the migration of very healthy Hong Kong,” he added.
Analysts have predicted that the UNITED states, most publicly traded Chinese companies will flock to Hong Kong as Sino-AMERICAN tensions rise.
The U.S. Senate passed a bill last month that would essentially ban many Chinese companies from listing on American exchanges.
At the same time, Hong Kong has been making it more attractive for these companies to list in the Asian financial hub. Last month, the 50-year-old Hang Seng index has announced that it will be for the first time allow companies with primary listings abroad to be included in the reference index.
Christopher Hui, Hong Kong’s secretary for financial services and the treasury, told CNBC on Wednesday: “One of the major trends that we have seen in Hong Kong, to the extent that our securities market is concerned, is that there are a growing number of new economy companies coming to list here,” Day said.
“We have a very strong financial regulation, at the same time, we see many companies would like to come back to Hong Kong to the list of our proximity with China, but at the same time, be able to tap into the huge capital of the swimming pool, here in Hong Kong, with the international investors here,” he added.
Which will be positive for the shares of the Hong Kong stock Exchange and Clearing, according to the analysts of Citi Research in a note last week, which reiterated a ” buy ” call-to-action.
“HK Exchange and Clearing seems to be well positioned to capture the reunion registration by US-listed China firms,” they wrote.
They said that there had already been a “visible trend” of less and less Chinese companies listing in the UNITED states for post-2015. Reasons that include U.S. investors that are not familiar with Chinese companies, as well as the perceived benefits of the registration in Asia.
“This trend could become a re-wave like US-China trade and political tensions have increased,” they wrote.
Tensions between Beijing and Washington have stepped up these last few months on a multitude of topics, from the origins of the coronavirus, China to approve a national security law in Hong Kong. The last guest speaker Donald Trump to announce that Hong Kong’s preferential trade status with the UNITED states will be revoked.