HKEx focus on mainland market promotion (Xinhua) Updated: 2004-08-17 15:34
Strengthening business contacts with Chinese mainland financial organizations
and attracting more Chinese mainland enterprises for listing in Hong Kong is
expected to become a major task for Hong Kong Exchanges and Clearing Limited
(HKEx).
Paul Chow, chief executive of the HKEx, said the HKEx will seek more chances
for communication between the HKEx and Chinese mainland financial organs
concerned, and introduce the Hong Kong market to the potential applicants in the
Chinese mainland.
He said the HKEx is strive to make Hong Kong a priority financial market for
the Chinese mainland enterprises to collect international funds.
Early in April this year, the HKEx sent resident business agents to Guangzhou
and Shanghai, in an effort to find qualified" enterprises in the Pearl River
Delta Region and the Yangtze River Delta Region and provide "direct" service for
their future listing in the Hong Kong market.
In the first half of this year, the HKEx has arranged symposiums and forums
on listing affairs in Changchun city in northeast Chinese province of Jilin,
Chongqing in southwestern China, and Beijing, which attracted 852 participants
from 355 enterprises.
Moreover, HKEx has hold a total of 88 meetings in the first half of the year
with mainland parts as part of their liaison and communications efforts,
including two training programs conducted for Hong Kong-listed mainland
companies and potential listing applicants to improve their understanding of
corporate governance issues and promote listing in Hong Kong.
Chow said these marketing efforts helped identify 140 mainland companies
which are interested in listing in Hong Kong.
In fact, the HKEx has been attaching great importance to the Chinese mainland
market since the early 1990s. Currently are over 300 mainland companies listed
in the HKEx with an accelerating rate since Tsingtao Brewery Company Limited
listed in the HKEx
Among the 38 new listings during the first half of the year, 23were mainland
enterprises which raised a total of HK$46 billion (US$5.9 billion), or 83
percent of the funds raised through new listings.
According to Chow, "83 percent" is not too much, instead he said "this is the
trend." "Attracting more major mainland issuers will strengthen Hong Kong as
China's international financial center," he added
Besides attracting more mainland companies to list here, Chow said the HKEx
will put more efforts on cross-border cooperation and mainland related products.
Introduced in June to complement the trading of H-share index futures.
H-share index options provide an additional hedging and trading tool for
investors. "This is part of the HKEx's efforts to meet the growing demand for
mainland-related securities and derivatives instruments," he noted. H-shares
index options open interest rose to over 9,000 contracts in July 2004.
According to Chow, more mainland products such as crude oil futures with
Shanghai Futures Exchange are under exploration.
