Hong Kong’s biggest party asks mainland China to encourage companies to seek city stock exchange listings, says working group should be set up
- DAB says more listings from mainland would boost city’s standing as major financial centre and increase global profile of Chinese companies
- Appeal among 30 proposals by party to go before the National People’s Congress, China’s top legislature, next month
Hong Kong’s biggest political party has appealed to central authorities to encourage more mainland Chinese companies to choose the city for an outside stock exchange listing to help cement its status as an international financial centre and contribute to the country amid geopolitical tensions.
The Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) on Monday said Hong Kong and Beijing’s securities regulatory bodies should form a working group to streamline the listing process.
The call was among the 30 proposals by the party to go before the National People’s Congress (NPC), China’s top legislature, which will hold its annual meeting on March 5.
Kennedy Wong Ying-ho, a DAB NPC deputy and lawyer who floated the proposal, highlighted Beijing’s pledge at the sixth national financial work conference last October to support Hong Kong’s role as a major international financial hub.
“I think it is the right timing to put forward the matter,” he said.
Wong suggested the China Securities Regulatory Commission, Securities and Futures Commission and Hong Kong Exchanges and Clearing could come up with ways to allow mainland companies to list in Hong Kong in a “faster and more convenient” way.
He told the Post that many “premium” A-share companies had not yet moved into Hong Kong’s stock market, such as those in the alcohol and tobacco industries, which could generate significant cash flow and profits.
Wong, however, did not identify any suitable companies by name.
A-shares refer to mainland China businesses that are listed on either the Shanghai or Shenzhen stock exchanges and quoted in renminbi.
They are only available to mainland citizens, which made it difficult for foreign investors to get into the market.
“I strongly believe that many A-share companies would have a keen interest in Hong Kong listing due to the foreign investment they could receive,” Wong explained.
He added a listing in Hong Kong would also help companies and brands to boost their international profiles.
‘Hong Kong to seek mainland support to expand scale of data coming into city’
The Hong Kong stock exchange has listed mainland companies since 1993 and so far there are around 1,400 mainland companies who use the city.
They account for more than 53 per cent of the total number of listed companies. A quarter of them are A-share companies and the others are mainland companies registered overseas.
Rock Chen Chung-nin, another NPC deputy from DAB, said the proposal would also allow Hong Kong to better help the country to develop into a financial powerhouse.
He said that many major Chinese enterprises which had been listed in the US, have been “delisted” in recent years as they were sanctioned because of heightened geopolitical tensions.
“If Hong Kong could serve as an alternative platform for these companies to be listed, then we are in control of our destiny,” Chen said. “We don’t need to rely solely on these overseas markets.”
Another proposal raised by the DAB was to build joint platforms in mainland Greater Bay Area cities to tackle Hong Kong’s solid waste disposal problems.
Starry Lee Wai-king, the city’s sole representative on the NPC Standing Committee, China’s top legislative body, said many cities and companies in the bay area had expressed a willingness to help neighbouring cities to manage solid waste.
“To ensure more efficient utilisation of resources, cities with surplus solid waste disposal capacity can assist other bay area cities to handle solid waste that they are temporarily unable to address with their own capabilities,” she added.
Hong Kong hits back at ratings agency Moody’s over credit outlook downgrade
Lee said Hong Kong generated about 16,000 tons of solid waste a day, and landfill sites were a temporary solution for waste disposal because of the city’s limited land mass and high population density.
The party also proposed an invitation to the People’s Liberation Army’s Hong Kong Garrison to introduce military history to city primary and secondary school pupils.
It also suggested making visits to military installations part of the school curriculum.
The idea is part of a bid to boost Hongkongers’ patriotism after the top national legislative body last year passed a patriotic education bill to enhance love of the country across the nation.
The DAB also suggested extensions to the opening hours for three cross-border checkpoints to 24 hours.
The party said longer hours at the crossing at Shenzhen Bay and the Futian and the Liantang checkpoints would help the flow of people across the border.
Officials also appealed to mainland authorities to look into the introduction of an electronic version of mainland travel permits, also known as home return permits, for residents of Hong Kong and Macau.
