HKEx chief executive Kwong Ki-chi says mainland companies prefer to trade shares in Hong Kong, rather than in other overseas markets

HKEx chief executive Kwong Ki-chi said the record high of 117 new companies was about 33 per cent more than the number in 2001. A total of HK$107.77 billion (US$13.85 billion) was raised by companies through the exchange this year, up 67 per cent from 2001.
 
"After China's entry into the WTO, many mainland state-owned and privately-owned firms want to raise funds through listings to finance their expansion plans,'' Mr Kwong said. "They find it much easier to attract international investors in Hong Kong rather than on the mainland stock exchanges."

He said investors also liked to trade mainland companies' shares in Hong Kong rather than in other overseas markets.

"There have been some mainland enterprises which opted for dual listings in both Hong Kong and New York. But the past 10 years' experience have confirmed that their shares have a higher turnover in the SAR than in the New York Stock Exchange,'' Mr Kwong said.

"These factors have allowed Hong Kong to become the first choice of overseas market for mainland enterprises seeking new listings.''

He is optimistic about the future role of Hong Kong because there are more than 100 companies, including many mainland enterprises, which have applied for new listings. This makes it possible for Hong Kong to maintain its record next year.

"Hong Kong remains a fund-raising centre for mainland enterprises,'' added Mr Kwong.

As of December 2002 there were 811 companies listed in Hong Kong with a total market capitalisation of HK$3,578.i billion (US$460 billion). This ranked Hong Kong the ninth largest stock market in the world.
 
Related link
HKEx www.hkex.com.hk