Like the United States, China also boasts multiple stock and derivative exchanges, including four major ones located in Shanghai, Shenzhen, Beijing, and Hong Kong.
However, when we focus on the non-mainland exchanges, Hong Kong stands out as the exclusive exchange that plays a crucial role in linking China with the global financial stage.
This uniqueness stems from Hong Kong's position as an international financial hub, enabling the free movement of capital, unlike Mainland China, where capital flows are subject to strict controls.
Amidst the escalating geopolitical tensions between the United States and China, coupled with the blacklisting of Chinese stocks in the U.S., Chinese companies face mounting challenges in accessing U.S. capital markets. Given its global reach and standing, HKEX emerges as a clear favorite as the preferred listing destination following the U.S.
Hong Kong, with its strategic location and as part of the world's second-largest economy, is well-positioned to attract numerous companies seeking listings in the future.
The HKEX’s flywheel looks like this:
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