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Mainland companies dominate HK stock market

(Xinhua)    07:18, January 23, 2014
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BEIJING, Jan. 22 -- A total of 182 enterprises from the Chinese mainland were listed in Hong Kong by the end of 2013, holding 57 percent of the total market value of Hong Kong shares, an official from the mainland's securities regulator said on Wednesday.

The 182 companies had raised 208 billion U.S. dollars as of the end of last year, said Tong Daochi, head of the Department of International Affairs of the China Securities Regulatory Commission (CSRC).

Their turnover in the HK stock exchange took up about 70 percent of the total volume, according to Tong.

Among them, 158 were listed on the main board and the remaining 24 were listed on the growth enterprise market, or second board.

In 2013 alone, eight mainland-based companies conducted H-share IPOs, raising 11.5 billion U.S. dollars; another 10 mainland-based firms raised 5.9 billion U.S. dollars through refinancing, said Tong.

Hong Kong has become the first choice for mainland enterprises seeking to go public overseas as well as a start-point for mainland security and futures agencies to extend business abroad, according to the official.

"The fledgling mainland market has for years kept a sound interaction with the mature Hong Kong market, which is conducive to mutual development," he said, adding that 24 security firms, six futures companies and 22 fund management firms have been approved to set up subsidiaries in Hong Kong, and that their market shares there are expanding.

The two Hong Kong stock exchange-traded funds (ETFs), launched on the Shanghai and Shenzhen bourses in July 2012, have provided mainland citizens with a convenient channel of overseas investment and promoted the orderly cross-border flow of capital, said Tong.

The two ETFs, each tracking a Hong Kong stock index, invest directly in Hong Kong listed stocks.

The mainland has also worked out a series of policies to ease Hong Kong capital's entrance.

Total investment for the RMB Qualified Foreign Institutional Investor (RQFII) pilot program has hit about 44 billion U.S. dollars, after the CSRC relaxed limitations on investors and their investment scope last March, according to Tong.

He also said 45 Hong Kong agencies have won QFII qualification.

Altogether, 27,491 Hong Kong citizens have opened A-share accounts since the CSRC allowed people from Hong Kong, Macao and Taiwan staying in the mainland to invest in the A-share market last April, according to Tong.

He also revealed that the mainland is studying the implementation of various policies promoting HK-mainland capital cooperation that are covered in a supplementary provision for the Mainland and Hong Kong Closer Economic Partnership Arrangement signed in August 2013.

(Editor:YanMeng、Yao Chun)

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