On April 19,2024, the China Securities Regulatory Commission expressed intentions to intensify its cooperation with Hong Kong and implement five measures to further expand and optimize the SH-SZ-HK Stock Connect mechanism, help consolidate Hong Kong's position as an international financial center and promote synchronized development.

1.Relax the range of stock ETF eligible products under the SH-SZ-HK Stock Connect. The Shanghai, Shenzhen and Hong Kong Stock Exchanges have reached a consensus to moderately relax the required average asset management size of qualified stock ETFs and reduce the weight of Hong Kong stocks for southbound Hong Kong Stock Connect ETF products, as well as Hong Kong Stock Connect stock weight requirements.

2.Integrate REITs into the SH-SZ-HK Connect.Plans to include eligible mainland and Hong Kong REITS into the Shanghai-Shenzhen-Hong Kong Stock Connect by referring to the stock and ETF connectivity system arrangements between the two places.

3.Support the inclusion of the RMB stock trading counter in the Hong Kong Stock Connect.Since the launch of the Hong Kong dollar-RMB dual counter system, mainland, Hong Kong Stock Exchange and clearing companies have actively carried out research on the inclusion of RMB stock counter into the Hong Kong Stock Connect, and reached consensus on related businesses.

4.Optimize the arrangement for mutual recognition of funds.We plan to promote the moderate relaxation of the restrictions on the proportion of mutual recognition funds and allow the mutual recognition between Hongkong investment management’s functional delegations and oversea asset manager of the same group.

5.Support leading enterprises in the mainland industry to list in Hong Kong.The China Securities Regulatory Commission statement will further enhance collaboration and communication between relevant departments and support appropriate leading enterprises in mainland for Hongkong financing. 

The Hong Kong stock market has had 12 IPOs since this year

 Thereafter, the CSRC will, together with the SFC of Hong Kong and other relevant parties, guide the exchanges and clearing companies of the two places to jointly promote a smooth implementation of the above policies and measures as soon as possible. The Hong Kong stock market has had 12 IPOs since this year.

 By April 19,2024, according to the introduction of China Securities Regulatory Commission, since the release and implementation of the rules of overseas listing filing management system, 72 enterprises have completed the filing of initial public offering (IPO) in Hong Kong, and the financing channels for listing in Hong Kong are smooth, which strongly supports mainland enterprises to develop through the two markets and resources.

 According to its website, the exchange had handled 105 applications for the main board as of Monday, including 36 new applications accepted in 2024. These "new faces" in 2024 are mainly mainland new economy companies, from artificial intelligence, medical care, optional consumption and other tracks.

 In the table enterprises, there are not only the consumer enterprises with strong profitability such as Mixue Ice City, Shanghai aunt, GuMing holding, small garden, but also the "unicorns" such as horizon and fly medical, as well as MAO Geping, known as "the first stock of domestic cosmetics".

 According to the reporter's statistics, as of April 21,2024, the Hong Kong Stock Exchange has welcomed a total of 12 IPO companies this year, raising a total of HK $4.51 billion. There was no large IPO within the year, with the largest company, raising a total of HK $985 million.

This year, the overall performance of newly listed Hong Kong shares has been stellar, with an average gain of 31% on the first day of trading. In addition, some new shares rose well after the listing. For example, on January 9, Changchang Stock was listed on the Hong Kong Stock Exchange, and by the close of April 19, the cumulative increase reached 563.87%; Jingwei Tiandi and Music Group also rose more than 200%.

 Enhance the attractiveness of the Hong Kong stock market

 Many industry insiders believe that the China Securities Regulatory Commission issued five capital market cooperation measures on Hong Kong, which will strongly boost the confidence of the recovery of the Hong Kong stock market.

Hong Kong Financial Secretary Maobo Chen said the CSRC will support eligible leading companies in the mainland industry to list on the Hong Kong Stock Exchange and strengthen communication and coordination with relevant authorities, which will help the development of the Hong Kong new share market. The listing of more enterprises with long-term development and return potential on the Hong Kong Stock Exchange will attract more international funds to Hong Kong and strengthen and enhance Hong Kong's status as an international financial center.

 Recently, he noticed that many mainland companies from Hangzhou and Suzhou have applied for or are considering applying to list on the Hong Kong Stock Exchange."They all recognize the institutional advantages of the Hong Kong stock market and the seamless connection with international standards, and believe that overseas financing will accelerate its development in the mainland and international markets."Chen Maobo said.

"We are very grateful to the China Securities Regulatory Commission for its efforts to promote the smooth financing channels for mainland enterprises to list in Hong Kong and support the leading enterprises in the mainland industry to list in Hong Kong, which will be of great help to enhance the attractiveness of the Hong Kong IPO market and the liquidity of the Hong Kong secondary market."Said Ms Fengyi, chief executive of the Securities and Futures Commission.

 On April 18,2024, Chen Yiting, chief executive of the HKEX Group, said that China's economy is undergoing an important structural transformation. A large number of dynamic companies have emerged in emerging industries such as new energy, electric vehicles, artificial intelligence and biotechnology, and the number of technology companies listed on the Ex will increase.

 She noted that HKEX will work to enhance the liquidity and vitality of the Hong Kong stock market in an increasingly complex international environment. HKEX should continue to optimize the listing system to make the new share market more diversified and dynamic, continuously expand the resources of listed companies and improve the market services; also improve the market infrastructure and enrich the asset classes and product categories to facilitate investors to better manage the asset portfolio and hedge risks.

Tan Yueheng, chairman of BoCOM International, told reporters that the China Securities Regulatory Commission has issued five capital market cooperation measures with Hong Kong, which has provided a huge boost to the Hong Kong stock market."In the first quarter of 2024, the HKEX dropped to the 10th place in the world in terms of listed financing. At this very critical stage, the China Securities Regulatory Commission's move to support leading mainland companies to list on the Hong Kong Stock Exchange has injected new momentum into the market."He said.

Xie Minghui, managing partner of East China Hong Kong Listing business at Deloitte China Capital Markets Services, said: " The Hong Kong stock market showed more positive signs from March, with more new shares set to be listed, the market turnover was better, and the list of companies ready to be listed was expanded by the end of the first quarter of 2024.”

According to Deloitte China Capital Market Services, 80 new shares will be listed on the Hong Kong Stock Exchange in 2024, raising about HK $100 billion.

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