After last week’s newsletter had been sent, more than one analyst came out to pronounce that Beijing’s decision to review Chinese companies’ IPOs on the New York Stock Exchange over cyber-security concerns was not about financial decoupling. Rather, it was a natural progression of China’s systematic tightening of controls over the rambunctious tech sector, they said.
Today, it emerged that Beijing plans to exempt companies wanting to list on the Hong Kong Stock Exchange (HKEX) from any such data-security reviews.
As had previously been argued, bureaucrats such as those at the Cyber Administration of China have been having a well-deserved run in the limelight recently. But make no mistake, their new-found powers are resting on their interests being aligned with loftier political goals, particularly those laid out by President Xi Jinping on July 1 speech atop Tiananmen Gate, which are aimed primarily at establishing China’s position in the world, primarily against the United States.
It would be hard to find a better example to illustrate this point than the decision to exclude HKEX from the CAC’s reach. Investors certainly got it, as 0388.hk surged soon after the news broke, closing the day up 3.27%. What other way is there to see it, other than Beijing would like to hasten the removal of its best companies from New York to Hong Kong by applying its rules differently against companies in the two jurisdictions?
Continue reading This isn’t decoupling?
The Greater Bay Area has a unique opportunity to create new methods of financing industrial growth, a high-powered forum in Shenzhen heard last week.
When Chinese hi-tech firms see difficulties in raising money through traditional methods, the future is there for GBA cities to create efficient financing infrastructure that can support money-burning, fast-developing startups. However, Hong Kong, the world’s No. 1 IPO market, is not doing a good enough job in this regard.
So said Ba Shusong, chief economist at China Banking Association and HKEX, at a conference discussing innovation in the GBA, held by Guangdong’s leading media group on Thursday.
Continue reading Shenzhen forum mulls future of finance in GBA
The Hong Kong stock exchange has welcomed a reported US$20-billion secondary listing in the SAR by e-commerce behemoth Alibaba Group in the second half of this year, reports China Daily.
HKEX Chief Executive Charles Li Xiaojia told the HKEX Biotech Week Summit that the flotation, if confirmed, should “come as no surprise and is only a matter of time”.
The reported listing, that could potentially dwarf the initial public offerings of Uber, Lyft and Pinterest combined, would help Alibaba diversify its funding channels and raise liquidity.
Alibaba is said to be aiming to file a listing application in Hong Kong as early as the second half of 2019. The monster share sale of US$20 billion will bring China’s largest company closer to friendlier investors at home as US tensions escalate.
The Nobel and Turing Laureates Hong Kong Summit took place yesterday, attracting more than 500 professionals and experts from the fields of biotech, computer science, mathematics, and finance, as well as – you guessed it – recipients of the Nobel Prize, Turing Prize, and Fields Medal.
Hong Kong’s Finance Secretary, Paul Chan, took the opportunity to boast that the government had put HK$100bn into “innovation and technology” in the past two years. It had also established a biotech platform at the Hong Kong Science and Technology Park. Ba Shusong of the Hong Kong Stock Exchange noted that nine biotech companies had listed on HKEX, and ten others have applied to be listed.
The summit was the first event of the International Innovation and Technology Hub Forum, which was launched by the Greater Bay Area Homeland Investments Limited, manager of a government-backed RMB100 billion private equity fund aimed at supporting high-tech industries in the Greater Bay Area.
Read more (in Chinese).