According to reports from local media, the CEO of the Hong Kong Stock Exchange (00388.HK), Bonnie Chan Yi-ting, responded to suggestions about companies in the Greater Bay Area listing on the Shenzhen Stock Exchange. She stated that whether it is "A shares first, then H shares" or "H shares first, then A shares," both can help companies reach more investors. In addition to not diluting the investor base, it can also increase the liquidity of shares and enhance valuations.
Bonnie Chan Yi-ting stated that the Hong Kong Stock Exchange is currently processing over 160 listing applications, with nearly 20 companies interested in raising over 1 billion USD. Regarding Emerging Markets such as the Middle East and Southeast Asia, it is believed that there is potential to attract listed companies from these regions to have secondary listings in Hong Kong, and some progress has already been made in recent months.
Regarding the reform of the clearing system, she mentioned that the Hong Kong Stock Exchange plans to publish a white paper this year on the "T+1" settlement period, emphasizing that the exchange does not have a predetermined position. However, last year the United States switched from "T+2" to "T+1," believing that shortening the cycle can achieve turnover effects, but it also increases operational risks. As for the proposed change in the minimum trading unit for Hong Kong stocks from "per board lot" to "per share," Bonnie Chan Yi-ting stated that many of the Hong Kong Stock Exchange and related Institutions' charges are based on per board lot. Any changes would involve system adjustments and increase the operational burden on the industry, requiring careful evaluation and consultation with the industry.
