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Hong Kong’s Rush to Attract China Listings Comes With a Risk

  • Political tension raises doubts on international capital flow
  • Hong Kong trading is limited compared with U.S. exchanges
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Political Tensions Weigh on Hong Kong’s Ability to Attract Capital
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Hong Kong exchange’s race to attract big Chinese technology listings comes with one big risk, say money managers: The city’s ability to keep the investing dollars flowing in as it’s roiled by political tensions.

Hong Kong Exchanges & Clearing Ltd. has been pulling out all the stops to attract China’s brightest stars as questions mount about their U.S. listings. Approvals for Inc. and NetEase Inc. were greenlit in a matter of weeks due to rule changes and the fact that they already had listings. Approvals for initial public offerings typically take months.