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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 JD.com 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.