Is a “H+A” Listing Wave Coming to the SZSE? Shenzhen’s Comprehensive Reform Unlocks New Capital Market Pathways

The financial cooperation between Shenzhen and Hong Kong has received a significant policy boost. Recently, the General Office of the Communist Party of China Central Committee and the General Office of the State Council jointly issued the "Opinions on Deepening Reform, Innovation, and Expanding Opening-Up of the Shenzhen Comprehensive Reform Pilot," which states that "enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area that are listed on the Hong Kong Stock Exchange will be allowed to list on the Shenzhen Stock Exchange in accordance with policy regulations."

This development is seen as a signal of a new "H+A" path in the capital market, providing Hong Kong-listed enterprises in the Greater Bay Area with a new channel to return to A-shares and leverage the domestic capital market for further growth. Following the release of this new policy, the market is closely watching which Hong Kong-listed companies in the Greater Bay Area will be able to list on the A-share market. According to the listing rules for the Main Board and ChiNext of the Shenzhen Stock Exchange, red-chip companies that are already listed overseas can choose one of two standards for a secondary listing on the Main Board: Standard 1 requires a market capitalization of not less than RMB 200 billion, while Standard 2 requires a market capitalization above RMB 20 billion and the possession of proprietary research and internationally leading technology, strong innovation capabilities, and a competitive position within their industry.
Data from Wind shows that as of June 11, 2025, there are 220 Greater Bay Area enterprises listed in Hong Kong but not in A-shares, with a total market capitalization of approximately HKD 16 trillion. These include leading Hong Kong-listed tech firms such as Tencent Holdings and XPeng Inc.

Liu Ying, a researcher at the Chongyang Institute for Financial Studies of Renmin University of China, told Shen Shi News that the Hong Kong-listed companies in the Greater Bay Area are mainly concentrated in high-tech and new economy sectors. Listing on the Shenzhen Stock Exchange could inject high-growth assets into the market, attract medium- to long-term capital, and enhance market vitality.

Yuan Chuang, Chief Economist and Director of the Research and Development Center at Caitong Securities, noted that the return of high-quality tech firms from the Hong Kong market to A-shares would further boost investor confidence in China's capital market and technological assets. The market would be better positioned to assess the long-term investment value of these tech firms.

Yang Chao, Chief Strategy Analyst at China Galaxy Securities, highlighted that the Shenzhen Stock Exchange offers higher liquidity and valuation benchmarks, while Hong Kong-listed companies benefit from more internationalized governance. Combining the two could deeply integrate industrial policy advantages with international capital elements, offering dual support for R&D and cross-border M&A.

The deepening cooperation between the Shenzhen and Hong Kong stock exchanges can be traced back to the launch of the Shenzhen-Hong Kong Stock Connect in 2016. As of June 12, 2025, the number of eligible stocks under the Shenzhen Connect and Hong Kong Connect had expanded to 1,379 and 550 respectively. The cumulative trading volume for the year reached RMB 9.45 trillion and HKD 11.24 trillion, up 38.36% and 191.95% year-on-year.

In recent years, there has been a surge of mainland enterprises seeking listings in Hong Kong. As of the end of May, 27 companies had completed IPOs in Hong Kong this year, an increase of 28.6% year-on-year, raising a total of HKD 77.7 billion—a year-on-year increase of over 709%. These include established A-share leaders like CATL and new consumer brands such as Laopu Gold and Mixue Group.

While several companies have returned to A-shares from H-shares—such as China International Capital Corporation, China Galaxy Securities, and Semiconductor Manufacturing International Corporation—most have done so via the Shanghai Stock Exchange. In contrast, Shenzhen Stock Exchange cases of "H+A" listings remain relatively rare, though there have long been calls for change.

At the "2025 Tsinghua PBCSF Global Finance Forum," Shi Weigan, Executive Deputy Director of the Shenzhen Municipal Financial Regulatory Bureau, listed four key initiatives for the future, one of which was to further support and encourage outstanding Shenzhen and Greater Bay Area enterprises to list in Hong Kong, while also encouraging qualified H-share listed firms to return to the Shenzhen Stock Exchange.

Industry experts observe that based on recent valuation comparisons between A+H dual-listed companies, the A-share market often provides higher valuations. The underlying reason is that capital in the Hong Kong market is concentrated among a few leading firms, and some mainland companies listed only in Hong Kong receive relatively low valuations. Thus, listing on the Shenzhen Stock Exchange is seen as a way to access higher valuations and raise more capital.

Liu Ying noted that the A-share market offers stronger liquidity and a broader investor base. Dual listings can optimize resource allocation and foster synergistic growth. Southbound capital tends to favor general consumption and dividend sectors, while foreign capital remains dominant in core industries like technology, internet, and finance. By listing in both markets, companies can better match different investor preferences and improve financing efficiency.

Wu Haifeng, a researcher at the Shenzhen Finance Institute of the Chinese University of Hong Kong (Shenzhen), stated that the "A+H" model helps leading domestic firms expand globally—for instance, CATL’s listing in Hong Kong opened access to international financing to support its global strategy. Conversely, the "H+A" model aims to bring top-quality firms back to the domestic market.

"The Hong Kong market nurtured early-stage Chinese internet and AI firms, but to grow into major players, they need to tap into the mainland’s capital reservoirs," Wu said. Although the "Opinions" clearly signal the start of "H+A" opportunities, specific case implementations will take time. Experts emphasize that the policy does not lower listing thresholds—A-shares will continue to maintain a high-quality orientation. Detailed rules are expected to follow, and implementation will proceed prudently under strict regulatory supervision.

Wang Hongying, President of the China (Hong Kong) Financial Derivatives Investment Research Institute, pointed out that differences in regulatory frameworks between Shenzhen and Hong Kong must be addressed. Considerations include whether to relax foreign exchange controls and how to design systems that attract overseas investors to A-shares to achieve integrated trading.
"Securities listed in Hong Kong are priced in Hong Kong dollars and heavily influenced by U.S. dollar fluctuations, while A-shares are priced in RMB. Reasonably relaxing foreign exchange controls is crucial to facilitate capital flow in and out of the capital market," Wang added.

Sun Yin, Deputy Director of the Research and Development Center at Western Securities and Chief Analyst for the Non-Banking Sector, noted that compared to Hong Kong, A-share IPOs or refinancing processes take longer due to more rigorous reviews. Therefore, adjustments to Shenzhen Stock Exchange listing rules and review processes may be needed to support the "H+A" listing model.