Chen Haolian: Hong Kong's first three quarters have welcomed 69 new listed companies, ranking first in the world.

On October 22, Hong Kong's Acting Secretary for Financial Services and the Treasury Chan Ka-lam pointed out during a meeting of the Legislative Council in Hong Kong that under the impetus of a series of reforms in the listing system, the new stock market in Hong Kong has welcomed 69 new listed companies in the first three quarters of this year, with the amount of funds raised exceeding HK$180 billion, more than double the same period last year, ranking first in the world. The number of listing applications is also rapidly increasing, with the Hong Kong Stock Exchange processing nearly 300 listing applications by the end of September. In addition, since the reform in 2024, four companies have been listed on the GEM market with a total fundraising amount of HK$280 million. Since the beginning of this year, a total of 11 small and medium-sized enterprises have applied to list on the GEM market, showing that previous measures are starting to show results. Seizing the momentum for 2025, the Hong Kong Stock Exchange and the Securities and Futures Commission are pushing forward further system enhancements to enhance the vitality and competitiveness of the Hong Kong market. As a "super connector" between the global and national markets, Hong Kong plays an efficient role in connecting international capital and mainland assets bi-directionally. International institutional investors have widely participated in Hong Kong's initial public offering market, and more issuers from overseas, including from Thailand, Indonesia, Kazakhstan, and Singapore, have chosen to list in Hong Kong this year. International participation has also attracted mainland companies to accelerate their overseas layout through the Hong Kong market. From the beginning of the year to the end of September, more than half of the companies listed in Hong Kong have international business layouts, with an average of about half of their revenue coming from overseas markets. The government will continue to promote the Securities and Futures Commission and the Hong Kong Stock Exchange to optimize the listing mechanism to attract companies with development potential from around the world to list and raise funds in Hong Kong. In this regard, the Hong Kong Stock Exchange has optimized the listing requirements for overseas issuers, introduced a set of core shareholder protection levels applicable to all issuers, and issued guidelines to facilitate compliance. For overseas listed companies, the Hong Kong Stock Exchange has established a convenient path for them to have dual primary listings or secondary listings in Hong Kong, including relaxing the market capitalization requirements for Greater China issuers without different voting rights structures to list for a second time in Hong Kong, and giving qualified issuers with different voting rights or variable interest entities structures more flexibility to obtain primary listing status in Hong Kong. Since 2023, the Hong Kong Stock Exchange has successively included several exchanges from the Middle East and the Association of Southeast Asian Nations (ASEAN) region in its recognized securities exchange regime, facilitating companies listed on relevant main boards to have a secondary listing in Hong Kong. Furthermore, the Hong Kong Stock Exchange has formulated flexible disclosure standards and transition arrangements, including allowing overseas issuers to use Hong Kong or other recognized financial reporting standards other than International Financial Reporting Standards when preparing annual financial statements in appropriate circumstances, and granting a grace period for issuers who convert from a secondary listing to a dual primary listing to fully comply with the Listing Rules, providing convenience for overseas issuers. To enhance Hong Kong's competitiveness as a listing center, the Securities and Futures Commission and the Hong Kong Stock Exchange have been continuously reviewing the effectiveness of various listing reforms and actively following up on various measures proposed in the Chief Executive's Policy Address for 2025, including further improving the various aspects of the listing system while balancing related risks and investor protection, and studying the optimization of the "weighted voting rights" listing rules. Research will also explore how to better serve the financing needs of different types and sizes of enterprises and attract more investors and capital into the Hong Kong market on the basis of the GEM reform. The Hong Kong Stock Exchange will announce optimization proposals in a timely manner according to the "mature one, launch one" principle and conduct public consultations. Regarding Global Exchange-Traded Funds (ETFs), Chan Ka-lam pointed out that the ETF market has developed rapidly in recent years and has helped investors effectively diversify their portfolios, covering a wide range of asset classes and investment strategies. The government has been promoting the development of the local ETF market, exempting the stamp duty on share transactions in the secondary market and market makers participating in the issuance and redemption of ETF units since 2015 and 2020 respectively, reducing the related trading and listing costs. In 2022, ETFs were included in the "Stock Connect" mechanism, allowing Hong Kong and overseas investors to buy and sell eligible ETFs listed on the Shanghai and Shenzhen stock exchanges, while enabling mainland investors to invest in eligible ETFs listed in Hong Kong. At the same time, the government is actively strengthening the local ETF ecosystem. Since 2023, there have been several product innovations, including the listing of the first ETF tracking the Saudi Arabian market in Asia in Hong Kong, as well as two ETFs tracking Hong Kong stocks listed on the Saudi Stock Exchange through a connectivity fund, establishing a bridge for two-way capital flow between the two markets. Last year, the Hong Kong Stock Exchange introduced the first batch of virtual asset spot ETFs in Asia and the first batch of covered call option ETFs in Hong Kong, meeting investors' demand for non-traditional assets, coping with potential market volatility, and hedging downside risks. This year, Hong Kong has also welcomed the fifth largest ETF in terms of market value globally to be cross-listed in Hong Kong, as well as the first Islamic bond ETF listed in Hong Kong. With the support of relevant policies, Hong Kong has developed into one of the largest and most active ETF markets in Asia, attracting numerous issuers, market makers, and investors to participate. In the first three quarters of 2025, the average daily trading volume of ETFs in Hong Kong reached HK$34.2 billion, a 113% increase from the annual average in 2024 and a 190% increase from the annual average in 2023. As of the end of September, the assets under management in the Hong Kong ETF market had reached HK$625.4 billion. Chan Ka-lam hopes to work closely with all stakeholders to introduce more innovative products, including promoting the issuance and trading of tokenized ETF products and assisting issuers in issuing gold-related ETFs, further strengthening Hong Kong's position as a comprehensive leading ETF trading center. The government also supports the Hong Kong Stock Exchange in further promoting its activities in ASEAN and the Middle East, actively exploring cooperation opportunities in areas such as ETF listings with countries in the region, and further enriching the local ETF ecosystem.