Forced delisting and privatization parallel, 40 Hong Kong-listed companies "withdraw" from the market within the year.

Since the beginning of this year, the pace of delisting in the Hong Kong stock market has accelerated. According to Wind data, as of September 5th, 40 Hong Kong companies have completed delisting this year, with 19 being delisted and privatized, and 2 voluntary withdrawals. This is an increase from the 32 delisted companies at the same time last year. It is worth noting that there is also a significant change in delisting in the A-share market. By the end of August, 23 A-share companies have completed delisting this year, with 9 of them happening since July. From A-shares to Hong Kong stocks, both markets are experiencing a comprehensive optimization of the corporate ecosystem. On one hand, delisting has become a norm in the A-share market under the new regulations; on the other hand, the "fast delisting mechanism" in Hong Kong is clearing out "zombie" companies in bulk. The delisting trend reflects the regulatory authorities in both places responding to marketization, rule of law, internationalization, and strengthening governance.