Policy Incentives and Globalization Strategies Drive Unprecedented Cross-Border Listings
In a remarkable market movement, China’s A-share listed companies are accelerating their Hong Kong listings, creating a new wave of “A+H” dual-capital platform operations. May alone witnessed four major A-share companies—CATL, Hengrui Pharmaceuticals, Junda Automotive, and Jinhong Holdings—successfully debuting on the Hong Kong Stock Exchange. Industry analysts project this year may set a new record for “A+H” listings in recent years.
The Surging Cross-Border Listing Wave
Shanghai Securities Journal investigations reveal this trend stems from converging policy advantages and corporate globalization strategies. Investment banking sources suggest the momentum could sustain for 1-2 years, with three company types particularly active: industry leaders, medium-sized firms with overseas ambitions, and innovative enterprises currently operating at a loss.
While industry frontrunners still dominate current Hong Kong listing plans, the sector distribution has significantly diversified beyond traditional biopharma, power equipment, and F&B industries. According to Shanghai Securities Journal statistics, nearly 30 A-share companies have announced Hong Kong listing plans this year, with 20 accelerating preparations since April across telecommunications, electronics, automotive and other sectors—including heavyweights like Sany Heavy Industry, Muyuan Foodstuff, and Will Semiconductor.
Notable Listings and Accelerated Approvals
The May cohort made particular waves: CATL’s listing marked the largest Hong Kong IPO in recent years, while biopharma leader Hengrui achieved the sector’s biggest financing scale in five years. Following China Securities Regulatory Commission’s 2023 endorsement for mainland industry leaders to list in Hong Kong, approval timelines have notably compressed. CATL and Jinhong completed their Hong Kong listings within three months of application—CATL becoming the first dual-listed power battery manufacturer on February 11, with Jinhong following on May 27.
Sun Mengqi, partner at Shanghai AllBright Law Offices, observed enhanced regulatory characteristics this year: “We’re seeing improved review efficiency, strengthened disclosure requirements, and better cross-border regulatory coordination—all aligning with international development needs and capital market liberalization.”
Remarkably, some recent listings displayed rare H-share premiums over their A-share counterparts. CATL’s Hong Kong offering was oversubscribed 150.2 times, with its H-shares closing at a 7.4% premium to A-shares on debut—only the second such occurrence after BYD. Shengshan Capital founder Gan Shixiong predicts: “This premium phenomenon may recur with other industry leaders and platform companies entering Hong Kong markets.”
Hong Kong’s Growing Appeal for Mainland Listings
Hong Kong Financial Secretary Paul Chan recently noted the market’s IPO fundraising has exceeded HK$76 billion this year—a sevenfold annual increase reaching nearly 90% of 2023’s total. What makes Hong Kong increasingly attractive for A-share companies?
Regulatory and Market Dynamics
The external environment plays a key role. Since April 2024, when CSRC announced five capital market measures supporting Hong Kong listings—followed by October’s joint statement by Hong Kong regulators promising faster approvals—the cross-border listing pipeline has accelerated. Chan noted growing interest from international investors using Hong Kong to increase Asian asset allocations.
GF Securities investment banking managing director Wu Guangbin connects this to renewed global interest in Chinese tech: “With breakthroughs like DeepSeek gaining international recognition, overseas investors are showing greater appetite for Chinese assets.” He emphasizes Hong Kong’s advantages for companies needing overseas financing channels, M&A opportunities, and global brand recognition.
Multiple listing candidates including Will Semiconductor and National Technology have explicitly cited globalization strategies in their filings. Will Semiconductor stated its Hong Kong move aims to “accelerate internationalization, enhance offshore financing capabilities, and strengthen overall competitiveness.”
Sun Mengqi adds the risk diversification benefits: “Dual listings allow companies to meet disclosure requirements under different regulatory frameworks, effectively spreading compliance risks.”
Sustained Momentum with Evolving Participant Profile
The “A+H” trend is expanding beyond traditional blue-chips. Recent months saw loss-making companies successfully listing, while some technology firms initiated Hong Kong plans within a year of A-share debuts.
Ideal Candidates for Dual Listings
Wu Guangbin identifies promising candidates beyond industry leaders: “Mid-cap companies with HK$20-30 billion market capitalizations see overseas expansion as crucial for growth and competitiveness.” The model also suits certain innovative companies facing losses—with A-share refinancing constraints making Hong Kong’s more flexible environment attractive.
Duration Outlook and Market Fundamentals
Bankers and legal experts consensus suggests 1-2 years of continued momentum, with long-term sustainability depending on market conditions. While Hong Kong’s liquidity has improved—creating a virtuous cycle where quality listings attract investors, which then draws more issuers—some caution remains about sustaining large-scale IPOs.
Gan Shixiong offers a market equilibrium perspective: “Invisible hand dynamics will eventually balance supply and demand. The current window won’t last indefinitely—only truly globally competitive, technologically advanced firms will achieve valuation breakthroughs through dual platforms.”
As the “A+H” phenomenon evolves, market watchers will monitor whether Hong Kong’s liquidity can support the influx, and how companies leverage their dual-platform advantages in increasingly interconnected capital markets.
Related topics:
