Dual-Capital Platform Strategy Gains Momentum Among Chinese Firms
Mainland China’s publicly traded companies are increasingly pursuing dual listings in Hong Kong, with several major A-share players recently announcing plans to establish “A+H” capital platforms. This strategic move comes as Chinese corporations seek to enhance their global competitiveness and access international capital markets.
Hospitality and Robotics Giants Lead the Charge
On June 4, two A-share companies with market capitalizations exceeding 10 billion yuan—Jinjiang Hotels and Estun Automation—simultaneously announced plans to issue H-shares on the Hong Kong Stock Exchange. Both companies emphasized global expansion as the primary motivation for their Hong Kong listing plans.
Jinjiang Hotels, established in 1994 and ultimately controlled by the Shanghai State-owned Assets Supervision and Administration Commission, operates across three business segments: full-service hotel operations, limited-service hotel management, and food & beverage services. The company’s board has approved the H-share issuance proposal as part of its strategy to strengthen connections with international capital markets and improve corporate governance transparency.
Jinjiang’s International Pedigree
The hospitality group’s international ambitions date back to 2015 when it acquired France’s Louvre Hotels Group for €1.288 billion—a landmark transaction that established Jinjiang’s overseas hospitality business. As of December 2024, the company’s portfolio included properties across 338 Chinese cities and 55 international markets, with overseas operations generating 30.8% of total hotel revenue (4.256 billion yuan) in 2024.
Notably, Jinjiang Capital—Jinjiang Hotels’ parent company—previously listed in Hong Kong in 2006 before delisting in May 2022. The current move represents a renewed push into international markets through the Hong Kong financial hub.
Industrial Automation Firm Eyes Global Expansion
Estun Automation, which specializes in industrial robotics and smart manufacturing systems, concurrently announced its Hong Kong listing plans to accelerate overseas development and enhance its international brand profile. Since its 2015 Shenzhen listing, Estun has pursued an aggressive acquisition strategy to expand its global footprint, purchasing Germany’s Cloos, Britain’s TRIO, and Germany’s M.A.I.
The company reported 1.37 billion yuan in overseas revenue for 2024, accounting for 34.16% of total sales despite a 14.1% year-over-year decline. With 75 service outlets spanning Europe, America, and Asia, Estun plans to intensify global expansion in 2025 by establishing worldwide production capacity and supply chains while targeting markets in Europe, the Americas, the Middle East, and Southeast Asia.
Hong Kong’s Resurgent Appeal for Chinese Listings
The dual-listing trend has gained remarkable momentum in 2025, with A-share market leaders like CATL and Hengrui Pharmaceuticals recently completing Hong Kong listings. Other companies including Will Semiconductor, Nationz Technologies, and Intsig Information have similarly cited global strategy implementation as key motivations for Hong Kong listings.
Market Dynamics Fueling the Trend
Hong Kong Financial Secretary Paul Chan noted in a recent blog post that the city’s IPO fundraising has surpassed HK$76 billion this year—a sevenfold increase from 2024 levels and nearly 90% of last year’s total. This resurgence has attracted renewed interest from international investors seeking exposure to Asian markets through Hong Kong’s financial platform.
Wu Guangbin, Managing Director of GF Securities’ Investment Banking Management Committee, explains the appeal for mid-cap A-share firms: “Companies with market values in the 10-20 billion yuan range increasingly view internationalization as critical for competitiveness. Hong Kong’s efficient, liquid markets provide these firms with optimal platforms for overseas financing and cross-border M&A activities.”
Strategic Advantages of Dual Listings
Industry analysts identify multiple benefits driving the A+H trend:
- Currency Diversification: Access to USD/HKD funding reduces FX risk for global operations
- M&A Currency: H-shares facilitate international acquisitions and partnerships
- Brand Prestige: Hong Kong listings enhance corporate profiles in overseas markets
- Regulatory Arbitrage: More flexible capital raising options compared to mainland exchanges
- Investor Base: Exposure to sophisticated international institutional investors
Sector-Specific Implications
The current wave of Hong Kong listings reveals distinct patterns across industries:
| Industry | Listing Motivation | Representative Companies |
|---|---|---|
| Consumer/Hospitality | Brand globalization, asset light expansion | Jinjiang Hotels, BTG Hotels |
| Industrial Tech | Technology acquisition, supply chain integration | Estun, Inovance |
| Healthcare | Regulatory approval facilitation, R&D partnerships | Hengrui, WuXi AppTec |
Regulatory Considerations
While the Hong Kong route offers advantages, companies must navigate complex regulatory requirements:
- CSRC approval for overseas listings
- HKEX disclosure and governance standards
- Dual-listing compliance obligations
- Foreign ownership restrictions in certain sectors
Future Outlook
Market observers anticipate the dual-listing trend will accelerate through 2025, particularly for:
- Companies with existing overseas operations exceeding 25% of revenue
- Sectors facing intense domestic competition requiring differentiation
- Firms pursuing transformational cross-border acquisitions
- State-owned enterprises implementing “going out” strategies
However, analysts caution that successful Hong Kong listings require careful preparation, including:
- Establishing international-standard financial reporting
- Developing investor relations capabilities for global audiences
- Aligning corporate governance with international expectations
- Preparing for heightened public market scrutiny
As Chinese companies increasingly view themselves as global competitors rather than domestic players, the Hong Kong stock exchange appears poised to regain its historical role as the primary gateway for China’s corporate internationalization—marking a significant evolution in the dynamics of Asian capital markets.
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