Capital markets growth | KPMG | CN
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Hong Kong super-connector

Capital markets growth

Collaborating along the Belt and Road

Opportunities and challenges

finance chart

The Belt and Road Initiative (BRI or the Initiative) presents a number of opportunities and challenges to consider for local BRI governments, inbound investors and business partners.

Capital markets growth

Hong Kong remains a leading market for listing and trading securities, with a deep capital pool comprising both institutional and retail investors. As an international finance centre, the city continues to act as a key connector to global capital markets, which is expected to play an increasingly pivotal role in the development of the BRI.

Key capital markets themes

Cross-border capital flow

The Stock and Bond Connect schemes between Hong Kong and mainland China continue to develop, with an increasing number of international and mainland Chinese investors trading securities across markets.

Listing of companies from innovative and emerging sectors

Innovative sectors in China and globally are booming, and Hong Kong is well-positioned to capitalise on this growing trend. The Hong Kong Stock Exchange (the Exchange) is introducing a new listing regime for companies from emerging and innovative sectors. This new regime will allow the listing of

  1. Biotech companies that do not meet any of the financial eligibility tests of the Main Board;
  2. High growth and innovative companies with weighted voting right structures; and
  3. Qualifying Issuers seeking a secondary listing on the Exchange.

International listing venue

In addition to local and mainland Chinese companies, Hong Kong continues to attract listings from overseas companies – including many from along the Belt and Road – due to its high liquidity and significant investment opportunities.

H-share convertibility

The China Securities Regulatory Commission introduced a pilot scheme that allows mainland-incorporated companies listed in Hong Kong to convert their non-tradable equity into free-floating H-shares. The scheme could potentially increase share supply in the Hong Kong market, and will likely boost foreign interest in Hong Kong-listed Chinese companies.

The KPMG capital markets proposition

Comprehensive service and global network

Our global network comprises experienced professionals who advise companies on all stages of the listing process. We advise on initial public offerings (IPOs) and restructuring for listings on both local and international securities exchanges. We act as reporting accountants, performing financial statement audits and other listing-related assurance work, and advising on internal controls and comments raised by the regulators. As part of our pre-IPO services, we also advise on a company’s listing preparations including its operations, finance and management teams, assist in liaising with the sponsors and other advisors, and facilitate the sponsors’ financial due diligence.

Strong credentials in Belt and Road countries

Through our extensive network of firms and professionals in the region, we have a strong track-record in working with clients from Hong Kong, mainland China and ASEAN countries on their IPOs and debt offerings both in Hong Kong and along the Belt and Road.

Capital Markets Group

Our Hong Kong Capital Markets Group advises on the issuance and trading of both equity and debt securities, including listing opportunities for New Economy companies from emerging and innovative sectors. The group also works with clients on corporate finance and fundraising opportunities, both locally and internationally.

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