Mainland China’s stock exchanges mount charm offensive amid Hong Kong IPO boom

Mainland China’s stock exchanges have stepped up lobbying of companies and regulators to prioritise domestic listings after Hong Kong stole their thunder in fundraising activities in recent years, according to two sources familiar with the matter.The domestic exchanges recently met representatives of some mainland companies planning Hong Kong listings, especially first-time issuers and firms in sectors supported by national policies, a source said.“Exchanges emphasised the benefits of listing on the mainland, including valuations that are generally higher than in Hong Kong, a clearer and more controllable timetable, and more policy resources for sectors that fit Beijing’s priorities,” the people said.Another source, an intermediary who helps companies with Hong Kong Initial Public Offerings (IPOs), said such lobbying efforts, while routine, had intensified as exchanges operated as businesses “competing for market rankings”.“Competition between exchanges for quality technology firms will be much more intense going forward,” the person added.Following the outreach and persuasion from mainland exchanges, some clients are now rethinking plans to offer Hong Kong shares, also known as H shares, and choosing A-share offerings in Beijing, Shanghai or Shenzhen instead, a source said.The heated competition comes as Hong Kong’s IPO fundraising – a majority involving mainland companies – topped HK$340 billion (US$43 billion) in the first eight months of this year. The figure has already surpassed last year’s total, with hundreds of firms still waiting in the queue.