China Plan to Boost Chinese Listings, IPOs in Hong Kong Faces Major Hurdles - Bloomberg
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China’s New Plan to Boost Hong Kong IPOs Faces Major Hurdles

  • Low valuations, lack of big listings are clouding the outlook
  • Beijing wants to bolster Hong Kong’s role as a finance hub
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China’s vow to encourage the nation’s leading companies to list in Hong Kong is helping spur a rare surge in the $5 trillion stock market, but dealmakers aren’t ready to turn optimistic.

The Hang Seng Index jumped about 9% last week for its best gain since 2011 after China’s securities regulator said on April 19 that it will support initial public offerings in Hong Kong. Bourse operator Hong Kong Exchanges & Clearing Ltd. was among the biggest winners, rallying 17%.

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