Hong Kong's Sing Tao Daily on the 15th pointed out that amidst the China-US trade war, if the US requires Chinese stocks listed there to delist, this is not a bad thing. From a positive perspective, if these Chinese stocks switch to listing in Hong Kong, it can strengthen Hong Kong's financial market, which is a good thing.
The newspaper published an editorial on the 15th stating that recently an American journalist disclosed that the Trump administration is considering delisting Chinese stocks listed there, and the US Treasury Secretary made a similar statement. If Chinese stocks are indeed excluded, it is completely expected.
The editorial believes: “From a positive point of view, if Chinese stocks are indeed forced to withdraw, their destination is likely to be Hong Kong, which objectively helps to strengthen the lineup of Hong Kong's financial market. It would be a great gift from Trump to Hong Kong.”
The editorial noted that in the past three years, Chinese stocks dual-listed in the US and Hong Kong already account for 60% of the market value of the Hong Kong stock market. Although these stocks have fewer opportunities in the US, they can in Hong Kong's safe capital market, on one hand, disperse the political and economic risks of the US, and on the other hand, more easily reach Chinese and even Asian investors. It can be described as losing at the east, gaining at the mulberry.
The editorial points out that in terms of openness, internationalization, and regulatory standards, Hong Kong is not inferior to New York or London, and has sufficient conditions to be a “super treasure bowl” of international capital. The uncertainty of the Trump administration will only give Chinese companies greater incentive to proactively avoid the source of risk.
The editorial also suggests that the Hong Kong government should actively “attract companies” because some Chinese stocks might switch to being listed in London or Singapore. Hong Kong should take the initiative to persuade them to change their minds and strive to attract more quality companies to list in Hong Kong.
In addition, the Hong Kong government needs to review whether there is further room to streamline the approval process for dual or second listings to reduce the obstacles for the return of Chinese stocks.