Hong Kong Exchange and Clearing Limited (HKEx) opened its representative office in Beijing Monday afternoon, and State Councilor Tang Jiaxuan attended the opening ceremony.
The first branch of its type established by HKEx on the mainland, the office is expected to improve links between Hong Kong stock markets and mainland supervision bodies, and facilitate communication between HKEx and mainland enterprises wanting to be listed.
HKEx is the second biggest stock exchange in Asia and the 11th biggest in the world, with 999 listing companies and a total market value of over HK$3,900 billion (US$500 billion).
The holding company for the Stock Exchange of Hong Kong Limited, Hong Kong Futures Exchange Limited and Hong Kong Securities Clearing Company Limited, the company is also a prime listing venue for mainland enterprises.
According to figures released at a forum on the past and future development of Hong Kong-listed mainland enterprises which was also held in Beijing Monday, these enterprises have financed HK$753 billion in the Hong Kong capital market over the past decade, accounting for 51 percent of the total in the period.
Charles Lee Yem-kwong, chairman of the board of the Hong Kong Stock Exchange, said at the opening ceremony that 247 mainland enterprises have been listed in Hong Kong in the past ten years, achieving a market value of HK$1.44 trillion, or 28 percent of the total Hong Kong market value.
The first domestic enterprise was listed in Hong Kong as H share in 1993, marking an overture to the large-scale fundraising of mainland companies in Hong Kong securities market.
The turnover of mainland enterprises had reached HK$758.5 billion, 38 percent of the total turnover, in the first ten months of this year in the Hong Kong stock market.
"It also benefits Hong Kong," Lee said. Hong Kong's stock market has become diverse with increasing inland companies enhancing its attractiveness and influence.
Henry Tang Ying-yen, financial secretary of the Hong Kong Special Administration Region, said Hong Kong provided a platform of international financing for the whole Chinese economy.
He expected more comprehensive, prosperous and closer relationship between the Chinese mainland and Hong Kong.
Shang Fulin, chairman of the China Securities Regulatory Commission (CSRC), said mainland enterprises have improved the transparency of their operation and optimized their capital structure after being listed overseas.
China will stick to the policy of encouraging domestic enterprises, state-owned or private, to be listed overseas, he said.
The CSRC will push talks with the Hong Kong Stock Exchange (HKSE) and Hong Kong Securities Regulatory Commission (HKSRC) to create a more favorable environment for domestic enterprises to expand the cooperation.
The forum is jointly sponsored by HKSE, CSRC and HKSRC.
(Xinhua News Agency November 18, 2003)
