"Chinese Firms at Risk of U.S. Delisting Should Be Attracted to Hong Kong Stock Market"

Hong Kong Government Hosts Forum on U.S. Tariff War Response
NPC Delegate: "Hong Kong Should Become the Top Listing Destination"
Chief Executive John Lee: "We Will Attract More Capital"

On April 17 (local time), during a forum hosted by the Hong Kong government, participants argued that policies are needed to attract Chinese companies listed in the United States?those at risk of being delisted?to the Hong Kong stock market.

According to the Hong Kong daily Sing Tao, Chen Zhongni, a delegate to the National People's Congress (NPC) from the Hong Kong Special Administrative Region, stated at the forum, "As China's international financial hub, Hong Kong should swiftly discuss policies that would allow Chinese companies facing potential delisting to migrate to the Hong Kong stock exchange." He added, "I hope the government will actively work to attract companies so that more of them will choose Hong Kong as their primary listing destination."

The forum was personally chaired by Hong Kong Chief Executive John Lee and held at the Hong Kong government headquarters under the theme "How to Respond to the U.S. Tariff War," with members of the Chinese People's Political Consultative Conference in attendance.

Chief Executive John Lee emphasized, "We will strengthen exchanges and cooperation with the international community and expand Hong Kong's economic and trade network by signing more free trade agreements with countries and regions." He continued, "We will also actively attract top talent and key enterprises." He further stated, "As global demand for risk diversification increases, we will work to attract more capital to Hong Kong," and added, "The government will support companies so they can better respond to the challenges they face."

Recently, amid escalating trade tensions between the U.S. and China, U.S. Treasury Secretary Scott Besant drew attention by stating that all options remain open in negotiations. During the first Trump administration, the possibility of Chinese companies being delisted from U.S. stock exchanges was also raised.

According to the U.S.-China Economic and Security Review Commission (USCC), a bipartisan advisory body to the U.S. Congress, as of March 7, there were 286 Chinese companies listed on U.S. stock markets, with a combined market capitalization of $1.1 trillion. On April 14, the Hong Kong Economic Times reported that Goldman Sachs, after analyzing the latest listing requirements of the Hong Kong Stock Exchange, assessed that only 27 Chinese companies (with a combined market capitalization of $184 billion) would meet these requirements.

Among these, the six companies with the largest market capitalizations are: Pinduoduo (e-commerce platform, $125.7 billion), Manbang (freight truck and driver matching platform, $9.1 billion), Futu Holdings (fintech, $7.5 billion), Legend Biotech (biotechnology, $5.9 billion), Vipshop Holdings (fashion e-commerce platform, $5.5 billion), and Zeekr (electric vehicle brand, $5.3 billion).

In a recent report, Goldman Sachs analyst Kinger Lau pointed out, "Extreme uncertainty in the global trade system has led to significant volatility in capital markets, and concerns about a global recession and U.S.-China decoupling have also increased." The report estimated that if forced delistings from U.S. stock markets actually occur, Chinese American Depositary Receipts (ADRs) could fall by 9% and the MSCI China Index by 4% compared to current levels.