Hong Kong Exchanges and Clearing Limited (HKEX) Chief Executive Charles Li delivered a keynote speech in Chinese on 25 March at the 2018 China (Shenzhen) IT Summit.  For your reference, below is a brief English summary of his address.

At an IT summit in Shenzhen yesterday, Charles Li compared the characteristics of the Mainland, US and Hong Kong capital markets, particularly how the three markets are trying to accommodate the listing of innovative companies.

He said each market has its own logic and a new scheme like China Depository Receipt (CDR) is novel to the Mainland market’s existing logic.  The Mainland’s proposed CDR scheme is an innovative and good initiative, according to Li, but the plan may face some challenges and as such it may impact the A-share market if it is implemented extensively.

Li said Hong Kong sits in the middle of the US and Mainland markets and the regulators of Hong Kong and the Mainland work closely, offering an appropriate venue for Mainland unicorns’ listing and time for Mainland authorities to sort out the unsettled issues.  Thanks to the "one-country, two-systems" policy, he reiterated that Hong Kong is an ideal place for the listing of Mainland unicorns.

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