As Hong Kong Exchanges and Clearing Limited (HKEX) marks its 25th anniversary, the exchange has outlined a strategy to further cement its role as a bridge between Asia’s emerging businesses and the world’s capital markets. Chairman Carlson Tong Ka-shing confirmed the bourse’s intention to attract more secondary listings from across Asia, reaffirming Hong Kong’s pivotal position in connecting international and mainland Chinese capital.
Currently linked with 20 global stock exchanges via mutual recognition agreements, HKEX has established channels for companies in Thailand, Indonesia, Singapore, Saudi Arabia and Abu Dhabi to sell additional shares in Hong Kong. “There is certainly interest among Asian companies to tap both global and Chinese funds in Hong Kong, indicating that the city can evolve into a major regional connector beyond its traditional role,” Tong stated in a recent interview following the World Federation of Exchanges board meeting in Singapore.
So far this year, two Singapore-based firms have completed listings in Hong Kong, and a Thai coconut-water producer headquartered in Singapore is preparing to follow suit. The uptick in activity has elevated HKEX’s main board to the top of the global IPO league table. In the first five months of 2025, 27 companies raised US$9.96 billion—seven times the total for the same period last year. With over 160 companies currently in the IPO pipeline, the outlook remains robust.
Tong noted that Hong Kong is “bucking the global trend” of subdued IPO volumes and increased privatisations, which have characterised other markets. He also revealed plans for substantial expansion in HKEX’s fixed income and currencies division. The move aims to strengthen Hong Kong’s status as a risk-management hub and support the internationalisation of the yuan. “Fixed-income products will have significant growth potential,” said Tong, referring to an array of instruments including derivatives for risk hedging and yuan-denominated offerings.
HKEX was formed in 2000 through the merger of the city’s stock exchange, futures exchange and three clearing houses. Its history, however, traces back to the early days of securities trading in 1891. “HKEX has achieved a great deal in the past 25 years,” said Tong. “It has transformed from a largely domestic market into a superconnector between mainland China and global investors, offering a diversified suite of investment products—from equities and ETFs to commodities and derivatives.”
Investor confidence has been richly rewarded. Since HKEX’s listing at HK$3.88, its stock has soared to HK$413.60 as of last Friday. Over the past quarter-century, the number of listed companies has tripled to 2,633, while total market capitalisation has increased ninefold to HK$42.76 trillion (US$5.48 trillion). Average daily turnover has surged 19-fold, reaching HK$242.3 billion in the first five months of 2025.
Key to this expansion has been HKEX’s continuous adaptation of its listing framework. A pivotal reform came in 2018, allowing pre-revenue biopharmaceutical firms and companies with weighted voting rights to list. This enabled 360 so-called new-economy companies—including Alibaba Group Holding and Xiaomi—to raise a cumulative HK$1.03 trillion.
Despite geopolitical headwinds, including the intensifying US-China trade conflict, Hong Kong’s markets have remained resilient. On 7 April, daily turnover peaked at a record HK$621 billion even as the Hang Seng Index tumbled 13.2 per cent following US tariff announcements.
Tong, 70, has long been a prominent figure in Hong Kong’s capital markets. He previously chaired KPMG Asia-Pacific and served as chairman of the HKEX listing committee, where he oversaw landmark IPOs for entities such as the Industrial and Commercial Bank of China. As chairman of the Securities and Futures Commission from 2012 to 2018, he played a critical role in launching Stock Connect, facilitating cross-border trading with Shanghai and later Shenzhen. The programme has since expanded to include bonds, ETFs and derivatives.
Appointed HKEX chairman in April 2024, Tong envisions a more community-connected future for the exchange. “HKEX is not merely a listed company—we have a public duty to ensure our markets support the real economy. We also want to give back and engage more with the people in our home market,” he said.
To commemorate its silver jubilee, HKEX will host a citywide tour featuring the iconic listing ceremony gong between 20 June and 3 July. The HKEX Foundation, its philanthropic arm, will also deepen its support for local caregivers through a new three-year initiative. Since its launch in 2020, the foundation has allocated over HK$600 million to more than 130 community projects.
A key source of the foundation’s funding is the unique stock code donation scheme, introduced in 1999, which allows companies to select preferred codes with a HK$3 million donation. The programme has raised over HK$1 billion to date, contributing to the foundation’s enduring impact on the city’s social landscape.
-SCMP
