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<Research>CICC Foresees Comeback of CN ADRs Could Boost HKEX ADT by $36.6B
Recommend 9 Positive 9 Negative 7 |
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On Sunday, April 13, Hong Kong’s Financial Secretary Paul Chan announced that he instructed the Securities and Futures Commission (SFC) and HKEX (00388.HK) to prepare for the comeback of overseas-listed Chinese concept stocks, ensuring Hong Kong becomes their preferred listing destination. A CICC research report suggested that unlisted Chinese concept stocks may accelerate secondary or dual listings in Hong Kong, while trading of already-listed Chinese concept stocks in the U.S. market is predicted to gradually shift to Hong Kong. This migration could increase the ADT in the Hong Kong stock market, catalyzing profit growth and valuation uplift for HKEX. CICC estimated that the potential return of Chinese concept stocks could boost Hong Kong’s ADT by HKD36.6 billion, representing 28% of last year’s. Factoring in the 23% share of southbound trading, this could translate to an additional HKD1.55 billion in HKEX profits, equivalent to 12% of last year’s net profit. Since the start of 2025, the Hong Kong market has remained highly active, propelled by tech-themed trading and policy expectations, underpinning HKEX’s profit performance. CICC recommended focusing on HKEX’s allocation value, backed by solid earnings and thematic catalysts. AAStocks Financial News |
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