The Hong Kong Stock Exchange (HKEX) has signed a Memorandum of Understanding (MoU) with the government of Shandong province to strengthen cooperation and to support listings of companies from Shandong on Hong Kong’s equity markets.
Under the MoU, HKEX and Shandong's government will exchange information on the latest developments in the capital markets of Hong Kong and Shandong, as well as to jointly host seminars for Shandong-based organisations on capital raising opportunities in the region, according to a HKEX May 29 media release.
The MoU was jointly signed by Zhou Jiannan, HKEX's head of mainland (China) business and Song Junji, vice Governor of Shandong Province, at a ceremony in HKEX Connect Hall on May 29.
Shandong, a major economic powerhouse in eastern China, has in recent years been actively promoting the development of emerging industries, such as agricultural and food technology as well as biotech. As of the end of April, 55 Shandong-based companies were listed on the main board of HKEX, with total funds raised at over $72 billion.
Qingdao (pictured) is the largest city in Shandong. It is located on the Yellow Sea and is also an important part of China's Belt and Road Initiative and is where several large multinationals are based.
The HKEX has been looking to turnaround a slow listings environment in the last 18 months. There is hope that a rebounding market and more positive sentiment in China's economy could help listings in the second half of 2024.
Also at the signing ceremony between the HKEX and Shandong government were Bonnie Chan, HKEX’s chief executive officer; Lin Wu, secretary of the Shandong Provincial Party Committee and director of the Standing Committee of the Provincial People's Congress, and Fan Bo, member of the Standing Committee of the Provincial Party Committee and Secretary-General.
