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Hong Kong looks to move IPO connect forward to broaden mainland access
Vistra’s Pamela Chung Kong-hung said a related secondary market connect has operated “very stably,” shifting the debate toward market structure development rather than capital outflows.
Hong Kong is seeing an opportunity to move forward with an IPO connect scheme that would allow mainland investors to access initial public offerings in the city, according to Pamela Chung Kong-hung of Vistra. In an interview with the South China Morning Post, Chung said the goal is to improve price discovery and expand the investor capital pool to better match Hong Kong’s large IPO pipeline.
Chung also pointed to the stability of a secondary market connect programme, saying it has been operating very stably without causing capital outflows. She said the focus is now on market structure development.
An IPO connect programme has been discussed for more than a decade, and while Hong Kong authorities have sought it to boost liquidity, prior efforts faced resistance from regulators in Beijing, the outlet reported.