Chinese concept stocks with a market value of over 1 billion USD that have not been listed in Hong Kong
HTSC analyzed 53 Chinese concept stocks with a market capitalization of over $1 billion in ADRs and found that 76% of the companies have dual primary listings or secondary listings in the Hong Kong stock market. Investors can convert ADRs into corresponding H shares, and 75% of the Chinese concept stocks that are only listed in the U.S. meet the listing conditions for the Hong Kong stock market. Some companies may choose "introduction listing," which has a limited impact on the liquidity of the Hong Kong stock market
HTSC:
Taking the 53 Chinese concept stocks with a market capitalization of over $1 billion that we selected as an example, 76% of the companies have dual primary listings (47%) or secondary listings (29%) in the Hong Kong stock market. Without account restrictions, investors can convert the ADRs of the aforementioned companies into corresponding H shares (there is some friction cost but it is relatively small, so these ADRs and their corresponding H shares are nearly at par).
Secondly, we have statistically found that 75% (by quantity) of the Chinese concept stocks ADRs listed only in the U.S. meet the conditions for dual primary listings in the Hong Kong and U.S. stock markets or secondary listings in the Hong Kong stock market. Considering the option of "introduction listing" (without fundraising or issuing new shares), some companies returning to Hong Kong may have a limited impact on the liquidity of the Hong Kong stock market.
