Because the financing environment in Hong Kong is relatively relaxed, it is easier to go public. Moreover, in order to welcome mainland Internet companies, Hong Kong has specially revised the listing rules to allow AB shares.

For the current A-shares, the listing rules require profitability, but for most Internet technology companies, it is difficult to get enough profits at the beginning of listing because of the large amount of capital invested in the early development stage. Moreover, there are many domestic IPO companies queuing up for listing, and the listing process takes too long to obtain market financing as soon as possible.

Extended information

Interconnection between Hong Kong and Mainland capital markets

In recent years, with the acceleration of the opening-up of the mainland capital market, the interconnection between the mainland and Hong Kong capital markets has been deepened. Measures such as "Shanghai-Hong Kong Stock Connect", "Shenzhen-Hong Kong Stock Connect" and "Bond Connect" have been introduced one after another, which not only gives full play to Hong Kong's advantages, enhances its competitiveness as an international financial center, but also promotes the healthy development of multi-level capital markets in the Mainland.

with the acceleration of global monetary policy, the focus of global investment has shifted to the real economy, and high-quality new economic enterprises have become the focus of capital market competition in various countries. Through the reform of the listing system, the Hong Kong market has taken the initiative to take a key step into the overall development of China's capital market, which will activate the "spring water" of China's finance at four levels.

Baidu Encyclopedia-Hong Kong stocks

People's Daily Online-Hong Kong stock listing system reform promotes interconnection.