Key Policies Driving U.S.-Listed Chinese Companies' Renewed Interest in Mainland China and Hong Kong Financial Markets

September 21, 2020 | BY

Susan Mok

Bing Xue and Yang Chen of Han Kun Law Offices examine why Chinese companies are heading home to list on the A-share market or HKEX and discuss key listing requirements and conditions for red-chip enterprises listing on the STAR Market and HKEX Main Board including the vetting process

This new wave of Chinese capital moving to home markets is partly the result of U.S. government policy actions, both taken and proposed, which have diminished the attractiveness of U.S. capital markets

1 .  Background

U.S.-listed Chinese companies are increasingly looking toward Hong Kong and mainland China for secondary listings or to relist entirely. This new wave of Chinese capital moving to home markets is partly the result of U.S. government policy actions, both taken and proposed, which have diminished the attractiveness of U.S. capital markets. For example, the U.S. Senate in May 2020 passed the Holding Foreign Companies Accountable Act (S.945), which would prohibit the securities of a foreign issuer from being traded on U.S. markets where the issuer fails to satisfy, for three consecutive years, the inspection requirements of the U.S. Public Company Accounting Oversight Board.

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