Hong Kong exchange operator expects deluge of new listings, to digitise paperwork
- Technology will further enhance processes, cut paper use, HKEX’s head of listing, Bonnie Chan says
- Hong Kong has emerged as a hub for listings by big tech following reforms in April 2018, and needs such enhancements to cope with influx of applications
Bourse operator Hong Kong Exchanges and Clearing (HKEX) will digitise its listings application process to cope with a deluge of newcomers, Bonnie Chan, its head of listing, said.
To be introduced before the end of the year, the digitisation will allow companies to submit their applications electronically instead of the current practice of submitting paper forms, she added.
“Technology will help us further enhance our processes and cut out paper,” she said in an interview. “The objectives of this digital transformation are to improve data quality and increase automation in the listing form submission process. It is expected to eliminate 11,000 paper forms in the first year of launch. Digitisation will also reduce human error and improve the efficiency of the overall market,” she said.
Hong Kong has emerged as a hub for listings by big technology companies after HKEX introduced reforms in April 2018. Such enhancements come as a result of an increase in flotation applications that has followed. Last year, the exchange started using artificial intelligence (AI) to help staff check the annual reports of the more than 2,500 companies listed in the city. AI might also be used in the listing applications stage at a later date.
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Shanghai has reported on its approval process more frequently, but Chan said the Hong Kong exchange was equally transparent. “Hong Kong and Shanghai have different ways of updating the market on the progress of listing applications,” she said. “Information on our listing applications and other documents is readily available for the public to access, on our website. It is mainly in the presentation format that [we are] different,” she added.
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Chan declined to disclose the exact number, but admitted that many US listed Chinese companies had contacted the exchange to explore a listing in Hong Kong. Between Hong Kong and Shanghai, she said, the companies will make their own choices. “Listings in Hong Kong and Shanghai can serve different purposes. While many international investors are trading in Hong Kong, many domestic mainland investors are trading in Shanghai. The two markets can complement each other,” she added.