Since the return of Hong Kong back to China in 1997, there has been increasing number of corporates coming from China to be listed in Hong Kong. In fact, Hong Kong has been the largest financial centre after New York and London. The Chinese listing has confirmed Hong Kong’s position as the centre of capital for foreign investments in China. At present, Chinese corporations compose of 60% of the total value of the listed companies in Hong Kong. Hong Kong does not impose restrictions on foreign exchange control. Foreign capitals are free to flow in and out. Together with sophisticated monitoring and highly transparent information deliberation, foreign capital can invest into the Hong Kong stock markets to enjoy the benefits of the surging Chinese economy. At the same time, Chinese corporations can gather capital in Hong Kong, as well as to expand into the international market through Hong Kong’s finance professionals. Hong Kong is the true International Financial Centre of China.

Sophisticated Regulations, Fair Legal System: Hong Kong SFC imposes regulations and monitorings on listed companies and on share markets. Hong Kong Exchange has stringent requirements on getting listed, together with the independent legal system and protection to share holders and investors, Hong Kong is well known in the world as a fair, just and transparent capital market.

Higher Investment Reward: China market is not completely open, added to the control on foreign exchange, there is discount between the companies listed as the A shares and H shares, which makes investing in H shares more attractive.

E-settlement system: Hong Kong Exchange Central Clearing and Settlement System uses Continuous Net Settlement system, which elevates the original T+2 settlement to the effect of T+0, thus enhances the flexibility of the capital, allowing the investors to profit in short term investment opportunities.

Product Diversification: Hong Kong SFC monitors a variety of investment products, including stocks, derivatives, callable bull and bear contracts, equity linked notes, exchange traded funds and bonds. Hong Kong is the most active exchange market in derivatives, measure in accordance with transaction volume. Through Qualified Foreign Institutional Investment, a number of Exchange Traded Funds which traces the China A stock performance are not traded in Hong Kong market. With the help of derivatives of these ETFs, such as CBBC, investors are not able to hedge the risk for the investments in A share markets.