(Yicai) April 15 -- Amid rising trade tensions between China and the United States, Hong Kong is stepping up efforts to attract high-quality issuers from around the world -- particularly mainland-based companies already listed abroad -- to list in the city, according to the financial chief of the Hong Kong Special Administrative Region.

Hong Kong has established a regulatory framework that facilitates dual and secondary listings for overseas-listed firms, Paul Chan Mo-po, financial secretary of the HKSAR, wrote in a recent article.

"In light of recent global developments, I have instructed the Securities and Futures Commission and the Hong Kong Stock Exchange to be ready to make Hong Kong the preferred listing destination for Chinese companies abroad that wish to return," Chan noted.

The US-China tariff dispute, initially sparked by US President Donald Trump, escalated this month as the world’s two largest economies imposed tariffs exceeding 100 percent on each other. In addition, US Treasury Secretary Scott Bessent recently suggested in a media interview that Chinese firms listed in the US could potentially face delisting.

Currently, US-listed Chinese companies have three main pathways to list in Hong Kong. First, a company can undergo privatization, delist from the US, and then apply to go public in Hong Kong. Alternatively, it may opt for a dual primary listing or a secondary listing. While a secondary listing is generally more cost-effective than a primary listing, it does not fully eliminate the risk of delisting.

To date, secondary listings have proven to be the most popular. Major tech companies such as JD.com and NetEase have already completed secondary listings in Hong Kong. Last year, e-commerce giant Alibaba Group Holding upgraded its status to a dual primary listing after initially pursuing a secondary listing.

After years of favoring Wall Street, Chinese firms are increasingly turning their attention back home amid shifting geopolitical dynamics. Yu Fenghui, an advisor at the Top 100 Hong Kong Listed Companies Research Centre, said that Hong Kong has become the preferred offshore listing venue for Chinese companies. 

The return of Chinese companies will strengthen the Hong Kong Stock Exchange by enhancing its market position, Yu said. As more high-quality firms list in Hong Kong, investors will benefit from increased options, boosting market liquidity and activity, she added.

Beyond attracting Chinese firms, the HKEX is also intensifying efforts to promote cooperation with the Association of Southeast Asian Nations and Middle Eastern markets, aiming to bring in more high-quality enterprises, Chan wrote in the article.

These initiatives will help attract greater international capital and further reinforce Hong Kong’s role as a global financial center, Chan concluded.

Editors: Dou Shicong, Emmi Laine