Opinion: Don’t Underestimate Hong Kong’s Potential as a New Home for U.S.-Listed Chinese Stocks

Over the years, the trends in Chinese mainland, Hong Kong and U.S. stock markets have become less synchronized, and the returns have become significantly less connected. Photo: VCG

An article on whether Hong Kong is ready for Chinese stocks exiled from New York has been widely circulated on social media recently. The gist of the article is that Hong Kong investors aren’t as accepting of emerging sectors as international investors as the city’s capital market lacks liquidity. If Chinese companies that delist from the U.S. market relist in Hong Kong, not only will the valuation of these companies drop, but they will impact small- and mid-cap companies listed in Hong Kong.