Hong Kong is proposing an IPO Connect scheme to deepen ties with mainland markets and attract more liquidity. The idea was discussed at the recent Lujiazui Forum.
Hong Kong is moving to expand its connect programmes with mainland China. Officials and market participants see an IPO Connect as the next logical step after Stock Connect, which has operated for a decade.
At the Lujiazui Forum held on June 17, Gokul Laroia, Asia CEO and co-head of global equities at Morgan Stanley, said an IPO Connect would be a good step towards further integrating the Hong Kong and Shanghai markets.
The forum also brought approval for Hong Kong to launch yuan Treasury bond futures in August. Global investors continue to call for closer collaboration between the two financial centres to improve access to Chinese assets.