Chinese tech companies are choosing Hong Kong over the US for capital raises

Chinese tech companies are raising money in Hong Kong instead of the US, and according to a Goldman Sachs executive, that’s not changing anytime ￰0￱ Leung runs Goldman’s Hong Kong operations and co-heads their tech, media and telecom business across Asia (minus Japan). He says the shift makes sense, better market access, recent regulatory changes, and Hong Kong’s just closer to where these companies actually ￰1￱ Kong’s still the main gateway for Chinese companies looking for offshore capital and international expansion, Leung ￰2￱ expects that to ￰3￱ investors are ￰4￱ and European funds have been piling money into Chinese stocks ￰5￱ holdings have climbed back to high single-digit percentages, getting closer to the 13 percent peak from 2021.

“They are making money out of their investments, suggesting a healthy capital market,” he said as mentioned in ￰6￱ market’s reflected that ￰7￱ MSCI China Index and Hong Kong’s Hang Seng Index are both up over 30 percent this year. “That shift has been supporting the market rally, and we are still seeing the inflow of capital coming in, supporting the case for a sustainable market rally,” Leung ￰8￱ Eastern investors are getting interested ￰9￱ month Qatar sent people to Goldman’s first Asia Leaders’ Conference in Hong ￰10￱ event pulled in 2,000 people, including executives from Tencent Holdings, Baidu and Xiaomi. Alibaba, Horizon robotics lead billion-dollar deals This is all happening while US-China trade tensions ￰11￱ it comes after the DeepSeek moment , when that Hangzhou startup surprised everyone with an affordable AI system that showed off China’s tech capabilities and government support.

“The US-China dynamic will not go away overnight, and Hong Kong will continue to serve as a gateway for China to springboard into the rest of the world,” Leung ￰12￱ tech companies prefer Hong Kong for listings and fundraising because of the trading ￰13￱ and medium-sized firms keep their options open depending on what’s happening politically between the US and ￰14￱ at the recent ￰15￱ month Alibaba Group Holding, which owns the Post, raised about $3.2 billion through a convertible bond offering in Hong ￰16￱ deal of its kind this ￰17￱ followed a $1.5 billion exchangeable bond deal in July, also in Hong ￰18￱ reported by Cryptopolitan Alibaba’s stock has been surging amid strong AI revenue ￰19￱ Robotics, the AI chip company for self-driving cars, did an $815 million share placement in Hong Kong last ￰20￱ second funding round like that in three ￰21￱ Kong now rivals US in trading volume Companies need to stay flexible about where they raise money, Leung ￰22￱ Hong Kong now matches the US in market features and trading ￰23￱ US has always been where most tech companies wanted to ￰24￱ Kong’s market liquidity is improving and will probably keep getting better, Leung ￰25￱ wants to be geographically closer to the companies, and more companies are choosing to list on the Hong Kong ￰26￱ Hong Kong market can handle Chinese tech companies, he ￰27￱ news breaks about Chinese companies, investors in Hong Kong can respond ￰28￱ mainland companies are doing secondary listings in Hong Kong—the A-to-H trend, named after how mainland and Hong Kong shares are ￰29￱ brings in investment money and sets valuation benchmarks for companies across semiconductors, manufacturing, electronics, software, and consumer ￰30￱ $50 free to trade crypto when you sign up to Bybit now