How Chinese companies are returning to Asia: The role of HKEX amid global tensions

In recent years, the global business landscape has witnessed a significant shift as Chinese companies, particularly in the technology, biotechnology, and pharmaceutical sectors, retrench from Western markets and refocus their growth strategies towards Asia. Robin Harris, Head of APAC at Ocorian, discusses this development, which is influenced primarily by heightened geopolitical tensions, most notably the intensifying US-China trade disputes and the imposition of tariffs on Chinese exports. Amid these challenges, Hong Kong – through the Hong Kong Exchanges and Clearing Limited (HKEX) – has rapidly positioned itself as a premier destination for Chinese firms seeking capital, market liquidity, and a regulatory bridge between China and the rest of the world.

Geopolitical tensions and the retreat from Western markets

The ongoing imposition of tariffs, export controls, and increasingly complex regulatory requirements has materially impacted Chinese companies’ ability to operate and raise capital in Western markets. Notably, US restrictions on technology transfers and the threat of delisting Chinese firms from US exchanges have pushed many Chinese corporates to reassess their international strategies. For technology, biotech, and pharma companies—sectors that are particularly sensitive to global supply chains and capital flows—these obstacles have become acute.

As a result, many leading Chinese companies have either delayed or abandoned plans for overseas expansion, choosing instead to “re-anchor” in Asia, where regulatory environments are more familiar and geopolitical risks lower.

HKEX: An evolving platform for Chinese issuers

HKEX has played a pivotal role in this strategic pivot. Recognising the shifting needs of Chinese enterprises, HKEX has proactively streamlined its listing regime in recent years. Key reforms include:

• Introduction of dual-class shares: Allowing innovative and high-growth companies, especially in tech, to list with weighted voting rights, a structure favoured by founders.
• Welcoming secondary listings: Enabling US-listed (and other overseas-listed) Chinese companies to pursue secondary or dual-primary listings in Hong Kong, providing them with access to Asian capital and mitigating risks from potential US de-listings.
• Biotech chapter (Chapter 18A): Creating a dedicated listing pathway for pre-revenue biotech companies, making HKEX one of the world’s most attractive venues for biotech IPOs.

These initiatives have helped HKEX attract a wave of leading Chinese firms, including tech giants, innovative biotech start-ups, and pharmaceutical companies, many of whom are now looking to tap into Hong Kong’s deep capital markets.

Recent high-profile listings on HKEX

Some notable recent listings (as of 2023–2024) include:

• ZJLD Group Inc. – The baijiu (Chinese liquor) producer raised over US$675 million in 2023, marking the largest Hong Kong IPO that year.
• Zibuyu Group Limited – An e-commerce apparel seller, listed in late 2023, demonstrating the continued strength of consumer and tech-driven businesses.
• Akeso, Inc. – A biotechnology company focused on innovative drug R&D, which completed a major follow-on offering in 2024.
• Hygon Information Technology – A semiconductor and chip design company, reflecting the strategic pivot towards tech self-sufficiency.

Projected future listings

Looking ahead, several high-profile companies are reportedly preparing for HKEX listings or have filed for IPOs, including:

• J&T Express – The fast-growing Southeast Asian logistics and delivery group filed for a Hong Kong IPO in 2024, potentially raising over US$1 billion.
• Cainiao Smart Logistics Network – Alibaba’s logistics arm is widely expected to pursue a listing in Hong Kong, following its separation from Alibaba Group’s main business.
• BYD Semiconductor – A subsidiary of BYD Co., China’s electric vehicle giant, is in the pipeline for a potential HKEX listing, reflecting continued investor appetite for tech and “new infrastructure.”
• Pharmaron Beijing Co., Ltd. – A leading pharma R&D services provider, is rumoured to be considering a dual listing on HKEX to broaden its investor base.
• Various AI and biotech firms – The pipeline includes several artificial intelligence, medical technology, and pharma companies, encouraged by Chapter 18A and the exchange’s innovation-friendly reforms.

Hong Kong’s unique value proposition

Hong Kong’s appeal extends beyond streamlined regulation. For Chinese companies, HKEX offers several compelling advantages:

• Access to deep and diverse capital pools: As one of the world’s top fundraising venues, Hong Kong offers both liquidity and a broad investor base, including mainland Chinese, Asian, and international institutional investors.
• Regulatory bridge: HKEX provides an effective middle ground between China’s domestic capital markets and the global financial system, offering regulatory standards that are internationally recognised while remaining accessible for Chinese issuers.
• Time zone and proximity: Hong Kong’s strategic location ensures operational synergy and easier engagement with Asian stakeholders, partners, and regulators.
• Liquidity and visibility: HKEX’s status as a global financial hub means that companies benefit from high trading liquidity and strong analyst coverage, supporting both capital raising and brand visibility.

The road ahead

As geopolitical headwinds persist, the trend of Chinese companies retrenching and refocusing their growth within Asia is likely to continue. HKEX, with its progressive reforms and unique value proposition, is set to remain at the forefront of this shift.

For technology, biotech, and pharmaceutical companies, Hong Kong is increasingly not just a fallback, but a preferred platform for accessing international capital, strengthening governance, and building a resilient global presence amid uncertainty.

The convergence of geopolitical uncertainty and proactive reform has cemented Hong Kong’s status as a gateway for Chinese companies returning to Asia. As the market continues to evolve, HKEX’s ability to balance regulatory rigour, investor access, and cross-border connectivity will be critical in shaping the next chapter of Chinese corporate growth.

How can Ocorian help?

Ocorian offers a full spectrum of corporate, fiduciary, and compliance services to support companies through the HKEX listing process, as well as bespoke pre-IPO estate planning solutions for their executives. This dual approach helps both the business, and its leadership navigate the complexities of going public and securing their personal wealth for future generations.