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  • A sweeping national security law imposed by Beijing

  • is redefining politics in Hong Kong.

  • The febrile atmosphere in the city

  • is also making it a less attractive place

  • for expat bankers, except perhaps for those working

  • at Chinese banks, which were targeted

  • in last year's demonstrations.

  • We've taken a close look whether the political convulsions

  • in Hong Kong are accelerating the 'mainlandisation'

  • of its financial sector.

  • In other words, is Hong Kong's finance sector

  • becoming more Chinese?

  • At the end of July, bankers at Chinese firms

  • totaled more than 2,100.

  • That's a massive rise from 2013.

  • At the current rate bankers at Chinese firms

  • will soon outnumber everyone else.

  • That makes sense when you consider that Hong Kong Stock

  • Exchange now outshines New York as the premier platform

  • for Chinese companies that want to raise dollar funding.

  • Chinese listings in the US actually grew by a quarter

  • this year to over 3bn, but the value of listings in Hong Kong

  • has doubled to more than 18bn.

  • And Hong Kong's stock market is set

  • to benefit even more from fraying US-China ties,

  • as hawks in Washington push to delist Chinese companies that

  • don't comply with American accounting standards.

  • A divesting is on the cards for virtually every Chinese company

  • that listed on Wall Street.

  • Many have set up secondary share placements in Hong Kong

  • as a fallback option.

  • And unsurprisingly, it's the Chinese banks

  • who dominate those deals and the IPOs

  • of up and coming Chinese tech groups.

  • This year, Beijing backed CICC and state run China Merchants

  • Bank are the top book runners for listings in Hong Kong.

  • Both have more than one billion worth of deals

  • to their name so far this year.

  • The only western bank to break the top 10 is UBS.

  • Hong Kong is starting to look less like a global financial

  • nexus and more like an offshore centre for Chinese finance.

A sweeping national security law imposed by Beijing

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How Hong Kong finance sector is becoming more Chinese FT

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    洪子雯 posted on 2020/08/20
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