Hong Kong finance chief courts Korean firms for listings, ETF partnerships

Paul Chan Mo-po, Hong Kong’s Financial Secretary

Hong Kong is actively encouraging South Korean companies to pursue dual listings on its stock exchange and proposing cross-listed exchange-traded funds (ETFs) as a gateway to deepen collaboration between the two financial markets.

“We welcome Korean companies to list on the Hong Kong Stock Exchange, and I hope we can launch ETFs that are traded in both Korea and Hong Kong,” said Paul Chan Mo-po, Hong Kong’s Financial Secretary, in a recent interview with Maeil Business Newspaper.

He emphasized Hong Kong’s strength as an international financial hub and extended a direct invitation to Korean businesses and financial institutions.

Chan said he is particularly interested in Korean firms in technology, consumer goods, and animation, and expressed readiness to establish regulatory frameworks that would support dual or secondary listings of Korean companies in Hong Kong.

His comments come amid a resurgence in Hong Kong’s IPO market.

In the first half of 2025, the city recorded the world’s largest IPO volume among single exchanges, buoyed by secondary listings from major Chinese firms such as CATL.

The benchmark Hang Seng Index has climbed 23 percent so far this year.

Chan stressed that beyond Chinese companies, firms from across Asia—including Korea—could benefit from listing in Hong Kong, gaining exposure to both mainland Chinese capital and global investors. He also noted that Hong Kong offers multiple fundraising channels including angel investment, venture capital, private equity, and bond markets.

He dismissed concerns about the National Security Law, which has been cited as a potential risk by some foreign investors.

“I would encourage skeptics to come and see Hong Kong for themselves,” Chan said. “According to a recent survey by the American Chamber of Commerce, over 70 percent of members currently operating in Hong Kong said the law has had no impact on their business.”

As part of deeper financial integration, Chan proposed creating cross-listed ETFs that track Korean equities.

One example he cited was Invesco QQQ Trust (QQQ), the world’s fifth-largest ETF, which began cross-trading in Hong Kong in February this year in HKD and RMB, while continuing to trade in USD on Nasdaq.

“If an ETF tracking Korean stocks were listed in Hong Kong, it could attract substantial capital inflows from mainland China into the Korean market,” he said.

Chan added that ETFs reflecting market trends—such as those with 2x leverage on Samsung Electronics—could further boost investor interest and bilateral financial ties.

Chan also outlined Hong Kong’s ambition to become the world’s leading asset management hub by 2028, bolstered by initiatives to attract family offices managing at least $50 million in assets.

Regarding the territory’s soon-to-be-enforced stablecoin regulations, Chan underscored the importance of balancing fintech innovation with financial stability and investor protection.