Core Viewpoint - The article outlines the significant differences between the U.S. and Hong Kong stock markets for companies seeking global capital, emphasizing how these differences impact financing efficiency, valuation levels, and long-term strategic implementation [1]. Listing System and Financial Thresholds: Flexibility and Diversity - The U.S. stock market, exemplified by NASDAQ, is known for its "low threshold, high inclusivity," making it suitable for growth and innovative companies. It offers multiple listing standards, allowing companies to meet one of several criteria, including options for unprofitable firms [2][3]. - The Hong Kong stock market employs a "general standard + special chapters" hybrid model, balancing traditional and innovative approaches. It provides various tests for profitability and market capitalization, allowing companies to meet one of the criteria [4][8]. - Special listing chapters in Hong Kong cater to specific sectors, such as Chapter 18A for unprofitable biotech firms and Chapter 18C for hard-tech companies, with different market capitalization thresholds [5][6][7]. Market Ecology and Valuation Logic: Growth Premium and Fundamental Pricing - The U.S. market is a hub for global tech innovation, with a focus on high-growth sectors like information technology and biotechnology. It is characterized by a strong presence of institutional investors and a valuation logic that emphasizes long-term growth potential and technological barriers [11][12]. - The Hong Kong market serves as a bridge between China and the world, featuring a diverse industry structure. It has a mixed investor base and a valuation approach that prioritizes current profitability and cash flow stability, particularly for companies closely tied to the Chinese economy [13]. Regulatory Environment and Compliance Costs: Stringent Disclosure and Balanced Adaptation - U.S. regulations, led by the SEC, emphasize strict disclosure and enforcement, with high compliance costs and risks associated with collective litigation and geopolitical uncertainties [16][17]. - Hong Kong's regulatory framework, overseen by the SFC and HKEX, combines international standards with local market characteristics, resulting in lower compliance costs and a more stable policy environment [18][20]. Listing Process and Overall Costs: Efficiency Cycles and Fee Structures - The U.S. listing process is relatively efficient, typically taking 6-9 months, with total costs ranging from 10% to 20% of the raised capital [22]. - The Hong Kong listing process usually takes 8-13 months, with total costs varying widely from 5% to 30%, influenced by the size and nature of the company [23]. Strategic Choice Logic: Matching Company Characteristics - Companies should choose the U.S. market if they are in high-growth phases, unprofitable, and possess core technologies or global narratives, accepting higher compliance costs for greater valuation premiums [25]. - The Hong Kong market is more suitable for companies focused on the Greater China region, with stable profitability or those meeting specific chapter criteria, valuing regulatory stability and local investor proximity [25].

Core Viewpoint - Hong Kong Stock Exchange (HKEX) is open to reviewing the "Weighted Voting Rights (WVR)" listing rules, indicating a willingness to adapt to market feedback and improve the listing system [1] Group 1: Listing Rules and Governance - HKEX has revised its listing rules, which now require boards to have a non-single gender composition and to include at least one director of a different gender [1] - The next step for HKEX is to establish a talent pool for female directors to ensure a steady supply of qualified candidates [1] Group 2: Market Position and Applications - HKEX is viewed as a stable and reliable market for US-listed Chinese companies considering a listing in Hong Kong, particularly due to its attractive interconnectivity trading mechanisms with mainland China [1] - Currently, HKEX is processing over 300 listing applications, with the actual number expected to be higher when including confidential submissions [1]

Group 1 - The report highlights that when choosing a financing destination, Chinese assets primarily prefer A-shares, with Hong Kong and US stocks as alternatives, due to the distinct characteristics of the listing systems in these markets [2][7]. - In terms of financial standards, the US stock market is the most flexible, followed by Hong Kong, while A-shares have the strictest requirements, emphasizing performance [5][8]. - The report indicates that the US stock market is the most accommodating regarding company structures, with Hong Kong being somewhat flexible, while A-shares are the most cautious, stressing clear ownership and stable control [5][16]. Group 2 - The report states that the approval efficiency and listing pathways are faster and more diverse in the US and Hong Kong compared to A-shares, which maintain a stringent entry barrier primarily through IPOs [5][23]. - The average application duration for Chinese companies listing in the US from January 2024 to October 2025 is estimated at 404 days, while for Hong Kong, it is significantly shorter at 307 days [24][27]. - A-shares have an average listing time of 745 days from IPO acceptance to listing, reflecting a longer and more rigorous approval process [28][30].