Shenzhen Exchange Eyes Greater Bay Area Firms！ What are the strategic opportunities?
The Shenzhen Stock Exchange is about to welcome "H+A" listed companies! Who will be the first players?
The Shenzhen Stock Exchange is expected to welcome the new "H+A" case landing.
On the evening of June 10, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council officially released the 'Opinions on Deepening the Reform and Innovation of the Shenzhen Comprehensive Reform Pilot and Expanding Opening Up'.
It is especially worth mentioning thatThe 'Opinions' allow The Guangdong-hk-macao Greater Bay Area enterprises listed on the Hong Kong Stock Exchange to be listed on the Shenzhen Stock Exchange according to policy regulations.
Which companies are likely to return to the A-shares market?
According to financial magazines, the common structure of group companies listed in Hong Kong is divided into two categories,namely red-chip structure and H-share structure.The former mainly refers to the way of integrating the onshore rights entities of China under the red chip structure into the offshore listed entity by building and restructuring domestic and foreign frameworks; the latter refers to a joint-stock company registered in China serving as the listed entity, issuing Stocks and listing abroad.
Currently, no company has adopted the red chip structure to list on the Shenzhen Stock Exchange.Secondary listing.The latter has relevant cases due to the relative ease of listing.The aforementioned 'Opinions' also pointed out that companies in The Guangdong-hk-macao Greater Bay Area-related mustlist on the Shenzhen Stock Exchange 'in accordance with policy regulations.'
From a system perspective, red chip companies that are already listed on the Hong Kong Stock Exchange have relatively clear rules for secondary listing on the Shenzhen Stock Exchange. However, the requirements for red chip companies to list on the GEM mainly target 'red chip companies that are not listed abroad.'
![The Shenzhen Stock Exchange is expected to welcome new cases of "H+A". On the evening of June 10, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council officially announced the "Opinions on Deepening the Comprehensive Reform Pilot in Shenzhen to Further Reform, Innovation, and Open Up." It is especially worth mentioning thatThe "Opinions" allow enterprises from The Guangdong-hk-macao Greater Bay Area-related that are listed on the Hong Kong Stock Exchange to be listed on the Shenzhen Stock Exchange in accordance with policy regulations. Which companies are expected to return to the A-share market? According to financial magazines, group companies listed in Hong Kong commonly have two types of structures,namely red-chip structure and H-share structure.The former mainly refers to the way of constructing and reorganizing domestic and foreign structures to allow the domestic equity entities in China to achieve consolidation through a planned overseas listed entity under the red-chip structure; the latter refers to the architecture where a joint-stock company registered in China acts as a listed entity, issuing stocks and getting listed abroad. As of now, no companies using the red-chip structure have conducted listings on the Shenzhen Stock Exchange.[Share Link: Secondary listing.]For the enterprises, the latter has relevant cases due to the relative convenience of listing. The aforementioned "Opinions" also pointed out that enterprises in The Guangdong-hk-macao Greater Bay Area-related must "comply with policy regulations" to be listed on the Shenzhen Stock Exchange. From a systematic perspective, red-chip enterprises that have been listed on the Hong Kong Stock Exchange must conduct a secondary listing on the Shenzhen Stock Exchange, and the rules are relatively clear. However, the GEM's requirements for red-chip enterprises to go public mainly target "red-chip enterprises not listed overseas." According to the listing conditions announced by the Shenzhen Stock Exchange, red-chip enterprises applying for an initial public offering of stocks or depositary receipts and listing on the Shenzhen Main Board,Market Cap and Financial Indicators...](https://nnqimage.futunn.com/sns_client_feed/900104/20250611/web-1749633153471-ZFAEuOwF4O.jpeg/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
According to the listing conditions announced by the Shenzhen Stock Exchange, red chip companies applying for an initial public offering of Stocks or depositary receipts and listing on the Main Board,Market Cap and Financial Indicators should at least meet standard 1 (Market Cap not less than 200 billion yuan).orStandard 2 (Market Cap over 20 billion yuan. Possessing independently developed, internationally leading Technology, strong technological innovation capability, and holding a relatively advantageous position in industry competition).At least one of these.
Based on this, Futu News has summarized companies in theGuangdong-hk-macao Greater Bay Area with red-chip structure listed in Hong Kong, and Market Cap > 20 billion yuan.for mooers' reference:
![The Shenzhen Stock Exchange is expected to welcome new cases of "H+A". On the evening of June 10, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council officially announced the "Opinions on Deepening the Comprehensive Reform Pilot in Shenzhen to Further Reform, Innovation, and Open Up." It is especially worth mentioning thatThe "Opinions" allow enterprises from The Guangdong-hk-macao Greater Bay Area-related that are listed on the Hong Kong Stock Exchange to be listed on the Shenzhen Stock Exchange in accordance with policy regulations. Which companies are expected to return to the A-share market? According to financial magazines, group companies listed in Hong Kong commonly have two types of structures,namely red-chip structure and H-share structure.The former mainly refers to the way of constructing and reorganizing domestic and foreign structures to allow the domestic equity entities in China to achieve consolidation through a planned overseas listed entity under the red-chip structure; the latter refers to the architecture where a joint-stock company registered in China acts as a listed entity, issuing stocks and getting listed abroad. As of now, no companies using the red-chip structure have conducted listings on the Shenzhen Stock Exchange.[Share Link: Secondary listing.]For the enterprises, the latter has relevant cases due to the relative convenience of listing. The aforementioned "Opinions" also pointed out that enterprises in The Guangdong-hk-macao Greater Bay Area-related must "comply with policy regulations" to be listed on the Shenzhen Stock Exchange. From a systematic perspective, red-chip enterprises that have been listed on the Hong Kong Stock Exchange must conduct a secondary listing on the Shenzhen Stock Exchange, and the rules are relatively clear. However, the GEM's requirements for red-chip enterprises to go public mainly target "red-chip enterprises not listed overseas." According to the listing conditions announced by the Shenzhen Stock Exchange, red-chip enterprises applying for an initial public offering of stocks or depositary receipts and listing on the Shenzhen Main Board,Market Cap and Financial Indicators...](https://nnqimage.futunn.com/sns_client_feed/900104/20250611/web-1749633156453-KTNRByMNzn.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
According to the existing rules, qualified Guangdong-Hong Kong-Macao Greater Bay Area-listed companies can be divided into two categories:
1. Leading companies: Red chip companies with a Market Cap exceeding 200 billion yuan, such as $TENCENT (00700.HK)$ 、 $TME-SW (01698.HK)$ , can directly meet the listing standards of the Shenzhen Main Board.
2. High-growth companies: Red chip companies with a Market Cap above 20 billion yuan and possessing core technology, such as $XPENG-W (09868.HK)$ 、 $SMOORE INTL (06969.HK)$ 、 $BYD ELECTRONIC (00285.HK)$ , can be listed through the Main Board or GEM.
What do Analysts think?
Liao Bo, the chief Analyst of macro affairs at Zheshang Securities, stated that allowing Guangdong-hk-macao Greater Bay Area enterprises to list on the Shenzhen Stock Exchange according to policy regulations essentially means the expansion of the Shenzhen Stock Exchange market. While increasing the supply of securities-type Assets, it has invigorated the Capital Markets and is expected to further enhance the financing flexibility and valuation space of firms in the Greater Bay Area.
Wu Zewi, a special researcher at the Bank of Suzhou, stated that supporting 'H+A' listings is an important measure to deepen Capital Markets reform, aiming to achieve bidirectional openness and resource integration in the Capital Markets by allowing Guangdong-hk-macao Greater Bay Area enterprises to list on both H shares and A shares simultaneously.
Yang Delong stated that by introducing Guangdong-hk-macao Greater Bay Area enterprises listed in Hong Kong, the Shenzhen Stock Exchange will further expand its total Market Cap, providing better investment symbols for a broad range of investors, and the secondary listing on the Shenzhen Stock Exchange can further promote enterprise development and bring greater growth space.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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