Paul She was interviewed by Financial Times (July 2025)
Recently, our head of capital markets, Paul She was interviewed by Financial Times to share in-depth insights about the Beijing Stock Exchange’s (BSE) distinct appeal for new technology and AI companies, particularly those focused on domestic markets. He stated that China’s capital controls, which restrict offshore fund repatriation, make the BSE a more practical choice for many firms.
Additionally, Chinese semiconductor and AI companies are showing less incentive to list in Hong Kong. Late-stage private fundraising rounds are already delivering higher valuations than those typically seen on the Hong Kong Stock Exchange (HKEX), reducing the appeal of an offshore listing.
Once considered a minor player in China’s capital markets, BSE has rapidly evolved into a dynamic platform for innovative small and medium-sized enterprises (SMEs). Launched in September 2021 to support China’s "little giants"—high-tech firms critical to economic security and supply chains—the BSE has seen remarkable growth. This year, its IPO activity has surpassed that of Shanghai and Shenzhen combined, signaling its rising prominence.
Key Takeaways:
- BSE’s rapid rise: Now a leading venue for innovative SMEs, outpacing Shanghai and Shenzhen in IPO activity.
- Domestic focus: Attracts firms with China-centric business models due to capital flow restrictions.
- Valuation advantage: High private-market valuations for tech/AI firms diminish the appeal of Hong Kong listings.
Credit to: Financial Times， Jul 18 2025
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