Potential US Delisting of Chinese Stocks Could Reinforce Hong Kong’s Role as a Premier IPO Hub

The US government has refused to rule out the possibility of delisting Chinese companies from American stock exchanges—an outcome that remains both legally and technically viable.

Amid an increasingly complex geopolitical landscape, Hong Kong is emerging as a natural alternative for mainland Chinese firms seeking international capital. Bankers suggest that renewed US pressure could bolster Hong Kong’s position as a leading venue for initial public offerings (IPOs).

As of the end of March, 286 Chinese companies were listed across the New York Stock Exchange, Nasdaq, and NYSE American, with a combined market capitalisation of approximately US$1.1 trillion, according to exchange data. However, the future of these listings is now in question after US Treasury Secretary Scott Bessent declined to provide assurances that Washington would refrain from pursuing delistings.

A similar scenario unfolded following the enactment of the Holding Foreign Companies Accountable Act (HFCAA) in December 2020. At the time, several major Chinese firms—including Alibaba Group Holding, NetEase, and JD.com—opted for secondary or dual-primary listings in Hong Kong to hedge against potential US regulatory risks.

Analysts believe this trend could repeat, offering Hong Kong a strategic opportunity to further cement its role as the key international fundraising hub for Chinese enterprises. What was once seen as a challenge may ultimately serve as a catalyst for Hong Kong’s capital markets to thrive once again.