Leading companies in market capitalization at HKEX in Hong Kong 2024

The stock of the Chinese technology conglomerate Tencent had the highest market capitalization on the Hong Kong Stock Exchange. Tencent was worth over 2.61 trillion Hong Kong dollars in 2024. In addition to that, Tencent's share also had a high turnover, making it the most active stock on the bourse.

An acceptable compromise

The Hong Kong Exchange has a unique position in the global financial landscape that makes it a popular destination for companies from mainland China. Because the city is a special administrative region under the PRC but has a very liberal financial system with a large market capitalization, it enjoys certain privileges that remain unobtainable to the rest of the overseas financial markets. As a result, Hong Kong becomes a popular destination for mainland Chinese companies that want to gain access to global financial markets while maintaining proximity to home markets.

Closer to home

In an environment of rising tensions between the PRC and the United States, many Chinese companies listed on overseas stock exchanges feel pressure from both sides. After China’s cybersecurity watchdog CAC delisted the ride-hailing company DIDI’s application from app stores in mainland China shortly after its IPO on the New York Stock Exchange, it sent the stock into turmoil. Ultimately, the company leadership decided to transfer its shares to the Hong Kong Exchange. DIDI might not be the only Chinese enterprise that will come closer to the mainland as the SEC recently announced stricter auditing requirements while Beijing also amends its rules for overseas IPOs.