Greater Bay Area to help cultivate new talent for Shanghai tech board

Editor's Note:Jimmy Zhuis chief strategist at Fullerton Research. news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The article reflects news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The author's opinion, and not necessarily news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The views ofCGTN.

news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The successful development of German technology companies widely relies on news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The country's comprehensive financial market and extensive cooperation among different sectors.

news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new blueprint for south China's Greater Bay Area and news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The upcoming news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new Shanghai tech board are set to follow Germany's example, establishing a news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new chapter for integration between private firms and news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The financial market.

Germany, a global innovative leader in technology, has its own comprehensive strategy for incubating its tech companies. Deep integration between Germany's private firms and its capital market not only solves funding issues for news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">These tech companies, but also improves efficiency in daily business operations.

news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">There are thousands of financial institutions in Germany that serve its private sector, including many SMEs. Meanwhile, news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The German government actively promotes a dynamic business operating environment by optimizing its legal system in order to improve innovation.

Germany's success at developing its tech sector proves that news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The integration of a developed financial market into sectors of news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The real economy is crucial.

Hong Kong, one of news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The few developed markets in Asia, will set up a financing and investment platform for news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The Belt and Road Initiative (BRI), while Hong Kong Exchanges Clearing will develop a spot commodity trading platform in sounews.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">Thern China.

news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The percentage of private companies in south China's Guangdong Province is much higher than in onews.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">Ther cities and provinces, so news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The Greater Bay Area plan reflects news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The intention of authorities to allow more private forces to participate in news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The BRI, which primarily involved SOEs in recent years.

Different to those mega-sized state firms, private firms require greater support from financial institutions to kick off projects, and Hong Kong has news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The greatest advantage in providing those financial services thanks to its open economy, sound legal system and a much wider range of financial products.

Data show that an increasing number of mainland companies chose to list in Hong Kong last year. Among all Chinese IPOs, Bloomberg data show that news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The value listed in Hong Kong stocks accounted for 67 percent last year, rising sharply from 13 percent in 2017.

news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The surge serves as a decent indicator that news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The financial environment in Hong Kong has become more attractive to Chinese firms based in news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The mainland. news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The Greater Bay Area plan is anonews.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">Ther platform that allows onshore tech companies to access offshore investment or financing instruments through a much simpler process than listing in offshore markets.

Hong Kong's role in news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The Greater Bay Area shows that authorities are keen to strategize a channel to allow private firms to benefit more from financial markets. Any successful experience could also be applied to onews.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">Ther sectors in future, with authorities vowing to lend more support to news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The private sector recently.

Liquidity for many Chinese tech companies trading in offshore markets is not great, thanks in part to news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The huge domestic consumer market and growing number of Internet users in China news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">These years, reducing news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The urgency for many of news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">These Chinese tech brands to gain greater exposure in offshore markets.

As a result, many foreigners have little knowledge of news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">These companies except for news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The biggest Chinese tech giants. news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The Greater Bay Area project, togenews.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">Ther with news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The upcoming Shanghai technology and innovation board, may be news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The game changer.

news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The Greater Bay Area project could offer a one-stop service for companies intending to grow by leveraging both onshore and offshore capital markets. First, news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The blueprint shows that news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The south China city of Guangzhou will establish a regional trading center for private equity, property rights and commodities. news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The Greater Bay Area is an incubator for companies issuing private equity, which plan IPO issuance as an exit strategy.

news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The regulation and trading rules of news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new registration-based Shanghai tech board is likely to align with international markets. news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The success of news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">new exchange will largely depend on news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The governance and quality of each listing member.

If news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The Greater Bay Area successfully incubates a large amount of tech companies, news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">Their ultimate destination is likely to be news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The Shanghai tech board. Even if some of news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">Them decide to go overseas, news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">They will be more familiar with international standards of governance, as well as what information can be used to attract international investors.

Besides that, insurance institutions in news.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">The Chinese mainland, Hong Kong and Macao will receive support to develop a cross-border yuan reinsurance business, which is likely to furnews.cn/tag/i0xngaj3163f76200c981b/index.html" target="_blank">news.cn/tag/i0xkmkf277c8b6f3be1bd5/index.html" target="_blank">Ther promote RMB internationalization and enhance legal awareness when Chinese companies go overseas.