A “homecoming” for US-listed China American Depositary Receipts (ADRs) is a “key share price driver” for Hong Kong Exchanges and Clearing (HKEX), and a continued strong IPO pipeline will keep valuation “elevated”, say CGS International Research’s Hong Kong analysts Laura Li and Michael Chang.
“Rising ADR delisting risks, amplified by increased US regulatory attention since April, have driven HKEX to outperform the Hang Seng Index, as HKEX benefits from future IPO migration,” they write in a May 27 report.
