CITIC Securities: More leading companies will go public in Hong Kong in the future, leading to a potential shift in the style of the A-share market back towards core assets.

CITIC Securities released a research report stating that the current wave of A-share companies going public in Hong Kong is driven by three forces: the strategy of going global, favorable institutional conditions, and improved liquidity of Hong Kong stocks. After high-quality core assets officially start trading in Hong Kong, there may be a short-term increase in corresponding trading in the A-share market, and the pricing power of some core assets may gradually shift southward. Behind this phenomenon is the increasing attractiveness of the Hong Kong stock market, with asset supply structure and quality continuing to improve, and liquidity showing a trend of improvement in the context of overseas capital inflows. Historically, each round of reforms in the Hong Kong stock exchange has led to bull markets that align with the characteristics of the times. In the future, more high-quality leading companies listing in Hong Kong may become a catalyst for A-share market style to shift back towards core assets.