There's quite a few exchanges in China alone. Lets look at Shanghai's stock exchange which is probably the most vibrant exchange in China esp for foreign companies.
Some stats to begin with China's Shanghai Stock Exchange is the 4th largest market capitalization in USD. Moreover Shanghai's stock exchange is connected to HKEX through stock connect since 2014, and also linking up with London in 2018. This translates to increased liquidity with larger volume of investors and trading volume.
Japan's Exchange Group JPX has the 3rd highest market cap globally. Plus points to note, Japan's currency is known to be one of the most stable in the world. 60% investors base are foreigners. Companies are more than happy when the exchange is subscribed by investors worldwide. Tokyo Stock Exchange has many highly liquid companies. Market Concentration, measured based on the top 10 most traded domestic companies is low compared to Asian peers. This means trading is not concentrated in a few companies(unlike SG).
I think the greatest drawing point when many companies list on exchanges is its liquidity and its accessibility to the largest pool of shareholders.
Secondly its is the level of regulation by stock exchange- eg. Alibaba wanted to list in HK at first but the duo class share structure but disallowed.
Therefore in Asia, HK sits on the perfect balance with access to China's investors but also greater economic stability and less regulation heavy to IPO.
There's quite a few exchanges in China alone. Lets look at Shanghai's stock exchange which is probably the most vibrant exchange in China esp for foreign companies.
Some stats to begin with China's Shanghai Stock Exchange is the 4th largest market capitalization in USD. Moreover Shanghai's stock exchange is connected to HKEX through stock connect since 2014, and also linking up with London in 2018. This translates to increased liquidity with larger volume of investors and trading volume.
Japan's Exchange Group JPX has the 3rd highest market cap globally. Plus points to note, Japan's currency is known to be one of the most stable in the world. 60% investors base are foreigners. Companies are more than happy when the exchange is subscribed by investors worldwide. Tokyo Stock Exchange has many highly liquid companies. Market Concentration, measured based on the top 10 most traded domestic companies is low compared to Asian peers. This means trading is not concentrated in a few companies(unlike SG).
I think the greatest drawing point when many companies list on exchanges is its liquidity and its accessibility to the largest pool of shareholders.
Secondly its is the level of regulation by stock exchange- eg. Alibaba wanted to list in HK at first but the duo class share structure but disallowed.
Therefore in Asia, HK sits on the perfect balance with access to China's investors but also greater economic stability and less regulation heavy to IPO.