For China’s hi-tech IPOs, it’s Hong Kong vs the mainland – but how much does it matter?

Competition between mainland China and Hong Kong for hi-tech initial public offerings presents emerging technology firms with a dual-track strategic choice rather than a zero-sum battle, according to an executive at a national cross-border innovation platform.

“There is naturally a degree of competition,” Lu Peng, general manager of Beijing-based Zhongguancun International, said in an interview on Thursday, referring to how tech firms select their primary listing venue. “However, the two markets ultimately target different types of enterprises and investor bases.”

Firms focused on international expansion tend to view Hong Kong as the preferred venue, Lu said, while those chasing a higher valuation multiple often stay onshore, where domestic investors typically reward growth stocks with richer price-to-earnings ratios.