Investors are set to witness an increase in cross-border investment opportunities between Hong Kong and Indonesia, as the Hong Kong Stock Exchange (HKEX) formally recognizes the Indonesia Stock Exchange (IDX). This strategic move, announced today, will enable Indonesian companies to pursue secondary listings on the HKEX, potentially boosting their visibility and liquidity on an international stage.
The acknowledgment of IDX as a Recognized Stock Exchange (RSE) follows a Memorandum of Understanding (MoU) signed in July 2023. The agreement was aimed at expanding cross-listing prospects and enhancing market visibility for both exchanges. Katherine Ng, Head of Listing of HKEX, highlighted the advantages this collaboration brings, especially for Indonesian state-owned enterprises and technology innovators. These entities now have access to a broader investor base and new growth avenues, contributing to the diversification of HKEX's investment offerings.
To be eligible for a secondary listing in Hong Kong, Indonesian companies are required to satisfy stringent financial requirements, adhere to corporate governance standards, and maintain operational transparency. This integration is expected to amplify investor exposure to Indonesia's market and escalate cross-border investment activity, enriching the financial landscape in both regions.
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