Listed enterprises from the Chinese mainland in the Hong Kong stocks have greatly boosted their presence as latest statistics show that they have taken up 42 percent of Hong Kong Exchanges capitalization.

By the end of April 2006, a total of 344 enterprises from the Chinese mainland have been listed in Hong Kong stocks, with a total capitalization of 4.053 trillion HK dollars (about 523 billion U.S. dollars), or 42 percent of the entire stocks' capitalization, said Paul Chow, chief executive of Hong Kong Exchanges and Clearing Limited, while addressing the International Conference on China and the Global Capital Markets held here Friday.

"Mainland enterprises listed in Hong Kong have grown in number and significance," Chow said in his keynote speech. "Without China, the capitalization of Hong Kong Stock Exchanges would have been reduced by half."

Currently, the top 10 initial public offerings in Hong Kong stocks are all mainland enterprises, including China Construction Bank, China Unicom, China Life, Sinopec and China Shanghai Energy, according to Hong Kong Exchanges.

Chow said mainland enterprises have broadened the industry composition of the listed companies in Hong Kong, widening the scope from mainly real estate in the early 1990s to currently companies in mining, airport, banking, resources and insurance.

The conference -- "China and the Global Capital Markets" -- was co-hosted by the Hong Kong Institute of Certified Public Accountants (CPAs) and the Institute of Chartered Accountants in England and Wales.

Groups of accounting leaders, financiers and regulators sought to look at how China's thirst for capital is affecting global capital markets and address capital market issues ranging from global regulations to public trust in audited financial statements.

"As Chinese companies seek funds in capital markets worldwide, Hong Kong accountants are playing a central role in bridging the gap between those companies and international investors," said Paul Chan, president of the Hong Kong Institute of CPAs, when addressing the conference.

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