25th November 2023 – (Hong Kong) The Hong Kong Exchanges and Clearing Ltd (HKEX) announced on Friday that it has granted the Indonesia Stock Exchange (IDX) the status of a Recognised Stock Exchange (RSE). This recognition will enable Indonesian companies listed on IDX to seek a secondary listing in Hong Kong.
With this announcement, IDX becomes the 17th international exchange to receive this prestigious recognition, joining the ranks of other recognised exchanges from around the globe. These include exchanges in Australia, Singapore, Saudi Arabia, among others, according to a statement released by HKEX.
This recognition is a significant step forward following a memorandum signed between HKEX and IDX in July. The memorandum was aimed at exploring opportunities for cooperation in various areas, including potential cross-listing opportunities, as outlined by the Hong Kong Exchange.
Katherine Ng Kit-shuen, HKEX Head of Listing, commented on the development, “This addition will facilitate potential cross-listings, thereby providing domestic Indonesian companies with access to a wider regional and global investor base. This opens up new avenues for growth and enhanced market visibility.”
The move signifies a significant expansion in HKEX’s global footprint and reinforces its commitment to fostering international collaboration. It also highlights the growing role of Asian markets in the global financial landscape. The recognition of IDX as an RSE is expected to boost Indonesia’s capital market and provide its companies with more access to international investors.
The decision to recognise IDX comes at a time when more Asian companies are looking to list in international markets to raise capital. Secondary listings in Hong Kong have become an increasingly popular choice for companies, given the city’s strategic position as a global financial hub.