Goodbye Wall Street: 9 of 10 Hong Kong IPO advisers now Chinese

(June 7): What a difference 20 years makes. Back when Hong Kong reverted to Chinese sovereignty in 1997, the British colony’s economy was dominated by homegrown tycoons such as Li Ka-shing and colonial-era conglomerates such as Jardine Matheson Holdings, whose influence dates back to the Opium Wars.

Now, in 2017, a new sheriff is coming to town, so to speak. While Li and his peers are still big, the influence of local tycoons in parts of Hong Kong’s economy is waning while that of mainland Chinese companies is surging—especially in finance, real estate and telecommunications. China’s prevalence continues to grow in other sectors as well.

Hong Kong has long acted as the gateway into and out of China. In the ’90s, Chinese state-owned firms, known as Red Chips, raised capital from Hong Kong to develop China’s economy. Now, as China’s political influence in Hong Kong grows, cash-rich Chinese firms are gaining more influence in the economy as well.

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