For mainland Chinese companies with a dual A+H listing, the choice of using H-shares for employee incentive plans goes beyond meeting regulatory compliance; it also encompasses various strategic benefits that should be considered.
As Hong Kong reclaims its position as the world's leading IPO fundraising venue—raising approximately HK$285.8 billion from 119 new listings in 20251 and supported by a record pipeline of more than 300 active IPO applications, including 92 A+H issuers,2 —the city's capital markets are demonstrating renewed depth, global connectivity, and investor confidence. In this environment, H-shares offer significant strategic business value. By leveraging the Hong Kong listing status, companies can enhance global visibility, align employee interests with international investor expectations, and strengthen their competitiveness in attracting and retaining talent amid intensifying cross‑border expansion.
Historically, H-shares have been less visible in employee share plans compared to A shares, primarily due to tighter regulatory restrictions and operational complexity. Today, the landscape is changing. HKEX's treasury share regime (June 2024) and CSRC's record-filing requirements (March 2023), combined with the accelerating trend of Chinese companies expanding globally are creating new opportunities for A+H issuers to leverage H-shares strategically.
Attracting and retaining top talent
In a competitive job market, H-share plans serve as a powerful differentiator. H-shares are freely tradable by foreign investors and are denominated in Hong Kong dollars (HKD). This accessibility makes the equity compensation package more attractive and understandable to potential and current international employees who may otherwise face challenges participating directly in A‑share markets.
Providing employees with internationally recognised H-share equity shows a company's global ambition, commitment and alignment with international investor expectations, appealing to a broader talent group.
Simplified global inclusivity
H-shares are freely tradable by foreign investors and denominated in HKD. This integral accessibility simplifies the administration of equity awards across multiple jurisdictions, avoiding the currency controls, participation restrictions, and regulatory barriers often associated with A‑share plans.
Optimised resource use
Using H-shares for employee incentive plans enables A+H listed companies to optimise resource allocation and unlock value from these previously underused assets. This can be achieved through several strategic levers, including valuation disparity, reduced dilution impact, and share repurchase programs.
Employee share plans are a proven mechanism to align employee and shareholder interests. When employees become owners, they are more likely to think and act with the company's long-term success in mind. Managing these plans across jurisdictions can be complex. Computershare combines international capability and local expertise to support the full lifecycle of employee share plans, from treasury share handling and Chapter 17 disclosure compliance to SAFE registration and global participant servicing, ensuring clients can operate effective, compliant, and globally scalable incentive programs.
1 What drove Hong Kong's Market in 2025. www.hkexgroup.com
2 Hong Kong reclaims top global IPO spot in 2025, says KPMG. www.kpmg.com