CNBC's The China Connection newsletter: China is rewiring the Silicon Valley model — starting in Hong Kong

Hi, this is Evelyn, writing to you from Beijing. Welcome to the latest edition of The China Connection — a succinct snapshot of what I'm seeing and hearing from local businesses. My latest conversations with investors reveal a notable shift: China has taken note of how finance powered Silicon Valley's rise and is following suit. Growing pains and risks aside, this could mean serious competition for the U.S. The big story Follow the money behind China's latest tech boom and it leads to Hong Kong — the most globally accessible of China's stock exchanges — which roared back to life last year. Companies raised more funds in public listings on the Hong Kong market than on any other exchange. Now, more than 400 companies are lining up to list — and I've heard estimates that are way higher thanks to the exchange's relatively new confidential listing rules . "This [surge in Hong Kong listings] will last longer than one or two years," Gary Lock, Hong Kong-based partner at IPO advisory King and Wood, told me on the sidelines of a venture capital forum in Hangzhou last month. The current capital markets activity is "much, much bigger" than anything seen in the last 35 years, Lock said. Since the Iran war began two months ago, he said foreign money has flowed into Hong Kong banks, getting ready to invest in China. More than 40 companies have listed in Hong Kong so far this year, as regulations ease — and U.S. …