Hong Kong’s leader John Lee announced on Monday that authorities were exploring additional measures to support the securities market in the Asian financial hub, which has been impacted by China’s economic slowdown and geopolitical tensions.
The city’s economy grew by only 3.2% last year, and capital outflow caused the Hong Kong stock market to be the worst-performing major index. India has now surpassed Hong Kong in terms of the value of listed shares.
Speaking at the inaugural HSBC Global Investment Summit in Hong Kong, Lee mentioned that several measures had been implemented, including enhancing the listing regime for specialized technology companies, to boost competitiveness.
“We are pleased that we’re considering additional measures from improving the transaction mechanism to boosting investment services and stepping up market promotion,” Lee said, without elaborating.
Hong Kong’s Hang Seng Index fell nearly 14% in 2023, marking its fourth consecutive year of decline.
Despite being a global capital-raising hub, Hong Kong saw the value of initial public offerings (IPOs) decrease by 28.5% in the first quarter of this year compared to the same period last year, according to LSEG data.
Facing high-interest rates, a complex geopolitical landscape, and growing budget deficits, Hong Kong announced a combination of measures in February to attract capital, businesses, and visitors back to the city.
Lee expressed confidence that these measures would help Hong Kong recover. “As the measures take hold, and the macro environment improves, so too will be the sustainable development of the stock market – of that I have no doubt,” he said.
Hong Kong has served as a vital gateway for investments in mainland China. Authorities in both the city and the mainland have introduced several securities trading connect programs in recent years to enhance investor access to each other’s markets.
