Hong Kong will adopt reforms to capitalise on emerging trade corridors while strengthening its financial markets to be the gateway connecting China and the world, according to the city’s treasury and central bank chiefs.
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Secretary for Financial Services and the Treasury Christopher Hui Ching-yu told a conference in Hong Kong on Monday that the city presented immense investment opportunities, as evident by the response to the New Capital Investment Entrant Scheme introduced in March.
So far, HK$6.5 billion (US$835 million) has flowed into the city’s funds, equities and debt assets under the investment-migration scheme, with allocation percentages of 45 per cent, 39 per cent and 15 per cent, respectively. From March this year, the programme’s net asset assessment and calculation requirements will be relaxed, and investments made through an applicant’s wholly owned private company will be eligible.
“The opportunities in Hong Kong are immense, despite the complex geopolitical [and] economic landscape,” Hui said in a speech at the Asia Securities Industry & Financial Markets Association’s conference. He said that last year, the city’s stock market surged 18 per cent, and the average trade turnover jumped 36 per cent from a year earlier.
With Hong Kong’s initial public offering (IPO) market rebounding to rank fourth globally, regulators and the Hong Kong stock exchange were working to strengthen overall market competitiveness, he said. Authorities have started a public consultation through March 19 to seek feedback on optimising the IPO price-discovery process and open-market requirements.
On the debt market, Hong Kong had been the biggest centre for yuan-denominated bond issuance for 16 years in Asia and nine years internationally, Hui said.
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