HONG KONG (Reuters) – Hong Kong’s leader John Lee said on Monday the authorities were considering additional measures to bolster the securities market in the Asian financial hub, which has taken a hit from China’s economic slowdown and geopolitical tensions.
Lee told the HSBC Global Investment Summit in Hong Kong that a host of measures had already been taken, including improving the listing regime for specialized technology companies, to enhance competitiveness.
“We are pleased that we’re considering additional measures from improving the transaction mechanism to boosting investment services and stepping up market promotion,” he said, without giving any details.
The economy expanded by just 3.2% in 2023, and capital flight turned the Hong Kong stock market into the worst-performing major index last year. India has now overtaken Hong Kong in terms of the value of listed shares.
Hong Kong’s Hang Seng Index tumbled nearly 14% in 2023, its fourth consecutive year of decline.
The city, which is a major global hub for raising capital, saw the value of initial public offerings (IPOs) drop 28.5% in the first quarter of this year compared to the year-ago period to $507 million, according to LSEG data.
Battling high interest rates, a complex geopolitical environment and ballooning budget deficits, Hong Kong in February announced a mix of measures to lure back capital, businesses, and visitors to the city.
Lee said these measures will help Hong Kong bounce back.
“While some have voiced their disappointment over what could well be short-term market volatility others have expressed strong confidence in Hong Kong and the abundant opportunities out there,” Lee said.
“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, adding the government was committed to enhancing market competitiveness.
(Reporting by Selena Li and Dorothy Kam; Editing by Sumeet Chatterjee and Miral Fahmy)
