Hong Kong Forging New Finance Direction
Hong Kong is forging a new direction that best achieves the goals of enhancing
its status as an international business centre and as China's global financial
centre, according to Financial Secretary John Tsang.
Speaking at the Wharton Club luncheon on Thursday, Tsang suggested that the challenge
in the next few years will be to fulfil Hong Kong's role as China's global financial
centre, and to more closely streamline the two financial systems. As they become
more closely linked, there will be greater scope for financial instruments issued
in Hong Kong to be marketed to Mainland investors, he noted. Mainland enterprises have highlighted Hong Kong's potential as a premier capital-raising
platform, he observed, adding that 397 Mainland enterprises were listed on the
local stock exchange at the end of last month, accounting for a third of the
listed companies, and about 60% of market capitalisation. However, he suggested that Hong Kong needs to expand its financial institutions'
presence on the Mainland, and play a greater role in the outward mobility of funds
from the Mainland. Hong Kong Exchanges & Clearing and the Securities & Futures Commission in March published a statement on opening the equity listing regime to overseas
issuers, to attract more overseas companies to list on the stock exchange. New procedures will make it easier and quicker for foreign companies to list
in Hong Kong, attracting international investors, such as those in the Middle
East, to the jurisdiction, according to the Financial Secretary. "Our stable and freely convertible currency, flexible regulatory regime
and world class financial infrastructure and settlement systems make Hong Kong
an attractive choice for investors from all over the world, including the Middle
East," Tsang concluded. .
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