John Lee, Hong Kong's Chief Executive, announced on Monday that the government is exploring new initiatives to strengthen the city's financial markets. These markets have been adversely affected by China's economic deceleration and increasing geopolitical strife.
During his speech at the HSBC Global Investment Summit, Lee highlighted that efforts to attract specialized technology companies through an improved listing process have been part of the strategy to increase market competitiveness.
"We are excited about the prospect of introducing further enhancements ranging from transaction processes to investment services and market promotion efforts," Lee stated, though specifics were not provided.
In 2023, Hong Kong's economy grew by a modest 3.2%, and the region experienced significant capital outflows, leading to the Hong Kong stock market being labeled as the least performing major index globally. Surpassing Hong Kong, India has now become more valuable in terms of listed shares.
The Hang Seng Index witnessed a nearly 14% decline in 2023, marking its fourth consecutive year of losses. Additionally, the first quarter of this year saw a 28.5% decrease in the value of initial public offerings (IPOs), totaling $507 million, as per LSEG data.
Faced with high interest rates, a complex international landscape, and growing budget deficits, Hong Kong introduced a series of initiatives in February aimed at attracting capital, businesses, and tourists back to the metropolis.
Lee is optimistic that these initiatives will facilitate Hong Kong's recovery. "Despite some expressing disappointment at what may be temporary market fluctuations, there's a strong sentiment of confidence in Hong Kong and its vast opportunities," he remarked.
Lee further emphasized the government's commitment to market competitiveness, expressing confidence in the stock market's sustainable development as the macroeconomic environment improves and the measures begin to take effect.
