HONG KONG (Reuters) – Hong Kong leader John Lee said on Monday that authorities would take further measures to support the Asian financial hub's securities market, which has been hit by a slowing Chinese economy and geopolitical tensions. He said he is considering it.
Speaking at the HSBC Global Investment Summit in Hong Kong, Lee said a number of steps have already been taken to strengthen competitiveness, including improving the listing system for specialized technology companies.
“We are pleased that we are considering additional measures, ranging from improving trading mechanisms to strengthening investment services and strengthening market facilitation,” he said, without providing further details.
The economy is expected to grow by just 3.2% in 2023, and capital flight made Hong Kong's stock market the worst performer among major stock indexes last year. India has now overtaken Hong Kong in the value of listed stocks.
Hong Kong's Hang Seng Index fell nearly 14% in 2023, marking the fourth consecutive year of decline.
The city, a major global capital-raising hub, saw initial public offerings (IPOs) in the first quarter of this year fall 28.5% year-on-year to $507 million, according to LSEG data.
Battling high interest rates, a complex geopolitical environment and a ballooning budget deficit, Hong Kong announced a package of measures in February to lure capital, businesses and tourists back to the city.
Mr Lee said these measures would help Hong Kong get back on its feet.
“While some have expressed disappointment with the short-term fluctuations in the market, others have expressed strong confidence in Hong Kong and the rich opportunities it offers,” Mr Lee said.
“As the measures take hold and the macro environment improves, the stock market will develop sustainably. I have no doubts about that,” he said, adding that the government is focused on strengthening market competitiveness. He added that he is doing so.
(Reporting by Selena Li and Dorothy Kam; Editing by Sumeet Chatterjee and Miral Fahmy)
