Hong Kong’s leader John Lee announced on Monday that the authorities are considering additional measures to boost the securities market in the Asian financial hub, which has been struggling due to China’s economic slowdown and geopolitical tensions.
Speaking at the HSBC Global Investment Summit in Hong Kong, Lee highlighted the steps already taken to improve the listing regime for specialized technology companies in order to enhance competitiveness. However, he mentioned that more measures are being considered to further strengthen the market.
The Hong Kong economy saw a modest growth of 3.2% in 2023, with capital flight causing the stock market to underperform compared to other major indexes. India has now surpassed Hong Kong in terms of the value of listed shares.
The Hang Seng Index in Hong Kong experienced a significant drop of nearly 14% in 2023, marking its fourth consecutive year of decline. Additionally, the value of initial public offerings (IPOs) decreased by 28.5% in the first quarter of this year compared to the same period last year.
Facing challenges such as high interest rates, a complex geopolitical environment, and growing budget deficits, Hong Kong introduced measures in February to attract back capital, businesses, and visitors to the city. Lee expressed confidence that these measures will help Hong Kong recover.
Despite concerns about short-term market volatility, Lee emphasized the abundant opportunities in Hong Kong and the government’s commitment to enhancing market competitiveness. He believes that as the measures take effect and the macro environment improves, the stock market will experience sustainable development.
Investors and market participants will be closely watching for further details on the additional measures being considered to support Hong Kong’s securities market.
