Hong Kong must continue its marketing efforts to draw in international company listings and global investors, South China Morning Post reported, citing a financial official and the head of the Hong Kong stock exchange.
Speaking at the Fortune Innovation Forum 2024, Paul Chan, the city’s financial secretary, along with Bonnie Chan, CEO of Hong Kong Exchanges and Clearing (HKEX), emphasised the ongoing geopolitical challenges and the need to explore new opportunities amidst these conditions.
“The geopolitical challenges will continue to be there for some time,” Paul Chan said. “We have to find a way to navigate all these [issues] and find new opportunities.”
He further noted the need to continue efforts by the government and HKEX to highlight the unique features of Hong Kong’s capital market for countries in the Middle East and ASEAN.
The Hong Kong stock market, ranking third in size in Asia, has been experiencing difficulties since last year. According to one report, proceeds from new initial public offerings (IPOs) dropped by more than half to a 20-year low. Despite these setbacks, Hong Kong continues to be considered a global financial hub with unrestricted capital flow and a portal to mainland China.
Bonnie Chan, head of HKEX, said that “Hong Kong’s IPO market remains attractive, with companies delaying listings only because of poor market sentiment.”
“They are just waiting for the right conditions to arrive,” Chan added.
Hong Kong, which has been ranked the world’s largest IPO market seven times since 2009, dropped to eighth position last year.