Editorial | Hong Kong’s stock market on track for a return to brighter days
- Mainland Chinese regulator has announced a strong package of measures to support city’s status as Asia’s – and indeed the world’s – premier financial hub
It has been a trying time for investors in Hong Kong markets. The former initial public offering capital of Asia, and the world, in the first quarter saw its worst listing market since the global financial crisis in 2008.
After slumping 14 per cent in 2023, the moribund Hang Seng Index has shown few signs of life, with high interest rates offering less risky investment alternatives and good news scarce.
Good news is precisely what China’s regulator has given investors, announcing a package of measures designed to restore Hong Kong’s status as a financial hub.
The China Securities Regulatory Commission has announced it would facilitate listings by leading Chinese companies and expand the Stock Connect scheme.
Policy assistance had been expected for some time. President Xi Jinping has repeatedly declared it was necessary to enhance Hong Kong’s status as an international financial centre, a line the CSRC reiterated earlier this month. f
Beijing’s top man on Hong Kong, Xia Baolong, said support was on the way. He pointed to the city’s rule of law, competitiveness and innovation as part of its unique advantages, adding that new policies would help “maximise the dividends of one country, two systems”.