The market of Islamic finance is vast and there is potential for Hong Kong to offer products that meet its religious and regulatory standards, said Financial Secretary Paul Chan Mo-po.
Chan highlighted at a Thursday event that the listing of the first Saudi Arabia government Sukuk, or Islamic bond, ETF in Hong Kong is a testament to product innovation achieved through active collaboration between the government and the private sector.
He noted that Saudi Arabia and Gulf nations are focusing not only on financial investments but also on broader economic diversification – presenting new opportunities for collaboration.
He suggested leveraging the SAR’s experience with China’s market connect programs to collaborate with Middle Eastern markets, extending beyond stocks and exchange-traded funds to explore innovative financial products and partnerships in infrastructure and professional services.
He pointed out the abundance of promising enterprises in the Middle East and stressed the importance of building strong ties with them to deepen connections with the region.
Amid geopolitical uncertainties, Chan reiterated Hong Kong’s role as a safe haven for international capital and observed the trend of US-listed companies seeking secondary listings in Hong Kong.
He added that the city’s market valuation remains competitive, encouraging overseas fund managers to increase their allocations to Hong Kong.
On trade tensions, Chan warned of the complexities ahead but assured that Hong Kong remains committed to making sound policy decisions. He also reaffirmed the effectiveness of the peg system to the greenback, stating there are no plans to change it.
STAFF REPORTER
