The Chamber underscores the importance of building new partnerships and using technology as a growth engine and change catalyst

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In celebrating the 21st anniversary of the Chamber of Hong Kong Listed Companies (CHKLC), Chairperson Catherine Leung underscores the key role and focus of the Chamber as an advocate of ideas for market development and a partner with the Government and regulators in enabling growth.

“As we enter the third decade of our establishment, we pride ourselves on having served as a valuable collective source of market wisdom and experience,” she observes. “Our advocacy for admitting new types of companies to list on our stock market, such as those with weighted-voting-rights structure and pre-profit technology companies have borne good results and helped enhance Hong Kong’s position as a competitive listing destination.”

Building new partnerships

In reviewing the performance of Hong Kong’s stock market in 2023, Leung pinpoints the fundamental requirements of expanding the sources of investment capital, and of building new allies and partners, in order to address the lackluster performance.

Leung applauds the series of tactical measures aimed at bolstering the stock market, including lowering the stamp duty of stock trading to its previous level, as announced by Chief Executive John Lee in his latest Policy Address. But she stresses the importance of devising an overall strategy that tackles the problem at its roots.

US and European investors, Leung points out, are standing on the sidelines at the moment when it comes to Chinese investment. To fill the investment gap, she singles out the Middle East as a prime target but Hong Kong needs to carefully cultivate relationship in a persistent, co-ordinated manner, and not in a piecemeal way. The idea is being pursued with government to decide on the best way forward.

Leung adds that, to put things in perspective, the IPO markets elsewhere have not fared too well either, suggesting bearish factors such as inflation and high interest rates are still taking their toll on stock performances across the globe.

Technology as a driving force of growth and catalyst of Change

In October this year, more than 200 business leaders and ESG experts from different industries came together at the Chamber’s ‘2023 ESG and Green Finance Opportunities Forum’ to discuss the theme of “Combating Climate-risks and Achieving a Sustainable Future: Transition Finance and Innovative Technology”. Sponsored by Hang Seng Bank for three consecutive years, the Forum was officiated by Deputy Financial Secretary Mr Michael Wong.

In the opening remarks at the Forum, Leung cited the example of the electric vehicles (EVs) industry of the Mainland where technology has changed the outlook and landscape of an important industry sector while contributing to decarbonisation at the same time.

In overtaking Germany in 2022, and Japan in the first quarter of 2023, China, she said, is now the world’s leading automobile exporter, with their advanced design and functionalities, coupled with the price advantage brought by mass production.

Leung hailed it as the best example of our country leveraging technology to advance industry growth and strengthen economic competitiveness, while making contribution to global carbon emission reduction efforts by promoting the widespread use of new energy vehicles around the world.

“By sharing this case, I hope to provide inspiration to our members about how technology can be the driving force of growth and catalyst of change.” Leung explains.
Accolades of the highest order

In addition to advocating ideas for growth and development, Mike Wong, CEO of CHKLC, points out that the Chamber has also been an ardent promoter of good corporate Governance, hence its organising the Hong Kong Corporate Governance and ESG Excellence Awards since 2007.

“Market volatility in the last few years provides solid proof that companies that have successfully weathered the storms and distinguished themselves are precisely those that are managed well, handle risks effectively, exercise meticulous internal control, together with a high degree of accountability and transparency,” he notes.

Wong points out that more and more companies now realise their responsibilities extend beyond their shareholders to the environment and society at large, while climate change induced risks have further pushed social and environmental responsibilities to the forefront of corporate agenda. “We were astute enough to add an ESG dimension to our Awards Programme in 2021,” says Wong. “The rising popularity of our ESG Awards is testament to changing values and perceptions in the community.”

“The CHKLC Awards of Excellence in Corporate Governance and in ESG have long been coveted accolades of the highest order because the Chamber devotes meticulous attention to detail in its organisation and the rigorous process of evaluation and scoring,” adds Wong.