Beijing to back more China listings, bond issues in HK

Reuters and staff reporter

Beijing will support more high-quality enterprises from China to list and issue bonds in Hong Kong, Vice Premier He Lifeng said at a summit yesterday, offering to back the city at a time when its future as a financial center is facing scrutiny.

He's speech was delivered to over 300 government officials and leaders of financial institutions at the third Global Financial Leaders' Investment Summit hosted by the Hong Kong Monetary Authority.

"We will improve the mechanism for the regular issuance of Treasury bonds, steadily increase issuance in Hong Kong, and support the city in consolidating its position as a global financial business hub," He said, without providing specifics.

He also proposed three suggestions for Hong Kong's economy, including deepening financial reform and innovation, expanding financial openness and cooperation, and further aligning with the national development strategy.

Financial Secretary Paul Chan Mo-po pledged to help realize He's suggestions.

He's attendance, Chief Executive John Lee Ka-Chiu said during his return from Peru, demonstrated the central government's support and attention to Hong Kong as an international financial center.

Also at the summit, National Financial Regulatory Administration minister Li Yunze noted that the adjustment of new opening measures and regulations related to the "mainland and Hong Kong closer economic partnership arrangement" will be completed as soon as possible.

China Securities Regulatory Commission chairman Wu Qing vowed to continue to deepen practical cooperation between the mainland and Hong Kong with the five measures announced in April this year and fully support the city to cement its status as an international financial center.

Zhu Hexin, vice governor of the People's Bank of China and director of the State Administrative of Foreign Exchange, said Beijing will deepen the connections between the financial markets in the mainland and Hong Kong.

Acting Hong Kong Chief Executive Eric Chan Kwok-ki pointed out that the city will strive to provide more yuan investment products.

Financial Secretary Paul Chan Mo-po said Hong Kong will keep striving to collaborate with Global South markets, including the Association of Southeast Asian Nations.

Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, noted that a deep and accurate understanding of various major trends and timely adjustments to strategies and deployments is required when the market is facing unprecedented changes.

Joseph Tsai Chung-hsin, chairman of Alibaba Group, said the dual primary listing in Hong Kong in September brought higher liquidity to the company's stock trading.

HSBC's new chief Georges Elhedery predicted the volume of intra-regional trade in Asia will rise by 65 percent from the current level, benefiting from the surging trading volume between China and Asean.

Morgan Stanley chief executive Ted Pick said it will take time for the mainland to fight deflation and that market confidence is crucial.

Goldman Sachs' chief executive David Solomon believes market confidence can consolidate the stability of China's economy, adding that improved consumption is important to investor confidence.

JP Morgan president and chief operating officer Daniel Pinto believes that the integration of traditional artificial intelligence and large-scale language models will significantly improve productivity.