Chinese Vice Premier He Lifeng attends the Global Financial Leaders Investment Summit in Hong Kong, China, Tuesday, November 19, 2024.
Paul Yong | Bloomberg | Getty Images
Chinese Vice Premier He Lifeng on Tuesday vowed to boost Hong Kong’s competitiveness by investing in Hong Kong’s innovation and implementing supportive financial policies.
Speaking at the 3rd World Financial Leaders Investment Summit hosted by the Hong Kong Monetary Authority, he expressed Beijing’s determination to “consider and implement” measures aimed at building Hong Kong as an “international financial center”. He stated it again. This is according to a CNBC translation of his Mandarin speech.
Mr He, who oversees the main economic and financial policy-making body, said the Chinese government’s economic stimulus plans were already “bringing benefits” to Hong Kong. “The economic upward trajectory is more certain.”
Li Yunze, minister of China’s State Financial Supervisory Administration, said in a panel discussion after He’s speech that Hong Kong needs to leverage mainland China and its global connections to strengthen its financial industry.
Almost 80% of mainland companies seeking offshore listings will go to Hong Kong, Lee said, stressing that Hong Kong’s future “has always been intertwined with China.”
During the same panel discussion, Wu Qing, head of China’s securities regulator, said Hong Kong would continue to pursue policies to attract more foreign investment.
Some of the world’s biggest banks are scaling back operations and cutting staff in Hong Kong and mainland China after a prolonged lack of listing and deal-making activity.
Due to capital outflows, the city’s Hang Seng Index suffered the worst performance of the major indexes last year, posting its fourth straight decline. The Hong Kong stock market also saw a 16% decline in revenue from initial public offerings (IPOs) and subsequent share sales in the first six months of this year compared to a year ago, according to LSEG data.
Still, Hong Kong stock exchange operators said there were signs of recovery in the third quarter as the Chinese government announced a number of stimulus measures to shore up the struggling economy.
Vice Premier He, a close ally of President Xi Jinping, is tasked with tackling China’s sovereign debt crisis and lingering real estate slump, which are straining the region’s financial stability and hampering economic growth momentum.
Earlier this month, Chinese authorities took further steps to attract foreign investment, including lowering capital standards for foreign investors holding non-controlling stakes in companies. Under the new regulations, foreign individuals are now allowed to invest in listed companies.
People’s Bank Governor Pan Gongsheng also said at the November 7 meeting that China will continue to implement accommodative monetary policy and strengthen cooperation between domestic and international financial markets.
Representatives from 11 foreign institutions, including HSBC, Standard Chartered and Citigroup, will attend a financial summit in Hong Kong this week, according to a statement.
