Hong Kong needs to attract global champions to broaden fundraising base: FSDC Hong Kong will need to attract global champion firms across different sectors to raise funds to strengthen the city’s role as an international financial centre over the next 10 years, according to a concept paper issued by the Financial Services Development Council (FSDC) on Friday. “Global markets do not stand still,” said Benjamin Hung Pi-cheng, chairman of the FSDC, at a media briefing where the council outlined a wide range of ideas to bring the city’s capital market to the next level. “Hong Kong has every opportunity to shape, innovate and lead.” The FSDC, a government-backed think tank, conducts studies and research to find ways to strengthen the city as an international financial centre. While Hong Kong’s stock market had been a fundraising hub for mainland Chinese companies for decades, the next step was to develop the city as a platform for companies from Southeast Asia, the Middle East, Europe and America to list or issue bonds and other asset classes, Hung said. “From new biotechnology companies or fintech companies to global leading companies, we want to attract them to raise funds here by issuing equities, bonds or other asset classes,” Hung said. “Only in Hong Kong can global companies access a very large pool of money, which is not just international capital but also China’s capital.” Hong Kong could attract more global firms to list by promoting itself more in the Middle East, Southeast Asia and other emerging markets, as well as in Europe and America, said Andrew Weir, vice-chairman of the FSDC. Rocky Tung Yat-ngok, director and head of policy research at the FSDC, said potential listing candidates could include European luxury brands, artificial intelligence and technology companies from mainland China and the US, as well as commodities and mining companies in the Middle East or Southeast Asia. “To achieve these goals, Hong Kong would need to continue to improve its listing regime to facilitate such companies, while considering the introduction of market makers to promote more turnover for the relatively smaller listed companies,” Tung said. While the average daily turnover of the stock market almost doubled this year to HK$255.8 billion (US$32.8 billion) in the first 11 months, trading was mostly concentrated in the largest 100 stocks. “After global champion companies list in Hong Kong, we need to give them reasons to continue to stay here,” Tung said. “This is why it is important to enhance the turnover across all types of companies.” The FSDC paper also called for cross-border trading schemes between Hong Kong and mainland China to include a wider range of asset classes. The connect schemes began in 2014 by linking stock markets between Shanghai and Hong Kong, with the Shenzhen leg added two years later. The schemes, which allow cross-border trading between mainland China and international investors via Hong Kong, have since expanded to bonds, swaps and wealth management. “We would like to see the connect schemes to include other asset classes, such as commodities and real estate investment trusts, to strengthen Hong Kong’s unique role of connecting international investors with mainland markets,” Hung said. The FSDC paper also highlighted the importance of promoting more digital products and tokenised asset trading in the coming years. Hong Kong’s market regulator, the Securities and Futures Commission (SFC), introduced a licensing regime for virtual asset trading platforms in recent years. The SFC had granted licences to 11 operators as of July, while approving only five cryptocurrency tokens for retail trading in the city: bitcoin, ether, Solana, Avax and Link. “Hong Kong has the digital assets regulatory framework,” Weir said. “The challenge is to be a leading, cutting-edge, global player in the space, but with enough safeguards to mitigate the inherent risk.” https://www.scmp.com/business/banking-finance/article/3336228/hong-kong-needs-attract-global-champions-broaden-fundraising-base-fsdc (ICE HONG KONG)

Fonte notizia: South China Morning Post