Market indicators show Hong Kong still ‘brilliant’ global financial centre: John Lee

“Intrinsically, we ourselves should understand clearly that we are brilliant [in this area].”

Hong Kong minister hits out at claims that city’s days as global finance hub are over

He said the market capitalisation of Hong Kong’s stock exchange, which remained higher than many of its rivals, had rebounded by more than 10 per cent when compared with a low point in October last year.

Recent statistics for the northbound transaction volumes of the Bond Connect scheme, and the value of new insurance policy premiums in the first three quarters, also recorded double-digit increases, he added.

The northbound Bond Connect scheme was introduced in 2017 and allows international investors to trade in the mainland bond market.

“As an open economy, we are affected by external factors,” he said. “Sometimes we take three steps forward and two steps back. That’s normal and the same everywhere. But we should not belittle ourselves.”

He said Hongkongers should not underestimate their achievements, as they had transformed the city into a financial powerhouse.

“The intrinsic advantages of Hong Kong people will not change as they’re in our DNA,” he said.

Lee’s defence came after the Hang Seng Index sank below the 17,000 mark last week. The benchmark has been following a downward track since hitting a peak of 22,700.85 in January.

The gloomy market sentiment has also sent a chill through Hong Kong’s initial public offering (IPO) market. Funds raised by share listings in the city fell 59 per cent year on year as of November 17, according to an EY report.

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The figures have prompted a wave of negative comments on mainland social media platforms, including comparisons of the building that houses the city’s stock exchange to a historic relic.

Secretary for Financial Services and the Treasury Christopher Hui Ching-yu on Friday hit back at the claims, saying the city’s status was “not a tall building or a monument that can be brought down by pressure”.

Hui said macroeconomic factors, such as the uncertain global economic outlook and unstable geopolitical conditions, had restricted Hong Kong’s financial market, especially share trading and the short-term performance of IPOs.

The chief executive said that a string of measures had already been introduced in his second policy address unveiled in October to bolster the financial market’s competitiveness, such as lowering stock trading stamp duties.

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“It’s also important for a financial hub to open up markets, so we’re reaching out to attract investment, such as attracting foreign companies to list and invest in Hong Kong,” he said.

Lee revealed he planned to tour Europe to further cooperation in financial and professional services, without indicating which countries he planned to visit.

The trip will not be the first European tour of his administration. Financial Secretary Paul Chan Mo-po visited France, UK and Germany in September, but did not meet any senior officials while in London.

Lee, who has been placed under US sanctions since 2020 after the Beijing-decreed national security law came into force, led business delegations to the Middle East and Southeast Asia in February and July respectively.

Hong Kong business chiefs confident in economic rebound, city’s finance hub status

Meanwhile, Lee on Saturday urged Hongkongers to vote in the district council election on December 10.

He added it would be a “loss” for people who passed up the chance to pick their community representatives.

“You have to go after someone you like, that’s how I won the heart of my wife,” he said. “You vote for the person who can help you most. It might be a big shortfall if it’s someone else [elected].”

Authorities have mounted an all-out effort to call on residents to turn out for the poll, with senior officials from the Audit Commission on Saturday visiting a care home for the elderly on Saturday in the latest example of the push to encourage voting. Lee said he was pleased about his administration’s display of unity.

“The whole team is making this concerted effort like never before,” he said. “While this [effort] is necessary, what comforts me even more is that our team spirit has begun to develop in a positive direction, and is getting better and better.”