Hong Kong should look at dual listing in Asean to improve stock market liquidity and foreign capital: trade council chief

Lam said business owners showed the same interest during his recent trip to Southeast Asia, with some Malaysian companies planning to list in the city by the end of the year.

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“If they are blue chip stocks, they would consider a dual listing as they can bypass the whole Initial Public Offer (IPO) process. Mainland Chinese investors can buy stocks listed in Hong Kong through the Shanghai-Hong Kong Stock Connect, which not only helps stimulate the market but also makes it less boring,” Lam said.

“If the entire Southeast Asian market continues to invest and grow, I think this presents a great opportunity to increase overall liquidity in Hong Kong, which will benefit our stock market as a whole.”

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ASEAN, which has a population of over 660 million, was Hong Kong’s second-largest trading partner last year, with a total trade value of HK$1.29 trillion (US$165 billion), accounting for 13.7 percent of the city’s total, according to figures from the Ministry of Trade and Industry.

Lam noted that the city was still very attractive for foreign companies to conduct placements and fundraising, which had always been Hong Kong’s strength.

“That is what the financial secretary and his team need to focus on,” he noted.

Finance chief Paul Chan Mo-po last month set up a 13-member task force to thoroughly assess the factors behind the lackluster stock market and come up with measures to address structural problems. He also launched the ‘Night Vibes Hong Kong’ campaign in an effort to revive the city’s nightlife and economy.

Lam said the government should focus on the fundamentals and look at why residents are unwilling to spend money.

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“The night-time economy requires innovative approaches to attract people who today value the experience and the ability to capture and share the moment on social media, such as enjoying nostalgic delicacies such as stinky tofu and white sugar cookies, which are no longer are available.

“Night bazaars cannot be operated on a daily basis. By creating a sense of anticipation and excitement, you can ensure that people look forward to these experiences,” said Lam, who is also a former director of the Tourism Board.

Ahead of the council’s one-day “Think Business, Think Hong Kong” symposium in Paris on Tuesday, its first event since 2014, Lam stressed that France has been a consistent driving force in the European economy, with investments of more than 50 billion euros ( HK$417.5). billion) in areas such as the green economy, healthcare, biotechnology and creative industries.

“The French government wants to create more business opportunities for local companies. These sectors align with Hong Kong’s strategic development focus and offer significant benefits, potentially allowing us to explore greater collaboration opportunities in the French market,” said Lam.

In 2022, France was Hong Kong’s third largest trading partner within the EU and served as the third largest export destination and second largest import market.

In terms of investment, France was the largest EU investor in Hong Kong at the end of 2021, with a total foreign direct investment of HK$9.6 billion. The city was also France’s fifth most popular investment destination in Asia.

In 2022, there were more than 360 French companies operating in Hong Kong.

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While geopolitical issues may pose challenges to potential investors, Hong Kong’s main task is to ensure the stability of the stock market and promote large-scale infrastructure projects to raise capital, Lam said.

“Politicians care about their voters, while corporate shareholders care more about profits and dividends. No one will argue with that. As a businessman, I will also leave if the stock market continues to fall,” Lam said.

He added that foreign companies specializing in green technology and green economy would certainly be interested in investing in large-scale projects such as the Northern Metropolis.

“Some of them don’t even know that such a project exists and the government should make more efforts to tell the world about it.”

Repackaged and expanded from an existing new city plan, the metropolis includes an IT hub in the northern New Territories near the border with mainland China, providing 186,000 homes and a new cross-border railway line connecting the city to the Qianhai Economic Zone in China. Shenzhen.