Transparency key to market stability on both sides of border, says ex-minister Patrick Ho
In wake of market chaos, Dr Patrick Ho Chi-ping believes mainland can learn from HK openness
Hong Kong's experience in creating a transparent stock market could contribute to protecting the mainland's financial system, amid growing risks and uncertainties that bourses on both sides of the border were facing, said former secretary for home affairs Dr Patrick Ho Chi-ping.
He believed higher transparency was conducive to improving the mainland's financial security, saying timely disclosure of market information could enable policymakers and retail investors to make better decisions in times of market volatility.
"The recent market plunge could reflect well the difference between the investing communities in Hong Kong and on the mainland … retail investors in Hong Kong are mature," Ho told the South China Morning Post.
He said Hongkongers were unfazed after sharp falls in share prices, because they were familiar with the market cycle. "People in Hong Kong have got used to the stock market's ups and downs," Ho said.
A time-tested and transparent system had helped bring about strong resilience, the former minister added.
He said the city's financial watchdogs could share successful strategies and market information with their counterparts across the border, contributing to ongoing efforts to safeguard the mainland's developing financial system.