CHINA'S regulators are concerned about Hong Kong's ability as the leading fund-raising venue for China, according to Sun Hung Kai & Co chairman Tony Fung Wing-cheung.
Mr Fung told a lunch meeting yesterday: 'I had breakfast with the securities commissioner in Beijing yesterday morning. I think they are very concerned about the H shares.
'How viable is Hong Kong in servicing the need of China's capital, looking back at all the H shares, and how we can improve our ability to service them?' The concerns raised by the mainland securities watchdog followed the release of a three-year corporate plan by the Securities and Futures Commission (SFC) on Monday highlighting its aim to position Hong Kong as the preferred fund-raising centre for China.
'There has to be improvement and adjustment if we are going to play that critical role,' Mr Fung said.
'H shares have been successful in some ways and probably need some improvement and adjustment if we are going to be major provider of capital for the rest of China.' Mr Fung, a former deputy chairman of the stock exchange, said a row between the SFC and the exchange - they clashed this week over consultations on the future direction the exchange should take - would only hamper Hong Kong's role in becoming the major capital centre for China.
