China, Hong Kong stock markets are back in favour with global investors, HKEX CEO Bonnie Chan says

The China growth story is very captivating, but the world is underinvested in the world’s second-largest economy, HKEX CEO Bonnie Chan says

China is too big to ignore, and because of its significance in terms of wealth creation, the country presents huge opportunities for wealth managers, UBS’s Amy Lo says

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Bonnie Chan, CEO of Hong Kong Exchanges and Clearing, expects Hong Kong’s IPO market to pick up soon. Photo: Bloomberg

Published: 7:06pm, 28 May 2024

Investors are growing increasingly positive on China’s long-term growth prospects but are “underinvested” in the world’s second-largest economy, according to Bonnie Chan Yiting, the CEO of Hong Kong Exchanges and Clearing (HKEX).

Hong Kong’s bruised capital market, meanwhile, remains resilient, as seen by the volume of new listings, according to the newly appointed head of the city’s bourse operator.

“The China growth story is still very captivating,” Chan said at the UBS Asian Investment Conference on Tuesday. “The world is underinvested in China. If you think about foreign ownership of A shares in terms of market cap, it’s 5 per cent. It just does not make sense.”

Former US secretary of state John Kerry and Thailand’s prime minister Srettha Thavisin are among the speakers at the Swiss investment bank’s two-day conference in Hong Kong that has drawn some 3,000 participants.

Swiss investment bank UBS’s two-day conference in Hong Kong has drawn some 3,000 participants. Photo: Bloomberg

There is a lot of room for foreign investments in China’s markets, said Chan, adding that the recent bull in Hong Kong stocks is “very encouraging, because that tells us foreign investors are trying to get back into the market”.