Charles Li says the best is still to come, as Hong Kong bourse reclaims world’s IPO crown while more firms eye secondary listings

Hong Kong’s role as a bridge between China and international markets, and as a fundraising hub for mainland firms, will only become stronger, says stock exchange chief executive

Li rebuffed the view of some observers that seven months of violent social unrest has damaged the city’s international reputation beyond repair

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Protesters raise their hands to symbolise the five demands of the pro-democracy movement during a rally in Hong Kong on December 1. Photo: AP

Published: 6:45am, 7 Jan 2020Updated: 10:19am, 7 Jan 2020

Hong Kong Exchanges and Clearing chief executive Charles Li Xiaojia, who runs Asia’s third-largest capital market, has rejected claims that Hong Kong’s glory days are numbered, insisting the city has a bright future as a bridge between China and the international markets in the next decade.

“Going forward, China’s further rise and the continued dominance of the US could set the two nations on a collision course. Meanwhile, the disruptive power of technology could reshape the world’s economy and global society, spurring a fierce battle between these major powers for technological dominance,” Li wrote in his personal blog published on Monday.

“This increasing polarisation means that our world needs more and better connections and not fewer. As such, Hong Kong’s role as the connector between East and West will only become more vital.”

Hong Kong has been hit hard by the trade war between Beijing and Washington, and seven months of often violent anti-government protests that have pitched the economy into recession.

London Stock Exchange’s board of directors rejected a takeover bid by the HKEX in September as the social unrest raised doubts about the future role of the city as a gateway to China. Beijing’s recent plan to set up a stock exchange in Macau may also create competition that further erodes HKEX’s role, brokers said.

Many commentators have speculated in recent months that Hong Kong’s international reputation is damaged beyond repair.

“Amidst China’s rapid development, some may look at the nation’s growing wealth relative to Hong Kong’s, and the falling proportion of Hong Kong’s contribution to China’s GDP, as indicators that the city’s glory days are numbered,” Li said in his “Charles Li Direct” blog on the website of the exchange.

Charles Li Xiaojia, chief executive officer of Hong Kong Exchanges and Clearing, rejected the idea that Hong Kong’s best days are in the past. Photo: Nora Tam

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