Listing reforms have made Hong Kong more competitive, says new financial advisory council chief

City on the right path despite Xiaomi IPO not living up to expectations, says Laurence Li

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Laura Cha Shih May-lung, the current chairman of the Financial Services Development Council, and Laurence Li Lu-jen, who takes over from her on Wednesday. Li says he will continue to promote financial technology and investor protection in his new role. Photo: Edmond So

Published: 7:12pm, 10 Jul 2018Updated: 11:03pm, 10 Jul 2018

Laurence Li Lu-jen, who takes over as chairman of Hong Kong’s Financial Services Development Council, said on Tuesday listing reforms and other measures introduced by the government recently had enhanced the city’s competitiveness as a financial centre.

Li was speaking in the immediate aftermath of Chinese smartphone maker Xiaomi’s flotation in Hong Kong, which only raised US$4.72 billion instead of the expected US$10 billion. It also meant the city was unable to reclaim its crown as the world’s top IPO market – it ranked third globally in the first half of 2018, the same as last year.

We cannot control how the market reacts to reforms

Laurence Li Lu-jen, incoming chairman, Financial Services Development Council

“The council does not focus on the ranking of IPO markets. We support the listing reform introduced by Hong Kong Exchanges and Clearing, and believe it is working in the right direction, promoting innovation and technology development in the city,” Li, a barrister, told a press conference. “We cannot control how the market reacts to reforms,” he added.

Li was appointed by the government on Friday and will assume the post of chairman on Wednesday, taking over from Laura Cha Shih May-lung, who in April became the first woman to chair bourse operator HKEX. He will be in office until January 16, after which he will continue as the chairman of the council, which will be incorporated as a company, for another two years.

Joining the council in 2013, Li has been pushing for reforms such as those introduced this year by the HKEX, allowing companies with dual-class share structures and biotechnology firms with no revenue to list in Hong Kong.

He said he would continue to promote financial technology and investor protection in his new role.

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Listing reforms have made Hong Kong more competitive, says new financial advisory council chief

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}City on the right path despite Xiaomi IPO not living up to expectations, says Laurence Li

City on the right path despite Xiaomi IPO not living up to expectations, says Laurence Li