Editorial | Exciting times ahead for Hong Kong despite slide in global listings league

Hong Kong, once No 1 for raising funds in stock market listings, slipped from third to ninth place in the year to September as the pandemic and geopolitical tension took their toll on global growth. But the city’s future as a regional and global financial hub could not look more secure amid complex circumstances. The paradox is reflected in the second high-powered bankers’ summit hosted by the Hong Kong Monetary Authority to showcase the city’s role as a financial bridge to one of the world’s biggest markets.

The Global Financial Leaders’ Investment Summit, to give the gathering its full name, was bound to be compared with the inaugural success last year amid the post-Covid euphoria. The bar was set high, but a turnout of twice as many bankers than last year erased any doubts, despite attempts by anti-China elements in the United States to talk Hong Kong down. They included the chief executives of HSBC, Deutsche Bank, UBS, Citibank and Goldman Sachs, no small feat considering that another global conference in Singapore this week is competing for attendees.

Last year’s event, together with the city’s emerging role as a super-connector to the Chinese economy, piqued bankers’ interest. This goes to show resilience in the city’s attraction as a financial centre is geared to the biggest growth potential on the planet, an advantage underpinned by deepening integration with the Greater Bay Area economic powerhouse.

Visitors would not have been disappointed with the speakers, headed by Vice-Premier He Lifeng, also head of the office of China’s Central Financial Commission. “Hong Kong has a unique advantage as an international financial centre,” He said in pre-recorded remarks. Wang Jianjun, vice-chairman at the China Securities Regulatory Commission, said the body would “go all out” for anything beneficial to the city’s capital market that enhanced its status, including promoting it as a hub for initial public offerings, and making it easier for mainland enterprises to list here. Chief Executive John Lee Ka-chiu promised more opportunities to come in terms of deepening economic and financial ties with the mainland.

The summit last year faced economic uncertainty. The theme this week focused on living with complexity, thanks to high interest rates, the global economic slump and fraught US-China relations. The event followed China’s central financial work conference, which affirmed the consolidation of Hong Kong’s status as a global financial centre, and acknowledged China’s need to set up its own world-class investment banks, which would see the city as a key cog in their operations. So its recent slide in the listings ladder belies the exciting opportunities awaiting it in the not too distant future.