Hong Kong stock market weighed down by international sentiment but still operating ‘in line with expectations’, John Lee says
- Chief Executive John Lee says market shows no signs of abnormalities and is operating ‘in line with expectations’
- Hang Seng Index rallied on Tuesday morning after dipping below 15,000-point mark previous day
The Hang Seng Index rallied on Tuesday morning after dipping below the 15,000-point mark the previous day.
“High interest rates, complexity in geopolitics, uncertainty in the supply chain and the transport of some goods, and the market’s different reactions to changes in the US election [prospects] … have all made the market very sensitive,” Lee said before his weekly Executive Council meeting.
“When the market is highly sensitive, we of course hope that investors will pay careful attention to the changes in the market to make any decisions,” he added, stressing that regulators closely monitoring the markets found them operating “in line with expectations”.
Lee said the city remained an international financial centre, full of competitiveness and appeal. He added it was benefiting from the free flow of capital, transparency, a level playing field and an established regulatory regime, which all showed the health of the financial markets.
‘Hong Kong is an ideal option for foreign investment despite market pressures’
Lee added Monday’s meeting between Chinese Vice-President Han Zheng and HSBC Group chairman Mark Tucker in Beijing further indicated the country’s staunch support of the city’s efforts in cementing its position as a global financial hub.
“With the support of various policies [from Beijing], in addition to Hong Kong’s own advantages, I am confident in our overall market operation,” the chief executive said.
The Hang Seng Index on Monday slid 2.3 per cent to 14,961.18, falling below the 15,000-point mark, the lowest since October 2022. The benchmark stock market index, however, rebounded by 1.1 per cent to 15,125.38 at 9.36am on Tuesday.
Hang Seng slips below 15,000 towards 15-month low as AIA, Tencent pace losses
Terence Chong Tai-leung, executive director of Chinese University’s Lau Chor Tak Institute of Global Economics and Finance, said it was normal for the stock market to experience fluctuations, stressing the index rebounded quickly the last time it fell past the 15,000-point threshold in 2022.
The economist added that under the current high interest rate environment, investors would rather place their money in time deposits than in the stock market.
However, Chong noted that Hong Kong remained a highly ranked international financial centre and that the index’s slump would not damage its reputation, citing the city’s well-developed bond and foreign exchange markets as some of its areas of strength.
Separately, Chinese Premier Li Qiang called on officials to “vigorously improve the quality and investment value of listed companies, increase the entry of medium- and long-term funds into the market, and enhance the inherent stability of the market,” after he chaired a State Council meeting on Monday, according to a report by Xinhua news agency.
The meeting was seen as the clearest sign of the central government’s attempt at halting the rout in Hong Kong and mainland Chinese stock markets.
Additional reporting for Jiaxing Li
