Opinion

Beijing’s support aside, Hong Kong must shine as a financial hub

The central government may have stepped in to defend markets but Hong Kong needs to show its ability to fend off regional challengers, such as by tapping its Middle East and belt and road connections

3-MIN READ3-MIN

People walk past an electronic display showing the Hang Seng Index at Exchange Square in Central on January 17. The index’s plunge last week sent jitters through the market. Photo: Sun Yeung

Ken Chu (LLD) is the chairman and CEO of Mission Hills Group, with businesses in hospitality, leisure, entertainment, sports, wellness and education in China.

Published: 7:30pm, 29 Jan 2024Updated: 9:01pm, 29 Jan 2024

Over the past two years, Hong Kong’s stock and initial public offering markets have underperformed compared to global peers. Last week, the Hang Seng Index plunged below the psychological 15,000-point mark, sending jitters across the market.

Naysayers and those hostile to the mainland authorities and Hong Kong administration seized on the opportunity to peddle the story of a doomsday market crash. This has echoes of the “demise of Hong Kong” narrative painted by some before the 1997 handover. Fortunately, as has always been the case, the central government’s cavalry rode to the rescue.

After Beijing announced that it would lower the reserve requirement ratio for commercial banks and cut the relending and rediscount rate for some bank loans, the Hang Seng Index halted its fall and actually bounced back. This was yet another affirmation of my strong belief in the resilience of Hong Kong’s stock market and economy, especially after 1997 with the added, steadfast support of the central government.