Hong Kong regulator says city can help global capital understand Asia
Hong Kong's securities regulator says the city's unique value lies in helping global capital understand, price and participate in Asia's transformation, not just as a conduit for capital flows. He warned the next major opportunities will not be in capital's comfort zone.
The Securities and Futures Commission (SFC) chairman, Mr Wong Tin-yuk, told the International Financial Leaders Investment Summit that Hong Kong's unique value lies in helping global capital understand Asia, price Asia and participate in Asia's transformation, not just acting as a conduit for capital flowing into the region.
Speaking at a panel titled 'Dialogue with International Investors', Mr Wong said markets focus on where investment returns lie, and whether strategies that performed well over the past decade can capture opportunities in the next. He noted geopolitical fragmentation, technology developing faster than existing frameworks, higher demands from private markets, and Asian economies moving at different paces make it increasingly important for investors to make active decisions, allocate capital rigorously and step out of their comfort zones.
Mr Wong stressed the next major opportunity will not appear in capital's comfort zone, but in areas undergoing the most dramatic change where market understanding has not fully caught up.
He also argued the long-discussed 'Asian growth story' no longer reflects the full picture. There is no single story for Asia, he said, with China, India, Japan and Southeast Asia having different economic cycles, valuations and growth engines. The key, he added, is not whether to remain bullish on Asia, but whether global portfolio pricing has adequately reflected the diversity of Asia's transformation.
As a regulator, Mr Wong said the SFC sets market rules and order, but regulation alone cannot build a large market. He emphasised the importance of capital discipline, which can help companies use capital better, strengthen accountability and support sustainable value creation. Active investors, he noted, do not simply seek excess returns but scrutinise companies, assess development strategies and capital allocation to decide whether a firm deserves investment.