Hong Kong seeks richer bond connectivity, AI listings: finance chief
Financial Secretary Paul Chan said Hong Kong is in close talks with Beijing to expand bond market connectivity, including new instruments and risk management tools. He also expects more mainland AI firms to list in Hong Kong and set up local operations.
Financial Secretary Paul Chan said the Hong Kong government has been in close communication with the People's Bank of China and other relevant central government authorities on bond market connectivity, with the aim of allowing more funds to flow into Hong Kong for investment. Speaking after the International Financial Leaders Investment Summit, he said he hopes the scope of connectivity can be expanded beyond national bonds to include other content and risk management tools, such as futures contract tenors, to invigorate Hong Kong's bond market and support the steady progress of the renminbi internationalisation.
Chan also said he hopes the connectivity scheme can be enriched to include real estate investment trusts (REITs), among other items that the government is working to broaden. Specific details will be announced in due course, he added.
Reflecting on the past period of national reform and opening up, Chan noted that Hong Kong mainly served as a channel for international capital to enter mainland China. As the country now promotes high-level, two-way opening and encourages mainland enterprises to expand globally, Hong Kong should not only act as a fund-raising platform but also allow its professional services to go overseas together with mainland companies.
The finance chief said he believes the trend of mainland companies listing in Hong Kong will continue, and urged all parties to seize the opportunity, although the pace may vary depending on market conditions. He added that the government will continue to encourage artificial-intelligence-related enterprises to list in Hong Kong, and hopes they will also locate part of their research and development or business operations in the city, thereby creating jobs and driving the development of the innovation and technology sector.