HK market should boost cooperation with mainland: CE
Chief Executive, John Lee, on Tuesday called on the financial sector to enhance cooperation with the mainland, after the nation’s securities regulator introduced measures to maintain Hong Kong’s status as an international financial hub. The China Securities Regulatory Commission (CSRC) last month unveiled five measures to promote coordinated development between the capital markets of the mainland and Hong Kong. These measures included relaxing eligibility criteria for exchange-traded fund products in the Stock Connect mechanism, as well as the inclusion of real estate investment trusts for the first time. The CSRC also said it would facilitate Hong Kong listings by leading Chinese firms, and loosen rules on stock trading links between exchanges in the SAR and the mainland. Delivering his speech to over 200 business leaders prior to a closed-door discussion on enhancing collaboration between the financial markets in Hong Kong and the mainland, Lee said cross-border cooperation will bring in more business opportunities. "Further integration and development with the mainland financial markets will help leverage Hong Kong's international advantages and enhance the competitiveness of the mainland financial market, attracting more capital and businesses. This will drive economic development and will allow people to share in the fruits of progress," he said. Speaking to reporters after the meeting with business leaders, Financial Secretary Paul Chan said the SAR government is still in negotiations with mainland authorities on the implementation of the CSRC's measures. Chan noted that these measures would allow international investors to use Hong Kong as a gateway to access mainland equity markets. "Hong Kong is the national springboard for mainland capital and investors seeking overseas opportunities, and thereby provides a very convenient and very familiar platform for overseas investors to go through Hong Kong to participate in the mainland equity market," he added. The Securities and Futures Commission’s CEO Julia Leung, meanwhile, told reporters that the measures are expected to be implemented as early as the third quarter.