RIYADH: Hong Kong’s stock exchange wants to attract investors from Saudi Arabia in particular, as it believes the Saudis are on a trajectory that will offer tremendous potential, Hong Kong Exchanges and Clearing’s Chairman Laura M. Cha told Arab News.
Hong Kong’s stock exchange currently has approximately 45 percent of shares owned by international investors, 75 percent of which are purchased through the Connect program.
The Connect program, introduced in 2014, enables Chinese investors to buy shares on the Hong Kong market through this program as well as allow international investors to invest in trade in the domestic Chinese market through it.
“I have to say that the Middle East and particularly the Kingdom had always had great interest for us in Hong Kong. In the Hong Kong stock exchange, particularly, our role is to be the super connector,” the chairman said.
Hong Kong’s stock exchange has also set international regulatory standards, a reason the chairman believes gives international investors confidence in the market.
“Since 2020, we have a national security law that was passed, which provides clarity and stability to the market and to society as a whole. I think our market is stable, our community is free, and the most important thing is that Hong Kong has been great as an international financial center,” she said.
Speaking about global adversities, the chairman noted that 2022 is a difficult year for exchanges around the world as initial public offerings have decreased and applications for listing have declined in almost every market.
However, the Hong Kong market currently has 140 companies in the pipeline, most of which are waiting for overall sentiment to improve before coming into the market.
While speaking about the market sentiment, Cha said it is difficult to predict when it will improve. “The market sentiment comes and goes all the time, and we cannot follow that. So it is our responsibility to ensure that the market, the operation, and the infrastructure is steady,” she explained.
She added: “As an exchange, our role is to make sure that the market operates soundly and robustly.”
Cha said her attendance at Future Investment Initiative 2022 that was held in Riyadh recently was a major opportunity to introduce the Hong Kong market and what it can offer as “there is not enough understanding of the Asian market and of what Hong Kong can offer.”
She said she was able to introduce Hong Kong to the vast pool of investors at the event. “Hopefully people got to understand what we can offer in Hong Kong as a gateway to China and the gateway to Asia as well and we will see more investors from this region,” Cha concluded.
