February 15, 2024
HONG KONG – Hong Kong’s economic development focus this year is to seek progress amid stability, Financial Secretary Paul Chan Mo-po said on Wednesday, while anticipating a stock market rebound in the Year of the Dragon.
Speaking at the opening ceremony of the Hong Kong Stock Exchange after the Lunar New Year holiday, Chan said, “in the past four Year of the Dragon cycles, which occurred in 1976, 1988, 2000 and 2012, Hong Kong’s stock market has shown positive returns, with the best performance recorded in 2012 when the Hang Seng Index surged by 15 percent, benefiting from the global central banks’ easing policies.”
Chan expressed cautious optimism about the Hong Kong economy’s development in 2024, saying that despite numerous external challenges, there are also opportunities, as changes in geopolitical dynamics and global supply chains prompt many businesses to feel an urgent need to explore Asian markets and establish regional headquarters in Asia
It is widely believed that interest rates in Europe and the United States have peaked and will gradually decline this year, and the Chinese mainland’s economy is recovering on a stable trajectory, which could create a positive atmosphere for investment sentiment and asset markets, Chan added.
Hong Kong’s stock market Wednesday kicked off the Year of the Dragon on a higher note, with the benchmark Hang Seng Index closing 0.84 percent higher to end at 15,879.38 points.
The Hang Seng China Enterprises Index gained 1.5 percent to end at 5,386.31 points and the Hang Seng Tech Index jumped 2.26 percent to close at 3,197.87 points.
The finance chief expressed cautious optimism about the Hong Kong economy’s development in 2024, saying that despite numerous external challenges, there are also opportunities, as changes in geopolitical dynamics and global supply chains prompt many businesses to feel an urgent need to explore Asian markets and establish regional headquarters in Asia. This will enhance Hong Kong’s role as a superconnector, he said.
Echoing Chan’s remarks, Nicolas Aguzin, who was attending the ceremony for the last time as the chief executive officer of the HKEX, said that China contributed around 30 percent to global economic growth last year, underscoring the increasing influence of Asia. Against this backdrop, Hong Kong is well positioned to contribute to bridging Asia and other regions. He highlighted the city’s unique advantages in the process, such as its role in connecting the mainland with the world, well-developed infrastructure, and free flow of capital.
The world’s largest and Asia’s first Saudi Arabia-focused exchange-traded fund went public in Hong Kong last year. Chan said he hopes that a similar Hong Kong-focused ETF can list in Saudi Arabia, accelerating the development of more diverse channels for product connectivity and fund interaction between Hong Kong and the Middle East.
Chan also emphasized the need for Hong Kong to continue deepening its connectivity with the mainland market, making the Hong Kong market broader.
In the face of potential medium- and long-term opportunities, he said it is important for Hong Kong to enhance market resilience, explore new business, and utilize technology to address challenges.
At the gold exchange opening ceremony held on the same day, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu, said that Hong Kong’s economy is regaining its growth momentum, and that the city has been able to utilize its financial strengths to serve different regions and markets in different economic cycles with its resilience and ability to find new opportunities amid crises.