Hong Kong leader says government considering more measures to boost stock market

HONG KONG (Reuters) - Hong Kong leader Li Xiaoga said on Monday the city was considering more measures to support the securities market in the Asian financial center, which has been hit by China's economic slowdown and geopolitical tensions.

Speaking at the HSBC Global Investment Summit in Hong Kong, Mr. Li said Hong Kong had taken a series of measures to improve its competitiveness, including improving the listing regime for specialized technology companies.

"We are pleased that additional measures are being considered, ranging from improving the trading mechanism to facilitating investment services and enhancing marketing," he said, without giving any details.

Hong Kong's economy grew by only 3.2% in 2023, and capital flight made the Hong Kong stock market the worst performing major index last year. India has now overtaken Hong Kong in terms of listed stock value.

In 2023, the Hong Kong Hang Seng Index fell by nearly 14%, the fourth consecutive year of decline.

According to data from the London Stock Exchange Group, the value of initial public offerings (IPOs) in Hong Kong, a major global financing center, fell by 28.5% to US$507 million in the first quarter of this year compared with the same period last year.

In the face of high interest rates, a complicated geopolitical environment and a ballooning budget deficit, Hong Kong announced a series of measures in February to attract capital, businesses and tourists back to the territory.

These measures will help Hong Kong rebound, Li said.

"While some have expressed disappointment at what may be short-term market volatility, others have expressed strong confidence in Hong Kong and its rich opportunities," Lee said.

"I have no doubt that as the measures are implemented and the macro environment improves, the sustainability of the stock market will follow," Mr. Lee said.

(Reporting by Selena Li and Dorothy Kam; Editing by Sumeet Chatterjee and Miral Fahmy)