Key Beijing official in Hong Kong calls for white paper to elevate capital market

Hong Kong’s capital market plays a key role in the city’s financial system and national strategies but it falls short in many areas, according to Qi Bin, the deputy at the central government’s liaison office in the city.

“Compared with international best practices, Hong Kong still has shortcomings in market regulation, transaction costs and corporate governance,” Qi said in a speech at the Hong Kong Capital Markets Forum on Wednesday.

“Hong Kong could explore researching and developing a capital market white paper, proposing improvements benchmarked against the highest global standards.”

The white paper could solicit input from all stakeholders, including global institutions to boost investor confidence, benchmarking it against top financial centres like New York and London to elevate Hong Kong’s capital market, Qi said.

He highlighted the significance of the city’s capital market, which last year performed remarkably well, with the initial public offering (IPO) market regaining its vitality.

“Revitalising Hong Kong’s economy hinges on finance, and strengthening Hong Kong’s financial sector hinges on the capital market,” Qi said, emphasising its strategic role in areas such as supporting the development of artificial intelligence and advancing the Greater Bay Area’s growth.