The Zhitong Finance App learned that Hong Kong Stock Exchange Chairman Tang Jiacheng said at the Bund annual meeting that under the trend of diversified global capital allocation, Asia will continue to be a global capital destination. There is plenty of room for high-quality growth in Asia, which has entrepreneurial spirit, talent, and many very ambitious companies, especially in the field of artificial intelligence (AI).
Tang Jiacheng pointed out that due to the interaction of factors such as geopolitics, macroeconomic uncertainty, and excessive concentration of capital allocation in the US, global investors have different ideas about their capital allocation. They are all seeking alternative or other investment opportunities to diversify their allocations. In the first half of this year, 80% of IPOs issued in Hong Kong received support from global cornerstone investors, which means they had to hold the shares of these companies for at least half a year, which is a sign of confidence in Hong Kong. Investors don't just look at one market or product; they look at the entire Asian market, hoping to get opportunities for growth in Asia, so Asia will continue to be a convincing asset allocation destination in the future.
Regarding strengthening capital market connectivity, he said that it is necessary to strengthen the flow of capital across borders. Allowing capital to flow across borders is very important because capital is looking for opportunities and needs to flow between different markets, so it is necessary to lower barriers and open up channels to allow capital to flow. Currently, Hong Kong Stock Connect's trading volume accounts for about 20% of the average daily turnover of the Hong Kong stock market. The turnover contributed by Northbound “Shanghai Stock Connect” and “Shenzhen Stock Connect” to the A-share market also accounts for about 4% of the domestic A-share trading volume. The “Shanghai-Shenzhen-Hong Kong Stock Connect” and “Bond Connect” are actually very effective, allowing funds to flow across borders in an orderly manner.
He believes that the Asian region should not only focus on stocks, but also develop more diversified product portfolios, such as commodities, derivatives, etc., because foreign investors need hedging and risk management. If they had a few diversified tools like this, they would be more willing to invest.