China Pledges Support for Hong Kong Markets

At the Global Financial Leaders' Investment Summit in Hong Kong, China's Vice Premier He Lifeng announced Beijing's commitment to support more high-quality Chinese enterprises in listing and issuing bonds in Hong Kong, aiming to bolster the city's status as a financial hub amidst ongoing scrutiny. He highlighted that recent stimulus measures are positively impacting Hong Kong's markets and pledged to enhance mutual market access between Hong Kong and mainland China. Despite a slight increase in listings to $9.1 billion in 2024, down from the peak of $51.6 billion in 2020, Hong Kong's capital markets have faced significant declines, prompting job cuts in investment banking. The summit marks a key moment as it features top Chinese policymakers and global bankers, signaling China's openness to foreign investment despite geopolitical tensions. The backdrop of an economic slowdown and a property sector debt crisis adds urgency to these reforms. He stated that the government would improve mechanisms for treasury bond issuance to further support Hong Kong’s financial landscape.