Charles Li highlights significance to identify HK's role in global financial market and set foundational development goals

Charles Li Xiaojia, Chief Executive of the Hong Kong Exchanges and Clearing Limited (HKEX) stated today (Nov. 20) at the Global Financial Leaders' Investment Summit that in the face of significant capital inflows into Hong Kong, it is essential to identify Hong Kong's role in the global financial market and set foundational development goals.

Li emphasized the need to establish a clear activity index to measure the vibrancy and stability of Hong Kong's financial market.

He believes that the Hong Kong Stock Exchange should achieve a baseline financing of HK$100 billion annually, with a daily trading volume not falling below HK$100 billion. These two indicators will serve as the foundation for dialogue between Hong Kong and global financial markets.

He pointed out that in the short term, Hong Kong needs to rapidly enhance its financial infrastructure to attract more international capital. He specifically stressed the importance of formulating a clear and quantifiable basic living index as a benchmark for connecting with the global financial market.

In the medium term, Li suggested that Hong Kong should propose new supplementary operational models and logic within China's existing financial market, moving away from traditional valuation methods like private equity. Given China's vast consumer economy, he believes there should be an introduction of financial markets that utilize revenue-sharing models to more comprehensively reflect the true value of the Chinese economy.

Regarding the long-term development vision for Hong Kong, Li argued that Hong Kong must become a technology development center for China, attracting global tech talent. Through the advantages of the "One Country, Two Systems" policy, Hong Kong can quickly construct the Northern Metropolis to attract more tech talent and enterprises.

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