(Yicai Global) Dec. 5 -- Hong Kong Exchanges and Clearing Limited [HKG:388] will strive to introduce more international companies to the Hong Kong market to enrich the stock market offerings in an effort to help players achieve more diversified option for global assets, its president told Yicai Global.
Although today's Hong Kong capital market is also an international market, 60 percent of the "goods" in the market are Chinese mainland companies listed in Hong Kong, Charles Li said in an exclusive interview with Yicai Global just ahead of the launch of the Shenzhen-Hong Kong Stock Connect, a "stock connect" program between mainland and Hong Kong stock markets. Therefore, in the long run, given the population of the mainland and the number of funds, "goods" currently available in Hong Kong capital markets cannot fully satisfy investors' demand, he pointed out.
More products such as exchange-traded funds (ETFs) can be designed and offered to ordinary people, he suggested, saying, "For example, we can offer products that incorporate the US tech stocks, Latin America's mining industry and Germany's manufacturing industry."
In the long-term, we should allow mutual investment between the rest of the world and China, Li said. "Chinese people should be allowed to invest their money not only in the housing market and the stock market but also in the stocks of worldwide companies who may be listed in Hong Kong to achieve more diversified and global allocation of assets," he suggested. That is the trend of exchanges, which will gradually make it possible to transform the global financial landscape.