Charles Li: Hong Kong’s Role and Opportunities for Sustainable Financial Development
(6 July, 2021, Hong Kong) At the “INSIGHT FORUM” organised by Our Hong Kong Foundation, former HKEX Chief Executive Mr Charles Li shared his insights on the rising trends of mutual access between the Mainland and Hong Kong financial markets, and how Hong Kong can leverage these trends to reinforce its strength in sustainable financial development.
Mr Charles Li, former Chief Executive of HKEX, remarks that the Hong Kong financial market has undergone three waves in the past: H shares listing in the 1990s, mutual access between the Mainland and international financial markets, and new economy listings driven by technological revolution. He forecasts that the fourth wave will be the cashless era, stressing that China is well on its way to become the world's first cashless economy. Hong Kong shoulders an important responsibility at this point. “If Hong Kong can catch up with the trend, then it will lead the global financial market.”
Mr Charles Li points out that China is now a truly cashless economy. Digitalisation attracts international investment with capitals reaching directly to the numerous micro-economic entities whose aggregate volume is huge. Li recommends that Hong Kong should grasp this new financial trend, while the government and regulatory authorities should be open-minded, allowing growth, allowing mis-steps, allowing innovation, so that the market can find its own pace. “It is important not to be a stumbling block amid a rising trend.”
Mr Charles Li notes that China used to regard Hong Kong as an extension of the western world, and Hong Kong played an important role in it. But now Hong Kong needs to rethink its “fundamental role”. If the western world is going east in the future, Hong Kong needs to turn around and become an extension of the eastern world, otherwise its status will be at stake.
