Paul Chan’s remarks came after mainland battery giant CATL made its debut on the Hong Kong stock market last month, when it raised at least HK$35 billion in the world’s largest initial public offering this year.
Speaking at the Bloomberg Invest event in Admiralty, Chan said the central government has been encouraging companies to expand globally and that the current geopolitical situation has made it more difficult for tech stocks to go to the United States to get listed.
“This outbound [expansion] of mainland companies, this is a trend, unstoppable, and I think this is good also for the region, because by realigning their industry chain, the supply chain, they will also stimulate the growth of the region,” he said.
“And Asia, as you know, particularly this part of Asia, is a major global engine for growth, given the Chinese economy, growing steadily on a sustained basis, also becomes a stabilizer in terms of the current sometimes pretty uncertain and volatile global market.”
Chan also expects the stock market to stay strong this year, which, he said, will also support the domestic consumption market.
Separately, Chan said the government will not intervene in the market amid a weakening of the US dollar.
Given that the direction of capital flow can change quickly, he said, it is crucial to ensure financial security.
“At the moment, with this influx of capital, the interest rate is indeed very low,” Chan said, which is “good for our homeowners and good for businesses as well.
“So I think put the seatbelt on but, at the same time, take advantage of this ample liquidity.”
