• 09/22/2024

No abnormalities in Hong Kong’s market, leader John Lee says after Hang Seng Index nears 15-month low

Hong Kong Free Press

hong kong hang seng index

There are no abnormalities in Hong Kong’s stock market, Chief Executive John Lee has said a day after the benchmark Hang Seng Index slumped below 15,000 points, a record low in nearly 15 months.

Hong Kong's business district Central. File photo: GovHK.
Hong Kong’s business district Central. File photo: GovHK.

Hong Kong remained a competitive and attractive international financial centre with free capital flow and a high degree of transparency, the city’s leader said on Tuesday at a weekly press briefing in response to questions about the falling Hang Seng Index.

The index dipped 347 points to 14,961.18 on Monday, a new record low since October 2022.

Speaking to the media before meeting with his advisors, Lee was asked whether the government would roll out any measures to “rescue” the stock market. He said the government and local regulatory bodies, especially the Hong Kong Monetary Authority, were monitoring the volatility of the stock market.

Market fluctuations were part of the market dynamics, Lee said, pointing to high interest rates, complex geopolitical situations, uncertainty over supply chains and market reactions to the US election developments as factors contributing to a highly sensitive market.

“For now, we believe that the market is operating in an orderly manner and we see no abnormalities,” Lee said in Cantonese.

The Hong Kong leader went on to say that the city’s financial market and stock market development were supported by One Country, Two Systems and China’s national policies. He also pointed to Chinese Vice-Premier Han Zheng’s meeting with senior executives of HSBC, saying the high-ranking official had explicitly stated his support for Hong Kong’s development as a financial centre.

“With various policy support and Hong Kong’s own advantages, I have confidence in the overall market operations. However, given the current market sentiment, it is important for everyone to closely monitor market changes and act cautiously,” he said.

The index, a key indicator of Hong Kong’s overall market performance, climbed 392.8 points and closed at 15,353.98 on Tuesday.

China’s Premier Li Qiang on Monday ordered to boost capital market regulation and called for “stronger, more effective measures” to stabilise the market and improve market confidence, according to state media Xinhua.

Bloomberg reported on Tuesday citing sources that Chinese authorities were mulling various policies to rescue the slumping market. One of the options was using offshore funds of around two trillion yuan (HK$2.2 trillion) to buy shares through Hong Kong’s exchange link, the report read.

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https://hongkongfp.com/2024/01/23/no-abnormalities-in-hong-kongs-market-leader-john-lee-says-after-hang-seng-index-nears-15-month-low/