New Delhi

Hong Kong's Chief Executive, John Lee, announced on Monday that the government is exploring additional measures to strengthen the city's securities market.

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This comes after the markets were hit by geopolitical tensions and China’s slowing economy.

Speaking at the HSBC Global Investment Summit in Hong Kong, Lee highlighted existing initiatives aimed towards enhancing competitiveness, including improvements in the listing regime for specialised technology firms.

While specifics of the proposed measures were not disclosed, Lee said that the government is committed to stimulating the market through enhanced transaction mechanisms and investment services.

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The backdrop for these considerations includes the challenging economic landscape in Hong Kong, characterised by China's economic slowdown and capital flight.

With the economy expanding by 3.2 per cent in 2023 and the stock market witnessing a downturn, Hong Kong faces increased pressure to revitalise investor confidence and attract capital inflows.

The Hang Seng Index, Hong Kong's benchmark index, fell sharply by about 14 per cent in 2023, marking its fourth consecutive year of decline.

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Additionally, the city experienced a 28.5 per cent drop in the value of initial public offerings (IPOs) in the first quarter of this year compared to the previous year.

Acknowledging the challenges, Lee noted that the recent initiatives aimed at incentivising capital inflows, businesses, and visitors to the city would be vital.

These measures, announced in February, seek to address high-interest rates, geopolitical complexities, and increasing budget deficits.

Despite short-term market volatility, Lee expressed confidence in Hong Kong's resilience and highlighted the diverse opportunities available.

He noted that the government was focused towards ensuring sustainable growth in the stock market and enhancing overall market competitiveness.

(With inputs from Reuters)