23 August 2019

HK still a testing ground for China reform, HK official says

Hong Kong remains a test bed for mainland financial reform and is an important platform for companies seeking to develop and diversify, Acting Financial Secretary KC Chan said Thursday on the sidelines of an HSBC Holdings plc (00005.HK) forum on the renminbi.

Chan made the comments in response to China CITIC Group’s plans to inject capital into CITIC Pacific Ltd. (00267.HK) ahead of a Hong Kong listing.

“We always welcome companies to list in Hong Kong and set up regional headquarters here. We believe that Hong Kong can use its competitive advantages such as its international network to help companies develop in a diverse way, and [those companies] can also help develop the local economy,” he said.

Also on the sidelines of the forum, Hong Kong Exchanges and Clearing Ltd. (00388.HK) chief executive Charles Li said he hopes the capital injection plan succeeds but refused to comment on whether it complies with Hong Kong listing rules.

Earlier this month potential listing candidate Alibaba Group decided to shift the focus of its IPO efforts to the United States. Chan said that although Alibaba does not think Hong Kong’s one-share, one-vote system was suitable for the company, the system is used in other major cities and seen as an essential way to balance shareholder and management interests.

He admitted that there might be room for improvement in the system, but it is the right approach and complies with international standards.

–Contact HKEJ at [email protected]



EJI Weekly Newsletter

Please click here to unsubscribe