Press Releases in Hong Kong

HKEX chief predicts $100t mainland capital market by 2030

This screencap of a video posted on the website Hong Kong Exchanges and Clearing Limited shows the exchange's chief executive Nicolas Aguzin speaking in an interview.

HONG KONG – The Hong Kong Exchanges and Clearing Ltd will continue to actively seize the enormous opportunities in cross-border capital investments, as the size of the Chinese mainland’s market is expected to more than triple to $100 trillion in 2030 from the current $31 trillion, the CEO of HKEX said on Thursday.

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Mainland residents hold the highest deposits in the world, with a large proportion of property, which means that they will diversify their funds into the securities market for investment when interest rates drop, said CEO of HKEX Nicolas Aguzin 

In his keynote address at the Hong Kong FinTech Week 2021 event, Nicolas Aguzin said the growth potential of the mainland’s capital market is expected to be further unleashed, driven by the large deposit sizes, foreign investors coming across the border to invest, and collaborative innovation.

Mainland residents hold the highest deposits in the world, with a large proportion of property, which means that they will diversify their funds into the securities market for investment when interest rates drop, Aguzin said.

While foreign investors hold only about 5 percent of the market value of mainland A-shares, and the yuan accounts for a much lower percentage of the global central bank’s foreign exchange deposit base than the US dollar and the euro, Aguzin said that he expects that cross-border investments from overseas will continue to increase on the mainland.

“As a capital-raising and risk-management center, Hong Kong serves as a gateway to China’s innovation and growth, connecting the country closely to the world,” Aguzin said.

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The HKEX will continue to forge a bridge between finance and the real economy by securing the connection between capital and the vast opportunities, he added.

 

suzihan@chinadailyhk.com