Hong Kong’s SFC boss Ashley Alder reversed his earlier decision to step down in September and opted to stay at his post for three more years at the behest of Beijing, according to an unconfirmed report.

Whether Beijing has any part in it Alder’s decision is not at issue. What matters most is that the SFC needs a man of his stature and experience to stay at the helm at a time when Hong Kong’s importance as a platform of overseas investments in the Chinese mainland economy through its corporate sector has been greatly magnified by the fallout from the Luckin Coffee scandal that has tarred other Chinese companies by the same brush.

The scandal has prompted renewed call by US regulatory agencies for stricter scrutiny on mainland enterprises listed on the New York Stock Exchange and Nasdaq, on which Luckin is listed. The increasingly hostile environment has, in turn, prompted more and more mainland enterprises, including those in the technology sector, to explore alternative listings in other international markets, particularly Hong Kong.

It is therefore all the more important for the Hong Kong equity market to be seen to be well regulated to win the confidence and trust of overseas investors. To find someone other than Alder to do the job is difficult, if not impossible. A lesser person won’t do.

Aside from his eminent legal background and extensive working experience in Hong Kong,  Alder has demonstrated that as chief executive of the SFC, he was steadfast in defending shareholders’ interest by standing up to the stock exchange’s vested interests in numerous occasions.

He won for the SFC high praises from investors by rejecting the demand by the powerful investment banks and stockbroking community to allow dual-share listing, prompting mainland e-commerce giant Alibaba to bring its listing to New York. SFC relented after the government brought its weight to bear on the issue, paving the way for Alibaba’s secondary listing on the local bourse.

The report of Beijing involvement may never be confirmed. But one thing is certain: Hong Kong is becoming an increasingly important platform for mainland enterprises, especially those in the technology sector, to gain access to the global capital markets.