Hong Kong Chief Executive John Lee Ka-chiu delivers a speech at the Global Financial Leaders' Investment Summit 2023 at a hotel in Hong Kong, Nov 7, 2023. (CALVIN NG / CHINA DAILY)

HONG KONG – Hong Kong Chief Executive John Lee Ka-chiu on Tuesday assured heavyweights from across the investment world that the special administrative region is back in business, stressing that “Hong Kong means prosperity”.

Hong Kong is hardly immune to global economic headwinds, Lee said, adding that what distinguishes and sustains the SAR is the "one country, two systems" framework. 

The “one country, two systems” principle and the rule of law has distinguished and sustained Hong Kong as a leading international financial center that connects the continuing flow of capital between Hong Kong, the Chinese mainland and the world at large, he said in a keynote speech at the Global Financial Leaders’ Investment Summit on Tuesday.

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“Through that guiding principle flows Hong Kong's common law system – the only such jurisdiction in China,” he said.

The global financial community believes in Hong Kong, in the long-term promise of Hong Kong.

John Lee, Chief Executive, HKSAR

As many of the major financial centers around the world practice common law, this commonality in Hong Kong’s legal systems creates more certainty and understanding for all, he said. “It adds to the unique strengths of Hong Kong, as a leading international financial center.”

The second edition of Global Financial Leaders’ Investment Summit from Monday to Wednesday, organized by the Hong Kong Monetary Authority to celebrate its 30th anniversary, invited some 300 decision-makers from all over the world, including more than 90 group chairpersons and chief executive officers from prominent financial institutions.

Referring to his calling last year's inaugural edition of the Financial Leaders' Investment Summit as the "Hong Kong Onstage Again Summit", Lee said: “Well, a year later, Hong Kong is not merely onstage. We are at the center of the world stage, creating opportunities for a world of business, finance, and investment."

The “one country, two systems” principle, the rule of law, and other institutional safeguards have enable global investors continue to place confidence in Hong Kong, he said.

In his speech at the Global Financial Leaders' Investment Summit 2023 on Nov 7, 2023, Chief Executive John Lee says Hong Kong has rebounded following a period of mayhem. (CALVIN NG / CHINA DAILY)

“As many of the major financial centers around the world practice common law, Hong Kong is the only jurisdiction that practices common law system in the country. This commonality creates more certainty and understanding for all.”

The CE highlighted Hong Kong’s initial public offering market raised nearly $85 billion in the past two years, and assets under management of the city’s asset and wealth management business reached just under $4 trillion at the end of last year, which was higher than in 2019. Hong Kong is also Asia’s hedge fund hub and second-largest private equity center.

We continue, as well, to deepen our economic and financial ties with the Mainland and, in particular, with the Greater Bay Area.

John Lee

Hong Kong has been the largest center for arranging international bonds by Asian issuers in the last seven years. The city remains Asia’s largest hub for green and sustainable bonds, capturing 35 percent of the market, he said.

“With a macroeconomic environment dominated by higher rates that dampened demand for exports, and proliferating geopolitical risks that squeeze international trade and complicate supply chains, a free and open Hong Kong economy is hardly immune to global economic headwinds,” Lee cautioned.

He argued that “a dynamic capital market is essential to Hong Kong’s continuing success as an international financial center”. 

In the policy address unveiled two weeks ago, the chief executive announced a number of measures to boost the city’s stock market, including reducing stamp duty rates on stock transactions,  reviewing the stock-trading spread and fee structure of real-time data services, and Growth Enterprise Market listing regime reforms.