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2023.12.04 01:25
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Li Xiaojia: Hong Kong stocks should broaden their coverage and reduce the impact of cyclical factors.

Charles Li, former CEO of HKEX, stated that the Hong Kong stock market is facing structural and cyclical issues. He suggested expanding the coverage to achieve diversification and balance in the Hong Kong economy and stock market. He also supported the government's efforts to attract foreign investment and introduce arrangements such as Middle East ETFs. In addition, Li emphasized that his investment platform, Drip Irrigation Investment, is not a loan but an investment in small and micro enterprises, without involving equity. Operational data such as cash flow and investment returns for each investment contract will be disclosed early next year.

Former CEO of HKEX (00388.HK), Charles Li, stated in an interview with the Hong Kong Economic Journal that the Hong Kong stock market is currently facing both structural and cyclical issues. He pointed out that Hong Kong's economy is heavily reliant on the mainland, and with the increasing uncertainty in the Chinese economy, the cyclical problems will be exacerbated. He suggested that the Hong Kong stock market should broaden its coverage to make the Hong Kong economy and stock market more diversified and balanced, in order to avoid being influenced by a single market. He also agreed with the government's efforts to attract foreign investment and introduce arrangements such as Middle East ETFs. In addition to expanding stock-related businesses in the Middle East, he also mentioned the possibility of exploring other financing opportunities.

Furthermore, Charles Li's investment company, Drip Irrigation, invests in mainland China's small and micro enterprises and shops, and returns a specified percentage of its daily income. In less than three years, Drip Irrigation has become a unicorn (a privately held startup company valued at over $1 billion), attracting attention from the public and even being accused of engaging in "loan sharking" to seek excessive profits. Charles Li emphasized that Drip Irrigation is an investment in small and micro enterprises, not a loan, and the investment is withdrawn after a few years without involving equity. He revealed that starting from early next year, Drip Irrigation will disclose a series of operational data, such as daily cash flow of each investment contract and daily return per thousand yuan invested, in accordance with accounting standards.