HKEX 欧冠升: Hong Kong stock market valuation approaches the "surrender point"
Hong Kong stocks fell below 15,500 points. Charles Li, CEO of Hong Kong Exchanges and Clearing Limited (HKEX), said in an interview at the World Economic Forum in Davos, Switzerland, that the Hong Kong stock market is approaching its "capitulation point" due to factors such as rising interest rates and geopolitical conflicts in various regions. This has led to a loss of confidence among investors and created a selling environment. Li stated that China's economic growth is forecasted to be 5%, which is still a considerable growth rate and could contribute an additional $1 trillion to the world's GDP. Li also expressed his pleasure in hearing Chinese Premier Li Keqiang reiterate the encouragement of private enterprise development and welcoming foreign investment. He believes that Hong Kong, in the long run, still holds a favorable position as a bridge between the East and the West. When asked about the lower amount of IPO fundraising in Hong Kong compared to India, Li pointed out that HKEX is expecting 73 IPOs in 2023, which is lower than the 90 IPOs in 2022, but the number is still acceptable. Due to the decline in valuations, Li understands that some companies are considering staying in the private equity market for financing instead of rushing to go public. Li declined to comment on the likelihood of Saudi Aramco, the Saudi Arabian state-owned oil company, listing in Hong Kong, but he did mention that Hong Kong is a suitable place for Middle Eastern companies to go public. Furthermore, Li explained the reason for not renewing his contract, stating that his family resides in the United States, and he needs to consider his personal development.
Zhitong App learned that the Hong Kong stock market has fallen below 15,500 points. Charles Li, the CEO of HKEX (00388), said in an interview at the World Economic Forum in Davos, Switzerland, that the Hong Kong stock market is approaching the "capitulation point". Factors such as rising interest rates and geopolitical conflicts in various regions have eroded investor confidence in the Hong Kong stock market, leading to a selling environment.
Li stated that China's economic growth is forecasted at 5%, which is still a considerable growth rate and can contribute an additional $1 trillion to the world's GDP. He also mentioned that he was pleased to hear Chinese Premier Li Keqiang reiterate the encouragement of private enterprise development and welcome foreign investment. In the long run, Hong Kong still maintains a favorable position as a bridge between the East and the West.
When asked about the lower amount of IPO fundraising in Hong Kong compared to India, Li pointed out that there will be 73 IPOs on HKEX in 2023, which is lower than the 90 IPOs in 2022, but the number is still acceptable. Due to the decline in valuations, he understands that some companies may choose to raise funds in the private market instead of rushing to go public.
Li declined to comment on the chances of Saudi Aramco, the Saudi Arabian state-owned oil company, listing in Hong Kong, but he did mention that Hong Kong is a suitable place for Middle Eastern companies to go public.
Furthermore, Li explained the reason for not renewing his contract, stating that his family resides in the United States, and he needs to consider his personal development.