Hong Kong needs more global listings, wider Stock Connect to strengthen hub role: FSDC

Hong Kong needs to consider widening the Stock Connect schemes and step up promotion in Southeast Asia and the Middle East to attract more international firms to list in the city, according to a government think tank.Rocky Tung Yat-ngok, newly appointed executive director of the Financial Services Development Council, said that while Hong Kong has been a major listing venue for mainland firms, international companies remain a minority on the local bourse.“We would like to do more roadshows in Southeast Asia and the Middle East to introduce the benefits of listing in Hong Kong and the strength of the local capital market,” Tung said at a media briefing last week. He took up the post in February, succeeding King Au, who retired.Tung said Indonesia would be the first market to pitch, given its large population and strong mining and Islamic finance sectors. With about 277 million people, Indonesia is the world’s fourth most populous country, after India, China and the US, according to World Bank data.He also suggested regulators consider widening the Stock Connect to allow selected international companies with secondary listings in Hong Kong to join the scheme, enabling mainland China investors to trade their shares.