Chen Maobo's blog: The atmosphere of Hong Kong stocks is gradually improving, and the new stock market is gradually warming up.

On September 22, the Financial Secretary of Hong Kong, Paul Chan Mo-po, published a blog post on the official website titled "Secretary's Essay: Expanding New Opportunities through Collaboration." The article states that the atmosphere in the Hong Kong stock market is gradually improving, and the new stock market is gradually heating up. The amount raised in Hong Kong's IPOs this year has exceeded the total for last year, ranking fourth globally, with around 100 companies currently in line to go public in Hong Kong. Follow-up fundraising activities for listed companies have also been active, raising over $20 billion in funds this year. Moreover, Hong Kong continues to record a net inflow of funds, with total bank deposits increasing by approximately 4% to $16.8 trillion by the end of the first seven months of this year. The full text of the Secretary's blog post is as follows: Last week, the US Federal Reserve reduced interest rates by half a point for the first time in over four years, and with several major global central banks also cutting interest rates earlier, it reinforced the financial market's expectation of a gradual decline in global interest rates. A loosened financial environment is favorable for asset markets and the business operating environment. Although under the linked exchange rate system, future interest rate trends in Hong Kong can be expected to roughly follow those in the US, the speed and extent of the reduction will depend on local capital flows and market conditions. The Hong Kong stock market has risen to its highest level in over two months, with the Hang Seng Index closing at 18,258 points last Friday, marking a cumulative increase of nearly 7% over six consecutive trading days. Market turnover has also improved, with trading volume reaching $176.8 billion last Friday, the highest in almost four months. The atmosphere in the stock market is gradually improving, and the new stock market is also heating up. A large new stock listed last week raised $31 billion, making it the second largest new stock globally this year. Including this new stock, the amount raised in Hong Kong's IPOs this year has exceeded the total for last year, ranking fourth globally. Currently, around 100 companies are in line to go public in Hong Kong, with many seeking to raise $1 billion in funds. In addition to the new stock market, follow-up fundraising activities for listed companies have also been active, raising over $20 billion in funds this year. In fact, Hong Kong continues to record a net inflow of funds, with total bank deposits increasing by about 4% to $16.8 trillion by the end of the first seven months of this year. Against the backdrop of a gradually turning relatively positive environment, we need to further promote the Hong Kong market, tapping into more diverse sources of funding as risk appetite and investor demand for higher returns gradually rise in the capital markets. Following the listing of the first exchange-traded fund (ETF) tracking Saudi Arabian stocks in the Asia-Pacific region at the end of last year, the Capital Market Authority of Saudi Arabia recently announced the approval of the first ETF investing in Hong Kong stocks to be listed on the Saudi Stock Exchange, making it easier for local and Middle Eastern funds to directly invest in Hong Kong-listed stocks. This move also helps deepen local investors' understanding of Hong Kong stocks. At the end of next month, I will lead a delegation to visit the Middle East, hoping to promote deeper and broader exchanges and cooperation in more fields. We will continue to strengthen promotion in traditional and emerging markets and facilitate more cooperation. We believe that as interest rates fall, we will be better able to leverage funds from different markets to inject more capital into Hong Kong's capital markets and explore more diversified sources of funding. Early this morning, I set off for Europe to attract investment, visiting Madrid, Spain, and London, UK. In addition to meeting with representatives from the local political and business sectors and visiting enterprises, I will also attend a series of dinner and roundtable events to promote Hong Kong's advantages. We have specially arranged for a delegation of Hong Kong startups to participate in this overseas visit, engaging in discussions with local innovation and investment institutions and venture capital funds in the hope of exploring more cooperation opportunities. Exchange activities, whether domestic or overseas, within industries or across industries, often promote deeper mutual understanding, inspire new ideas, and bring about collaboration opportunities. The 27th Beijing-Hong Kong Economic Cooperation Symposium and Hong Kong Investment Promotion Conference held in Beijing recently received a very positive response. The conference also included signing ceremonies for several key cooperation projects between Beijing and Hong Kong, covering finance, technology, and smart manufacturing, among other areas. This conference facilitated the signing of approximately 170 bilateral investment projects, with a total investment amount of around 42 billion RMB. Hong Kong actively promotes technological innovation, encourages entrepreneurship, and strives to promote cooperation between industries. We hope to seize the vast opportunities brought about by technological changes, cultivate more entrepreneurial individuals with ideals, determination, and execution capabilities, and encourage more companies to innovate and explore, bringing new products and services to customers and consumers, thus opening up more new business spaces. This will be a key factor in injecting vitality and momentum into the Hong Kong economy.