Chen Jiaqiang: Proposed the establishment of a green channel for mutual access to attract international companies to list in Hong Kong.

Chairman of the Hong Kong-listed Companies Association, Chen Jiaqiang, expressed his personal opinion that currently, there are more and more Chinese enterprises listed on the Hong Kong stock market, leading Hong Kong towards becoming an "internationalized Chinese market". He suggested making it easier for mainland funds to invest in international assets and also making it more attractive for international companies to list in Hong Kong, thus making Hong Kong a truly influential and internationally competitive "financial platform". He recommended increasing the flexibility of mechanisms, such as establishing a green channel for strategically important international companies so that they can access mainland funds as soon as they list. Additionally, it is important to make it easier for international companies to be included in the mutual connection, and it is also crucial to have representative companies that can enhance the international image of the Hong Kong market. He admitted that attracting international companies to list in Hong Kong is easier said than done, and liquidity is the biggest challenge. If an international company lists in Hong Kong without sufficient capital support, the trading volume may not be sufficient, leading to price fluctuations that are not favorable for both the company and investors. Although the mutual connection mechanism allows foreign companies listed in Hong Kong to be included in the Hang Seng Composite Index and attract Northbound trading, the issue lies in the fact that it takes time to be included in the index and there is uncertainty, making it difficult for international companies preparing for listing to accept. Chen Jiaqiang explained that allowing mainland investors to invest in international companies can enhance Hong Kong's pricing power in international asset pricing. When mainland funds participate in pricing international companies, they are no longer passive price takers but become active price setters. Furthermore, he suggested allowing the more than 1.6 trillion Hong Kong dollar MPF to invest in more local ETFs in Hong Kong. When the Hong Kong ETF market has sufficient depth and breadth, it will have the confidence to further push for the opening of mutual connection mechanisms. He also recommended further expanding the Exchange Traded Funds (ETF) mutual connection, including all ETFs composed entirely of international stocks.