Xu Zhengyu: Stock market performance is affected by multiple factors, with interest rate hikes being one of them.

The Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, stated that the performance of the stock market is influenced by various factors. On one hand, the increase in interest rates, after a long period of low levels, suddenly rising in a short period of time, has a certain impact on asset prices, including stock prices. On the other hand, it also involves overall geopolitical and macroeconomic changes, with the effects of the market largely related to mainland Chinese enterprises, reflecting the overall market factors. Hui pointed out that the recommendations of the Task Force on Promoting Liquidity in the Stock Market focus on two main areas: optimizing specific stock exchange operations and regulatory listing mechanisms on the supply side, as well as promoting and attracting more funds from different regions, such as Southeast Asia, to pay more attention to the Hong Kong stock market. Hui stated that efforts are being made to introduce a mechanism for company migration, with a very positive market response following the announcement of measures, especially in the insurance industry. With increasing regulatory requirements in other jurisdictions around the world, there are fewer tax incentives for setting up companies elsewhere, so the Hong Kong government hopes to introduce a mechanism to facilitate the migration of enterprises to Hong Kong. The Hong Kong government will issue 120 billion yuan in bonds in the next fiscal year. Hui pointed out that the government's debt as a percentage of GDP will only be 9-13% over the next 5 years, lower than other economies. He believes that borrowing for infrastructure investment can stimulate a series of economic activities, such as building bridges and roads, leading to the development of new areas. Therefore, the Hong Kong government is not borrowing money to cover its daily expenses.