Hong Kong well-positioned to help Asean companies tap China, hedge against strong dollar, officials say
- Hong Kong can help Asean nations and firms better connect to China, say panellists at the Post’s HK-Asean Summit, including HKEX’s CEO
- Yuan-denominated bonds provide an option to hedge foreign exchange risk amid a strong dollar, while Hong Kong moves ahead on offering yuan-denominated shares
Hong Kong is well-positioned to connect nations and firms in the Association of Southeast Asian Nations (Asean) with China, as well as to bridge Asean companies to the offshore capital markets, as a hedge against a strong dollar, speakers at two major summits in the city said on Thursday.
The Hong Kong stock exchange is seeing a “substantial amount” of interest from companies based in Asean nations, with several initial public offering applications in the pipeline, Nicholas Aguzin, CEO of bourse operator Hong Kong Exchanges and Clearing (HKEX), said at the inaugural Hong Kong-Asean Summit 2022.
Out of the 200 international companies listed in the city, around half are from Southeast Asia, Aguzin said at the event, hosted by the South China Morning Post.
“They want to leverage this international investor base,” he said. “They want to leverage the special access to the mainland. And that makes it a very unique listing venue. The connectivity [in Hong Kong] is second to none.”
“At HKEX, we see great opportunities for Hong Kong to support the mega trends that are shaping the global landscape – mega trends such as China’s next phase of economic growth, the global sustainability agenda, the rise of the new economy sector, biotechnology, innovations, and many more,” she said during the summit’s third day on Thursday. “And we are proud to play our part, through our role in connecting China with the world; in connecting capital with opportunities; connecting today with tomorrow.”
