Hong Kong government staunchly defends city’s stock exchange after Donald Trump’s grim prediction
- The government says the Hong Kong stock exchange will continue to be the fundraising destination of choice for companies and attract more investors
- Daily average turnover on Hong Kong stock exchange stood at US$16.1 billion in July, an increase of 40 per cent year on year
The Hong Kong government came to the defence of the Hong Kong stock exchange after US President Donald Trump said that investors would prefer raising funds elsewhere as the city’s special status was revoked.
The government said the Hong Kong exchange would continue to be the fundraising destination of choice for companies and attract more investors, pointing out that it was the world's largest initial public offering market in seven of the past 11 years.
As of July this year, IPOs in Hong Kong reached HK$132.1 billion (US$17.04 billion), while average daily turnover stood at HK$124.8 billion, an increase of more than 40 per cent from the average daily turnover last year.
“This fully demonstrates the recognition and confidence of international participants in Hong Kong's financial system,” the Financial Services and the Treasury Bureau said in a statement on Thursday evening.
Funds raised through IPOs on Nasdaq and the New York Stock Exchange reached a combined US$22.3 billion in the first half.
In an interview with Fox News on Wednesday, Trump said ending Hong Kong’s free-trade status with the US would shift the focus of companies and investors to US exchanges.
