The chairman of the Hong Kong Securities and Futures Commission (SFC) , Andrew Wong, speaking at the new year event, stressed that the SFC and the Hong Kong Stock Exchange (hkex) will continue to work together to enhance market liquidity and efficiency, it also focuses on corporate governance and the implementation of the corporate governance code, further enhancing Hong Kong’s status as an international financial centre.
In the past year, Hong Kong’s capital market has made remarkable achievements despite multiple challenges. In 2024,71 companies have successfully listed on the Hong Kong capital market, raising a total of HK $87 billion. The number of ipos in the world has risen to fourth place, up from sixth 2023. In particular, after the China Securities Regulatory Commission issued five Capital Market Cooperation Measures for Hong Kong, the Hong Kong capital market welcomed 59 companies to list in the second half of the year, accounting for more than 80% of the number of listings in the year.
In an effort to further improve market liquidity and efficiency, the SFC and hkex plan to lower the floor levels of some stocks in two phases in 2025 and 2026 to reduce trading costs. In addition, the introduction of the Hong Kong stock market regulation system has enabled 80 listed companies to hold repurchase shares through stockpiling.
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Looking Ahead, Wong said the SFC would continue its efforts to improve capital efficiency and reduce transaction costs, including improving the number of shares per transaction rule and the trade settlement infrastructure. He also stressed that the future would focus on corporate governance and the optimization of the corporate governance code in order to maintain the integrity, transparency and resilience of markets and support the sustainable development of capital markets.
Wong noted that Hong Kong has made good progress in corporate governance in recent years, especially in the Hang Seng Index companies, where a number of governance indicators have improved. He said the SFC would go to great lengths to improve the quality of listed companies and make them more attractive to global investors through better corporate governance.
On a global scale, strengthening corporate governance has become a trend. Huang Tianyou believes that good corporate governance is the basis of risk management and effective decision-making, which helps to prevent all kinds of misconduct and promote the long-term sustainable growth of company performance. He stressed that greater transparency was crucial to attracting capital and improving stock liquidity and valuations.
“Corporate governance and market development complement each other, and the SFC is prepared to work with all parties to strengthen corporate governance to support the sound development of the market,” Wong concluded, and meet the challenges and opportunities of the New Year.