In his conversation with Julia Chatterley on CNN First Mover during the World Economic Forum in Davos, HKEX Chief Executive Charles Li explained why Hong Kong is crucial to Mainland China, not as a local economy but as a financial market. “When you look at the GDP to market capitalization ratio, for any other market it’s [normally] 1:1. For us, it’s 14:1.”
The resiliency of Hong Kong’s capital markets is built on the fact that “China trusts Hong Kong, the world trusts Hong Kong and they believe Hong Kong can create a market where they can meet”.
“China is now the second-largest economy – but its market structure… is different from the rest of the world,” Li said.
“The world needs to find ways to trust China better and China needs to make an effort to make it easier for people to trust them.”
You can watch the interview on Twitter here.
