12th October 2024 – (Hong Kong) On 16th October, the Hong Kong government will release its latest policy report, amid a backdrop of encouraging economic indicators. Legislative Councillor Jeffrey Lam, speaking on a radio programme today, highlighted recent positive developments, including the government’s decision to rescind property market cooling measures and the initiation of a rate-cutting cycle by banks. These moves have contributed to a more optimistic market atmosphere, reflected in improved trading volumes and a buoyant stock market, benefiting from several pro-economic measures announced by the central government.
Lam noted that the current momentum of Hong Kong’s economy is the strongest it has been in five years. He stressed that with ongoing structural changes, the city can no longer rely solely on its traditional advantages. Both Western and emerging markets remain crucial, and he called for a strategic shift involving a series of reforms to invigorate the economy and enhance market activity. This, he argued, is essential for reinforcing investor and public confidence in Hong Kong’s economic prospects.
To further support this initiative, Lam suggested that the Hong Kong Export Credit Insurance Corporation should reassess its export insurance policies and forge new partnerships in the banking sector to provide comprehensive credit risk assessments. Following amendments to the CEPA agreement, which include provisions for “Hong Kong capital, Hong Kong law” and “Hong Kong arbitration,” there is an expectation of increased registrations of foreign enterprises in Hong Kong.
Another member of the Executive Council, Chan Kin-por, echoed these sentiments, stating that the new CEPA agreement lowers entry barriers for Hong Kong businesses looking to expand into mainland sectors, including insurance and banking. He described these measures as positive developments, particularly for local derivative products, which possess robust risk management capabilities. Chan believes that expanding permitted investment products will facilitate capital inflows, benefiting even small to medium-sized enterprises with lower capital investments.
