Li Xiaojia: Hong Kongs market function has been upgraded from blood transfusion to hematopoiesis

category:Finance
 Li Xiaojia: Hong Kongs market function has been upgraded from blood transfusion to hematopoiesis


Upgrade to hematopoiesis

Li Xiaojia believes that 40 years after Chinas reform and opening up, if the human body structure is used as a metaphor, Chinas participation in the process of globalization is gradually connected with the world in the framework (transportation, communication), in the muscle (trade, manufacturing, supply chain), in the blood (finance, capital), and in the neural network (artificial intelligence, 5g) in the future Network and Quantum Computing).

Hong Kong has played an irreplaceable role in every stage of China and the western world, but its function has also gradually evolved and upgraded: from skeleton connection to muscle connection, and then to blood connectivity. With the rapid expansion of Chinas economic volume, Hong Kongs blood function has gradually evolved from simple blood transfusion to the introduction of foreign investment, to the transformation and upgrading of capital blood in the future, and will eventually realize the interconnection and functional exchange with the global blood system.

The blood transfusion function of Hong Kong market began in the mid-1990s when traditional Chinese enterprises went on the stock market in Hong Kong to raise funds. At present, there are more than 1260 mainland enterprises listed in Hong Kong, with a total raised capital of more than HK $6.7 trillion and a total market value of HK $26 trillion. At the same time, through unremitting efforts, the Hong Kong Stock Exchange launched a major reform of the listing system to help the development of the new economy, injecting DNA of the new economy into the Hong Kong market. In just two years, a total of 87 new economy companies have been successfully listed, including the return of more and more overseas listed Zhongwei shares, raising more than 300 billion Hong Kong dollars.

The function of Hong Kong market has gradually upgraded from blood transfusion to hematopoiesis, which began with the launch and rapid development of Shanghai Hong Kong stock connect, Shenzhen Hong Kong stock connect and bond stock connect in recent years. Through interconnection, the Hong Kong market will introduce foreign blood to the mainland market in the north and let the mainland funds invest in Hong Kong stocks in the south according to international rules. Large scale two-way flow will deeply optimize the blood production function of the mainland and greatly promote the internationalization process of the mainland market. By the end of May this year, the total volume of North-South transactions of the Shanghai Hong Kong stock connect was 36 trillion yuan, while that of the bond connect was more than 5.7 trillion yuan.

Li Xiaojia said that in the future, in addition to further improving the blood transfusion and hematopoiesis functions of Hong Kong market to the capital market of mainland China, it will become more and more important to promote the blood function exchange between China and the world, that is, the internationalization of RMB. Today, compared with the international market, the blood of the mainland market is still very single and concentrated. The debt holding is far higher than the stock holding, the internal holding is far greater than the external holding, and the external holding is far more than the external debt. Compared with developed countries such as the United States and Japan, this situation is very inconsistent with Chinas current economic scale and development level. It should be reversed gradually, that is, from debt to shareholders, from foreign currency debt to RMB debt.

However, this kind of debt to equity, internal to external and GDP to GNP conversion will not be achieved overnight. Even if the RMB is fully convertible, it will continue to maintain a considerable degree of prudential supervision and different forms of capital control. However, with Hong Kong, this kind of conversion can be started and accelerated under a transparent, safe and controllable institutional framework, so as to improve the real economy Provide long-term sustainable nutrients, and accelerate the historical process of Chinas capital market opening and RMB internationalization.

International financial center status

Second, one country, two systems is in the fundamental interests of Chinas development. The purpose of the NPCs legislation is to maintain the long-term stability of Hong Kong and to ensure one country from the legal level. After the implementation of the one country national security law, the two systems should only be more substantial, richer and more spacious. Its effect will be especially prominent in the economic, financial and other business fields. Third, the introduction of the national security law does not change the special functions and functions of Hong Kongs international financial market. In the past few decades, the key to Hong Kongs magnificent transformation into an international financial center is the unique advantages brought by one country, two systems to connect China and the world. After the dust of the national security law is settled, I believe that the public security and social environment in Hong Kong will gradually restore stability. Because of this, more money from home and abroad will gather in Hong Kong, which will inevitably produce greater chemical effect and create greater value. Source: Securities Times Author: Roman editor in charge: Wang Xiaowu_ NF

Second, one country, two systems is in the fundamental interests of Chinas development. The purpose of the NPCs legislation is to maintain the long-term stability of Hong Kong and to ensure one country from the legal level. After the implementation of the one country national security law, the two systems should only be more substantial, richer and more spacious. Its effect will be especially prominent in the economic, financial and other business fields.