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China's equity markets harbor high investment value in long term: Investor

By XU WEIWEI in Hong Kong | | Updated: 2024-01-26 21:43
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Wu Bo, president and chief financial officer of China International Capital Corporation (CICC), addresses a session at the 17th Asian Financial Forum in Hong Kong on Jan 24. [Photo provided to]

Chinese equity valuations are considered very attractive now compared to those in the rest of the world, and there is long-term investment value in China's stock markets, Wu Bo, president and chief financial officer of China International Capital Corporation (CICC) and member of the firm's management committee.

Wu told the 17th Asian Financial Forum on Jan 24 that he acquired the awareness from his meetings with many investors from across the world.

"For the short term, I think a lot of factors can influence it. Thus, it is difficult to say what the market will be like in the next six months or a year," he said. But "everyone is full of confidence" about the medium and long-term prospects.

China is also important in global green transformation initiatives and has achieved economies of scale in certain green-related industries, Wu noted.

Several markets in the broader Asia-Pacific did well last year. The Belt and Road Initiative (BRI) has received a lot of attention, and Southeast Asian nations that embraced the China-led program have seen sound economic growth.

China's solid planning and implementation of the BRI has fostered healthy development of the economy of the region as a whole, he said.

As a facilitator of BRI, Hong Kong Special Administrative Region of China is expected to retain its status as a major international financial center and a key gateway for Chinese enterprises for fund-raising and stock market listings.

"After playing a key role in history, Hong Kong is still a very attractive market and will continue to be in the future," said Wu.

There are more than 2,600 listed companies in Hong Kong, and almost more than half of them are from the Chinese mainland, which contributes more than 70 percent of the total market capitalization, he noted.

"I think this trend will continue in the future, with the Hong Kong market still playing a very important role to serve as one of the best choices for Chinese mainland companies to go public," Wu told China Daily in an exclusive interview on the sidelines of the Asian Financial Forum (AFF), which was held in Hong Kong from Jan 24 to 25.

At the same time, Hong Kong has become and will still be the top choice for international enterprises to enter the Chinese market, he said.

Working with the Hong Kong Stock Exchange, mainland authorities have created more trading convenience for investors on both sides, through programs such as the Stock Connect, Bond Connect and the Cross-boundary Wealth Management Connect.

The cross-border arrangements help both domestic and foreign investors, he noted. "So in this regard, I am still full of confidence about further consolidation and enhancement of Hong Kong's status as an international financial center."

Wu further emphasized that Hong Kong enjoys unrivalled advantages in promoting green finance and sustainable development. "Endowed with a developed financial market and advanced infrastructure and facilities, we believe that Hong Kong will continue to be a global powerhouse for green innovation," he said.

CICC is committed to further leveraging its role as a bridge to connect Hong Kong with visionary entrepreneurs and long-term investors around the world, to strengthen Hong Kong's positioning as a hub for green tech and green finance, Wu added.

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