China's recent market stimulus measures reinforce its commitment to economic growth and to market stability, generating excitement among foreign investors, said Carlson Tong, chairman of Hong Kong Exchanges and Clearing (HKEX).
Speaking to CGTN on the sidelines of the 8th Future Investment Initiative (FII) conference in Riyadh, the capital of Saudi Arabia, on Wednesday, Tong shared his insights on HKEX's role in linking China with global markets.
Expanding partnerships in Middle East
HKEX announced its plan to open an office in Riyadh in 2025 on Wednesday, aiming to bolster its presence in the Middle East. Highlighting the strategic importance of the region, Tong elaborated on HKEX's efforts to diversify its investor base and deepen international ties.
"The Middle East, obviously, is a very important region with growing economic power and influence.
"We want to support our clients in the Middle East.
"I think Hong Kong is in that position to do [it] that way as an international financial center. We can connect the Middle East with China, which is the second largest economy in the world," he told CGTN.
Gulf countries are actively advancing economic diversification and foreign investment, particularly in non-oil sectors. Saudi Arabia's Vision 2030 initiative, for instance, is focused on boosting economic growth, technological innovation and sustainability.
Tong also expressed optimism about collaborating with Middle Eastern partners to seize emerging opportunities.
"We can work with the Middle East and in Riyadh and share our knowledge, and we are also into innovation technology," Tong said.
Positive market outlook following stimulus measures
In September, the People's Bank of China introduced a slew of stimulus measures, including reductions in reserve requirements and key interest rates, injecting confidence into the market.
Tong shared that foreign investors have responded positively. "I met officials, certain financial officials in London. They were very, very interested in the measures that China is rolling out, and they asked me a lot of questions," he said.
The share of foreign capital in China's domestic stock and bond markets is about three to four percent, as reported by the State Administration of Foreign Exchange. Tong pointed out that this share is modest given China's economic strength and encouraged investors to explore these opportunities further.
Reflecting on Hong Kong's advantageous position as part of China, Tong affirmed HKEX's commitment to showcasing the city as a global financial center and expanding its product offerings.
"We spread beyond stocks. We went to bonds, ETF (exchange-traded funds) and also into interest rate swap.
"All these are really, really good policies and measures to assist Hong Kong to continue to strengthen our connection between China and the rest of the world," he said.
(Wang Xuejing, Yang Yuan and Mohmad Daw Elnaim contributed to this story.)