The recommendations of the Hong Kong government’s task force to encourage listing and trading in the stock market failed to address the fundamental problem, which is that the market is trading at too low a valuation (“HK task force calls for push to win Middle Eastern listings”, Report, November 29).
The Hang Seng index closed at 17,354 last Tuesday, representing a price earnings multiple of just over 10 times. Companies going public would certainly want to sell their shares at the highest possible valuation, and the Hong Kong stock market is not providing that. The Hong Kong government has not done enough to allay international investors’ concerns about the risks associated with the Hong Kong stock market.
Financial officials should go on international roadshows (in the US and Europe) and confront fund managers face-to-face to address their concerns.
Tony SK Li
Hong Kong
