V. HK companies can be transformed from negligible components to an asset class to be reckoned with and respected of in the Global Capital Markets
Do HK companies deserve a place in the Global Capital Markets?
“We think the Global Capital Markets remain very US and Developed Markets-Centric which has resulted in a large disconnection between the importance of Pan-Asia companies ( or all companies outside of the Established Developed Markets ) in their industries globally and their perceived importance in the Global Capital Markets.
The importance of Hong Kong companies in the Global Capital Markets has suffered from this industry-wide issue. Herein lies an area we attempt to make some contribution. ESG; Adam Smith and these companies’ growing recognition in their industries globally are among the factors that we think should help to narrow or close such gaps over time……”
– HKH Research House
Our read is that, for quite many industries in the world, some of the strongest and promising players are in Pan-Asia and Hong Kong has a fair share of the list of companies that are well-recognised with and respected of in their industries globally. Among these, one clearest example is real estate companies and there are more. We see ESG,Adam Smith as well as growing recognition in their industries globally as among the factors that would help to narrow or close the gap over time.
Does HK has a place in the Global Capital Markets?
“We think the Pan Asia Capital Markets would not be characterised by a dominant capital market similar to the position London and New York have commanded in their respective time zones.
However, given the size and scale of Pan-Asia as a whole, just being merely one of the most important markets within the Pan-Asia time zone would probably offer sufficient room for Hong Kong’s development for quite many years to come.
And Hong Kong’s position should only improve further if it could become the market that can work the most efficiently and effectively with London and other major capital markets in the world to address various “injustices” we see in the global capital market, with the global recognition for HK companies as well as for companies listed in Hong Kong and Pan-Asia being one of them and one where the HK Capital Market could have important potential contribution to make, in our view….”
– HKH Research House