The Mainland's economic transformation is an opportunity for Hong Kong's development

This Thursday (16th), the "Securities Times" with a background in state media published an article entitled "SPAC listing competition heats up Hong Kong's unique advantages", pointing out that special purpose acquisition companies (SPAC) continue to be hot and successful in the United States, but This way of listing also has certain risks; and Hong Kong, as a hot spot for Chinese companies to go public and a mature financial center, is an excellent pilot for the listing of SPACs.

Since the beginning of this year, the mainland economy has undergone tremendous changes.

The central government has introduced regulatory measures for different popular industries, causing some blows to their operations.

For example, the mainland's strong supervision of property prices this year has caused many real estate companies to face operating difficulties, including Evergrande Group, which has been in financial difficulties in recent months and is on the verge of bankruptcy.

However, while issuing harsh tricks to many industries, the central government is quite active in the reform and development of the financial market.

Mainland financial reform and opening up

On the one hand, the China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission have been continuously opening up the financial market and RMB internationalization and other national policies, promptly proposing policy updates; on the other hand, they have announced the formation of the Beijing Stock Exchange (North Stock Exchange) and officially launched key financial policies such as the Guangdong-Hong Kong-Macao Greater Bay Area Cross-border Wealth Management.

This time, the official media mentioned that the SPAC pilot program also hopes that the development of the financial industry will be more diversified.

It is undeniable that the central government has recently attached great importance to supporting the development of the financial industry.

These policies show that the National Policy is undergoing a macroeconomic transformation, gradually shifting funds from some traditional assets to the financial market.

As we all know, asset management in Mainland China is very different from other Western countries. One of the areas is that a lot of funds are invested in real estate for a long time. This not only creates property price speculation and affects people's lives, but also locks capital activities to inherent assets.

Relatively speaking, the Chinese seldom invest their assets in financial markets.

The financial market can help economic development on a macro level. However, a developed real estate market can only benefit landlords and lack a positive effect on the real economy.

In recent years, the central government has paid more and more attention to changing this economic structure. The purpose is to channel the funds deposited in the real estate to the financial market to help the financial market develop.

The Hong Kong Stock Exchange will consult the market on whether to establish a Special Purpose Acquisition Company (SPAC) listing system in Hong Kong in the third quarter of this year.

Financial development is an opportunity for Hong Kong

Since financial development is the focus of China's important national policy development, Hong Kong, as a mature financial center, has even more value.

In recent years, many financial policies and measures in Hong Kong are closely related to the development of the Mainland. For example, in recent years, there have been more opportunities for Chinese-funded enterprises to come to Hong Kong for new listing or return, and Hong Kong and the Mainland have been able to mutually benefit each other.

For another example, the Securities Times mentioned that Hong Kong could be an important pilot for listing of SPACs. It can also be seen that for the Mainland, Hong Kong's financial market position is important and worthy of good use.

Therefore, Hong Kong should not be arrogant to belittle oneself, and more should make good use of the existing advantages of the financial industry to match the country's key development direction of the financial industry.

Hong Kong and the Mainland have always had a symbiotic relationship.

As long as Hong Kong can fulfill its responsibilities, it will naturally share the development dividend of China's rise.

Evergrande debt crisis stems from the policy winner?

Who on earth misunderstood China?

The Mainland reiterates that it will benefit the economy and Hong Kong can also learn from it