China Capital Markets Will Triple to $100 Trillion by 2030, HKEX Chief Says
(Bloomberg) -- China’s capital markets will probably more than triple to $100 trillion in the next decade with more foreign inflows and diversification from households, the head of Hong Kong’s stock exchange said.
Chinese households will invest more in financial products, while moving away from real estate and bank deposits, said Nicolas Aguzin, Hong Kong Exchanges & Clearing Ltd.’s chief executive officer. Cross-border flows have “huge” room to increase given that foreign holdings account for only 5.3% of free floating A-shares, compared with 30% in Japan, he added.
The potential listing of unicorns will be another contributor to the growth, he said at a conference on Thursday. More than 200 of Asia’s 380 startup companies valued at over $1 billion are from China, Aguzin added.
The nation’s equity and bond markets are currently worth about $31 trillion, according to Aguzin. Hong Kong will remain the gateway connecting China to the world, and the city’s bourse will ensure that its infrastructure will help innovative firms raise funds, he said.
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