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The Financial Secretary, Mr John C Tsang, today (December 12) encouraged Indian companies to list on the Hong Kong stock exchange and to invest in Hong Kong's fledgling Islamic financial sector.
Mr Tsang made the comments in Mumbai, on the first full day of his trip to India.
Speaking at a business luncheon hosted by HSBC, Mr Tsang said: "Like Mumbai, Hong Kong is developing Islamic retail funds to attract Muslim investment. A high concentration of international banks, an excellent regulatory environment, and a transparent legal system make Hong Kong a good location for such funds."
The Financial Secretary said Hong Kong was an ideal location for India's large number of sharia-compliant companies to raise capital and diversify their fund-raising activities.
Mr Tsang later spoke at a business seminar organised by the Hong Kong Trade Development Council, and at a reception hosted by the Indian Banks' Association. The Financial Secretary urged Indian businesses, as well as banks, to list on the Hong Kong stock exchange.
"In terms of market capitalisation, Hong Kong's exchange is the world's seventh largest, and the third largest in Asia after Tokyo and Shanghai," Mr Tsang said. "We would like to see Indian companies listing in Hong Kong. And not just that, we'd also like to see you do business in Hong Kong, and to explore opportunities in China and the rest of Asia with us."
Mr Tsang encouraged Indian companies to take advantage of Hong Kong's free trade pact with the Mainland, the Closer Economic Partnership Arrangement, or CEPA.
He said: "This is an opportunity that Indian businesses should be examining, especially companies looking to expand internationally."
Mr Tsang also met members of the Maharashtra state government and the managing director and CEO of the the Bombay Stock Exchange, Mr Rajnikant Patel, to explore opportunities for cooperation.
Tomorrow (December 13), Mr Tsang will visit the National Stock Exchange of India Ltd and attend a lunch hosted by the Securities and Exchange Board of India, before departing for New Delhi where he will attend a dinner hosted by the Indian government.
Ends/Wednesday, December 12, 2007
Issued at HKT 19:05
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