Hong Kong will set up a task force to look into ways to boost stock market liquidity, according to Chief Executive John Lee.
Financial Secretary Paul Chan will lead the group and will announce more details this week, Lee told reporters Sunday.
“I want the task force to start working very quickly,” the chief executive said. The group can provide “recommendations to increase the liquidity of our stock market to strengthen our competitiveness as an international financial center,” he said.
The market capitalization of Hong Kong’s bourse has plunged by almost $870 billion since a January peak amid weak investor sentiment over China’s sluggish economic recovery. The city’s benchmark Hang Seng Index has lost about 9% this year after back-to-back annual losses.
