Charles Lin, CEO of GF Holdings (Hong Kong), Believes China’s Capital Market Has More Room for Growth

2024-06-04 11:26 GF Holdings (Hong Kong)

Charles Lin, CEO of GF Holdings (Hong Kong) Corporation Limited, was invited to attend the 2024 Caixin Summer Summit hosted by Caixin Media on May 31 in Hong Kong. He participated in a panel discussion on the topic of "New Perspectives on Asset Allocation: How to Move Forward Against the Headwinds."

Charles Lin, CEO of GF Holdings (Hong Kong) (the 3rd from left), attends 2024 Caixin Summer Summit

Key points of Charles Lin's speech:

  • Compared to developed markets, China's capital market is still in its early stage of development and has significant room for future growth.
  • While China is the world's second largest economy, its capital market is not commensurate with its economic size - China’s total stock market value is only about one-seventh of the U.S. market, and its bond market is around 40% of the U.S. market.
  • The valuations of the Mainland A-share market and the Hong Kong stock market are about 20-25% discounted compared to global equity markets, indicating significant upside potential of China's capital market.
  • Corporate earnings improved in Q1 2024. In the past 12 months, the Hong Kong stock market has seen a net capital inflow of around US$38 billion, making it the largest recipient of capital inflows among all Asian markets.

Charles Lin speaks at a panel discussion

In response to a question on how to seize future development opportunities, Charles Lin pointed out that the cross-border wealth management scheme in the Greater Bay Area's is a great opportunity. Fintech can not only transform the traditional offline model, but also provide investors with more convenient, faster, and more cost-effective financial services, improving investors’ long-term asset returns.

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