Analyst Li Yujia of the Hong Kong Bank of China Institute of Financial Research stated that Hong Kong can develop in the following aspects to promote cross-border fund flows, enhance the resource allocation function of the international financial center, attract more financial institutions and long-term capital to operate and expand in Hong Kong as the hub.

First, consider extending the mutual recognition of ETFs to more overseas markets; second, cultivate an ESG ecosystem to create a higher-quality investment environment; third, continue to expand the scope of connectivity with the mainland financial market; fourth, encourage more Chinese financial institutions to establish asset management institutions in Hong Kong.

The bank proposes that cooperation between securities exchanges should be used to launch mutual recognition ETFs with more markets. It can consider gradually expanding the scope of cooperation starting from the Middle East and Southeast Asian markets, broaden the channels for asset management investment in Hong Kong, and introduce more incremental funds into the Hong Kong asset management market.