Hong Kong's stock market with a total value of over 7 trillion HK dollars (903 billion US dollars), ranks second in Asia following Japan and ninth in the world, Hong Kong's Secretary for Financial Services & the Treasury Frederick Ma said Monday.

He believed the rank will climb in the next two to three years as more capital-raising activities are planned.

Speaking on a local radio program, Ma said the total value of Hong Kong's stock market equals more than five times the local Gross Domestic Product - higher than that of New York and Tokyo - reflecting Hong Kong's uniqueness as a capital-raising platform for mainland enterprises.

He pointed out that in order to facilitate the inflow of overseas capital and continue to serve as a capital-raising platform for mainland firms, Hong Kong must strengthen its position as an international financial hub and maintain its international-standard regulatory mechanism.

Ma said there are more than 140 mainland firms listed in Hong Kong, which have raised close to 1 trillion HK dollars (129 billion US dollars) in capital.

Apart from helping companies raise cash, Hong Kong also helps mainland firms to improve corporate governance.

Talking about competition from mainland financial centers like Shanghai and Shenzhen, Ma said that Hong Kong has a good legal system and stringent standard of regulation, and investors' confidence in Hong Kong has already been built up. To maintain its edge, Hong Kong must improve, in particular in areas like offering tax concessions to attract overseas investment, the diversification of products and maintaining a pool of international financial experts, Ma added.

He said as a financial hub, Hong Kong also has a booming bonds market, insurance and banking sectors and a strong securities market, adding that its fund-management sector would benefit if there is a free flow of Renminbi in the future.

Source: Xinhua