Secretary for Financial Services & the Treasury Frederick Ma expects that more Mainland enterprises will seek listing in Hong Kong and more Mainland capital will be invested during the Year of the Dog.

He said Hong Kong will remain the premier choice of Mainland enterprises as a platform for investment and capital financing.

In his latest FSTB & You column, Mr Ma said Hong Kong's financial market last year experienced impressive growth, exuberant with an upbeat investment atmosphere.

Robust performance

"With the listing of a number of major Mainland enterprises in Hong Kong and other favourable factors, Hong Kong's stock market staged a robust performance last year. The total equity capital raised during the year was more than $295 billion," he said.

The Hong Kong stock market ranks fourth in the world and first in Asia, ahead of Japan, in terms of equity capital raised. The volume of total market turnover last year was more than $4.520 trillion.

With a total market capitalisation of more than $8.18 trillion, Hong Kong moved from ninth to eighth place in the world. Investors are generally optimistic about the prospects of the Hong Kong market.

Mr Ma said the secret of success in investment is to get to know more about what you plan to invest in, and to think twice before making any investment decisions.

"Before we make any investment decision, we have to take into account our affordability and investment targets. We have to spend time acquainting ourselves with the market conditions and development, the products we intend to invest in and the risks involved. Do avoid following the mob trend."

Market fluctuation

Mr Ma said Hong Kong is an international financial centre with free flow of capital from over the world in the absence of foreign exchange control.

"Overseas investors contributed to 35%-40% of the total market turnover in the past three years. Therefore, Hong Kong's stock market is affected not only by domestic factors, but also by fluctuations in the global and regional economies, in particular the Mainland economy."

Mr Ma advised investors to enhance their understanding of the products they are planning to invest in and the risks involved.

"This would enable you to work out a portfolio that suits you most and to make as proper as possible your post-retirement financial arrangement."