With the global political, economic and financial environment undergoing profound transformations, Hong Kong stands out as a safe harbor for global capital, providing policy consistency, predictability, and strategic access to China and the broader Asian region, the city’s finance chief said on Wednesday.

Paul Chan Mo-po made the statement while talking about global dynamics and investment trends in a speech at the Hong Kong–Korea Capital Markets Conference in the South Korean capital, Seoul.

Referring to geopolitical climate and policy uncertainty in the United States, he said, “These conditions are expected to persist for some time, and have prompted investors to reassess risk, diversify capital allocations and seek markets that offer both resilience and growth.”

The geopolitical recalibration is not temporary and will go beyond the financial market, he said.

“Economies in our region are already calling for deeper collaboration across trade, manufacturing, supply chains and investment. This presents exciting opportunities for deeper collaboration between Hong Kong and Korea – two of Asia's most dynamic and sophisticated financial ecosystems.”

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Giving a snapshot of the special administrative region's international rankings, he said it is once again ranked among the world's top three financial centers this year, besides being named as the world's third most competitive economy by Switzerland's IMD World Competitiveness Yearbook. The SAR continues to enjoy positive credit ratings from all three major international agencies — Fitch, Standard & Poor's, and Moody's — with stable outlooks, he added.

“These accolades are not symbolic. They reflect the resilience of our financial markets and the confidence international investors place in Hong Kong,” he said.

After rising by 18 percent last year, the Hong Kong stock market has already gained another 20 percent so far this year, with initial public offerings (IPOs) raising about HK$16 billion so far this year, making Hong Kong the world's leading IPO venue, Chan pointed out.

“The rally in our stock market since last year has been fueled by both (the Chinese) mainland and international capital.”

Korean investors made their highest monthly net investment in Hong Kong equities in three years in February this year, he said, adding that waves of capital from the US and Europe had also poured in since September last year, as global investors realized that they had under-allocated to the Greater China market.

“We expect continued momentum, especially as more high-quality mainland tech companies choose Hong Kong over US listings. We are also prepared for the return of Chinese concept stocks from the US,” said Chan.

Referring to strong bank deposits, which grew by 7 percent last year and again by around the same rate this year, he said the SAR’s asset and wealth management sector currently manages around $4 trillion, and is on track to become the world's top cross-border wealth management center by 2028.

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“These positive developments are driven by our strong fundamentals, a steadily growing China, and the shifting global financial landscape. At the core of Hong Kong's success are our enduring values: openness, diversity, international character, and global connectivity.”

He pointed out major technological breakthroughs China is making in artificial intelligence, robotics, electric vehicles, green technologies and advanced manufacturing, adding that Chinese firms are increasingly turning to Hong Kong to raise capital to support the expansion of their global footprint.

International investors are increasingly leveraging Hong Kong to take advantage of China's tech sector development. This trend is reflected in the performance of the Hang Seng Tech Index, which has gained more than 40 percent over the past year, driven by renewed investor interest and optimism,” he added.

Chan also said that a unique strength of Hong Kong's capital market is its "Connect Schemes" with the mainland, including Stock Connect, Bond Connect and ETF Connect, which allow mainland Chinese capital to flow into Hong Kong's markets while offering trusted and familiar channels for international investors to access the Chinese markets.

“Today, over 70 percent of A-share holdings by international investors were acquired through the Northbound Stock Connect, and about two-thirds of mainland cross-border bond transactions are conducted using Bond Connect.”

Beyond the Chinese mainland, Hong Kong is also expanding mutual market access with other regions, Chan said citing the example of the SAR’s growing partnership with Saudi Arabia.

Some Korean firms are already active in Hong Kong’s Exchange-Traded Products market as issuers and market makers, he said, adding: “We believe it is now the opportune moment to deepen our collaboration in this space through cross-listings, reciprocal arrangements and master-feeder partnerships.”

Hong Kong has launched a licensing regime for virtual asset trading platforms (VATPs) and so far licensed 11 VATPs, with balanced requirements on custody, anti-money laundering and investor protection. It also supports tokenization across traditional finance, from green bonds to asset-backed security tokens and structured products.

“Hong Kong's digital asset ecosystem continues to thrive, and many Web3 innovators are choosing to base themselves in our city. We see tremendous potential for Korean innovators and investors as well,” added the finance chief.

Chairman of the Korea Financial Investment Association Seo Yoo-seok, Managing Director and Head of Markets of the Hong Kong Exchanges and Clearing Limited Gregory Yu, Chief Executive Officer of CSOP Asset Management Limited Ding Chen and representatives from Korean institutional investors, securities firms, asset managers, regulators and Hong Kong's financial community attended the conference.

Chan later attended the Korea–Hong Kong Business Luncheon, where he delivered a keynote speech saying Hong Kong and Korea can together build stronger bridges, unlock new investment frontiers, and shape the future of finance in Asia and beyond.