Hong Kong has emerged as a safe haven, with the city’s bank deposits continuing to climb as global investors reassess portfolio risks due to geopolitics, Financial Secretary Paul Chan Mo-po said on Sunday.
Writing in his weekly blog, Chan said deposits in the special administrative region’s banking system have risen more than 10 percent this year to about HK$19 trillion ($2.4 trillion) following a seven-percent increase in 2024.
“Amid the impact of geopolitical developments, global investors have reevaluated portfolio risks and adjusted strategies to diversify, making Hong Kong a safe haven for capital,” he said.
International capital’s confidence in the SAR is also reflected in the city’s deepening financial links with global markets, along with the strong growth of its wealth management industry and initial public offering fundraising activity.
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“Fundraising for a number of major IPOs this year has drawn many cornerstone investors from Western countries and the Middle East,” the finance chief said.
He added that many international financial institutions intend to expand their presence in Hong Kong, including hiring more staff and scaling operations.
As of Nov 18, Hong Kong’s benchmark Hang Seng Index had surged by over 30 percent year-to-date, following an 18 percent gain in 2024, with an average daily turnover more than double that of last year’s.
In the first 10 months of this year, 81 companies had launched IPOs in the city, marking a 50-percent increase from the same period last year. Funds raised through IPOs reached HK$216 billion, making Hong Kong the global leader in new listings so far this year.
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Chan also highlighted the development of Hong Kong’s shipping trade industry, noting that the global supply and industrial chains have accelerated reorganization amid rising unilateralism and tariff tensions.
“Hong Kong’s merchandise exports have remained insulated from the tariff war, posting 19 consecutive months of year-on-year growth and rising 11.3 percent in the first three quarters,” he added.
Chan pledged that Hong Kong will further strengthen the international advantages of its ports and push ahead with upgrading and restructuring the local maritime sector, including expanding high-value-added maritime services, attracting more commodities trade, and tapping into new markets.
Beyond exploring emerging markets, Chan said the SAR will also work to consolidate its relationships with partners from traditional markets.
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Chan will travel to London and Milan this week to attend events organized by the Hong Kong Trade Development Council.
During the trip, he will introduce Hong Kong’s advantages, new developments and opportunities to local business and political leaders.
He will also hold in-depth discussions on issues of mutual concern to deepen understanding and explore further opportunities for win-win cooperation.
