Financial Secretary Paul Chan Mo-po said on Sunday that the Hong Kong Special Administrative Region’s favorable policies for the technology industry, as well as market stability, are drawing international capital to the city, with Tuesday’s listing of Chinese mainland firm Contemporary Amperex Technology set to be this year’s largest initial public offering so far.

“Hong Kong’s IPO market this year is prosperous. Taking the to-be-listed new energy company into account, the total amount of all local IPO fundraising will almost exceed HK$60 billion ($7.69 billion), which is more than six times the figure for the same period last year and, temporarily, ranking first in the world,” he said.

Hong Kong’s total bank deposits stood at nearly HK$18 trillion as of March this year – a cumulative increase of 3.5 percent this year following a seven-percent surge last year.

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In major markets worldwide, funds are gradually flowing into innovative and technological bellwether enterprises, as well as promising industries with strategic value, Chan said.

“Finance and innovation are the dual engines of Hong Kong’s development. We’re constantly strengthening them and committed to taking the city’s international financial, innovation and technology center to a new level.”

Hong Kong Investment Corporation will host the inaugural International Forum for Patient Capital on May 22.  

“The forum will discuss the creation of collaborative platforms, cooperation opportunities, and leverage the power of attracting investments to the region. Representatives of various fund organizations will be attending,” Chan said.

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However, unstable external factors are hampering the SAR’s development, with the United States “reciprocal tariffs” having had an unfavorable effect on market confidence, resulting in the largest percentage drop in the Hang Seng Index since October 2008.

Early this month, the Hong Kong dollar exchange rate continued to strengthen – close to 7.75 to the greenback – triggering strong-side convertibility undertakings four times.

Chan said as the world’s economic outlook faces multiple uncertainties, the strong measures taken by the central government to stabilize the economy are gradually producing results.

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The benchmark Hang Seng Index closed at 23,345 points on May 16, returning to its pre-tariff war levels and outperforming other major markets, with a cumulative increase of about 16 percent.

“China adheres to the principle of creating an open and inclusive society. It will not provoke trouble and is not afraid of trouble. This has won wide recognition and support from the international community,” Chan said.

He believes that as long as Hong Kong continues to leverage its unique strengths and to do its best, it can attain high-quality development.

Contact the writer at thor_wu@chinadailyhk.com