Hong Kong’s New Capital Investment Entrant Scheme (New CIES) has received nearly 1,400 applications since it was launched last year as the city’s asset and wealth management sector continues to record a “strong growth momentum”, Financial Secretary Paul Chan Mo-po said Monday.

Speaking at the Hong Kong Investment Funds Association 18th Annual Conference, Chan said the New CIES applicants are expected to bring in potential investments of over $5.2 billion.

“The institutional strengths, combined with policy certainty, regulatory transparency and an enabling government, have reinforced Hong Kong's position as a safe harbor for global investors during these turbulent times,” Chan said.

“This is most obviously reflected in the recent upturn in our stock market and influx of capital as reflected in bank deposits,” he added.

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Chan said net inflows into Hong Kong-domiciled funds for the past 12 months surpassed $44 billion as of March, a nearly threefold increase year-on-year.

“Our exchange-traded products market has also continued to grow, now boasting 210 listed products, with a transaction volume accounting for over 15 percent of the stock market's total,” he said. 

He added that Hong Kong was managing nearly $4 trillion in assets, or more than 10 times its GDP, and with two-thirds of this capital originating from outside the city.

Chan also said that Hong Kong’s family office sector also continued to grow, with the city now hosting 2,700 wealthy family offices.

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“Today, Hong Kong continues to stand out as a trusted gateway and market for global capital. Under the ‘one country, two systems’ arrangement, we retain the core competitive strengths that define our city,” he said.

Chan said the strong growth momentum was also due to growing affluence of the Guangdong-Hong Kong-Macao Greater Bay Area.

“With its affluent population and growing demand for offshore asset allocation, Hong Kong is the natural choice,” Chan said.

He said that since the GBA Wealth Management Connect was enhanced in February last year, the cumulative cross-boundary fund flows have surged sevenfold, now exceeding RMB100 billion ($13.92 billion).