Despite geopolitical headwinds, international investors continue to give Hong Kong’s equity, bonds, foreign exchange and wealth management markets a vote of confidence, with foreign cornerstone investment in initial public offering deals at a five-year high in both capital and proportion, Financial Secretary Paul Chan Mo-po said in his Sunday blog.
“Amidst global uncertainties, Hong Kong will, as always, uphold its status as a free port under the principle of ‘one country, two systems,’ maintaining a low and simple tax regime and transparent, predictable economic policies. The city continues to welcome international investors, including those from the United States, to develop and thrive here,” he said.
Chan, who’ll join China’s delegation to the 2025 annual meetings of the World Bank Group and the International Monetary Fund in Washington this week, said Hong Kong’s strong links with the Chinese mainland, global reach and its international depth of capital and talent, stand out even more today. “It remains a familiar, trusted and rules-based business hub.”
Confident that open communication and candid dialogue are key to reducing misunderstandings and building mutual trust, Chan plans to meet investors and representatives of financial institutions and think tanks during his visit to the United States to exchange views on global markets and highlight new developments in the special administrative region, particularly the Northern Metropolis and the vibrant prospects of the Guangdong-Hong Kong-Macao Greater Bay Area.
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The finance chief believes the Greater Bay Area’s growing appetite for diversified asset allocation remains a key driver behind Hong Kong’s emergence as a leading cross-border wealth management hub.
“We’re encouraged to see many international financial institutions expanding their wealth management teams and even doubling their office space in Hong Kong this year, underscoring their confidence in the city’s long-term prospects,” he said.
Beyond that, the HKSAR’s huge IPO pool continues to build up, with funds raised from new share sales in the city having surged 220 percent in the first nine months of the year, strengthening the local stock exchange’s grip on the top spot in the global rankings. So far this year, the benchmark Hang Seng Index has soared by 34 percent.
To be sure, global businesses are voting with their feet for Hong Kong.
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According to the World Investment Report 2025 published by the United Nations Conference on Trade and Development, Hong Kong attracted $126 billion in foreign direct investment in 2024, ranking third globally. As of last year, nearly 10,000 companies with overseas and Chinese mainland parent companies had chosen the SAR as their base, marking a historic high. Among them, nearly 1,400 were from the US, registering a 9-percent increase year-on-year.
Last week, the Office for Attracting Strategic Enterprises brought in the fifth batch of strategic enterprises to set up or expand their operations in Hong Kong, nearly 40 percent of which are from overseas.
US government figures show that in the second quarter of this year, US service exports to Hong Kong surged by over 15 percent year-on-year, highlighting the expanding footprint of financial and professional services in the Hong Kong market, Chan noted.
