Although Hong Kong’s financial services industry registered broad-based growth last year, showing strong growth momentum and positive structural trends, the city still needs to explore additional avenues for boosting quality growth.
The city’s Financial Services Development Council, the advisory body to the Hong Kong Special Administrative Region government on the industry, made the call during a news conference on Wednesday, reviewing the work progress in 2025 and outlining priorities for 2026.
“With the international system becoming definitively more complex and fragmented, Hong Kong stands out as one of the few places that can offer a combination of growth, stability and policy predictability, providing both a platform for growth and a harbor for risk diversification,” said Benjamin Hung Pi-cheng, chairman of the council.
He added that the key is to identify the underlying structural or long-term trends that Hong Kong can leverage to strengthen its competitive edge against other major financial centers. “Hong Kong’s role has never been more important in this process.”
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In terms of equity fundraising, Hong Kong ranked second globally in the first half of 2026, behind the Nasdaq stock market in the United States, which saw SpaceX’s mega share sales in June.
“Hong Kong should take pride in its ability to attract a pipeline of innovative companies across various new economy industries,” Hung said. “Hong Kong should continue to find ways to diversify both its listing issuers and potential future investors, enhancing initial public offering quality rather than focusing on the quantity.”
Daniel Fung Wah-kin, the council’s vice-chairman, said that long-term trends and structures are very much in favor of Hong Kong. For example, the extraction industries from Southeast Asia and Central Asia, which traditionally list in London and Toronto, now choose to list in Hong Kong for geopolitical reasons, he said.
Amy Lo Choi-wan, a board member of the council, expressed optimism about the wealth management industry.
“One of the growth drivers for the wealth management industry is the wealth creation in the region. We have been observing an intergenerational transfer of assets, with a transfer level (of) $11 trillion just in Asia,” she added.
Lo said that the local wealth management industry has been making proposals to the government and regulators to expand the Wealth Management Connect in terms of product offerings and quotas. “If implemented, we will see a continuous flow (of assets) into Hong Kong.”
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Both Hung and Lo are also positive about Hong Kong’s niches in building a robust commodity trading ecosystem. Last week, a new central clearing and settlement system for gold commenced a trial operation in Hong Kong.
“It is a significant opportunity for the Hong Kong SAR, as the Chinese mainland is the world’s largest consumer of commodities, while the entire Asia lacks a strong commodity trading center,” Hung said. However, he expressed concerns that, with global commodities priced in US dollars, multicurrency pricing may face challenges in the future.
Lo said that both central banks and family offices hold gold reserves, and Hong Kong’s development into a gold storage center will serve as an advantage.
Rocky Tung Yat-ngok, executive director of the council, said the advisory body will release a report in August focusing on patient capital, financial infrastructure, and connectivity mechanisms. Next year, a key report will analyze the influence of new technologies on the overall economy and the financial industry.
Emphasizing its global outreach, the Financial Services Development Council said it is closely monitoring the Central Asian market and is expected to visit the region in August.
Additionally, representatives from a Kenyan pension fund have approached the council to explore investment opportunities in Hong Kong and on the mainland.
Contact the writers at oswald@chinadailyhk.com
