More capital has flowed into HK following Middle East conflicts: Paul Chan

More capital has flowed into Hong Kong following the conflicts in the Middle East, said Financial Secretary Paul Chan Mo-po.

Speaking at an LegCo meeting on Monday, Chan described how capital previously focused primarily on European and American markets, but there is now a growing momentum of interest toward Hong Kong.

Chan said European, and American capital accounted for about 40 percent of the inflows into the city in the current stock market rally from September 2024. Capital from the Southbound Stock Connect accounted for around 30 percent, while the remainder comprised capital from the Middle East, Southeast Asia, and local institutions. 

He described the volume of Southeast Asian capital as quite substantial, with Hong Kong being its preferred destination.

He also stated that economic, trade, and investment ties with the Middle East will become increasingly close in the future.

Chan said the latest data indicates that Hong Kong's economy has remained resilient as it enters the second quarter.

Property prices have been rising since the second half of last year, and recent land sales have become more active, he said, adding that the government will continue to roll out land plots in a reasonable and prudent manner.

The office market has stabilized in terms of both sales and leasing as a significant number of large institutions expanded their presence in the SAR, Chan said. 

Chan noted that since its establishment, the Hong Kong Investment Corporation has invested in over 200 projects cumulatively including hard tech, life sciences and healthtech, new energy, green tech, and related sectors. 

Among the invested companies: 10 companies have already gone public while over 30 companies have either submitted their listing applications or are preparing to list in Hong Kong this year, he said.

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