HK net fund inflow increases $100 bln in first quarter: Paul Chan

Financial Secretary Paul Chan Mo-po said on Monday that net fund inflows to Hong Kong-domiciled funds added HK$100 billion more in the first quarter from about HK$350 billion last year.

Speaking at the Hong Kong Investment Funds Association 19th Annual Conference, Chan noted that Hong Kong is no longer simply a marketplace for global capital to pass through but is transforming into an investor’s trusted steward.

With the support of the Central Authorities, treasury bond futures will be launched in August, complementing Bond Connect and Swap Connect to form a more complete risk-management toolkit for yuan assets, he said.

He pointed out that these arrangements are designed to provide international investors with hedging and pricing options when allocating capital to yuan-denominated assets.

Meanwhile, he said that the number of exchange-traded products listed in Hong Kong has grown from fewer than 180 to more than 240 over the past two years, with assets under management reaching HK$650 billion, placing the city firmly among the world's top three ETF markets.

Hong Kong is also advancing the establishment of an International Central Securities Depository that supports multi-asset custody, cross-collateralisation and cross-border settlement, he said.

The city has established collaboration with 20 exchanges worldwide and is expanding dual listings and cross-border product offerings with more jurisdictions, he added.

Besides, the global reassessment of China's technological capabilities is undergoing cognitive reframing rather than a valuation adjustment, and Hong Kong uniquely positioned to provide the connecting function through its international connectivity and familiarity with developments on the mainland, Chan noted.

“Our role is not just a platform for them to raise funds for their global expansion, but also to help them align their corporate governance with international standards and best practices, gain greater recognition from investors and enhance their global visibility,” Chan said.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓