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At the 5th Global Financial Leaders' Investment Summit, Financial Secretary Paul Chan Mo-po maintained that the pivotal role of Hong Kong in the global market is to bring together both sides of the market—businesses and investors, lauding its common law system, free flow of capital, and international networks.
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In his speech, Chan asserted that such strengths continue to serve as the city’s foundational strengths in connecting global investors with vast opportunities in China and broader Asia.
Hong Kong's robust financing capacities
Patient capital plays an increasingly vital role through catalysts such as the Hong Kong Investment Corporation, Chan noted, citing that the government's investment flagship has directed 70 percent of its deployed funds into start-up and growth-stage enterprises, generating a return of HK$8 for every dollar invested.
As companies mature, he continued, Hong Kong’s public markets provide robust fundraising capacity, citing that initial public offerings in the city raised HK$188 billion in the first nine months of the year, while follow-on fundraising surged to HK$570 billion. Hong Kong boasts a vibrant venture capital and private equity ecosystem managing approximately US$250 billion, ranking second in Asia just behind mainland China.
On further financing diversification, Chan pointed to the rapid expansion in the fixed income, currency, and commodity (FICC) markets, citing that the outstanding amount of dim sum bonds in Hong Kong approached HK$1 trillion mid-year, while yuan loans exceeded 1 trillion yuan by August. Furthermore, starting this week, the Stock Exchange of Hong Kong will accept eligible Chinese government bonds and policy bank bonds as non-cash collateral, further improving asset utilization efficiency and reducing market liquidity pressure.
Speaking on artificial intelligence, Chan noted that technological breakthroughs do not automatically translate into commercial success. China offers a vast domestic market, deep research capabilities, complete manufacturing and supply chain networks, benefitting tech enterprises.
Ultimately, Chan stressed that trust is the ultimate asset of Hong Kong as an international financial hub, and the city will continue to ensure that investors can make decisions based on transparent and reliable information.
