Hong Kong has led the world in new shares fundraising so far this year and the stock market has recovered, though risks tied to capital flows and interest rate movements remain, says Financial Secretary Paul Chan Mo-po.
Chan wrote in his blog on Sunday that a major mainland Chinese new energy firm is set to debut on the city's stock exchange on Tuesday in what is expected to be the world’s largest initial public offering this year.
"The listing will push Hong Kong’s year-to-date fundraising total past HK$60 billion, more than six times higher than the same period last year," Chan said.
Hong Kong's Hang Seng Index closed at 23,345 on Friday, up about 16 percent since the start of the year, outperforming major global benchmarks. Average daily turnover in April exceeded HK$270 billion, 1.4 times higher than a year earlier.
As of March, total deposits in the banking system had grown to nearly HK$18 trillion, up 3.5 percent so far this year after a 7 percent increase in 2024.
Chan highlighted that the Hong Kong dollar has recently hovered near the strong end of its trading band against the US dollar, prompting the Hong Kong Monetary Authority to step in and defend the peg to the greenback four times this month. Hong Kong's de facto central bank injected around HK$129 billion into the banking system. The one-month Hong Kong Interbank Offered Rate, which is closely tied to mortgage rates, has declined from 4 percent to about 1.3 percent.
Still, Chan warned that global economic uncertainty, including US unilateral trade policies and concerns over long-term US interest rates, could affect future capital movements. He said the Hong Kong government and regulators will continue monitoring market conditions to safeguard financial stability.
