Despite a complex geopolitics and Middle East tensions denting sentiment, Hong Kong remains a reliable haven with last month’s stock market daily average turnover topping HK$300 billion, an 8 percent increase compared with last year, according to Financial Secretary Paul Chan Mo-po.
Chan wrote in his weekly blog that the city’s stock experienced a correction amid external headwinds, but the strong trading activity underscores investor confidence in Hong Kong as a preferred destination for asset allocation.
He noted that the year-on-year growth in daily average turnover reflects not only the city’s status as a “reliable place for capital” but also the appeal of abundant investment opportunities brought by the steady growth of the mainland economy and a large number of high-quality enterprises listing in Hong Kong.
Chan pointed out that global competition in cutting-edge technologies such as artificial intelligence has intensified, requiring massive funding support – a key role that Hong Kong’s listing platform is playing. He cited Hong Kong’s IPO market raised over HK$103 billion in the first quarter of this year, ranking first globally.
He added that a growing number of companies listed in Hong Kong are from emerging industries, including artificial intelligence, semiconductors and robotics, with more than 500 listing applications pending.
“The more uncertain the external environment becomes, the more enterprises view Hong Kong as an important gateway for financing and going global,” he noted.
On exports, Chan said that boosted by the recovery in global demand for electronic products and the restructuring of regional production and supply chains, the value of merchandise exports in the first two months of this year rose nearly 30 percent, delivering a strong performance.
Domestically, Chan said the retail sector is also showing signs of robust recovery. Despite the trend of residents traveling abroad during the Easter holidays, local retail sales value grew by 11.8 percent in the first two months of the year, marking a tenth consecutive month of growth.
He added that a stable labor market, rising household incomes and improving sentiment in both the residential property and stock markets are providing a solid foundation for continued growth in local consumption.
