Christopher Hui is Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region Government.

Since April 2025, financial markets worldwide have been experiencing swings due to the imposition of so-called “reciprocal tariffs” announced by the United States. Almost no economy can be exempted from the fallout of the sweeping tariffs, especially given the switching and mixed messages on relevant decisions. There is no doubt that the world is now confronted with the impact of unilateralism and protectionism unseen in a century, with the tariffs undermining the multilateral trading system—which has been contributing to economic growth for over seven decades—and posing significant risks to the global economy. In such a world marked by rapid economic shifts and geopolitical uncertainties, the need for stability and predictability has never been more pronounced.

 

Hong Kong, with its robust financial infrastructure and strategic location, stands out as a haven for stability in these changing times. Our fair, open, and predictable business environment, underpinned by a highly efficient market and the rule of law, has been the driving force of a vibrant and energetic financial sector in Hong Kong. It is our firm belief that openness and cooperation are the historical trend, and achieving mutual benefit is a common aspiration for mankind. This article affirms Hong Kong’s aspirations and efforts to continue its role as a super-connector in this turbulent period. We will continue connecting global capital sources with their users, bridging finance with the real economy, and integrating finance with technology, thereby facilitating seamless capital flows, forging long-term partnerships, and unleashing opportunities for local and global investors.

Christopher Hui speaking at the Wealth for Good in Hong Kong Summit | Source: Courtesy of the author

 

Connecting Capital with Users

Hong Kong, the world’s freest economy, is a global connector of capital in every respect. We are ranked third in the world and first in Asia in the Global Financial Centers Index. From listed markets to private wealth, fixed income to derivatives, investors from Mainland China, Asia, and worldwide leverage Hong Kong’s distinct and diverse capital market offerings. This is underpinned by our world-class human capital and infrastructure, ranked second globally.

 

The Hong Kong listing platform is a testament to our status as a financial hub for global capital. In recent years, we have hosted numerous initial public offerings (IPOs) of leading enterprises, facilitating companies from diverse sectors and geographies to raise funds and expand their businesses. Take 2024 as an example: Hong Kong’s IPO market raised approximately $11 billion during the year, ranking fourth globally. The average daily turnover of Hong Kong’s stock market surged to over $31 billion in the first quarter of 2025, marking a remarkable 144 percent year-on-year increase. As of the end of April 2025, the Hong Kong Exchanges and Clearing Limited was processing around 130 listing applications, demonstrating increasing confidence among companies in raising funds in Hong Kong.

 

Alongside this impressive growth, our securities market continues to evolve to ensure that Hong Kong remains a dynamic and resilient marketplace for international investors, attracting quality issuers and new capital. For instance, we established listing avenues for new economy and enterprises with weighted voting rights structures, pre-revenue biotechnology companies, specialist technology enterprises, as well as overseas issuers from around the globe.

 

To further dovetail with the latest economic trends and corporate needs, we are taking forward a comprehensive review of the listing regime, covering listing requirements and post-listing ongoing obligations, the vetting process, the thresholds for listing, as well as the market structure. Through the reform, we hope to further enhance the competitiveness of Hong Kong’s listing platform and attract different companies to raise funds in Hong Kong. At the same time, the review aims to attract more investors—especially patient capital and overseas long-term investors—to participate and increase their allocation of Hong Kong stocks.

 

On the fixed income side, Hong Kong is also a major international bond issuance hub in Asia. According to the International Capital Market Association, in terms of bonds issued internationally by Asia-based entities, the volume arranged by Hong Kong ranked first nine times over the last decade, amounting to over $130 billion and accounting for around 30 percent of the market in 2024. Among these issuances, Hong Kong has captured around 70 percent of debut offerings, demonstrating our leading position in this area.

 

As a special administrative region of China under the “One Country, Two Systems” constitutional principle, Hong Kong is the only place in the world where the global and Chinese advantages converge in a single city, while maintaining a common law system with an independent judiciary; the free flow of capital, goods, information, and people; a freely convertible currency; and a simple and low tax system.

 

The year 2024 marked the 10th anniversary of the mutual market access programs between the Mainland and Hong Kong financial markets, or the “Connect Schemes.” These schemes allow international investors to conveniently invest in the Mainland’s financial market through Hong Kong. At the same time, they enable Mainland investors to allocate assets offshore through Hong Kong, thereby facilitating the two-way flow of capital between the Mainland and global markets.

 

The content and scope of mutual access have continued to expand, now encompassing a wide range of offerings, including stocks, bonds, investment products under the Cross-boundary Wealth Management Connect, exchange-traded funds (ETFs), derivatives for risk management, and more. Recently, it was announced that real estate investment trusts (REITs) would also be included in the Connect Schemes. This ongoing interconnected development of the Hong Kong and Mainland markets has further enhanced Hong Kong’s unique and attractive role in the international market.

 

To illustrate the vast scale of our Connect Schemes, the average daily turnover under Southbound trading of Stock Connect by Mainland investors reached $14 billion in the first four months of 2025, an increase of 120 times relative to the scheme’s launch in 2014. In fact, it has become a key channel for Mainland long-term capital, such as mutual funds, insurance funds, and pension funds, to allocate assets offshore. The net fund flow of the Southbound Stock Connect has exceeded $550 billion as of the end of April 2025. For offshore investors trading Mainland stocks through the Northbound Stock Connect, the average daily turnover reached $24 billion in the first three months of 2025, an increase of 33 times compared to its launch ten years ago.

 

The International Monetary Fund (IMF) projects that the GDP growth of emerging and developing economies will grow at a pace of over 4 percent in 2025 and 2026, doubling that of the projected growth for advanced economies. In particular, emerging and developing Asia is projected to be the top performer, with a growth of over 5 percent.

 

While we continue to reinforce our traditional strengths, we also endeavor to open up new markets and new capital channels by forging closer partnerships with these emerging economies. In October 2024, two ETFs tracking Hong Kong stocks were listed on the Saudi Exchange. We will further step up promotion in the ASEAN region and the Middle East, and actively explore areas of cooperation with countries in the region, including the listing of ETFs, to enrich the investment product choices in mutual markets and promote two-way capital flows.

 

We are strategically placed to help Mainland companies go global. Many Mainland Chinese enterprises are realigning their industrial and supply chains across the Global South. They need project and trade financing, corporate treasury services, as well as professional consultancy. Hong Kong is ready to offer all that—from global capital and talent, world-class professional services to extensive international connections.

 

This is also why we are developing a “headquarters economy” to attract Mainland and overseas companies to set up headquarters and corporate divisions in Hong Kong, bringing in quality enterprises to explore the immense opportunities under the strategy of domestic and international dual circulation. The initiative will facilitate foreign enterprises to tap into the Mainland market, and also assist Mainland enterprises in expanding abroad. In tandem with our efforts, a new re-domiciliation mechanism will soon be introduced to enable companies to re-domicile to Hong Kong.

 

On course to become the world’s largest cross-boundary wealth management center, Hong Kong’s prowess in asset and wealth management is unrivalled in Asia. We ranked first globally in “investment management” and “finance” in the latest Global Financial Centers Index. We manage about $4 trillion in assets, with two-thirds coming from non-Hong Kong sources, making us one of the world’s premier wealth management centers.

 

The growth of family offices in Hong Kong has been particularly noteworthy, with at least 2,700 single family offices now operating in the city. More than half of them are managing portfolios exceeding $50 million, and to be precise, over 30 percent are managing portfolios over $100 million, reflecting Hong Kong’s appeal to ultra-high-net-worth individuals and institutional investors alike.

 

Targeting this sector with promising growth potential, we launched the New Capital Investment Entrant Scheme in March 2024 to further enrich the talent pool and attract new capital to Hong Kong. As of the end of April 2025, over 1,200 applications have been received, potentially bringing in over $4.6 billion to Hong Kong. 

 

We also aim to propel the all-rounded development of the asset and wealth management industry. For example, stamp duty on transactions in REITs has been waived since December 2024, and our securities regulator has clarified the applicable requirements to encourage sizeable alternative asset funds with regular income streams to list in Hong Kong. We are also fostering collaboration, networking, knowledge sharing, and talent development across the family office sector via the Hong Kong Academy for Wealth Legacy for the current and next generation of wealth owners. Looking ahead, we will further enhance the tax incentives for single family offices and funds, attracting more global capital to be managed in Hong Kong.

 

Connecting Finance with Real Economy

The post-COVID era has witnessed a significant increase in intra-Asia trade, with the Renminbi (RMB) playing an increasingly prominent role. At the same time, the global response to climate change has created a thriving market for green transition, unlocking new business opportunities. Hong Kong, with our wide range of products and services, is at the forefront of these important trends.

 

As a leading offshore RMB hub, Hong Kong continues to take the lead in RMB fund management and investment in the international market, contribute to the internationalization of the RMB, and actively promote the issuance and trading of RMB securities in Hong Kong. A recent United Nations report found that Asia Pacific’s growth in the trade of both merchandise goods and commercial services outperformed the global growth rate. This presents an expanding market for trade settlement and financing. According to the People’s Bank of China’s latest statistics, total cross-border receipts and payments in RMB arising from the trade of goods and services from January to August 2024 have registered significant growth of 16.8 percent and 22.3 percent year-on-year, respectively. 

 

Hong Kong possesses the world’s largest offshore RMB liquidity pool. As of the end of March 2025, RMB deposits in Hong Kong stood at about RMB 1.1 trillion (about $150 billion). We currently process about 80 percent of global offshore RMB payments and have established a comprehensive ecosystem for issuing and trading offshore RMB-denominated products, such as stocks, bonds, and funds. The RMB business has been thriving. For example, the offshore RMB bond market in Hong Kong recorded solid development over the past few years, with offshore RMB bond issuance reaching RMB 1.07 trillion (about $147 billion) in 2024, having increased by 37 percent year-on-year and expanded for seven years in a row since 2017. 

 

Building on this foundation, we are boosting RMB internationalization by providing RMB trade financing liquidity to banks, supporting more RMB bond issuances, and preparing for the launch of offshore Mainland government bond futures in Hong Kong.

 

The IMF has estimated that climate investments in emerging and developing Asia fall short by 70 percent of what is needed. Conversely, as a leader in green finance, Hong Kong offers a wide range of green and sustainable investment products. As of the end of March 2025, there were around 220 ESG funds authorized by Hong Kong’s Securities and Futures Commission, with assets under management of about $139 billion. The number of ESG funds recorded an increase of 80 percent from three years ago. For the bond market, the volume of green and sustainable bonds arranged in Hong Kong in 2024 amounted to around $43 billion, ranking first in the Asian market for seven consecutive years since 2018 and capturing around 45 percent of the regional total.

 

As global awareness of sustainable development increases, it is essential for investors and other market participants to have access to accurate, consistent, and relevant information on sustainability-related issues to effectively manage risks and support investments.

 

Following our publication of a vision statement in March 2024, which laid out the approach of the government and financial regulators in developing a comprehensive ecosystem for sustainability disclosure in Hong Kong, we subsequently launched the Roadmap on Sustainability Disclosure in Hong Kong. This roadmap provides a well-defined pathway for large publicly accountable entities to fully adopt the International Financial Reporting Standards (IFRS) and Sustainability Disclosure Standards (ISSB Standards) no later than 2028, making Hong Kong among the first jurisdictions to align its local requirements with the ISSB Standards. The strategic document not only showcases our firm commitment to the global green transformation but also offers clear and transparent guidance for market participants, enabling Hong Kong to align with international standards in sustainable finance.

 

As the first step, the Hong Kong Stock Exchange has introduced enhanced climate-related disclosure requirements, based on the IFRS S2 Climate-related Disclosures published by the ISSB. These requirements have been phased in for listed companies starting from the beginning of 2025.

 

Despite setbacks in climate initiatives elsewhere in the world, Hong Kong remains steadfast in its commitment to regional and international collaboration for concrete and credible climate action. Beyond domestic ambitions, Hong Kong is well-positioned to make significant contributions to regional and global decarbonization efforts. Hong Kong possesses deep capital markets and a broad investor base. Governments and businesses worldwide are turning to Hong Kong to issue green bonds in multiple currencies and tenors. Further, Hong Kong is pursuing innovative financing instruments, such as tokenized green bonds and securitized infrastructure loans.

 

An integral part of connecting with the real economy is connecting with its people. We are dedicated to sharing best practices, technologies, and resources with our partners.

 

For instance, the annual flagship Asian Financial Forum has gathered about 3,600 participants across the globe to discuss global economic and financial development trends and advancements in new financial areas, facilitating the exchange of insights on the global economy from an Asian perspective. It also featured deal-making sessions that connect sources of funds with sources of deals.

 

Hong Kong’s “Wealth and Investment Mega Event Week,” successfully held in March 2025, is another example of Hong Kong’s unrivalled strength in connecting the world and shaping the future as Asia’s global city. The Mega Event Week featured the third edition of the Wealth for Good in Hong Kong Summit, which gathered some 360 influential global family office principals, visionary leaders, and industry pioneers to share insights and foster collaboration, as well as other high-profile international gatherings organized by the industry, such as the Global Investors’ Symposium organized by the Milken Institute, the HSBC Global Investment Summit, and the Bloomberg Family Office Summit, promoting Hong Kong’s recognition as the global financial super-connector.

 

Charting the way forward, Hong Kong will continue to foster dialogue and innovation, further cementing our role as an international bridge between finance and the real economy.

 

Connecting Finance with Technology

Hong Kong is a frontrunner in fintech with our vibrant and dynamic landscape, supported by a robust regulatory framework and a thriving innovation culture. We have been making great strides in the application of technologies in areas including central bank digital currency, mobile payment, digital banking, and virtual asset (VA) trading, as well as the healthy, responsible, and sustainable development of stablecoins and the Web3 ecosystem in Hong Kong.

 

There are currently over 1,100 fintech companies in Hong Kong, up some 15 percent compared to the previous year. As two leading digital technology flagships in Hong Kong, Cyberport currently hosts over 430 fintech and Web3 companies, while the Hong Kong Science Park is home to nearly 100 such entities. According to the latest report of the Global Financial Centers Index, Hong Kong has moved up another five positions to take the fourth place in the world in fintech offerings.

 

The rapid growth of AI has far-reaching implications for the global financial market, and Hong Kong has taken a major step forward in this area. In October 2024, we issued a Policy Statement on the Responsible Application of Artificial Intelligence in the Financial Market, encouraging financial institutions to formulate an AI governance strategy and adopt a risk-based approach to ensure that human oversight can effectively mitigate potential risks. The Hong Kong University of Science and Technology also makes its AI model and computing resources available and offers advisory and technical support to financial institutions, with a view to further promoting the application of AI.

 

We have joined forces with the industry to enhance public understanding of AI technologies, while also promoting the industry’s awareness of the opportunities and challenges such technologies bring. The adoption of AI technologies has enhanced the efficiency of our financial market and, more than that, created favorable conditions for attracting more innovation and technology enterprises and investors to Hong Kong. A 2023 market study suggested that the adoption of generative AI in Hong Kong financial institutions was the highest (38 percent) among all markets and well above the global average (26 percent). In the future, we will continue to pay close attention to developments in AI technologies, with a view to ensuring Hong Kong’s steady advancement amid technological transformation and consolidating our role as a global financial innovation center.

 

The rise of digital assets presents both opportunities and challenges for the global financial system. Hong Kong has adopted a forward-looking regulatory approach, balancing innovation with risk management. With the implementation of the licensing regime for VA trading platforms, Hong Kong has now made steady progress in licensing ten such digital systems, providing a robust and secure trading environment for market participants. Hong Kong authorized its first tokenized investment product in 2024, a gold token for retail access in Hong Kong which allows investors to acquire fractional ownership of physical gold. Further, in February 2025, our regulator authorized the first retail tokenized money market fund, which launched with a size of approximately $107 million, making it the largest retail tokenized fund by launch size in the world.

 

We have also introduced a bill on stablecoins into our legislature, with the objective of establishing a regulatory regime that suits local circumstances and aligns with international standards and practices. To further drive the sustainable development of our VA market, we are formulating proposals on the regulation of over-the-counter VA trading services as well as VA custodian services.

 

We will soon issue a second policy statement on the development of VA to explore how to leverage the advantages of traditional financial services and innovative technologies in the area of VA, enhance the security and flexibility of real economy activities, and encourage local and international companies to explore the innovation and application of VA technologies.

 

As a fintech hub, Hong Kong is a natural destination for high-profile gatherings that bring together industry leaders, policymakers, and innovators to explore the latest trends and developments in fintech. For example, Consensus Hong Kong 2025, a landmark event that brought together global pioneers in blockchain, Web3, virtual assets, and AI, was successfully held in February 2025, with Hong Kong being the first Asian city to host this iconic conference.

 

The year 2025 also marks the 10th anniversary of Hong Kong Fintech Week. Scheduled for November this year, the upcoming Fintech Week will be a transformative experience that will shape the future of technology and finance, providing a platform for collaboration and knowledge exchange. It also underscores Hong Kong’s dedication to the digital economy by tapping into its strengths as a top international financial center and a thriving start-up hub.

 

Bottom Line

Hong Kong is well-positioned to maintain and enhance its status as an international financial center notable for high stability and predictability. Our ongoing efforts to establish new ties, attract new capital, foster innovation, and promote sustainability will ensure our continued relevance as a super-connector in an ever-changing world.

 

I encourage you all, and stakeholders across the financial ecosystem alike, to engage with Hong Kong’s vibrant financial markets, participate in our innovative initiatives, and take us as your reliable partner in pursuing economic growth.

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