Hong Kong will adopt reforms to capitalise on emerging trade corridors while strengthening its financial markets to be the gateway connecting China and the world, according to the city’s treasury and central bank chiefs.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu told a conference in Hong Kong on Monday that the city presented immense investment opportunities, as evident by the response to the New Capital Investment Entrant Scheme introduced in March.
So far, HK$6.5 billion (US$835 million) has flowed into the city’s funds, equities and debt assets under the investment-migration scheme, with allocation percentages of 45 per cent, 39 per cent and 15 per cent, respectively. From March this year, the programme’s net asset assessment and calculation requirements will be relaxed, and investments made through an applicant’s wholly owned private company will be eligible.
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“The opportunities in Hong Kong are immense, despite the complex geopolitical [and] economic landscape,” Hui said in a speech at the Asia Securities Industry & Financial Markets Association’s conference. He said that last year, the city’s stock market surged 18 per cent, and the average trade turnover jumped 36 per cent from a year earlier.
With Hong Kong’s initial public offering (IPO) market rebounding to rank fourth globally, regulators and the Hong Kong stock exchange were working to strengthen overall market competitiveness, he said. Authorities have started a public consultation through March 19 to seek feedback on optimising the IPO price-discovery process and open-market requirements.
Christopher Hui, secretary for financial services and the treasury, speaks at the Asia Securities Industry & Financial Markets Association annual conference on February 17, 2025. Photo: Handout alt=Christopher Hui, secretary for financial services and the treasury, speaks at the Asia Securities Industry & Financial Markets Association annual conference on February 17, 2025. Photo: Handout>
On the debt market, Hong Kong had been the biggest centre for arranging bonds issued by Asia-based entities for 16 years and nine years internationally, Hui said.
“We will expand the issuance of yuan bonds and support the issuance of more green and sustainable offshore yuan bonds in Hong Kong by mainland and international issuers,” he said.
“Hong Kong will remain as an ideal gateway connecting the mainland capital market with the rest of the world, and provide a prime location and platform for international businesses and investors to tap into the vast business potential.”
The city is also on the path to build an international gold centre and increase the storage of commodities, including both precious metals and base metals. Government authorities will assist the London Metal Exchange to set up accredited warehouses in Hong Kong, and related financial services, as well as support the creation of a thriving commodity trading ecosystem.
Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, said the city was in a prime position to capture rapidly growing China-Asean trade opportunities amid geopolitical tensions and supply-chain realignments.
Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, speaks at the Asia Securities Industry & Financial Markets Association annual conference on February 17, 2025. Photo: Handout alt=Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, speaks at the Asia Securities Industry & Financial Markets Association annual conference on February 17, 2025. Photo: Handout>
The Association of Southeast Asian Nations became China’s largest export and import market in 2024, accounting for 16.4 per cent of China’s exports and 15.3 per cent of imports. China’s direct investment in Asean increased by more than a third year on year to US$25 billion in 2023, while cumulative bilateral investments between China and Asean surpassed US$400 billion.
Hong Kong’s role in providing efficient cross-border payments and financing services would support the increasing regional trade investments, Yue said. The city’s banks had roughly US$50 billion in trade-finance loans outstanding, he added.
“Our role in trade finance is becoming even more significant as the yuan gains more recognition as an international currency,” Yue said, adding that the yuan accounted for 6.4 per cent of global trade finance in November last year – just behind the US dollar, according to Swift.
The city would do more in the areas of digitalisation, sustainability and engagement with various markets to better support trade flows, Yue said.
