As we mark 28 years since Hong Kong became a Special Administrative Region of China, the city has firmly established itself as a vital global financial hub, bolstered by the unwavering support from the mainland and ongoing financial liberalization.

Explosive Growth in the Stock Market

Recent data from Hong Kong Exchanges and Clearing Ltd reveals that the city’s stock market capitalization has skyrocketed to around HK$43 trillion (approximately $5.48 trillion), an astonishing leap from just HK$3.2 trillion at the close of 1997. This 13.4-fold increase showcases Hong Kong's burgeoning stature.

Global Fundraising Champion

According to Deloitte China, Hong Kong has reclaimed its crown as the world's leader in fundraising for the first half of this year, amassing a staggering HK$102.1 billion. This positions it ahead of powerhouse markets like Nasdaq and the New York Stock Exchange. Additionally, bank deposits in the city have surged by 4% year-on-year, exceeding HK$18 trillion.

Deepening Ties with the Mainland

The financial relationship between Hong Kong and mainland China continues to grow stronger. Initiatives such as the Shanghai-Hong Kong Stock Connect and the more recent Cross-boundary Wealth Management Connect exemplify this trend. These programs have opened new avenues for investment and fostered a dual-market strategy that strengthens Hong Kong's financial landscape.

Innovations in Financial Products

Recently, the Shanghai Gold Exchange expanded its presence in Hong Kong by introducing two new gold contracts and launching an offshore bullion vault. Furthermore, the new cross-boundary Payment Connect is designed to facilitate smoother transactions between participants in both regions, a crucial move to bolster Hong Kong’s economic development.

Hong Kong's Competitive Edge

According to the latest IMD World Competitiveness Yearbook, Hong Kong climbed two spots to secure third place globally, marking its return to the elite ranks for the first time since 2019. This achievement reflects the city’s profound resilience and adaptability in the face of global challenges.

Bridging Markets for Mutual Growth

At the recent Lujiazui Forum, Hong Kong and Shanghai pledged to enhance their financial collaboration further. Mary Huen Wai-yi, CEO of Standard Chartered Bank (Hong Kong), emphasized that Hong Kong serves as a crucial link between mainland China and global markets, possessing a comprehensive capital chain and a dynamic financial ecosystem.

Looking Ahead: A Gateway for Innovation

As Hong Kong continues to attract innovative enterprises and a steady influx of new economy businesses, its appeal as a destination for global investors looks set to grow. With a blend of mature institutions, transparent regulations, and unfettered capital movement, backed by the central government's support, Hong Kong's potential as an international finance powerhouse is only just beginning to unfold.