Paul Chan: «We Must Seize the Current Momentum»
Hong Kong’s financial center is undergoing a major revival in 2025, most notably through leading achievements as an IPO venue. According to financial secretary Paul Chan, the city must «seize the current momentum» by maintaining its strengths while also diversifying to new opportunities like digital assets.
According to Hong Kong financial secretary Paul Chan, the world is undergoing a tech-driven restructuring in the financial landscape with artificial intelligence and blockchain revolutionizing tools and reshaping capital flows.
«Hong Kong is advantageously positioned at this critical juncture,» Chan said in a blog post (in Chinese only). «With strong national support and the tireless efforts of the government and industry, Hong Kong's status as an international financial center continues to strengthen and enhance.»
Top Achievements in 2025
Chan cited a number of achievements by Hong Kong this year, including the recently released «Global Financial Centers Index» which saw the city maintain its position as the third leading financial center and securing top rankings in sub-categories such as fintech, business environment, infrastructure and reputation.
Hong Kong’s financial markets also rebounded to become the leading initial public offering venue with nearly HK$150 billion ($19.3 billion) raised. Average daily turnover has exceeded HK$250 billion, which includes a 28 percent increase in daily turnover by Hong Kong-listed Chinese companies since September 2024.
«These encouraging market performances clearly demonstrate the unique value of Hong Kong's financial system in connecting mainland China with global capital,» Chan explained.
Market Capitalization to GDP Ratio
Chan believes there is further potential for markets. He notes that the market capitalization of listed stocks in Hong Kong, as well as Shanghai and Shenzhen, are equivalent to around 100 percent of their total GDP. This compares to the two largest US stock markets – the New York Stock Exchange and NASDAQ – which have a combined market capitalization that more than doubles their GDP.
«This comparison demonstrates the immense potential for China's financial markets to further expand and deepen their services to the needs of the real economy,» Chan said. «It also clearly illustrates the mission and potential inherent in Hong Kong's mission.»
«Dual-Track Approach»
In order to further growth, Chan said Hong Kong will adopt a core strategy of pursuing a «dual-track approach» of consolidating traditional strengths in areas like equities, asset and wealth management, and green finance while also diversifying to other sectors, such has fixed income, money markets, commodities and digital assets. Notable developments include the local regulators' recent announcement of a fixed income and currency roadmap.
Chan also highlighted efforts to improve financial market infrastructure, such as the Hong Kong Monetary Authority’s CMU OmniClear, a money market subsidiary that will collaborate with the local stock exchange to explore ways to allow investors to centrally manage and pledge assets like stocks and bonds on a single platform.
«Faced with profound changes in the global political and economic landscape, we must seize the current momentum and, through more forward-looking reforms and initiatives, transform these developments into lasting momentum driving higher-quality, more diversified development in Hong Kong's financial sector,» Chan added.
«This week, we celebrate National Day. China's strategic resolve and resilience in a complex and volatile international environment are the strongest support for Hong Kong's prosperity, stability and accelerated development.»
