Hong Kong’s Capital Market Wins Over Industry Leaders
Financial hubs globally are all vying for the top ranks in an increasingly uncertain macro environment. Hong Kong’s capital market continues to be cited by industry leaders as a key differentiator due to its breadth and depth.
In 2025, Hong Kong once again demonstrated its leadership as an international financial center, most notably through its fundraising capabilities. In the first 10 months, it raised HK$216 billion ($28 billion) from IPOs, according to data from the local stock exchange, with many forecasting that it will secure the throne as the world’s top listing venue for the full year.
While Hong Kong may not be a leader in size – its public equity market is the fifth largest behind the US, mainland China, Japan and India – it has other characteristics that help it stand out.
Attracting International Companies
«Unlike Hong Kong, the other four [markets] are more inward-looking,» commented Tanvir Ghani, president of private equity firm Osiris Group, during a panel at a Financial Times’ conference entitled «Defining Hong Kong’s Role in the Changing Global Economy».
According to Ghani, other larger markets may be more dependent on domestic companies, whereas Hong Kong's position lends itself to internationalism.
«I think this dual listing notion and just having regional connectivity with regulators can definitely make Hong Kong a very special place for ASEAN countries, BIMSTEC (Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand) countries and even some of the GCC countries,» he added.
Strong Liquidity
Another critical factor cited as an advantage for Hong Kong is the depth of its capital market, which enables liquidity.
«Singapore isn't as liquid, nowhere near as Hong Kong is. So when you look through market liquidity, transparency, […] ability to get in and out, there aren't too many markets left,» said Ghani. «London's really had a tough time drawing global capital and I know the government is working quite actively to fix that.»
Tax and Legal System
Aside from capital markets, panelists also highlighted the tax and legal system as a major differentiator relative to other rival hubs.
«Back a decade ago, extolling the virtues of free trade and low taxes and so on seemed straightforward and obvious. I think because of the way in which trade flows have gone and a lot of governments have started interfering in the economy, those advantages are not obvious,» explained Steven Sieker, Asia chief executive at Baker McKenzie. «So, I do think Hong Kong needs to assert those advantages more aggressively. To some extent, it's a PR issue.»
«It's the only common law jurisdiction within mainland China and, I think, the only bilingual common law jurisdiction globally,» observed Rachel Huf, Barclays’ Hong Kong CEO and general counsel for Asia Pacific.
Risks and Uncertainty
While there is undoubtedly uncertainty ahead for Hong Kong, which faces a myriad of risks, including geopolitical tensions between the US and China, panelists were confident in the track record and continued ability of the city to weather any storm.
«I do think that all of us in the room here, we eat market volatility for breakfast and we deal with geopolitical implications for lunch and we have to also deal with the disruptions in innovation and technology for dinner,» exclaimed Aveline San Citi Hong Kong’s CEO and banking head. «So I think, yes, [there's] a lot of challenges, but Hong Kong has been really resilient and adaptive.»
