By Ng Kang-chung
Hong Kong鈥檚 push to attract overseas investment is showing positive results, the finance minister has said, citing the rise of the city鈥檚 exchange to the top of the global table for initial public offerings (IPOs) in the first half of the year and the stock market鈥檚 strong performance.
Financial Secretary Paul Chan Mo-po said on Sunday that the achievements of the first six months showed that the government鈥檚 promotion efforts in recent years were starting to pay off.
Noting the increasing interest in locally listed technology stocks, Chan also vowed to further strengthen overseas publicity to help investors better understand Hong Kong鈥檚 advantages and development opportunities.
鈥淭he stock market posted a 18 per cent gain last year. And the momentum continued to improve as we entered 2025,鈥 he wrote in his weekly blog post.
鈥淭he market is generally optimistic about the performance of the Hong Kong stock and IPO [initial public offering] markets in the second half of the year.鈥
He said the latest data showed that HK$107 billion (US$13.6 billion) had been raised through Hong Kong鈥檚 42 IPOs in the first six months of the year, putting the city鈥檚 exchange in first place for funds raised globally. The amount raised so far this year was also 22 per cent higher than the whole of 2024.
鈥淭he number of applications for IPOs in Hong Kong is also increasing rapidly. So far about 200 applications have been received, including companies from the Middle East and Southeast Asia,鈥 he said.
鈥淭hat means the stock market boom is attracting more businesses to speed up their listing plans here. It also means that the publicity work in mainland China and overseas has gradually shown results.鈥
The benchmark Hang Seng Index is up about 20 per cent this year, outperforming its mainland peers and the US鈥 S&P 500, although the latter has been trading at all-time highs.
Chan noted that the city鈥檚 strong performance was mainly driven by funds chasing stocks in technology and innovation-led sectors.
There are more than 210 Exchange Traded Products (ETPs) listed in Hong Kong. Chan said that the total assets under management of the ETPs had reached nearly HK$510 billion as of May, a 30 per cent increase from 2020.
ETPs, which include Exchange Traded Funds (ETFs), are financial securities that are traded on the market and track underlying securities, an index or other financial products.
The first local ETF was launched in 1999.
In his blog post, Chan said the Hong Kong stock exchange would promote the listing of more thematic ETFs covering sectors such as innovation, climate change response and renewable energy.
鈥淸This] will not only suit the interests of the investors but also more effectively guide the flow of capital to the promotion of high-quality development of the real economy,鈥 he said.
鈥淲e hope to better leverage global market resources through more institutional and product innovation, and consolidate and enhance Hong Kong鈥檚 position as the preferred ETF hub in the Asia-Pacific region.鈥
Chan said he would visit South Korea this week to brief the financial sector on Hong Kong鈥檚 latest developments and its business environment.
鈥淜orean investors鈥 interest in Hong Kong鈥檚 financial market has been increasing recently 鈥 This trip can hopefully further increase their interest and participation in the Hong Kong market,鈥 he said.