Hong Kong Financial Secretary Paul Chan Mo-po: Hong Kong stocks are recovering and Hong Kong is expected to become the world's largest cross-border asset management center

Hong Kong's Financial Secretary Chan Mo-po stated yesterday (15th) in his blog that despite the continuing uncertain external economic environment, the Hong Kong stock market has been recovering since the beginning of the year, with the Hang Seng Index rising by over 3,800 points, a 20% increase, significantly outperforming major global stock markets. The daily trading volume has also increased year-on-year to 24.2 billion yuan, indicating a notable improvement in market liquidity and investment sentiment.

Chan pointed out that the Hong Kong stock market is clearly strengthening. By the end of May, the total fundraising from new stocks was close to 79 billion yuan, ranking globally, with refinancing exceeding 150 billion yuan. Funds from Europe, the Middle East, and Asia are accelerating into the Hong Kong stock market, showing that international investors' confidence in Hong Kong's financial system is increasing. Besides outstanding performance in the stock market and asset management, Hong Kong has also made significant progress in digital finance, green finance, and offshore RMB markets.

Hong Kong Expected to Become the World's Largest Cross-Border Asset Management Center

According to Chan's blog, Hong Kong recorded over 44 billion USD in net capital inflow this year, a year-on-year increase of 285%, with the number of registered funds rising to 976. Chan expects Hong Kong to become the world's largest cross-border asset management center within two to three years. Many large new stock fundraising cornerstone investors come from Europe, the Middle East, and other Asian regions, with a growing trend of increased stock allocation. Additionally, bank deposits continue to increase, and interbank rates remain low. The capital flow confirms that international investors' confidence in Hong Kong's financial market is further strengthening.

10 Virtual Asset Trading Platforms Obtain Licenses

Since Hong Kong first released its digital asset policy declaration in late 2022, 10 virtual asset trading platforms have obtained licenses, with 8 more under processing. Last year, local banks' total transactions related to digital assets reached 17.2 billion Hong Kong dollars, with custody totaling 5.1 billion Hong Kong dollars.

The Hong Kong Financial Secretary is preparing to publish a second digital asset policy declaration, proposing a new direction that combines traditional financial services with technological innovation, including improving the safety and flexibility of digital asset applications in the real economy and encouraging Hong Kong and international enterprises to explore innovative potential.

Stablecoin Regulation Passed, Expected to Attract More National Funds to Hong Kong

Hong Kong's stablecoin regulation has been passed and will officially take effect on August 1st. The regulation establishes a licensing system for issuing "fiat stablecoins". Globally, stablecoin market value is estimated at 240 billion USD, with last year's transaction volume exceeding 20 trillion USD. Chan stated that as a global financial center, promoting stablecoin system development will help improve payment efficiency and bring more innovation to the market.

Chan noted in his blog that stablecoins have advantages such as price stability, decentralization, and programmability, which can promote financial process automation and improve transaction efficiency in the real economy. After the new financial regulation is implemented, the Hong Kong Monetary Authority will accelerate the approval of applications from institutions intending to issue stablecoins in Hong Kong to attract businesses from different countries and regions.