Hong Kong Photo: VCG

Claims that hype Hong Kong’s image as “a ruin of global financial center”do not stand up to scrutiny. Despite some inhibitions in stock transactions and IPO short-term financing, the Special Administrative Region (SAR)’s financial market has a solid foundation and is of great resilience, the Secretary for HK Financial Services and the Treasury Christopher HuiChing-yu said in a latest post on his blog on Friday. 

He also listed a number of data on securities, bonds, banking and insurance, which speaks volume for the internalization, comprehensiveness and growth capacity across the local financial market.

“Our position as a global financial center is not a tall buildingor a stone tablet, which will be crushed under pressure. The achievement is built upon the implementation of the ‘one country,two systems,’ the long-term efforts by the local government, regulators and industry insiders and the recognition of global investors,”Hui noted.

He acknowledged that the development of HK financial market is affected by a bunch of macrofactorsincluding uncertainty in global economic prospect, unstable geopolitical situation and a high interest rate environment. 

But despite global headwinds, multiple HK financial businesses have maintainedtheir expansion plans, according to Hui. “We have the confidence and ability to continue to build an international financial center with greater depth and breadth,” he noted. 

As of the end of October, the total market capitalization of HK’s securities market was worth HK$30.8 trillion ($3.94 trillion), up 17 percent year-on-year. In terms of capital market connectivity, the volume of daily transaction at the Northbound Stock Connect reached 40.5 billion yuan ($5.67 billion) in the first three quarters, up 26 percent year-on-year, setting a new high.  

With regard to global wealth management industry, there had been a total net capital inflow of HK$69 billion from the fourth quarter last year to the second quarter this year, which represents an increase of 300 percent from the first three quarters in 2022. In long-term perspective, the scale of wealth management business expanded 143 percent in the past decade, and the SAR is also expected to become the world’s largest wealth management business center before 2025, according to Hui.

According to the 33rd edition of the Global Financial Centers Index (GFCI) Report published in March, the HK SAR maintained itsfourth place global ranking, which experts said is a reflection of the city’s strengths and advantages as a leading global financial center, despite global challenges.

Global Times