The view of Hong Kong Photo: VCG

 
Paul Chan Mo-po, Financial Secretary of the Hong Kong Special Administrative Region, said on Sunday that Hong Kong’s asset and wealth management business showed strong resilience in 2023 despite global challenges, and refuted worries about the city’s international capital exodus.  

In 2023, Hong Kong recorded an annual fund inflow of nearly 390 billion yuan ($53.65 billion), a jump of over 3.4 times year-on-year, said Chan in his weekly blog, adding that the scale of assets under management in Hong Kong stood at HK$31 trillion ($3.97 trillion), increasing moderately by 2.1 percent year-on-year, and about two thirds was from investors outside Hong Kong.  

In addition, the assets under management of private equity funds recorded steady growth last year, exceeding HK$1.7 trillion, making Hong Kong the second largest private equity fund management center in Asia, after the Chinese mainland market, said Chan.  

“All of these figures clearly demonstrated that concerns about capital outflows from Hong Kong were unnecessary,” Chan emphasized, adding that it also reflected international investors’ confidence in Hong Kong’s capital market, which is supported by the central government, and the unique advantages of the One Country and Two Systems, despite global headwinds.   

Aside from an active and productive finance market, Hong Kong upholds an internationalized, safe and diversified living environment, which attracts more high net worth individuals to the city, said Chan. 

A survey showed that Hong Kong has a total of 2,700 single family offices, half of which were established by high net worth individuals with over $50 million in assets, and about 340 applications to the New Capital Investment Entrant Scheme may bring Hong Kong over HK$10 billion in funds, said Chan.  

Hong Kong-based carrier Cathay Pacific Airways announced on Friday it would repurchase the remaining 50 percent of preferred shares from the government within this month, which had been bought by the Hong Kong government during the COVID-19 pandemic to support the carrier’s operations, marking the city’s aviation industry’s return to normalcy, Chan noted. 

July 1, 2024, marked the 27th anniversary of Hong Kong’s return to the motherland. Non-Chinese permanent residents in the city can apply for travel documents to the Chinese mainland starting from July 10, said the National Immigration Administration on the same day.  

In the finance sector, the Hong Kong Monetary Authority (HKMA) has been working with mainland financial regulatory authorities to explore further broadening the use of onshore bonds as collateral in the offshore market, said Chief Executive of the HKMA Eddie Yue in an article published on the HKMA website on June 28, 2024.

Chan said that with the cemented support from the central government, integrated development of the Greater Bay Area, and our own efforts, Hong Kong’s assets and wealth management business will remain in the leading position globally.