A view of Hong Kong File Photo: VCG
Since the beginning of 2025, the financial market has become notably buoyant - evidenced by rising stock indices, significantly increased trading volumes, and more active IPO activities, Hong Kong Financial Secretary Paul Chan Mo-po wrote in a blog post on Sunday after communicating with international guests.
During interactions with international guests in various financial events held at the city last week, one consistent feedback received was their view that Hong Kong has regained its vigor and vitality, with increasingly positive perceptions toward the city, Chan said.
Coupled with China's breakthroughs and innovations in cutting-edge technologies like artificial intelligence and cultural and creative industries, international investors have reassessed their positions in Hong Kong and mainland financial markets, while boosting investment deployment in this region, according to Chan.
Chan said that the international guests expressed hopes to leverage Hong Kong as a platform to explore more investment opportunities in the mainland and the broader region.
Riding this momentum, Chinese mainland firms have actively pursued IPOs in the Hong Kong market.
Since the beginning of the year, more than 10 IPOs have been launched in Hong Kong, with Chinese enterprises raising $13 billion overseas - a 23-fold surge compared to the same period last year- primarily through the Hong Kong market, as international investors cast votes of confidence in the Chinese economy, the Economic Daily reported on Sunday.
Hong Kong's capital market has surged in 2025, with its stocks leading global gains. In the first two months of the year, 41 Chinese mainland companies submitted listing applications in Hong Kong, marking an increase of more than two times compared to the same period last year, per the Economic Daily report.
In one of the latest moves, Chinese battery manufacturer CATL on March 25 received approval from the China Securities Regulatory Commission (CSRC) to sell shares in Hong Kong, with the issuance of up to 220.17 million shares, according to a notice released by the CSRC.
From a policy perspective, the intensified pro-growth measures are poised to significantly boost investor confidence and elevate the valuation of Chinese assets, Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times.
This year, multiple global investment banks have expressed optimism toward Chinese assets, anticipating a shift from current discounted valuations to fair or even premium levels, which would unlock substantial upside potential. At the same time, foreign capital has flowed into quality A-shares and Hong Kong-listed firms, signaling strong long-term market confidence, Yang said.
The People's Bank of China (PBC), the central bank, is working closely with other financial regulators on the mainland and in Hong Kong to improve the offshore yuan market, optimize financial market connectivity, and enhance the convenience of payment and settlement, said PBC Governor Pan Gongsheng at the 18th Asian Financial Forum held in Hong Kong in January, the Xinhua News Agency reported.
Fortune reported on Saturday that Wall Street is changing its tune on China as DeepSeek and policy hopes win back investors.
"Absolutely it's investable," said Jenny Johnson, CEO of Franklin Templeton, on Thursday at the HSBC Global Investment Summit in Hong Kong, referring to the world's second-largest economy, the report noted.
"DeepSeek was a shot in the arm for those looking to see confidence," Kevin Sneader, Goldman Sachs' president of Asia-Pacific ex-Japan, said at the Milken Global Investor Symposium on Monday. "Confidence does feel like it's returned," he was quoted in the Fortune report.
Hong Kong maintained third place globally, with the overall rating increasing by 11 points to 760, slightly closing the gap in rating with first place, in the Global Financial Centers Index 37 Report published on March 20 by Z/Yen from the UK and the China Development Institute from Shenzhen in South China's Guangdong Province. Hong Kong also continued to rank first in the Asia Pacific, the HKSAR government said in a release.
Global Times
