Hong Kong witnesses capital inflows

HONG KONG — Matthew Strauss, a portfolio manager with a Canadian investment firm, has visited Hong Kong at least twice a year for 11 years to sniff out investment opportunities.

"As a global investor, you have to know what's going on in China," Strauss said on the sidelines of the HSBC Global Investment Summit held in Hong Kong, dubbing the city an "entry point" into the mainland market.

Strauss is among the thousands of policymakers and financial leaders who are looking to Hong Kong for growth at a time of market uncertainties.

Amid the global chaos, Hong Kong offers what few other international hubs can — uninterrupted business, a stable and secure environment, and a community that understands the hard value of order, said Hong Kong Special Administrative Region Chief Executive John Lee at the summit.

"Stability, certainty and trust are our natural resources — essential to Hong Kong's economy, society and flourishing future," said Lee, who noted that investors are increasing their asset allocation in Hong Kong.

The stable growth of the Chinese mainland economy, which expanded 5 percent year-on-year in the first quarter of 2026, as well as the large number of heavyweight companies listing in Hong Kong, adds to the city's appeal, investors said.

"Foreign funds are coming to China to invest in Chinese homegrown technologies to try to take them global and scale them," said HSBC Group Chief Executive Georges Elhedery, crediting the explosive growth of China's new energy vehicle industry with triggering the fear of missing out among global investors.

A significant amount of funds is entering through Hong Kong, the "super connector". Last year, IPOs of Chinese mainland tech heavyweights, including the battery giant CATL, catapulted the Hong Kong bourse to the biggest IPO market worldwide. Financial institutions from North America, Europe and the Middle East became cornerstone investors for many of the new listings, noted Bonnie Chan, chief executive officer of the Hong Kong Exchanges and Clearing Ltd.

The trend continued well into the first quarter of 2026, with total funds raised surpassing HK $103 billion ($13 billion) by March 27.

The number of IPO applications pending approval is at an "all-time high", including 10 from multinational firms, said Chan.

As Asian assets as a whole continued to benefit from low inflation and accommodative policies in the region, Hong Kong eyes more inflows across investment options.

"There is so much potential in Hong Kong," said Bob Prince, co-chief investment officer of Bridgewater Associates. Prince believes that Hong Kong's efforts to develop the fixed-income and currencies trading market can fuel capital market activity and advance renminbi internationalization.

Xinhua - China Daily