Integration of a Capable Government with an Efficient Market Expedites Implementation of Policy Address Initiatives
Hong Kong’s financial market has demonstrated exciting and positive development momentum in both “quality” and “quantity” this year. In the first three quarters, the securities market in Hong Kong saw an average daily turnover of HK$256.4 billion, a significant increase of 126% over the same period last year. The initial public offering market also performed remarkably well, with total funds raised amounting to HK$182.9 billion, representing an increase of up to 229%. The growth in “quantity” has catalysed a transformation in “quality”. Seeing Hong Kong as a bridgehead for investing in cutting-edge technology in the Chinese Mainland and a safe haven amidst geopolitical turbulence, international investors are increasing their allocation in our market. In the Global Financial Centres Index, Hong Kong continues to rank first in the Asia-Pacific and third globally, gradually closing the rating gap with the top two markets. This underscores the international financial community’s confidence in Hong Kong.
The HKSAR Government has seized this opportunity with both hands. Last month, the Chief Executive proposed in his Policy Address a number of major policies on financial development designed to take Hong Kong to new heights. Fully aware that “time waits for no man”, the Financial Services and the Treasury Bureau (FSTB) acted promptly to integrate “a capable government” with “an efficient market” by taking the lead in co-ordinating the efforts of various sectors to expedite the rollout of policies. Whether they are assisting Mainland enterprises to “go global”, consolidating our strengths in traditional markets, or developing new growth areas in finance, many of the policies have been successfully implemented with tangible results gradually emerging, injecting fresh impetus to Hong Kong’s economic and financial sectors.
Positive developments in company re-domiciliation keep unfolding and approval process for registration of state-owned enterprises in Hong Kong speeding up
《Following announcements by several large-scale enterprises of their plans to re-domicile to Hong Kong, the first re-domiciliation application was approved last week. This will enable the company to streamline its corporate structure, enhance operational efficiency, and benefit from Hong Kong’s simple tax regime and quality professional services. Market response has been enthusiastic, with numerous applications and enquiries received. I believe that a growing number of high-quality enterprises will choose to re-domicile to Hong Kong and establish their decision-making and management centres here for business expansion.
In addition, the Policy Address has put forward proactive measures aimed at attracting more Mainland enterprises to use Hong Kong as a platform to go global for business opportunities and economic returns. The Companies Registry has assigned designated officers to co-ordinate registration applications from state-owned enterprises, and has consolidated the documentation requirements to streamline procedures and expedite approvals. After establishing a presence in Hong Kong, Mainland enterprises will focus on the pursuit of enhanced cross-border settlement as well as remittance and financing services, of which Corporate Treasury Centres (CTCs) will serve as a key platform of provision. The Government will complete the study on enhancing tax concessionary measures in the first half of next year, with a view to attracting more Mainland enterprises to establish CTCs in Hong Kong.
Optimisation of the listing rules for structured products and publication of the Roadmap for the Development of Fixed Income and Currency Markets
In relation to the proposal in the Policy Address to optimise the listing rules for structured products, the Stock Exchange of Hong Kong has published a consultation paper with the aim of elevating market competitiveness and efficiency while enhancing investor protection. Hong Kong’s structured products market has demonstrated outstanding performance, ranking first in global turnover for 17 consecutive years, with recent average daily turnover exceeding HK$20 billion. The proposed optimisation measures, such as lowering the minimum issue price of derivative warrants and adjusting the market capitalisation threshold for exchange-traded funds (ETFs) as underlying securities, will provide more flexibility for issuers, fostering positive interactions between ETFs and the structured products ecosystem, thereby driving sustainable market development.
As an international bond issuance hub in Asia, Hong Kong accounts for nearly 30% of international bond issuances in the region and has topped the regional league table nine times over the past decade. In September, the Securities and Futures Commission and the Hong Kong Monetary Authority jointly published the Roadmap for the Development of Fixed Income and Currency Markets, proposing ten initiatives to further attract issuers to make use of Hong Kong as their fund-raising hub. The initiatives also provide issuers and investors with risk and liquidity management tools, and facilitate innovations such as boosting offshore Renminbi (RMB) usage and liquidity, as well as developing next-generation financial infrastructure. The People’s Bank of China also announced various supportive measures, including supporting offshore institutional investors in conducting repurchase business in the Mainland bond market, and increasing the daily trading quota of Swap Connect by more than double to RMB 45 billion. These measures help expedite mutual access between financial markets and add strong impetus to the fixed income and currency markets in Hong Kong.
Accelerate the development of an international gold trading market and support the setting up of approved metal warehouses by the sector
Amidst ongoing global geopolitical tensions and market volatility, gold has continued to be a key safe haven asset. Total global gold demand in the second quarter of 2025 surged 45% year-on-year in value terms, reaching US$132 billion. Gold ETF holdings jumped from approximately 2 600 tonnes to nearly 3 000 tonnes year-to-date, reflecting strong investor demand. The Government is accelerating the development of an international gold trading market through expansion of gold storage facilities, establishment of a central clearing system for gold and support for the setting up of a trade association for the gold industry. The commodity trading ecosystem is also becoming increasingly developed. The rise in the number of London Metal Exchange-approved delivery warehouses in Hong Kong from 8 to 12 has consolidated our status as a financial, shipping and trade centre.
The FSTB will continue to organise international financial mega events, including the 10th Hong Kong FinTech Week in early November, and the Asian Financial Forum in late January and the Wealth for Good in Hong Kong Summit in late March next year. These events will bring together global financial leaders and innovation enterprises to explore opportunities for collaboration and innovation, and will enhance Hong Kong’s international influence and promote investment and business expansion.
Looking ahead, the FSTB will continue to efficiently take forward the various initiatives in the Policy Address to consolidate Hong Kong’s position as a leading international financial centre through policy innovation and resource allocation. By integrating “a capable government” with “an efficient market”, we will chart new frontiers in finance and inject sustained growth momentum to our economy. As an old Chinese poem goes, “Roaring winds and raging waves we shall brave someday, through the boundless sea as we navigate our way.” Leveraging the unique advantages of “One Country, Two Systems”, as well as our robust financial ecosystem and forward-looking policies, Hong Kong will steadfastly play its pivotal role as a “super connector” and “super value-adder”. We will overcome challenges and go far in assisting enterprises and financial institutions from across the globe to scale new heights.
27 October 2025