Speech by FS at PWMA Wealth Management Summit 2025 (English only) (with photos/video)
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Amy (Chairman, Executive Committee, Private Wealth Management Association (PWMA), Ms Amy Lo), Vivien (Chief Executive Officer and Managing Director, Private Wealth Management Association, Ms Vivien Khoo), distinguished guests, ladies and gentlemen,
Good morning. It is a pleasure to join you at the PWMA Wealth Management Summit 2025.
I’m delighted to see many prominent private bankers, asset and wealth management specialists and other professionals gathering here to share their valuable insights on how to preserve and grow wealth in an increasingly complex and dynamic world.
Today’s theme, “Expanding Horizons”, speaks my mind. In a world that is beset with geoeconomic fragmentation, technological disruption, prolonged conflicts and climate challenges, the ability to think beyond borders and look ahead with vision has never been more important. Expanding horizons is a strategy for resilience and long-term growth.
And when it comes to expanding those horizons, I can confidently say: there is no better place than Hong Kong.
Hong Kong: where we are
For our international friends joining us today, allow me to share some encouraging developments in Hong Kong’s financial markets over the past year.
Our stock market has shown strong momentum, rising by over 30 per cent year to date, following an 18 per cent increase last year. Trading activity has reached record highs, with average daily turnover exceeding US$33 billion. Between January and October, Hong Kong hosted 80 IPOs (initial public offerings), raising over US$26 billion. That puts us at the top of the global rankings. And at present, we have a solid listing pipeline of over 300 companies.
A key highlight is the increasing participation by international investors in our market. For example, about 40 per cent of IPO funds raised so far this year involved cornerstone investors, from Southeast Asia and the Middle East, particularly Saudi Arabia and the UAE (United Arab Emirates), in addition to traditional US (United States) and European funds and investors.
At the Global Financial Leaders’ Investment Summit which concluded yesterday, many of the top Wall Street chairmen and CEOs also expressed optimism in our capital markets. Many take the view that Hong Kong and the Chinese Mainland are set to lead Asia in attracting overseas capital.
The strong inflow of capital is also evident in our banking sector. Total bank deposits have grown by over 8 per cent this year, reaching US$2.4 trillion, following a 7 per cent increase last year.
This renewed confidence and optimism are also reflected in our asset and wealth management sector.
Asset and wealth management business
At last count, we managed over US$4.5 trillion of assets, a 13 per cent growth year-on-year. Notably, private banking and private wealth management accounted for over US$1.2 trillion, an impressive 15 per cent growth compared to the previous year.
This growth momentum continues in 2025. In the first eight months alone, Hong Kong-domiciled SFC (Securities and Futures Commission)-authorised funds recorded net inflows of US$43 billion.
On this, I would like to highlight two points.
First, the Greater Bay Area (Guangdong-Hong Kong-Macao Greater Bay Area, GBA). The GBA Cross-boundary Wealth Management Connect was enhanced in February last year. Improvements include an expanded range of investment products, higher investment quotas for individual investors, and greater flexibility in product offerings.
This has addressed the growing demand for offshore asset allocation among GBA residents and has been a boost for Hong Kong’s wealth management sector. Up to September this year, cumulative cross-boundary fund flows increased eight-fold compared to February 2024, reaching over RMB126 billion. The majority of these funds flowed from GBA cities into Hong Kong.
We see clear potential to further expand the GBA Cross-boundary Wealth Management Connect to include more investors and more products. Or even greater geographic coverage.
Second, the growing family office sector. Ladies and gentlemen, you may like to know that on top of the current facilitative policies, including targeted tax concessions, we are working to further sweeten our offer by expanding the types of qualifying investments eligible for tax concessions to include emission derivatives and allowances, insurance-linked securities, loans and private credit, and digital assets. Subject to legislative processes, these changes will take effect from the current year of assessment.
We are therefore confident that Hong Kong is on track to become the world’s largest cross-boundary wealth management centre.
Breaking new ground
But our ambition goes further. Our vision is to elevate Hong Kong’s appeal as a premier global investment destination. A key element of this involves broadening the depth, diversity and appeal of our capital markets.
Allow me to use the stock market to elaborate. We are advancing on multiple fronts. First, we are attracting more international companies to list in Hong Kong. Traditionally, Hong Kong has naturally been the preferred listing venue for Mainland Chinese enterprises. But as issuers and investors alike increasingly seek diversification, Hong Kong is emerging as a listing hub for companies from across the globe. To pave the way, the Hong Kong Stock Exchange has since 2023 expanded its list of recognised exchanges for secondary listings - now covering 20 markets, including those in the Middle East and ASEAN (Association of Southeast Asian Nations).
In fact, in the first three quarters of this year, more than half of the newly listed companies in Hong Kong had significant international operations, with around 50 per cent of their revenue generated outside their home markets. Issuers from Thailand, Indonesia, Kazakhstan, Singapore, and most recently the UAE, have chosen Hong Kong as their gateway to global capital.
Second, we are diversifying the types of businesses represented on our Stock Exchange. While technology sectors, such as AI and robotics, biotech, and new energy, remain a core focus, we are also welcoming companies from a broader range of industries, including mining, food and beverage and consumer goods.
Third, we are extending our geographic reach. Beyond ASEAN and the Middle East, we are actively engaging with North Asian markets, including Korea. Exchange-traded products, or ETPs, provide a powerful channel for attracting liquidity. Our strategy is to promote mutual listings of ETFs that invest in each other’s markets, thereby providing investors with more choices. For example, we listed two ETFs (exchange-traded funds) tracking Hong Kong indices on the Saudi Tadawul last year, and one of them is now the largest of its kind in the Gulf region.
We are applying a similar strategy to the Korean market to further expand choices available to our investors.
Fourth, we are enriching the range of products available in our markets. ETPs are a notable example. Hong Kong’s ETP market offers diverse investment options across sectors, from technology and real estate to entertainment and digital assets. Some ETPs are met with exceptional interest from investors: for instance, the total market capitalisation of digital asset ETPs has surged by more than 60 per cent year-to-date.
Fixed-income and currency products are also gaining momentum. Hong Kong leads Asia in the issuance of international bonds arranged by Asian entities, as well as green and sustainable bonds. We are also the world’s premier offshore Renminbi (RMB) hub.
Building on these strengths, we recently released the Fixed Income and Currency Roadmap, which outlines our development strategy across four key areas: enhancing primary market issuance, improving secondary market liquidity, expanding offshore RMB business, and modernising market infrastructure.
Moreover, we are committed to expanding the suite of structured products available in our market, offering sophisticated investment and risk management tools that meet the evolving needs of institutional and wealthy clients.
Fifth, we are working to further enhance the liquidity in our capital markets. With strong support from the Central Authorities, we are expanding and refining our Connect Schemes with the Mainland, from stocks and bonds to ETFs and derivatives, to bring additional liquidity into our market.
All told, Hong Kong is brimming with vitality and opportunity. No wonder many international asset managers are expanding their footprint and headcount here in Hong Kong.
Closing
Ladies and gentlemen, 2025 is proving to be a rewarding year for Hong Kong and for our financial services sector. I trust that will open up new opportunities for our asset and wealth management industry. Let’s work together to unlock new opportunities, explore new frontiers, and truly expand our horizons.
I thank the PWMA once again for organising this Summit, and wish it a great success. And to you all, the best of health and continued prosperity. Thank you.
Ends/Thursday, November 6, 2025
Issued at HKT 12:35
Issued at HKT 12:35
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