Hong Kong’s financial markets have seen a remarkable resurgence in 2025, marked by rising stock indices, increased trading volumes, and a flurry of IPO activities. According to Hong Kong’s Financial Secretary Paul Chan Mo-po, this positive shift in market sentiment follows interactions with international guests at various financial events in the city last week, where the consistent feedback was that Hong Kong is regaining its vitality.
International investors are increasingly optimistic about Hong Kong’s prospects, viewing it as a key platform for tapping into investment opportunities in both the mainland and the broader region. Chan attributes this growing confidence to China’s breakthroughs in emerging technologies, such as artificial intelligence and advancements in cultural and creative industries, which have sparked renewed interest in Hong Kong and mainland financial markets.
In 2025, Chinese companies have been particularly active in Hong Kong’s capital markets. More than 10 IPOs have already been launched, with Chinese enterprises raising $13 billion, a staggering 23-fold increase compared to the same period in 2024. This surge in IPO activity reflects growing investor confidence in China’s economy, with Hong Kong serving as a bridge for global capital. 
In the first two months of the year, 41 Chinese mainland companies submitted applications for listings in Hong Kong, more than double the number from the same period in 2024. One of the notable moves was Chinese battery giant CATL, which received approval from the China Securities Regulatory Commission (CSRC) to list shares in Hong Kong, a move expected to significantly contribute to the city’s market momentum.
The financial sector’s growth is also fueled by pro-growth policies, which are boosting investor confidence and driving the valuation of Chinese assets higher. Yang Delong, chief economist at First Seafront Fund, highlighted that the market is witnessing a shift from discounted valuations to more favorable pricing, unlocking substantial upside potential. Foreign capital has been flowing into quality A-shares and Hong Kong-listed companies, signaling a robust long-term market outlook.
Additionally, the People’s Bank of China (PBC), in coordination with Hong Kong and mainland regulators, is working to enhance the offshore yuan market and improve financial market connectivity. These efforts are designed to make the financial ecosystem more efficient, benefiting investors and businesses alike.
Global investment banks have also shown renewed optimism towards Chinese assets, with major players predicting that valuations will increase, signaling strong growth potential. According to Fortune, Wall Street’s attitude toward China has shifted, with leaders such as Jenny Johnson, CEO of Franklin Templeton, declaring that China is now “absolutely investable.”
The growing confidence in Hong Kong’s financial markets is also reflected in the city’s standing on global indices. The Global Financial Centers Index 37 Report, released in March, showed Hong Kong maintaining its third-place position globally, with its overall rating increasing by 11 points. It also continues to hold the top spot in the Asia-Pacific region, further solidifying its role as a global financial hub.
As Hong Kong strengthens its position in the global financial landscape, the city remains a key focal point for investors looking to access both Chinese and broader regional opportunities.
