International Financial Centre

International Financial Centre

• Hong Kong is the world's 4th financial centre after New York, London and Singapore (Global Financial Centres Index 2023) with an international reputation in areas such as capital-raising, asset management and insurance.

• Financial services accounted for 21.3% of Hong Kong's GDP in 2022.

• As a global banking hub, it ranks 2nd in Asia and 6th globally for external transactions (US$ 3 trillion)(end December 2022).

• 76 of the world's top 100 banks and 12 of the world's top insurers and operate in Hong Kong (end April 2023).

• Hong Kong has a deep and liquid stock market: Market capitalisation of US$4,700 billion (ranking 4th in Asia and 7th globally (end March 2023; Daily turnover of HK$124.9 billion in 2022 and HK$123.7 billion in January-April 2023.

Robust Financial System

• Hong Kong's well-capitalised banking system has an average liquidity coverage ratio and capital adequacy ratio at around 160% and 20% (end December 2022) respectively, well above statutory requirements.

• Total bank deposits of HK$15.5 trillion (end March 2023).

• Hong Kong's foreign reserves amount to around HK$3.4 trillion,1.8 times of the monetary base (April 2023).

Listing venue of choice

• The Hong Kong Stock Exchange (HKEX) ranked 3rd in Asia and 4th globally for funds raised by Initial Public Offering (IPO) in 2023 (HK$104.6 billion).

• Hong Kong is the world's leading listing market for biotech companies and is developing the real estate investment trust (REIT) market.

Fintech Hub

• Hong Kong is a leading fintech hub
• Home to over 600 fintech companies and startups, with 3 promising fintech unicorns
• 44% of the fintech founders in Hong Kong come from overseas.
• Over 160 licensed banks and 8 virtual banks.
• More than 160 authorised insurers and 4 virtual insurers.
• World's No. 1 fundraising hub in 7 of last 12 years.

More information about Fintech in Hong Kong

Premier gateway to and from the Mainland

• Hong Kong is the world's number 1 offshore Renminbi business hub, processing around 73% of all offshore RMB transactions.

• Ever-closer mutual investment conduits between the Mainland of China and Hong Kong include Stock Connect, Bond Connect, and Wealth Management Connect.

Booming Bond Market

• Hong Kong ranks 5th in Asia for bond issuance amount (2022)

• Green and sustainable bond issuance arranged by Hong Kong amounted to US$27.8 billion in 2022, representing one-third of the Asian market. Over 80% was issued by Mainland entities.

• Green and sustainable debt (bonds + loans) issuance in Hong Kong was US$80.5 billion in 2022, 42% higher than in 2021.

Asset and Wealth management centre

• Hong Kong is a premier asset and wealth management centre in Asia.

• Over 1,800 asset management firms.

• AUM of asset and wealth management grew 2% to HK$35.5 trillion (end-2021).

Virtual Assets

• Hong Kong is poised to become a major player in the virtual asset (VA) industry. The regulatory structure for VAs in Hong Kong is taking shape and the licensing regime for VA service providers will come into effect on 1 June 2023. The Hong Kong Monetary Authority shared its plans on the regulation of stablecoins in January 2023.