Picture shows Victoria Harbour, Hong Kong. Photo by Liu Zuping (people’s vision)
The quarterly report published recently by the Securities and Futures Commission (SFC) shows that the 2024 Hong Kong capital market has delivered encouraging results, with significant increases in the size of the asset management market, net inflows of funds and turnover in the stock market, nET capital inflows through the stock connect reached a 10-year high.
In the face of a complex and volatile external political and economic environment, Hong Kong’s economy has steadily recovered, its financial system has operated smoothly and maintained a momentum of innovation under a series of institutional safeguards, and its status as an international financial centre has been continuously consolidated and enhanced.
Deals are up, capital is in
According to the report, in the asset management sector, the daily turnover of the 2024 Exchange-traded fund (ETF-RRB- market increased by 35% year-on-yearHKo hk $18.9 billion, accounting for 14% of the total turnover of the stock market NET inflows into Hong kong-registered funds rose 88 per cent to $162.9 bn, with assets under management rising 22 per cent to $1,640 bn.
On the Shanghai-shenzhen stock connect 2024, the average daily turnover increased by 55% to $48.2 billion, accounting for more than 18% of the total turnover. The net capital inflow into stock connect also reached a 10-year high of $807.9 billion. As of December last year, the cumulative net capital inflow had reached nearly $3.7 trillion.
In addition, the SFC 2024 a surplus of $77.109 million in the fourth quarter, a 2.4-fold increase over the same period last year, thanks to the rebound in turnover on the Hong Kong stock market as a result of the supportive measures taken by the mainland Chinese economy Revenue increased by 17.5% year on year to $651 million.
Leung fung-yee, chief executive officer of the SFC, said the Hong Kong market had overcome difficulties in a challenging 2024 and continued to be popular with international investors as the mainland introduced a series of measures to support economic development.
Business Development, functional improvement
As the world’s largest offshore RMB settlement center, Hong Kong’s related business has been continuously expanded in recent years, and the hub status of global offshore RMB business has been further enhanced.
On February 10, the national interbank lending center officially launched an offshore bond repo trading service under the Bond Connect program for foreign institutional investors, more than rmb600bn in bond assets could be put to work. At the end of last year, custody of bonds under connect reached RMB690.362 bn, according to data released by the Central Clearing Company.
Zhao Tingchen, a senior researcher at the China Bank Research Institute, said that trade financing in RMB has strong market appeal, but limited by limited RMB financing channels in the past, it is difficult to effectively meet related needs. Through the repo operation, overseas institutions can exchange their RMB bonds under the bond connect into offshore RMB and gain new gains from participating in trade finance, etc. .
On February 28, the Hong Kong Monetary Authority (hkma) launched the renminbi trade finance liquidity facility to provide banks with a total of RMB100 billion in low-cost funds to provide renminbi trade finance to enterprises, the first phase involves 24 banks.
Under this arrangement, the Bank of China (HK) , the Industrial and Commercial Bank of China -AsiaAsia) StandarddCharteredeBankbaHK (hk) have already starRMB rmb trade finance for enterprises in individual tranches of upRMB400b400 million. Zheshang Zhongtuo Group, which has received more than RMB100M in offshore renminbi trade finance, said the new arrangement demonstrated the depth of international financial institutions’ empowerment of companies’ globalisation strategies.
Lay a solid foundation and devote ourselves to innovation
The performance of the 2024 economy has been commended by the international community. In January this year, a delegation from the International Monetary Fund visited Hong Kong and said that the Hong Kong economy was gradually recovering, and that Hong Kong’s financial system had a sound institutional framework and an adequate policy buffer, and that the currency board is strong when it’s running smoothly. At present, the direction and path of the gradual fiscal integration of the HKSAR government is appropriate. There is ample fiscal space and the fiscal deficit will be further narrowed. It is expected that Hong Kong’s real GDP will grow by 2.7% in 2025.
While laying a solid foundation, Hong Kong’s financial system has always strived for innovation and change. The 2025 global finance and ESG -Environmentalntal, social and governanSummitmmit on sustainable development was heldHonghKongkong recently. The forum focused on how financial institutions can balance social and environmental benefits and focus on local development needs in the face of global challenges such as climate change and resource scarcity, invest in projects that improve the economic structure, the quality of life and social equity.
The Securities and Futures Commission (SFC) of Hong Kong has published a roadmap on virtual asset regulation, which aims to promote Hong Kong as a global hub for virtual assets. The roadmap will facilitate access to global liquidity, achieve security-based adaptive compliance and product frameworks, and drive infrastructure upgrades in traditional finance that leverage the efficacy of blockchain technologies, a new regulatory framework covering virtual asset over-the-counter transactions and virtual asset hosting services, and will promote the expansion of virtual asset products and services.
“With the core principles of investor protection, sustainable liquidity and flexible regulation, the new road map takes our ecosystem into the future by responding precisely to the challenges of emerging virtual asset markets,” said IP Chi-heng, executive director of the SFC’s intermediary division. The road map is not the end of the road, but a vivid blueprint for all parties to work together to promote our vision of becoming a global innovation hub while protecting investors.”(Wang Ping, our correspondent)
People’s daily overseas edition (March 18,2025, Page 04)
