Hong Kong's Financial Secretary, Paul Chan, highlighted in a blog post on April 5 that the average daily turnover of Hong Kong stocks surpassed HKD 300 billion in March, marking an increase of more than 8% compared to the same period last year. He noted that despite global economic uncertainties and geopolitical tensions, investor activity remained robust.
Chan pointed out that while the Hang Seng Index declined by approximately 2% year-to-date due to external pressures, trading volumes stayed strong. In the first two months of the year, average daily turnover exceeded HKD 260 billion, up 17% year-on-year. The momentum accelerated further in March, with daily turnover topping HKD 300 billion.
This trend reflects growing investor confidence in Hong Kong as a secure asset allocation destination, supported by stable economic growth in mainland China and a steady pipeline of high-quality companies listing in the city. These factors have provided ample investment opportunities for global investors.
Chan also emphasized the critical role of Hong Kong’s capital markets in financing cutting-edge technologies, such as artificial intelligence, semiconductors, robotics, autonomous driving, and biotechnology. As competition in these sectors intensifies globally, efficient and stable financing channels have become indispensable. Hong Kong’s listing platform is playing a key role in supporting technological advancement and modern industrial development, while attracting international capital toward future-oriented industries.
In the first quarter of the year, Hong Kong’s IPO market remained vibrant, raising over HKD 103 billion by March 27, ranking first globally. Including follow-on financing, total fundraising reached approximately HKD 237 billion. More notably, a growing number of listing applicants are from emerging sectors, with over 500 companies currently awaiting approval to list in Hong Kong.
Amid global uncertainties, an increasing number of enterprises view Hong Kong as a vital gateway for fundraising and international expansion.
Beyond financial markets, Hong Kong’s real economy also showed improvement in the first quarter. Benefiting from recovering global demand for electronics and restructuring of regional supply chains, the city’s merchandise exports rose nearly 30% year-on-year in the first two months, demonstrating Hong Kong’s resilience as a trade hub.
Retail sales continued to recover, with total retail sales value increasing by 11.8% year-on-year in the first two months, marking the tenth consecutive month of growth. The rebound was not limited to high-end consumption; sectors such as furniture and apparel also saw improved demand, indicating broadening consumer confidence. Online sales surged by 27.5% during the same period, driving growth in supporting industries like electronic payments, logistics, and data analytics.
The labor market remained stable, with the unemployment rate easing to 3.8%. Improved employment conditions in retail and catering, along with rising incomes and a more positive sentiment in the stock and property markets, have further bolstered local consumption.
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