Members of the Hong Kong Financial Services Development Council (FSDC) recently visited the United States and returned to Hong Kong on the 20th. Chairman P.Y. Hung met with the media and said that compared with last year, US local investors are now more open to allocating some of their funds to Hong Kong. Given continued market volatility, he believes that the shift of capital from mature markets to emerging markets in Asia is on the rise, a trend that is expected to continue.
Mr. Hung cited market data indicating that the average daily turnover of Hong Kong stocks nearly doubled in 2025, which is one example of overseas investors’ participation in Hong Kong’s capital market. Moreover, among the major cornerstone investors in large IPOs last year, many were from the West, including certainly investors from the United States.
In the foreseeable future, he expects the world to continue facing a chaotic and turbulent landscape. For companies and investors seeking stable growth, he said Asia maintains good growth and serves as a safe haven for investors to diversify their asset allocation. Hong Kong, as a major international financial centre in the region, is attractive to investors.
Shift of European and US capital to Hong Kong becoming a trend
He cited an example: recently he met a fund company whose business had previously been confined to the US domestic market. It has decided to set up an office in Hong Kong, has leased space at the International Finance Centre (IFC) in Central, hired a trading team covering equities, foreign exchange, fixed income and commodities, and has just obtained the required licences, preparing to officially commence business. He said this is just the tip of the iceberg, reflecting that many foreign firms are interested in exploring opportunities in Hong Kong.
Mr. Hung noted that amid ongoing changes in the global landscape, global wealth is prudently and orderly adjusting its investment portfolios. He expects the trend of investors shifting some funds from developed markets (e.g., Europe and the US) to emerging markets to continue. When adjusting portfolios, investors mainly focus on the risk-return relationship. From a global growth perspective, he described Asia, especially Hong Kong, as “very attractive”.
FSDC Board Member Viola Sin said that despite many uncertainties globally, Hong Kong’s advantages as an asset allocation hub stand out due to its mature capital market with diverse asset classes. With the return of international funds and the continued expansion of various “connect” schemes, two-way cross-border capital flows are being further promoted. It is expected that Hong Kong will continue to attract more companies and capital.
Hong Kong’s wealth management business has developed rapidly in recent years and has become a focus of attention for US investors. FSDC Chief Executive Officer Rick Tung said that local investors are quite interested in the development prospects of Hong Kong’s family offices, partly because there are many companies listed or established in Hong Kong in recent years in sectors such as artificial intelligence (AI) and biotechnology, providing family offices with a rich choice of investment targets.
