Chief Executive John Lee

It is a great pleasure to be with you today – and so many of you, I am delighted to see. Over these next two days, more than 3,600 are expected – high-profile finance and business leaders, visionary investors and entrepreneurs, senior policymakers, academics, economists and many other respected decision-makers, from more than 60 countries and regions.

 

The inaugural Global Business Summit is among the many highlights of this year’s forum. Designed to encourage deeper financial and industrial co-operation, it will be held throughout tomorrow, day two of the AFF (Asian Financial Forum).

 

Both days, with their panel discussions, plenaries, thematic workshops, fireside chats and other sessions, are organised under the tagline “Finance Empowering Business” and overall theme, “Co-creating New Horizons amid an Evolving Landscape”. Featuring more than 150 prominent speakers, from Hong Kong, throughout the Asian region, and around the world, the forum will inspire insight and innovation, create partnerships and explore fresh business opportunities.

 

I can’t think of a better way to ring in this New Year, with its daunting issues and, yes, its boundless opportunities.

 

Speaking of “boundless opportunities”, allow me a few minutes to update you on Hong Kong, what we are doing and what we are planning to realise our far-reaching financial and business promise.

 

It begins with “one country, two systems”, the unique principle that assures us of the unwavering support of China, our country, while continuing to expand our global markets and reach. This unparalleled positioning solidifies our institutional strengths: the rule of law, a judiciary that exercises its power independently, an open and transparent market, the free flow of capital and a low and simple tax regime.

 

These have ensured Hong Kong thrives as a top destination for enterprises that seek to grow and develop, in an environment that is safe and convenient to do business. You don’t just have to take my word for it.

 

Ladies and gentlemen, as we welcome the New Year, I am pleased to announce to you all, a truly international audience, that Hong Kong has made unprecedented achievements in the past year in attracting quality businesses to our city.

 

According to our annual survey, the number of foreign- and Mainland-affiliated companies in Hong Kong was 11,070 in 2025, which is up 11% from the year before. That is a record-high number of firms with their parent companies located outside Hong Kong.

 

We have seen a robust growth of companies coming from a wide range of places. For example, those from Singapore, France, Australia, the US and Switzerland have all risen by over 11%. Companies from countries in ASEAN (the Association of Southeast Asian Nations) and the Middle East have also grown by some 10% and 5%, respectively. Meanwhile, Mainland Chinese companies here have grown a whopping 17%. Together, these enterprises from around the world hired nearly 510,000 people – more than half a million – in Hong Kong, up 3% from 2024.

 

We do more than bringing in companies – we are also good at nurturing them. Last year, the number of startups in Hong Kong grew to over 5,200, again a record-breaking high, and up 11% from 2024. Our startups hired nearly 20,000 people in Hong Kong; that is a 12% growth year on year. And like our companies, our non-local entrepreneurs come from a large variety of places, with half of them coming mainly from the UK, the US, France and different Asian countries, and the other half from the Mainland.

 

The encouraging results represent more than a vote of confidence in Hong Kong by these businesses and entrepreneurs. They also mean our solid efforts in facilitating business establishment and operation, and in creating an enabling ecosystem for startups, are bearing fruit. 

 

As you would know, companies turn to Hong Kong for many reasons – but our prowess as a financial hub is certainly a key factor. Hong Kong’s financial regulatory system is robust, and our financial market stands out for its deep liquidity, innovative products and world-class investor protection. We also boast a highly educated workforce, a welcoming environment for global talent and transparent financial regulations aligned with international standards. 

 

These strengths are widely recognised. We ranked third, globally, and first in Asia, in the most recent Global Financial Centres Index. And we placed third in the 2025 World Competitiveness Yearbook, up two places over the previous year.

 

Over the past year, we introduced a series of measures to enhance Hong Kong’s listing mechanism and stock market. The results are clearly encouraging: the Hang Seng Index surged about 30% last year, while average daily turnover rose to over US$32 billion. 

 

And Hong Kong ranked No.1 in the world last year in initial public offerings, raising some US$36 billion.

 

Hong Kong has long been recognised as a hub for asset owners and family offices. At the end of 2024, we managed more than US$4.5 trillion in assets, 11 times our GDP – a year-on-year growth of 13%.

 

More than 200 family offices had set up operations or expanded their business here by the end of 2025. And we are working to welcome at least 220 more family offices to establish operations or expand their business in Hong Kong by 2028.

 

As the world’s largest offshore renminbi business hub, Hong Kong processes about three quarters of global offshore renminbi payments and has the largest offshore renminbi liquidity pool. 

 

Last year, the Hong Kong Monetary Authority introduced a Renminbi Trade Finance Liquidity Facility. It was upgraded, last October, into a Renminbi Business Facility, allowing banks to expand the use of renminbi by their corporate customers. 

 

The launch, also last year, of offshore renminbi repurchase and cross-boundary repurchase businesses has boosted renminbi liquidity channels. These arrangements provide investors with greater convenience, and more stable support, in obtaining liquidity and accessing the onshore repurchase business. 

 

In international bond issuance by Asian institutions, the volume arranged by Hong Kong in 2024 totalled more than US$130 billion, accounting for about 30% of the market.

 

Hong Kong has an active dim sum bond market as well, with issuance volume breaking the RMB1 trillion mark in 2024 and expected to reach a similar level in 2025. 

 

Hong Kong is also a leading green and sustainable finance hub. In 2024, the volume of green and sustainable bonds arranged in Hong Kong amounted to about US$43 billion, capturing 45% of the regional total and topping the Asian market for seven consecutive years.

 

To date, we have issued government green bonds totalling US$32 billion, including retail, institutional and tokenised bonds of multiple currencies and tenors, raising funds for many local green projects.

 

As of last September, we had issued over 200 ESG (environmental, social and governance) funds, with assets under management of more than US$141 billion. The number of ESG funds and assets under management increased 32% and 23%, respectively, from three years ago.

 

To boost our status as an international financial centre, we are focused on three main areas.

 

First, we are working to reinforce Hong Kong’s strengths. That includes deepening our equity market, expanding our bond market and advancing the asset management and wealth management sector.

 

To boost our stock market, we introduced the Technology Enterprises Channel. It helps Mainland and international technology companies raise funds in Hong Kong. 

 

To elevate our status as one of the world’s leading fundraising and investment hubs, we will optimise the Main Board’s regimes for listing and issuing products. 

 

The HKEX (Hong Kong Exchanges & Clearing Limited) is working to enable electronic securities holding and trading and will put forward a proposal, in the coming months, to shorten the settlement cycle for Hong Kong's cash equities market. That, ladies and gentlemen, will create a solid foundation for the sustained growth of our capital markets.

 

Rising global investor interest in renminbi-denominated bonds highlights Hong Kong’s pivotal role as a gateway for cross-boundary capital flow. And we will continue to explore measures that deepen mutual access between Mainland and Hong Kong financial markets. That includes introducing offshore treasury bond futures in Hong Kong and expanding interest rate derivatives under Swap Connect. 

 

Second, we are expediting the development of new growth areas. That very much includes building an international gold trading market and commodities trading ecosystem in Hong Kong.

 

In a moment, you will witness a bright illustration of our gold ambitions – the signing of a co-operation agreement between the Shanghai Gold Exchange and the Hong Kong Special Administrative Region Government. The co-operation agreement will set in motion a cross-boundary, trade-clearing system for the precious metal.

 

The Hong Kong SAR Government is also committed to expanding Hong Kong’s gold storage, targeting a storing capacity of more than 2,000 tonnes in three years. That, ladies and gentlemen, will see Hong Kong’s rise as a regional gold reserve hub. 

 

A central clearing system for gold will be established here, to provide efficient and reliable clearing services for gold transactions, in compliance with international standards. 

 

We will also diversify gold investment and work with the trade to form an industry organisation in Hong Kong. 

 

In commodities trading, we joined the London Metal Exchange’s global warehousing network last January.

 

To date, 15 Hong Kong warehouses have begun operations, with more than 20,000 tonnes of metals on warrant to support the exchange’s contract delivery.

 

Turning to fintech, last June we issued a second policy statement on digital assets, reinforcing the Government’s commitment to establishing Hong Kong as a global hub for digital asset innovation.

 

And last August, our Stablecoins Ordinance came into effect, providing a licensing regime for issuers of fiat-referenced stablecoins in Hong Kong. 

 

Last month, we published the consultation conclusions on proposed licensing regimes for digital asset dealing and custodian service providers. We plan to introduce a bill into the legislature later this year.

 

Last November, we expanded the products and services that can be offered by licensed, virtual asset trading platforms, and we will also promote artificial intelligence business applications.

 

In the carbon market, the HKEX signed an MoU last year with the Guangzhou Emissions Exchange, the Shenzhen Green Exchange and the Macao International Carbon Emission Exchange, pledging to accelerate the Greater Bay Area’s carbon markets and green finance development.

 

Because there is so much more that Hong Kong, a leading financial hub, could do to promote sustainability in the capital market. That, I am glad to add, has been recognised by the International Financial Reporting Standards Foundation, which confirmed, last June, that Hong Kong is one of the first jurisdictions to have set a target for fully adopting the Sustainability Disclosure Standards of the International Financial Reporting Standards.

 

Third, international exchanges and co-operation remain a priority. We will assist companies interested in re-domiciling to Hong Kong, a world city that makes it much easier to connect with the globe and excel. Our company re-domiciliation regime, in effect since last May, has been positively received. 

 

To date, 14 non-Hong Kong corporations have re-domiciled to Hong Kong. 

 

And we are working on measures to attract more Mainland enterprises to establish Corporate Treasury Centres here.

 

Ladies and gentlemen, that is just a taste of what we are doing to boost Hong Kong’s status as an international business and financial centre, while ensuring a safe and stable environment for companies and investors.

 

I am grateful to the organisers of the Asian Financial Forum, the Hong Kong Trade Development Council and the Government’s Financial Services and the Treasury Bureau, for once again bringing us together for finance and business – and, I trust, the many pleasures that Hong Kong, Asia’s world city, offers.

 

In just over three weeks, we will celebrate the Lunar New Year – the Year of the Horse. 

 

The horse symbolises vitality, perseverance and progress, qualities I am sure we all look forward to realising, despite the hurdles and obstacles we face in today’s non-stop geopolitical steeplechase.

 

Chief Executive John Lee gave these remarks at the Asian Financial Forum on January 26.