Chen Maobo: International investors' attitude towards Hong Kong has turned positive, worrying about "missing opportunities" and accelerating their layout.

Hong Kong Financial Secretary Paul Chan Mo-po said that international investors have shifted towards a positive attitude towards Hong Kong recently. The increase in trading volume of Hong Kong stocks, expansion of local business by foreign institutional investors, and increase in the number of family offices all reflect a restored confidence. He cited some fund managers' views that previously had concerns about geopolitical risks and lower allocations to the Hong Kong and mainland markets, but now fear missing out on opportunities and are eager to increase their holdings. He emphasized that under the framework of "one country, two systems," Hong Kong's legal system, free flow of capital, stable exchange rate pegged to the US dollar, and its unique role bridging mainland China and the overseas market are still attractive advantages for foreign investment. In response to concerns from some foreign investors, he gave examples such as the asset management industry, where assets managed in Hong Kong currently amount to around $4 trillion (about HK$31.1 trillion), with more than half coming from mainland China and regions outside Hong Kong. Additionally, major financial institutions from the US and Europe are expanding their operations in Hong Kong, and European and American funds make up a significant proportion of the Hong Kong stock market, indicating confidence in the market. Paul Chan Mo-po also pointed out that the geopolitical tensions are expected to last for a long time, but both risks and opportunities exist, and Hong Kong needs to adapt flexibly. He mentioned that Hong Kong is a free port and an international financial center with free movement of capital and no foreign exchange controls, which is an advantage but also a challenge as funds can leave anytime. Therefore, financial security needs to be maintained, and the banking system should establish a large buffer, with strict monitoring mechanisms in place to monitor abnormal market transactions, such as abnormal short selling activities, ensuring the financial system's resilience to risks. Paul Chan Mo-po emphasized that Hong Kong needs to "promote security through development," by strengthening the financial system's competitiveness and promoting IPO market reforms by optimizing listing mechanisms, simplifying processes, and reducing transaction costs. He suggested adjusting listing requirements to attract more overseas companies to list in Hong Kong to enhance market liquidity and international attractiveness. Regarding the Hong Kong property market, Paul Chan Mo-po stated that the property market is gradually stabilizing. The Hong Kong government is being very cautious in land supply to stabilize market expectations and release land in an orderly manner according to market conditions for absorption. He also mentioned that with interest rates stabilizing or even decreasing, the intention to buy properties is expected to increase, and as rental prices rise, there is evidence of falling buying and selling prices, indicating existing housing demand. People may feel that property prices have not bottomed out yet, so there is no rush to enter the market. He also mentioned that under the Hong Kong SAR government's "talent attraction" program, Hong Kong has introduced 190,000 talents, with some initially choosing to rent properties, but he believes that some will eventually transition to become buyers in the property market, helping to restore market balance.