Edward Yau: Recognition by Rating Agencies Shows Hong Kong's Resilience, Investors' Confidence in Hong Kong Strengthens

Hong Kong Financial Secretary Paul Chan Mo-po stated that Hong Kong has been repeatedly questioned and pessimistic predictions have been made over the years, but recently 3 major rating agencies have maintained Hong Kong's credit rating and given it a "stable" outlook, recognizing Hong Kong's strong fiscal reserves, robust external balance sheet, and resilient financial system. Hong Kong has proven pessimists wrong many times and has become stronger. Paul Chan Mo-po mentioned that the global economy and geopolitical situation are undergoing profound changes, with trade wars and the unpredictable policies of the US Trump administration exacerbating market uncertainties and volatility, ringing alarm bells for global investors to reassess portfolio risks, diversify capital allocation, and find markets that can provide returns, resilience, and long-term stability. He pointed out that investor confidence in Hong Kong is growing, with the Hang Seng Index rising over 15% so far this year and the IPO fundraising reaching HK$77 billion, making it the world's largest IPO market. In response to recent global developments, he has instructed the Securities and Futures Commission and the Hong Kong Stock Exchange (00388) to encourage Chinese companies listed abroad to return. Furthermore, as the Chinese yuan becomes increasingly popular among global investors, Hong Kong, as a leading offshore yuan center, is advancing in three aspects: enhancing yuan liquidity, strengthening clearing and custodian services, and enriching yuan-denominated investment products and risk management tools.