The Hong Kong Stock Exchange, a prominent financial hub, boasts a significant presence of 1,478 Chinese mainland-based companies as of the end of 2024. This robust representation constitutes over 80% of the market’s capitalization and nearly 90% of its daily trading volume, indicating a strong inclination of mainland Chinese firms towards the Hong Kong market. Irons Sze, a member of the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC), highlighted these statistics during a recent media briefing, emphasizing Hong Kong’s stature as a global financial center.

The city’s financial prowess is further underscored by its ranking in the Global Financial Centers Index, reclaiming the third position by the close of 2024. According to data from the Hong Kong Trade Development Council (HKTDC), Hong Kong’s stock market stood as the fifth-largest in Asia and the eighth-largest globally, boasting a total market capitalization of $4.3 trillion as of November 2024. Over the years, mainland Chinese companies have leveraged Hong Kong as a vital offshore fundraising platform, raising over $1.09 trillion through stock issuance from 1993 to 2024.

Hong Kong’s strategic location and financial infrastructure have positioned it as a conduit between Chinese and international markets, drawing investors and financial institutions worldwide. Liang Haiming, chairman of the China Silk Road iValley Research Institute in Hong Kong, emphasized the city’s role in driving digital transformation through fintech advancements and supporting innovative ventures. The development of the Guangdong-Hong Kong-Macao Greater Bay Area has further enriched opportunities for growth, fostering regional financial collaboration and resource integration.

Apart from its financial eminence, Hong Kong serves as a pivotal maritime and trade hub. Sze highlighted the city’s triple status as a financial, shipping, and trade center, attributing this to China’s reform policies and Hong Kong’s pivotal role since its return to the Chinese mainland. With more than 13 million standard containers handled by Hong Kong ports last year, the city stands out as one of the world’s busiest container ports, ranking fourth globally as an international maritime center.

Looking ahead, the Chinese central government has pledged support for Hong Kong’s economic development, quality of life enhancement, and international engagements. Sze emphasized the interconnectedness of Hong Kong’s future with the broader growth trajectory of the Chinese mainland, emphasizing the tangible alignment between the two entities. This symbiotic relationship underscores Hong Kong’s evolving significance as a vital node in the global financial and trade landscape.