Global investors turn to Hong Kong funds for returns amid geopolitical tensions
Financial Secretary Paul Chan Mo-po said the Middle East offered huge opportunities for Hong Kong despite the recent flare-up in the region. On Saturday, the US joined Israel in attacking Iran's nuclear facilities, a move that threatened to destabilise the Middle East.
'The Gulf economies remain resilient and forward-looking, [and] many GCC [Gulf Cooperation Council] nations are advancing an ambitious diversification agenda, including financial market development,' Chan said in a speech on Monday at the Hong Kong Investment Funds Association's (HKIFA) annual conference, which was attended by hundreds of fund managers.
Chan said the city's sound regulatory system and enabling government 'have reinforced Hong Kong's position as a safe harbour for global investors during these turbulent times'.
'This is most obviously reflected in the recent upturn in our stock market and influx of capital as reflected in bank deposits,' he said, adding that some US$44 billion worth of capital had flowed into Hong Kong-domiciled funds in the 12 months to the end of March, a threefold increase from a year earlier.
Hong Kong managed nearly US$4 trillion in assets at the end of 2023.
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