Funds raised through initial public offerings (IPOs) in Hong Kong more than doubled in the first nine months of 2026, reaching over HK$388 billion, surpassing the total amount raised throughout 2025, Financial Secretary Paul Chan Mo-po announced. The city’s thriving capital markets underscore its growing appeal as a regional financial hub despite global economic uncertainties.

Paul Chan highlighted that average daily turnover on Hong Kong’s stock market between January and September increased by 6.4 percent year-on-year to HK$272.9 billion. He attributed some recent market caution to rising yields on long-term U.S. bonds, which hit a 24-year peak and have stirred concerns about the global economic outlook. Still, Chan maintained that short-term volatility would not disrupt longer-term trends such as global asset allocation and supply chain realignment.

Emerging investor interest from the Middle East is contributing to this momentum, with capital inflows into Hong Kong listings rising notably. Chan pointed out that Middle Eastern investors are exploring opportunities in sectors including property, technology, logistics, and capital markets. He noted the city’s expertise in warehousing and logistics has made it a preferred partner for these investments.

Adding to the bullish market sentiment, Clara Chan Ka-chai, CEO of the government-owned Hong Kong Investment Corporation (HKIC), reported that more than 30 of its portfolio companies are preparing to file for IPOs this year. Since its establishment in 2022, the HKIC has managed HK$62 billion in government funds with a dual mandate to secure reasonable financial returns while fostering the growth of strategically important enterprises.

In 2025, the HKIC recorded investment income of HK$6.46 billion, a 175 percent increase year-on-year, translating into a net internal rate of return of 14 percent. The corporation has faced criticism for a lack of transparency regarding the composition of its investment returns. In response, Clara Chan clarified that the reported income comprised both realized and unrealized gains across equity and credit investments. She emphasized that the corporation places greater importance on the long-term socioeconomic benefits and technological breakthroughs its portfolio companies can achieve, rather than focusing solely on financial metrics.

Looking ahead, the HKIC plans to launch a venture capital fund denominated in offshore Chinese yuan as part of efforts to support Hong Kong’s ambition to consolidate its position as a global offshore yuan hub. Chan expressed optimism about the fund, noting that every Hong Kong dollar committed by the corporation leverages approximately HK$8 from private sector investors.

In addition, the HKIC will soon formally announce its internship program, designed to engage local university students in its development efforts. The initiative will offer summer and winter cohorts, each recruiting about 10 students, with the goal of fostering youth involvement in innovation, technology, and Hong Kong’s broader economic growth.

Separately, Paul Chan reported robust tourism activity during mainland China’s National Day “golden week” holiday from October 1 to 7. More than 1 million mainland visitors arrived in the city within the first four days, marking a 4.06 percent increase compared with the same period last year. He also noted notable increases in tourists from Europe, the United States, and emerging markets, underscoring Hong Kong’s diverse appeal as a travel destination.