Hong Kong remains an ‘ideal option’ for international investment despite asset market pressures, finance chief says ahead of Davos

Investment opportunities have become more attractive despite high global interest rates, finance chief Paul Chan says

Chan’s positive assessment comes amid a four-year slump in the city’s stock market and wider economic malaise

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A screen in Central shows the Hang Seng Index in November last year. The index was down about 13.8 per cent in 2023, according to a year-end report. Photo: Edmond So

Published: 2:28pm, 14 Jan 2024Updated: 8:00pm, 14 Jan 2024

Hong Kong remains one of the “most ideal options” for international investment despite pressure on asset markets, the finance chief has said, pointing to an ongoing net inflow of funds into the city.

Financial Secretary Paul Chan Mo-po struck the upbeat note on his weekly blog on Sunday, just hours before his departure for Davos, Switzerland, where he will attend the World Economic Forum’s annual meeting.

“It is true that in the face of the global high interest rate environment and multiple external adverse factors, Hong Kong’s asset market has been under pressure in the past year,” Chan said.

“However, it is also true that investment opportunities have become more attractive, and many funds are waiting for chances to look for investment opportunities.”

Financial Secretary Paul Chan says the total growth in deposits last year was expected to reach 5 per cent. Photo: Dickson Lee

In the first 11 months of 2023, total deposits reached HK$16 trillion (US$2.04 trillion), a year-on-year increase of 4.1 per cent, of which deposits in Hong Kong dollars rose by 1.7 per cent year-on-year to HK$7.6 trillion, Chan added.

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