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Hong Kong stocks rose 18% last year, and the positive momentum has continued into 2025. In the first half of this year, the Hang Seng Index surged by 20%, gaining over 4,000 points, marking the largest ever first half-year increase in terms of points. Stock market turnover has further expanded, and the initial public offering (IPO) market has become notably more active. 42 IPOs were completed in the first six months, raising more than HK$107 billion in total, approximately 22% higher than the entire amount raised last year, ranking Hong Kong first globally thus far. The market remains optimistic about the performance of both Hong Kong equities and the IPO market for the second half of the year. In fact, IPO applications in Hong Kong are rapidly increasing. So far, around 200 applications have been received, doubling the number at the beginning of this year. The applications include those by companies from the Middle East and Southeast Asia. This not only reflects the growing attractiveness of the Hong Kong market amid its rally, where more companies have been encouraged to accelerate their listing plans; it also demonstrates the effectiveness of our recent promotional efforts both in Hong Kong and on the Mainland, as well as internationally.

Last week, I visited Tianjin and Beijing to attend two events: the World Economic Forum Annual Meeting of the New Champions 2025 (also known as “Summer Davos”) and the 10th Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB). Although the two conferences focused on different themes, they both highlighted several major macro trends of global significance, including – (1) How can we sustain global economic momentum amid rising headwinds against globalisation and mounting challenges to multilateralism? (2) How can developing countries respond to challenges such as tariff wars and climate change? (3) How do we seize the opportunities of technological revolution, especially in artificial intelligence (AI) and digitalisation, and the transformation of industries? (4) How can we build a more equitable, orderly and inclusive global governance system? Participants expressed strong interest in China’s economic prospects, recognising the country as a vital force for global economic stability and growth, particularly within Asia. Many were also inspired by China’s technological innovation and entrepreneurial spirit.

In less than two weeks, the current-term Government will mark its third year of office. Under the leadership of the Chief Executive, the team has worked with unity and resolve to overcome a range of challenges, while striving to foster economic growth, advance development, and improve people’s livelihood. From emerging from the COVID-19 pandemic to responding to unforeseen geopolitical shifts, Hong Kong’s economy has demonstrated exceptional resilience. Gross Domestic Product (GDP) has grown for nine consecutive quarters, surpassing the HK$3 trillion mark. Workers’ incomes have increased in real terms, while inflation has remained broadly stable.