Blog

As the first quarter of 2026 passed, the global landscape remains complex and highly fluid. The conflicts in the Middle East continue to weigh on the market sentiment. This external backdrop has dragged on Hong Kong’s equity market: the Hang Seng Index is down around 2% year to date. Even so, trading has remained active. The average daily turnover in the first two months exceeded HK$260 billion, up 17% year on year. Entering March, market activities strengthened further, with average daily turnover surpassing HK$300 billion—more than 8% higher than the same period last year. The increased asset allocations to Hong Kong by investors amid heightened uncertainty suggests that they not only view the city as a reliable safe haven for capital, but are also encouraged by the abundant investment opportunities created by the steady growth in the Mainland's economy and a strong pipeline of quality companies choosing to list in Hong Kong.

A series of mega events held in Hong Kong over the past few weeks has drawn visitors from around the world, creating a lively atmosphere across the city. One of the highlights over the past two days has undoubtedly been Art Basel Hong Kong, which is being held at the Hong Kong Convention and Exhibition Centre in Wan Chai.

Over the past few days, I have been on a visit to Beijing, where I called on several central ministries and financial regulators. We engaged in in-depth exchanges on the macroeconomic outlook, the current state and development of financial markets, and how Hong Kong can better play its role in the new phase of the country's development during the 15th Five-Year Plan period. This visit has enabled us to gain a more direct understanding of the direction and priority areas of the country's development, as well as its underlying rationale and considerations. This provides important guidance and reference for our work to better align Hong Kong with national development strategies, integrate into and serve the overall national development, and in turn achieve high-quality development for Hong Kong.