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Hong Kong has delivered its strongest evidence yet that predictions of its decline as an international financial centre may have been premature.
Assets under management (AUM) in the city rose to a record HK$42.2 trillion (around $5.38 trillion) in 2025, marking a 20 per cent increase from HK$35.5 trillion a year earlier and extending a three-year streak of growth, according to the latest annual survey released by the Securities and Futures Commission (SFC) on Thursday.
The milestone comes after several years in which Hong Kong’s future as a global financial hub was questioned amid geopolitical tensions, Beijing’s tighter grip on the city, an economic slowdown in mainland China and rising competition from regional rival Singapore.
Instead, the latest figures suggest international capital is once again flowing into the city, helped by a recovery in Chinese assets, strong equity market performance and Hong Kong’s enduring role as the gateway between China and global investors.
Investor confidence returns
The strongest sign of renewed confidence came from fund flows.
Hong Kong recorded net fund inflows exceeding HK$2.1 trillion during 2025 — an increase of 193 per cent from the previous year — as asset managers and private wealth businesses attracted fresh capital from global investors.
The SFC attributed the robust performance to improving investor confidence, continued financial innovation and Hong Kong’s deep pool of investment talent, which helped the city withstand a challenging global economic backdrop.
The data underscores Hong Kong’s continued appeal among international institutions despite heightened geopolitical uncertainty and persistent concerns over China’s economic outlook.
Chinese market revival lifts wealth
Part of the rebound reflected renewed optimism surrounding Chinese financial markets.
The Hang Seng Index rallied 28 per cent during the year, while mainland China’s CSI 300 Index gained 18 per cent as investors returned to Chinese technology stocks following the emergence of DeepSeek, whose low-cost artificial intelligence model triggered a broad re-rating of Chinese AI and technology companies.
The market rally boosted the value of investment portfolios while also encouraging fresh allocations into Hong Kong-based funds and wealth management products.
Hong Kong and mainland China attract biggest gains
The SFC data also revealed that investments directed towards Hong Kong and mainland China recorded the fastest growth among all major destinations.
Assets invested within Hong Kong rose 26 per cent year on year to HK$4.8 trillion, while investments into mainland China increased 30 per cent to HK$2.3 trillion.
By comparison, assets invested outside Hong Kong and mainland China grew nearly 14 per cent to around HK$9 trillion.
Despite stronger allocations to Greater China, international diversification remained a defining feature of Hong Kong’s asset management industry.
Around 56 per cent of managed assets continued to be invested outside Hong Kong and mainland China, highlighting the city’s role as a global capital allocation centre rather than merely a conduit into Chinese markets.
North America remained the largest overseas investment destination, attracting about HK$2.8 trillion in assets, followed by Europe with HK$2.2 trillion.
Although investments into both regions continued to rise — up 9 per cent and 2 per cent respectively — their overall share of managed assets declined as investors increasingly allocated capital towards Asian markets.
World’s largest cross-border wealth hub
The latest figures further strengthen Hong Kong’s credentials as a global wealth management powerhouse.
In May, Boston Consulting Group ranked Hong Kong ahead of Switzerland as the world’s largest cross-border wealth management centre, marking a symbolic shift in global private wealth.
The city has simultaneously stepped up efforts to cement that advantage.
Earlier this year, Reuters reported that Hong Kong authorities were considering exempting performance-based bonuses earned by fund managers from taxation in an effort to attract top investment professionals, hedge funds and family offices amid intensifying competition with Singapore, Dubai and other financial centres.
The government has also expanded initiatives aimed at drawing family offices, improving market access and deepening financial connectivity with mainland China through programmes such as Stock Connect, Bond Connect and Wealth Management Connect.
Offshore renminbi ambitions
Beyond wealth management, Hong Kong continues to play a central role in China’s financial opening.
As the world’s largest offshore renminbi hub, the city remains critical to Beijing’s long-term strategy of internationalising the Chinese currency and connecting domestic capital markets with international investors.
