Speech by SFST at 23rd Anniversary Gala Dinner of Chamber of Hong Kong Listed Companies
Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the 23rd Anniversary Gala Dinner of The Chamber of Hong Kong Listed Companies today (December 11):
K C (Chairperson of the Chamber, Professor K C Chan), Mike (Chief Executive Officer of the Chamber, Mr Wong Ming-wai), distinguished guests, ladies and gentlemen,
It is my pleasure to join you tonight at the 23rd Anniversary Gala Dinner of the Chamber of Hong Kong Listed Companies.
For more than two decades, the Chamber has played a pivotal role in strengthening Hong Kong's position as a leading international financial centre. By fostering collaboration between listed companies, regulators, and the Government, the Chamber has helped shape the development of our markets. Today, as global finance undergoes profound transformation - from shifting capital flows to rising demand for resilience, innovation, and connectivity - Hong Kong stands firmly at the heart of this change. Our city continues to demonstrate agility and strength.
Market vibrancy and resilience
Hong Kong's capital markets are distinguished by their breadth, depth, and regional connectivity. With over 2 600 companies listed on the HKEX (Hong Kong Exchanges and Clearing Limited) spanning diverse industries, our market capitalisation reached HK$48 trillion by the end of November this year - a 41 per cent increase year-on-year. Average daily turnover in the first 11 months of this year exceeded HK$255 billion, almost double the figure from the same period last year.
We have also reclaimed our position as the world's top initial public offering (IPO) venue. By November, IPO proceeds totalled HK$259 billion, a remarkable 228 per cent increase year-on-year. Ninety-three new companies have been listed this year, attracting strong interest from international institutional investors. The pipeline is equally promising, with over 300 companies preparing to list - the highest on record - and more than 40 per cent of them from the technology sector. Beyond IPOs, Hong Kong also ranks among the top three exchanges globally for follow-on issuance, raising over US$85 billion as of late November.
This success is no accident. It reflects co-ordinated efforts by the Government, regulators, the HKEX, and industry peers to modernise our listing regime and attract high-quality issuers. Since 2018, reforms have made our platform more inclusive and competitive, welcoming new economy and technology enterprises. Streamlined pathways for overseas issuers, flexible disclosure standards and enhanced vetting timetables have further strengthened our appeal. The surge in activity this year is a testament to renewed investor confidence and the effectiveness of these reforms.
Advancing Renminbi (RMB) internationalisation
Hong Kong is not only a hub for capital formation but also a strategic platform for RMB internationalisation. Leveraging our role as the world's leading offshore RMB centre, we have built a suite of mutual market access programmes - Stock Connect, Bond Connect, Swap Connect - that link international investors with Mainland markets. These programmes have become essential infrastructure for cross-border investment and risk management.
Recent enhancements have expanded product scope, improved settlement efficiency, and deepened integration. In the first three quarters of 2025, Northbound Stock Connect trading averaged over RMB200 billion daily, while Southbound trading reached an average of over HK$120 billion. Notably, Southbound inflows surged to HK$1.17 trillion - already surpassing last year's total by nearly 45 per cent. Southbound trading now accounts for nearly a quarter of Hong Kong's market turnover, underscoring the strength of Mainland investor participation.
Beyond equities, we are also determined to reinforce Hong Kong's role as a global fixed income and currency (FIC) hub - a cornerstone of the offshore RMB ecosystem. The Roadmap for the Development of FIC Markets, jointly announced by the Securities and Futures Commission and the Hong Kong Monetary Authority, sets out 10 initiatives across four pillars to guide policy and implementation. These measures aim to attract issuers, provide risk and liquidity management tools, boost offshore RMB usage, and develop next-generation infrastructure for innovation.
Reforming for growth and innovation
Looking ahead, we are committed to sustaining momentum and unlocking new opportunities. A comprehensive review of the listing regime is underway, covering requirements for primary, secondary, and dual listings, as well as post-listing obligations. We are also broadening product offerings, fostering regional collaboration on exchange-traded fund (ETF) listings, and expanding the number of recognised exchanges to encourage two-way capital flows.
At the same time, we are advancing initiatives to improve trading efficiency and strengthen risk management. Technical upgrades are supporting the transition to an uncertificated securities market, while further consultation will take place on adopting a T+1 settlement cycle for cash equities. Legislative work is also progressing to facilitate stamp duty payments in RMB, further promoting the currency's use in cross-border transactions.
On mutual market access, new measures are being taken forward with a view to their early implementation, including offshore Mainland government bond futures, block trading of stocks, and the inclusion of RMB counters. These steps will deepen integration and reinforce Hong Kong's role as the gateway to Mainland opportunities.
Driving ESG awareness and strengthening sustainability disclosures
Market development must go hand in hand with market quality and sustainability. Tonight's Gala Dinner highlights a theme central to our future: corporate governance and ESG (environmental, social and governance). These are the foundations of integrity and sustainable growth in our capital markets. The Chamber has long championed excellence in governance and ESG, encouraging issuers to embed these values in their culture. I extend my heartfelt gratitude for its leadership.
We are committed to raising governance standards and creating an environment conducive to long-term capital inflows. Since 2022, the HKEX has implemented Core Shareholder Protection Standards and revised the Corporate Governance Code, strengthening practices in areas such as board independence, diversity, and shareholder communication. Following extensive consultation, new measures to enhance board effectiveness, independence, and risk management have been rolled out in phases since July this year, reflecting rising global investor expectations.
Equally important are sustainability disclosures aligned with international standards. In January, The HKEX introduced new climate-related disclosure requirements, closely aligned with IFRS (International Financial Reporting Standards) S2 standards. This positions Hong Kong among the first exchanges globally to adopt such measures, reinforcing our role as a sustainable finance centre and preparing issuers for eventual local sustainability reporting.
Our sustainable finance ecosystem continues to grow. By September, Hong Kong hosted over 500 green, social, and sustainable bonds and 10 ESG-related ETFs. We are now the world's second-largest biotech fundraising hub and the largest EV (electric vehicles) fundraising ecosystem. The introduction of Chapter 18C has further facilitated listings by specialist technology companies, including green tech enterprises. Going forward, we will work closely with regulators and the HKEX to strengthen ESG frameworks and support corporates on their sustainability journey.
Closing
Ladies and gentlemen, as we conclude a busy and transformative year, I wish to thank the Chamber and its members for your invaluable contributions to the growth and quality of our markets. As we continue to enhance competitiveness, deepen connections with the Mainland, and strengthen ties with the global business community, I am confident that the Government can count on your partnership. Together, we will ensure Hong Kong remains not only efficient and innovative, but also inclusive, sustainable, and responsive to the aspirations of investors and enterprises across our country and region.
Finally, let me congratulate the Chamber on its 23rd anniversary, and extend warm congratulations to the recipients of this year's Corporate Governance and ESG Excellence Awards.
I wish you all a pleasant evening, and a healthy and prosperous year ahead. Thank you.
Source: AI-found images
