Hong Kong Capital Inflows Strengthen Following Middle East Conflicts

Hong Kong has experienced stronger investment activity following recent conflicts in the Middle East, according to Financial Secretary Paul Chan Mo-po.

The Hong Kong capital inflows trend has been supported by international investors seeking stability and access to Asian markets.

Chan told lawmakers that European and American investors accounted for approximately 40% of inflows into Hong Kong’s stock market rally since September 2024, while Southbound Stock Connect contributed around 30%.

The remaining Hong Kong capital inflows originated from the Middle East, Southeast Asia and local institutions.

He described Southeast Asian capital as particularly significant and said Hong Kong remains the preferred destination for many regional investors.

Chan also noted that property prices have been rising since the second half of last year and that the office market has stabilised.

The comments reinforce confidence in Hong Kong’s resilience as an international financial centre.