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Opinion
Hong Kong’s financial recovery shows the power of synergy with Beijing
Hong Kong’s financial services sector is seeing a rebound, but the government must also focus on the livelihoods of ordinary people
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Cheah Cheng Hye is the chairman of Cheah Capital, a single-family office, and honorary chairman of Value Partners Group, a Hong Kong-listed fund management company.
After several years of challenges, the Hong Kong economy is showing surprising strength. This has largely come about due to a rebound in financial services, with sectors in Hong Kong not involved in finance still stuck in a slump.
However, a bit of recovery is better than none at all, especially since 2025 had been expected to be tough for Hong Kong, which is caught up in the geopolitical tensions between China and the United States. Ironically, it’s those precise anxieties that have brought relief to Hong Kong. Crisis becomes opportunity as the Chinese government moved decisively last year to boost Hong Kong’s status as an international financial centre.
The Hong Kong stock exchange has become the world’s busiest in terms of initial public offerings (IPOs) this year. Beijing is supportive of mainland Chinese companies wishing to raise capital in Hong Kong, making it easier to do so. Indeed, there is good reason for Chinese companies to turn to Hong Kong. Funds are raised in the Hong Kong dollar, a fully convertible currency that can be used for global transactions.
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