Hong Kong’s financial sector is currently undergoing a significant digital transformation, positioning itself as a hub in global finance. In a recent update shared by Oliver Wyman featuring Bonnie Y Chan, CEO of the Hong Kong Exchanges and Clearing Limited (HKEX), it was noted that the city is leveraging regulatory agility, market resurgence, as well as digital tech advancements to solidify its role as a “super connector” between international investors and mainland China.
Chan, who assumed the CEO position in March 2024 after a career in regulation and capital markets, emphasizes Hong Kong’s dual function in facilitating capital flows.
Programs like Stock Connect enable global capital to enter China while allowing mainland investors to diversify abroad, contributing to about 25% of daily trading volume.
Amid geopolitical shifts, perceptions of Hong Kong and China as “uninvestable” have reversed, propelling HKEX back to the top of global IPO rankings.
A standout example is CATL’s massive IPO, the world’s largest this year, which drew cornerstone investors from the U.S., Europe, and the Middle East.
With over 300 companies in the listing pipeline—half in high-potential sectors such as biotechnology and specialist technologies such as AI and green tech—Hong Kong is fostering a vibrant ecosystem for pre-revenue R&D firms through tailored listing rules like Chapters 18A and 18C.
The discussion highlights Asia’s untapped potential in global capital markets.
Despite representing over 50% of the world’s population and nearly half its GDP, the region is underrepresented in equities, fixed income, and derivatives.
Chan advocates for collaboration among Asian markets to counter U.S. dominance, amplified by retail trading surges during the COVID era.
This cooperative approach aims to create alternative investment avenues, enhancing Asia’s relevance on the world stage.
Regulation emerges as a cornerstone of this evolution.
Drawing from her experience as head of IPO transactions, Chan reportedly views regulators as enablers, crafting various frameworks that balance development and protection.
This mindset is evident in Hong Kong’s approach to digital assets, particularly stablecoins.
Legislated under the Hong Kong Monetary Authority (HKMA), stablecoins are seen primarily as a medium of exchange rather than a store of wealth, lacking interest payments like traditional currencies.
Their integration could enhance stock settlements on HKEX, offering extended hours and efficiency beyond conventional banking systems.
Chan notes ongoing monitoring to harness these benefits without overstepping.
Looking ahead to 2026 as well as the foreseeable future, Hong Kong’s resilience is demonstrated through market cycles.
From low trading volumes in late 2023 to over 250 billion HKD in average daily turnover today, the sector’s turnaround underscores its adaptability.
Chan stresses curiosity and stakeholder understanding as keys to balanced solutions, predicting deeper global research into Asian innovations like AI applications in manufacturing.
As Chinese companies increasingly derive revenue internationally, traditional notions of multinationals are challenged, potentially enabling a more interconnected financial ecosystem.
In essence, Hong Kong‘s evolving financial sector blends traditional approaches with transformative tech advancements, driven by strategic regulation and collaborative strategies.
With digital assets like stablecoins at the forefront, the city-state is not just connecting different markets—it’s potentially reshaping / redefining them for a globalized economy as we head into 2026
