Brian David Li Man-bun says the city must continue to embrace innovation, strengthen its strategic connections, and adapt to evolving global challenges

This year marks the beginning of China’s 15th Five-Year Plan (2026-30), which is expected to provide new and ample development opportunities for Hong Kong, an international financial center that shines with vitality and is set to soar even higher.

A cornerstone of Hong Kong’s financial success is its robust equity market featuring vibrant initial public offering (IPO) activities. At the close of 2025, the Hong Kong stock exchange marked a historic day with six IPOs in a single session, demonstrating its unparalleled capacity to support capital formation and business growth. Last year alone, IPO fundraising hit a remarkable HK$285.8 billion ($36.6 billion), cementing Hong Kong’s status as the world leader in IPO activity.

These successes are not isolated; over the past decade, Hong Kong weathered global economic uncertainties caused by events such as the COVID-19 pandemic and trade wars, and yet remained one of the go-to platforms for international capital. The number of foreign financial institutions operating in Hong Kong rebounded from 250 in 2023 to 300 by 2024. This resurgence is complemented by a growing influx of family offices and wealth management firms. Amid geopolitical fluctuations and evolving global markets, Hong Kong offers a place of financial stability — thanks to its robust financial infrastructure, and mature capital markets.

Beyond capital markets, Hong Kong continues to foster entrepreneurship and innovation at record-breaking levels. Over 190,000 new companies — both local and re-domiciled — were established in Hong Kong in 2025, pushing the total number of companies registered under the Companies Ordinance to a staggering 1.557 million, representing an annual growth of 6 percent. Among these, startups now exceed 5,200, along with over 11,000 companies with parent firms based in the Chinese mainland or overseas. These numbers speak to Hong Kong’s unique ability to blend local dynamism with international connectivity — a quality few other cities can replicate.

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Last year also saw tourism emerge as a revitalized pillar of Hong Kong’s economy, signaling renewed international interest in the city. With nearly 50 million visitor arrivals last year — up 12 percent from 2024 — Hong Kong solidified its position as a premier travel destination. This robust recovery underscores Hong Kong’s allure not only as a financial hub but as a gateway to Asia rife with cultural and business opportunities.

Hong Kong thrives under the “one country, two systems” framework, benefiting from a high degree of autonomy while enjoying unwavering support from the central government. A famous, oft-cited Deng Xiaoping quote — “the horses will still run, stocks will still be traded, and dancers will still dance” — remains valid. In other words, Hong Kong’s unique governance system has been vigorously upheld and reinforced, ensuring that the city can continuously harness its institutional advantages.

The fourth plenary session of the 20th Communist Party of China Central Committee adopted recommendations for the upcoming 15th Five-Year Plan (2026-30), reemphasizing Hong Kong’s strategic importance as an international financial center. This is perfectly logical. The city’s global stature has been reconfirmed by numerous international rankings. The Fraser Institute’s Economic Freedom of the World 2025 Annual Report once again ranked Hong Kong as the world’s freest economy. In the Global Financial Centres Index, Hong Kong surged to third place globally and claimed top spot in the Asia-Pacific region and narrowed its gap with New York and London. Amid rising protectionism, Hong Kong’s steadfast commitment to openness and free trade ensures its relevance in an increasingly fragmented global economy.

Another critical pillar of Hong Kong’s success is its leadership in offshore renminbi business. The city boasts the world’s largest offshore RMB liquidity pool, processing nearly 75 percent of global offshore RMB payments. In the first half of 2026, the Hong Kong Monetary Authority’s RMB Business Facility will expand to 200 billion yuan ($29 billion), reinforcing Hong Kong’s pivotal role in the internationalization of the yuan.

Meanwhile, Hong Kong’s asset and wealth management sector continues to excel, with assets under management reaching HK$35.1 trillion in 2024, marking a year-on-year growth of 13 percent and further demonstrating strong growth in 2025. Since 2022, more than 200 family offices have established or expanded operations in Hong Kong, drawn by the city’s proximity to the mainland market and its diverse array of financial services. Industry watchers speculate that Hong Kong could soon surpass Switzerland as the world’s leading cross-border wealth management center.

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The establishment of the International Mediation Institute in Hong Kong last year has further enhanced the city’s credentials as a center for dispute resolution, adding yet another layer of confidence in its financial ecosystem. On the global stage, Hong Kong will host the 2026 APEC Finance Ministers’ Meeting in October, showcasing not only its economic prowess but its comprehensive advancements across societal domains.

Contrary to speculation that Shanghai might overshadow Hong Kong, the two financial centers serve complementary roles in China’s national development strategy. Hong Kong’s institutional strengths — such as its adherence to common law, free capital flows, and globally recognize regulatory frameworks — remain robust. While Shanghai accelerates its growth as a financial hub, its progress reinforces rather than undermines Hong Kong’s standing. Together, the two cities form a cohesive ecosystem that drives China’s engagement with global markets.

Hong Kong must continue to embrace innovation, strengthen its strategic connections, and adapt to evolving global challenges. By seizing opportunities arising from national development during the period of the 15th Five-Year Plan and leveraging its unique position, Hong Kong is poised to scale new heights.

The author is co-chief executive of the Bank of East Asia.

The views do not necessarily reflect those of China Daily.