Hong Kong is cementing its position as a preferred fundraising hub for global investors, with more than 500 companies now queuing for listings in the city, even as geopolitical tensions cloud market sentiment worldwide.

Speaking at the HSBC Global Investment Summit on Tuesday, Hong Kong Chief Executive John Lee Ka-chiu said initial public offerings in the city had raised more than $14 billion as of the end of March, ranking first globally.

An increasing share of listings come from fast-emerging technology sectors, including artificial intelligence, semiconductors, robotics, and autonomous driving, Lee said.

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He added that Hong Kong’s financial markets had become even more active entering March, with average daily turnover in the stock market reaching nearly $39 billion during the month, up 8 percent year-on-year.

“Investors are increasing their asset allocation here, (and) view the Hong Kong Special Administrative Region as a safe haven for funds,” Lee said.

According to HSBC Group Chairman Brendan Nelson, primary and secondary offerings in Hong Kong posted their strongest first-quarter performance since 2021. This places Hong Kong ahead of other major stock exchanges which together raised more than $40 billion in the same period.

“Hong Kong’s capital markets are experiencing a strong liquidity-driven recovery, characterized by a resurgence in IPO activities and high trading volumes,” Nelson said, adding that he expects the city to overtake Switzerland as the world’s leading cross-border wealth hub before the end of the decade.

HSBC CEO Georges Elhedery said the bank added about 1 million customers in Hong Kong annually over the past two years, and most of them were nonlocal people.

He said he believes they are attracted by the city’s position as an established wealth management hub and its role as a gateway connecting the Chinese mainland and the rest of the world.

Addressing efforts by economies to navigate uncertainty and unprecedented challenges, including fiscal stimulus measures and substantial investment in AI, Nelson described these developments as “undoubtedly positive”.

“They remind us that no matter what issues we are dealing with in the global economy, the world will not stop. Even in the hardest of times, there are innovative, nimble companies that will look for opportunities to find the odds.”

Still, he warned that forecasts for global growth, trade and inflation should be approached with caution, given “the still-to-be-fully-understood and settled impacts of the Iran conflict”.

Inflation data for March already reflects higher oil and fuel prices, he said. “The longer the disruption continues, the more the indirect effects from higher energy costs will lift inflation and depress growth.”

“If the strait (were to) reopen swiftly — which I have to say today looks less likely — we would expect the US Federal Reserve, the European Central Bank, and the Bank of England to remain on hold this year,” he added.

The summit also explored how the next generation of leaders of century-old conglomerates are driving growth in an age of changes.

Lincoln Pan, CEO of Jardine Matheson, said companies are operating in an era in which “single-market relationships and single-currency businesses are no longer resilient”, and they need to make adjustments rapidly to deal with “the changing paradigm”.

With markets evolving swiftly, he said leaders should democratize decision-making, rather than expect staff to simply follow instructions and keep their heads down when problems arise.

Contact the writer at irisli@chinadailyhk.com