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Hong Kong tops global IPO in 2025

Hong Kong ranked as the world’s top IPO venue, raising US$35.2 billion (HK$274.6 billion) from 106 new listings, with average daily turnover in the cash market surging 43% year on year to US$29.6 billion (HK$230.7 billion) in the first 11 months, according to the Hong Kong Exchanges and Clearing Limited (HKEX) (Dec 22). It said 2025 marked a year of strong momentum and structural progress for Hong Kong’s capital markets. The city’s derivatives activity also hit record levels, with average daily volume reaching 1.69 million contracts, while exchange-traded products saw average daily turnover double to US$4.8 billion (HK$37.6 billion). The HKEX advanced major market reforms and technology-led initiatives, including a dedicated channel for specialist technology firms, new biotech and technology indices, and measures to reduce transaction costs and enhance settlement efficiency. It also deepened its global reach through new international partnerships and expanded its commodities and fixed-income footprint, reinforcing Hong Kong’s role as a resilient, innovation-driven international financial hub.

Hong Kong’s export performance in November stayed strong

According to the external merchandise trade statistics for November 2025, the values of Hong Kong’s total exports and imports of goods both recorded year-on-year increases, at 18.8% and 18.1% respectively. Exports to most major markets showed further robust growth. Analysed by commodity, exports of most major commodities rose visibly, particularly for exports of electrical equipment, machinery and mechanical appliances. For the first 11 months of 2025 as a whole, the value of total exports of goods increased by 14.3% over the same period in 2024. Concurrently, the value of imports of goods increased by 14.1%. A visible trade deficit of US$49.1 billion (HK$382.8 billion), equivalent to 7.5% of the value of imports of goods, was recorded. Looking ahead, sustained moderate global economic growth and persistent demand for electronics-related products will underpin Hong Kong’s merchandise trade growth in the near term. The Government will continue its ongoing effort to enhance economic and trade ties with different markets, and stay vigilant to the developments of various uncertainties in the external environment.

“Money Safe” introduced to strengthen anti-scam protection 

Hong Kong’s banking sector fully rolled out the “Money Safe” service, with all retail and digital banks launching the anti-scam protection tool by the end of 2025. Announced by the Hong Kong Monetary Authority and the Hong Kong Association of Banks, Money Safe would allow customers to designate a portion of their deposits for enhanced protection, requiring face-to-face verification before withdrawals or transfers could be made. The initiative added an extra safeguard against fraud and was suitable for customers who did not need immediate access to certain funds.

Licensing framework for virtual asset service providers advanced

Hong Kong further strengthened its virtual asset regulatory framework, with the Financial Services and the Treasury Bureau and the Securities and Futures Commission publishing (Dec 24) consultation conclusions on new licensing regimes for virtual asset dealing and custodian service providers. The proposals, which drew broad market support, aimed to extend regulation beyond virtual asset trading platforms to enhance investor protection and asset security, while supporting the orderly growth of the digital asset ecosystem. The authorities also launched a further one-month consultation on creating separate licensing regimes for virtual asset advisory and management services, aligning the framework more closely with conventional securities regulation. The approach balanced innovation with risk management and reinforced Hong Kong’s ambition to build a trusted, competitive and sustainable digital asset hub.

Citywide festivities usher in 2026 in Hong Kong

Hong Kong rang in 2026 with large-scale New Year’s Eve countdown celebrations across the city, drawing residents and visitors into a festive urban spectacle. A major focal point was the Chater Road Pedestrian Precinct in Central, where a large crowd gathered to welcome the new year with a music-and-light showcase, including a striking projection mapped across the façades of eight surrounding buildings. Cultural heritage also took centre stage as the Hong Kong Dragon & Lion Festival and World Dragon & Lion Day animated the Tsim Sha Tsui waterfront, bringing together dozens of local and international lion dance troupes in a vibrant parade. Looking ahead, Hong Kong was set to sustain this momentum with a packed January calendar of international sports events, cultural exhibitions and family entertainment, reinforcing the city’s position as a premier destination for world-class events.

Festive holidays draw strong visitor growth

Hong Kong recorded a robust start to 2026 as the New Year’s Eve and New Year holidays concluded smoothly, welcoming about 950 000 visitors between Dec 31, 2025 and Jan 4, 2026 – around 40% more than a year earlier. Mainland visitors accounted for the bulk of arrivals, benefiting from adjusted holiday arrangements and festive attractions such as the New Year Countdown celebrations. Cross-boundary controls, transport services and crowd management operated efficiently, supported by extended clearance hours and enhanced public transport capacity. Major tourist attractions, cultural venues and countryside hotspots saw high patronage and orderly operations, while hotels reported an overall occupancy rate of about 90%. Authorities credited close interdepartmental coordination for ensuring a safe, vibrant and well-managed holiday period for residents and visitors alike.

Hung Shui Kiu Industry Park Company established to drive industrial growth

The wholly government-owned Hung Shui Kiu Industry Park Company was established (Dec 29) to develop and operate a 23-hectare industry park in the Northern Metropolis. The new entity would allow the Government to participate directly in industrial development, leverage market forces and adopt public-private partnership models to accelerate growth. Aimed to commence operations by mid-2026, the Park Company would masterplan the site, build infrastructure and provide value-added services to foster a competitive industry ecosystem, while supporting affected brownfield operators to move up the value chain.

Technology Talent Admission Scheme streamlined

The Innovation and Technology Commission announced (Dec 24) a new round of enhancements to the Technology Talent Admission Scheme to speed up the admission of global innovation and technology talent and strengthen Hong Kong’s I&T talent pool. Key measures included allowing companies and eligible applicants to submit quota and visa applications in parallel, removing the restriction that R&D must fall within 14 designated technology areas, and introducing a dedicated one-stop application channel for tenants and incubatees of the Hong Kong-Shenzhen Innovation and Technology Park.

CorpID sandbox launched to drive corporate digital transformation

The Digital Policy Office and the Hong Kong Cyberport jointly launched (Dec 31) the Digital Corporate Identity (CorpID) Sandbox Programme to support the development of a citywide corporate digital identity ecosystem. The programme offered a free simulated testing environment, technical support and application programming interfaces for government departments as well as public and private organisations to conduct proof-of-concept trials and develop CorpID-enabled applications across industries. The CorpID Platform was targeted for launch by end-2026, providing one-stop digital corporate identity authentication, digital signing and secure storage of licences and permits. The initiative aimed to streamline e-government and online transactions, reduce administrative burdens, and accelerate the digital transformation of Hong Kong corporations, further strengthening the city’s business environment.

External criticism over Lai Chee-ying conviction unfounded

The Hong Kong Special Administrative Region (HKSAR) Government (Dec 24) expressed dissatisfaction with and opposition to the unfounded comments by individual so-called human rights experts after the court of the HKSAR convicted Lai Chee-ying of offences of endangering national security in strict accordance with the law and evidence. The Government stressed that the verdict was reached strictly on the basis of law and evidence, and entirely free from political considerations. Reaffirming Hong Kong’s adherence to the rule of law, the Government said national security laws safeguard both security and lawful rights and freedoms, and urged individuals to understand the facts clearly and stop making any unfounded criticisms.

The Basic Law (BL) is the constitutional document of the HKSAR. It provides the guarantees to maintain our existing way of life, including socio-economic development, the rights and duties of Hong Kong people, the rule of law and other areas. The Basic Law was put into effect on July 1, 1997.

Q: Does the HKSAR have its own system of taxation?

A: Yes. The HKSAR shall practise an independent taxation system. It shall take the low tax policy previously pursued in HK as reference and enact laws on its own concerning types of taxes, tax rates, tax reductions, allowances and exemptions, and other matters of taxation. (BL Article 108)