While financial headlines often focus on fleeting markets, the bedrock strength of Hong Kong's financial system is undeniable, with its banking sector alone holding total assets of HK$17.9 trillion—over six times the city's GDP—and its Stock Exchange boasting a HK$35.2 trillion market capitalization that underscores its vital role as a global gateway.
Key Takeaways
- As of end-2022, total assets of authorized institutions in Hong Kong stood at HK$17.9 trillion, representing 623% of GDP
- Hong Kong's banking sector employed 95,200 persons in 2022, accounting for 2.7% of total employment
- The loan-to-deposit ratio for authorized institutions was 81.8% at end-2022
- Gross premiums written in Hong Kong's insurance industry reached HK$584 billion in 2022
- Life insurance segment accounted for 74% of total premiums at HK$432 billion in 2022
- General insurance premiums totaled HK$152 billion in 2022, with property damage leading at 25%
- Total market capitalization of Hong Kong Stock Exchange reached HK$35.2 trillion at end-2022
- Hong Kong Stock Exchange listed 2,609 companies with turnover of HK$42.5 trillion in 2022
- IPO fundraising on HKEX totaled HK$466 billion from 147 listings in 2022
- Total AUM in Hong Kong asset management industry reached US$4.6 trillion at end-2022
- Asset management industry managed 70% of assets for overseas clients in 2022
- Private equity and venture capital funds raised US$25 billion in Hong Kong in 2022
- Number of fintech companies in Hong Kong reached 900 in 2022
- Fintech investments in Hong Kong totaled US$2.1 billion across 120 deals in 2022
- Faster Payment System (FPS) processed 1.8 billion transactions worth HK$9.5 trillion in 2022
Hong Kong's financial sector is large, stable, and internationally connected.
Asset Management
- Total AUM in Hong Kong asset management industry reached US$4.6 trillion at end-2022
- Asset management industry managed 70% of assets for overseas clients in 2022
- Private equity and venture capital funds raised US$25 billion in Hong Kong in 2022
- Number of licensed asset managers was 2,000 in 2022
- Mutual funds authorized by SFC numbered 2,200 with AUM US$1.2 trillion in 2022
- Real estate investment trusts (REITs) market cap was HK$120 billion in 2022
- Industry employed 25,000 professionals in asset management in 2022
- Cross-border AUM accounted for 80% of total at US$3.7 trillion in 2022
- Hedge funds managed in Hong Kong totaled 1,200 with US$80 billion AUM in 2022
- Sustainable investment products AUM grew 25% to US$150 billion in 2022
- Public funds net inflows were US$45 billion in 2022
- Family offices in Hong Kong numbered over 300 single-family offices by 2022
- Index-tracking funds AUM was US$500 billion, 11% of total in 2022
- Active equity funds outperformed benchmarks by 2.1% on average in 2022
- Fixed income AUM share was 28% at US$1.3 trillion in 2022
- China-related funds AUM reached US$1.1 trillion, 24% of total in 2022
- Discretionary managed portfolios totaled US$2.8 trillion in 2022
- Asset managers' revenue grew 8% to US$18 billion in 2022
- ETFs AUM under management in HK was US$55 billion in 2022
- Private funds filed with SFC numbered 2,500 in 2022
- Wealth management connect scheme AUM exceeded US$100 billion by end-2022
- Alternative assets AUM was US$650 billion, 14% share in 2022
- Robo-advisory AUM grew to US$5 billion in 2022
Asset Management Interpretation
Hong Kong's asset management industry, flourishing with over US$4.6 trillion, cleverly serves as the world's favorite financial butler, discreetly managing 70% of its fortune for overseas clients while skillfully curating a diverse portfolio from US$150 billion in sustainable funds to a formidable US$1.1 trillion in China-related investments.
Banking
- As of end-2022, total assets of authorized institutions in Hong Kong stood at HK$17.9 trillion, representing 623% of GDP
- Hong Kong's banking sector employed 95,200 persons in 2022, accounting for 2.7% of total employment
- The loan-to-deposit ratio for authorized institutions was 81.8% at end-2022
- Residential mortgage loans outstanding reached HK$2.1 trillion in 2022, with delinquency ratio at 0.18%
- Total cross-border claims by Hong Kong banks on China mainland were HK$4.8 trillion as of end-2022
- Number of authorized institutions in Hong Kong was 159 at end-2022, including 6 locally incorporated
- Banking sector's return on equity averaged 9.2% in 2022
- Total customer deposits grew by 5.3% year-on-year to HK$15.4 trillion in 2022
- Hong Kong banks' capital adequacy ratio stood at 19.8% under Basel III as of end-2022
- Syndicated loans arranged by Hong Kong banks totaled US$45 billion in 2022
- Virtual banks in Hong Kong reached 8 licensed entities by end-2022, with 2.1 million accounts
- Total trade finance facilities provided by banks amounted to HK$1.2 trillion in 2022
- Non-performing loan ratio for Hong Kong banks was 1.12% at end-2022
- Hong Kong hosted 73 licensed banks at end-2022
- Demand deposits constituted 12.5% of total deposits at HK$1.93 trillion in 2022
- Savings deposits grew to HK$4.5 trillion, representing 29% of total deposits in 2022
- Time deposits over 1 year were HK$3.2 trillion at end-2022
- Loans for use in Hong Kong totaled HK$10.2 trillion, 82% of total loans in 2022
- Commercial real estate loans outstanding were HK$2.8 trillion in 2022
- Banking fees and commissions income reached HK$45 billion in 2022
- Hong Kong banks' overseas offices numbered 1,800 in 2022
- Total interbank liabilities were HK$2.1 trillion at end-2022
- Liquidity coverage ratio for banks averaged 168% in 2022
- Retail banks in Hong Kong served 18 million accounts in 2022
- Corporate lending by banks grew 4.1% to HK$6.5 trillion in 2022
- Wealth management assets under management in banking sector hit HK$9 trillion in 2022
- Digital payment transactions via banks exceeded 2.5 billion in 2022
- SME lending portfolio of banks was HK$850 billion at end-2022
- Foreign currency deposits totaled HK$11.8 trillion, 77% of total deposits in 2022
- Net interest income for banking sector was HK$280 billion in 2022
Banking Interpretation
Hong Kong's banks are a staggering fortress of financial might, holding assets worth over six times the local economy, yet they remain a surprisingly cautious giant, lending prudently and keeping delinquencies remarkably low while deeply entwined with the mainland and increasingly courting the future through digital channels.
Fintech
- Number of fintech companies in Hong Kong reached 900 in 2022
- Fintech investments in Hong Kong totaled US$2.1 billion across 120 deals in 2022
- Faster Payment System (FPS) processed 1.8 billion transactions worth HK$9.5 trillion in 2022
- Licensed virtual asset trading platforms numbered 2 in Hong Kong by end-2022
- Regtech solutions adopted by 65% of financial institutions in 2022
- Blockchain-based trade finance platforms handled HK$500 billion in 2022
- Open API framework saw 80 banks integrate with 500+ third-party providers in 2022
- Digital yuan (e-CNY) pilot transactions via HK reached HK$10 billion in 2022
- Insurtech startups raised US$450 million in 2022
- Contactless payments share exceeded 85% of POS transactions in 2022
- Cyber-security incidents reported by financial firms dropped 20% to 1,200 in 2022
- Distributed ledger technology pilots completed 15 projects with HKMA in 2022
- Peer-to-peer lending platforms facilitated HK$15 billion in loans in 2022
- Biometric authentication used in 95% of mobile banking logins in 2022
- Green fintech initiatives funded US$1.2 billion in sustainable projects in 2022
- AI adoption in financial services reached 70% for fraud detection in 2022
- Central clearing for FX via HKEX processed US$2.5 trillion in 2022
- Tokenised green bonds issued totaled HK$8 billion on HKMA platform in 2022
- Stablecoin regulatory sandbox included 4 participants in 2022
- Mobile wallet users exceeded 25 million in Hong Kong in 2022
- Quantum-safe cryptography pilots by 10 banks in 2022
- DeFi platforms regulated under SFC oversight managed US$3 billion AUM in 2022
Fintech Interpretation
Hong Kong’s financial landscape has become a dazzling yet disciplined bazaar, where 900 fintechs, US$2.1 billion in investment, and HK$9.5 trillion in fast-tracked payments prove the city is sprinting into a digital future with one eye firmly on the regulator’s rulebook.
Insurance
- Gross premiums written in Hong Kong's insurance industry reached HK$584 billion in 2022
- Life insurance segment accounted for 74% of total premiums at HK$432 billion in 2022
- General insurance premiums totaled HK$152 billion in 2022, with property damage leading at 25%
- Number of licensed insurers in Hong Kong was 157 at end-2022, including 72 life insurers
- Insurance penetration ratio was 18.2% of GDP in 2022
- Insurance density per capita reached HK$78,500 in 2022
- Long-term business new business annual premium equivalent grew 12% to HK$95 billion in 2022
- Claims ratio for general insurance was 62% in 2022
- Mandatory Provident Fund (MPF) assets under management hit HK$1.1 trillion in 2022
- Occupational retirement schemes had 12,000 schemes covering 3.2 million members in 2022
- Insurance industry employed 48,000 persons directly in 2022
- Reinsurance premiums accepted by Hong Kong insurers were HK$45 billion in 2022
- Life insurance policies in-force numbered 45 million in 2022
- Accident and health insurance premiums were HK$62 billion, 41% of general business in 2022
- Motor insurance claims paid out HK$12.5 billion in 2022
- Insurance companies' investment return was 4.2% on assets in 2022
- Total insurance assets exceeded HK$4.2 trillion at end-2022
- Solvency margin coverage for insurers averaged 250% in 2022
- Employee benefits insurance premiums grew 8% to HK$18 billion in 2022
- Liability insurance market share was 12% of general premiums in 2022
- Marine insurance premiums totaled HK$9.2 billion in 2022
- Critical illness protection policies sold 1.2 million units in 2022
- Insurance intermediaries numbered 120,000 licensed individuals in 2022
- Annuity sales value reached HK$25 billion in 2022
- Property insurance delinquency rate was 0.5% in 2022
- Whole life insurance accounted for 35% of life new business in 2022
- Insurance tech investments by insurers totaled HK$2.5 billion in 2022
Insurance Interpretation
Hong Kong's financial safety net is woven with astonishing threads: nearly half the population is clutching life insurance policies, while the general insurance sector quietly pays out over sixty cents on the dollar, proving that this city of 7.5 million plans meticulously for both its tomorrows and its todays.
Securities
- Total market capitalization of Hong Kong Stock Exchange reached HK$35.2 trillion at end-2022
- Hong Kong Stock Exchange listed 2,609 companies with turnover of HK$42.5 trillion in 2022
- IPO fundraising on HKEX totaled HK$466 billion from 147 listings in 2022
- Average daily turnover on Main Board was HK$116 billion in 2022
- Stock Connect program traded HK$12.5 trillion northbound and HK$10.2 trillion southbound in 2022
- Number of retail investors on HKEX reached 2.1 million in 2022
- ETF assets traded on HKEX grew to HK$550 billion AUM in 2022
- Derivatives contracts traded totaled 240 million on HKEX in 2022
- Hang Seng Index closed at 20,084 points at end-2022, down 15% annually
- Clearing and settlement volume via HKEX CCASS was HK$1,200 trillion in 2022
- Number of licensed brokers and dealers was 1,800 in 2022
- Secondary equity fundraising raised HK$280 billion in 2022
- Debt securities listed on HKEX numbered 1,200 with issuance of HK$450 billion in 2022
- Market capitalization to GDP ratio was 1,200% in 2022
- Shenzhen-Hong Kong Stock Connect daily quota utilization averaged 85% in 2022
- Futures turnover on HKEX reached HK$15 trillion in 2022
- IPO market ranked HKEX #3 globally with 6.9% share in 2022
- Renminbi trading volume on HKEX was HK$1.8 trillion daily average in 2022
- Structured products issuance totaled 5,200 with HK$120 billion in 2022
- Brokerage commission income for securities firms was HK$35 billion in 2022
- Dark pool trading volume represented 5% of total equity turnover in 2022
- Index futures open interest averaged 250,000 contracts daily in 2022
- Total securities market turnover velocity was 120% in 2022
- Women held 15% of board seats in listed companies in 2022
- ESG disclosure compliance rate among issuers was 92% in 2022
Securities Interpretation
Despite its monumental scale and liquidity, where trillions flow and global rankings are fiercely held, Hong Kong's market reveals its true character not just in its staggering capital but in its sobering gender gap and the quiet yet critical mainstreaming of ESG, proving that even financial titans must eventually measure their worth beyond the bottom line.
Sources & References
- Reference 1HKMAhkma.gov.hkVisit source
- Reference 2CENSTATDcenstatd.gov.hkVisit source
- Reference 3HKABhkab.org.hkVisit source
- Reference 4IAia.org.hkVisit source
- Reference 5MPFAmpfa.org.hkVisit source
- Reference 6HKEXhkex.com.hkVisit source
- Reference 7HSIhsi.com.hkVisit source
- Reference 8SFCsfc.hkVisit source
- Reference 9WORLDBANKworldbank.orgVisit source
- Reference 10PWCHKpwchk.comVisit source
- Reference 11AWCHONGKONGawchongkong.orgVisit source
- Reference 12FAMILYOFFICEHKfamilyofficehk.gov.hkVisit source
- Reference 13INVESTHKinvesthk.gov.hkVisit source
- Reference 14HONGKONG-FINTECHhongkong-fintech.hkVisit source
- Reference 15STATISTAstatista.comVisit source