The paradox of Hong Kong's 'Sinicization' in the financial hub... sustainability growth amidst the listing rush is a question mark.

Hong Kong ranks second in IPOs in the first half of the year... 117 listings Becomes the world's largest offshore financial asset hub Questions about sustained growth due to reliance on mainland China and shrinking political freedoms To understand the whole content, you must read along with the article. Submitted October 16, 2026, 14:58 Hong Kong, second in world IPOs in the first half of the year... 117 listings Becomes the world's largest offshore financial asset hub Questions about sustained growth due to reliance on mainland China and shrinking political freedoms Google displays the Yonhap News article as the primary source. (Seoul=Yonhap News) Reporter Kwon Sook-hee = As a procession of listings by mainland Chinese companies continues, Hong Kong appears to be finding vitality centered on the financial industry. The Wall Street Journal (local time) reported on the 15th that the forecast that Hong Kong would lose its status as a global financial hub and struggle to recover due to the crackdown on pro-democracy protests and strict COVID-19 restrictions is proving incorrect. In the Hong Kong stock market this year, the listings of companies from mainland China slowed down, driven by the growth of high-tech industries such as artificial intelligence (AI), semiconductors, and robotics. Hong Kong was the stock market with the most Initial Public Offerings (IPOs) in the first half of this year, excluding the US Nasdaq. By December 12th this year, 117 companies had completed their IPOs on the Hong Kong stock market, a figure close to the total number of IPO companies in the previous year, which was 119. The Hong Kong Stock Exchange spokesperson stated that over 450 companies are still awaiting listing approval. According to Boston Consulting Group (BCG), Hong Kong has become the world's largest offshore financial asset hub, holding 2.9 trillion US dollars (approximately 3.9 trillion KRW) in offshore financial assets as of early this year, surpassing Switzerland. Amid this, the Chinese government is seeking to use Hong Kong as a center for gold and commodity trading while also utilizing it as a hub for the internationalization of the yuan. Andrew Tilton Economist of Goldman Sachs pointed out that Hong Kong can play an important role in achieving the long-term goal of the Chinese government of enhancing the international status of the yuan. He stated, "Hong Kong is still a very useful gateway" and "a place where capital controls are lifted and various financial development options can be experimented with." Amidst the observation that Hong Kong is re-emerging as a global financial hub, the limitations of so-called 'Sinicization' also appear clear. It is analyzed that the economic effect is limited because most companies listed on the Hong Kong stock market are from mainland China. Ten years ago, there was a movement for companies from various countries to list on the Hong Kong stock market, not only in New York or London to diversify their investor base. However, it is pointed out that profitability may be limited as the proportion of mainland Chinese companies increases. According to the London Stock Exchange Group (LSEG), market research institutions, the fee income earned by investment banks through listings on the Hong Kong stock market was 579 million US dollars (approximately 779.1 billion KRW) last year, a significant decrease compared to 2020 (932 million US dollars, approximately 1.25 trillion KRW). The recovery of the financial market in Hong Kong was not followed by growth in other industries. Hong Kong International Airport maintained its status as the world's largest air cargo hub last year, but the volume of container throughput at Hong Kong Port decreased by about 40% compared to 2017. This is analyzed to be due to the shift in cargo volume to Shenzhen in Guangdong Province and Guangzhou ports in mainland China, near Hong Kong. In contrast to the recovery of the financial market, the continued constriction of political freedoms raises concerns about the future of Hong Kong. After the implementation of the National Security Law in 2020, pro-democracy activists and journalists were successively arrested, and in February, Jimmy Lai, a representative figure for democracy in Hong Kong, was sentenced to 20 years in prison. Steven Roach, a senior researcher at the Stanford Center for China Studies at Yale Law School, pointed out that freedom of press, publishing, and the freedom to express political dissent in Hong Kong have been virtually suppressed. He stated, "We cannot be sure whether Hong Kong will have enough economic vitality to prosper independently." The first five-year economic and social development plan announced in Hong Kong last month is evaluated as an example showing that the economic policies of China are also being reflected in Hong Kong. suki@yna.co.kr Reporting by Yonhap News, without permission, reproduction-redistribution, AI learning and use prohibited. October 16, 2026, 14:58