Foreign capital inflows into Hong Kong increased after the outbreak of the Middle East war

Recently, the claim about “Middle Eastern capital worth HK$300 billion flowing into Hong Kong” has been all over the market. A reporter recently visited multiple banks, securities firms, financial institutions in Hong Kong, as well as researchers in the Middle East, and learned that after the fighting in the Middle East broke out, there has indeed been an increase in foreign capital flows into the Hong Kong market. This includes some funds originating from the Middle East, but the exact size of inflows and the true sources of the flows are difficult to precisely quantify and verify. What can be said for certain is this: on the one hand, driven by the turmoil in the Middle East, global funds’ demand for safe havens has continued to heat up; on the other hand, Middle Eastern capital has been steadily positioning itself for the Hong Kong and mainland China capital markets over the past two years, and Hong Kong has become an important choice for the allocation of global funds, including those from the Middle East. In fact, when you look at a longer time frame, Middle Eastern capital has continued to actively develop the Hong Kong market over the past two years. (First Financial)