Amid escalating U.S.-China trade tensions, Hong Kong is rapidly emerging as a preferred destination for global investors seeking stability and growth in the Asia-Pacific region.

Financial Secretary Paul Chan Mo-po has revealed a significant uptick in foreign capital entering both Hong Kong and mainland Chinese markets, driven largely by growing concerns over protectionist trade policies from Washington. In a recent blog post, Chan pointed to mounting interest from international financial institutions, many of which are expanding operations and relocating senior executives to Hong Kong.

“With the U.S. imposing cumulative tariffs of up to 145 percent—and in some cases as high as 245 percent—on Chinese goods, investors are increasingly seeking alternative markets that offer resilience, connectivity, and opportunity,” Chan said.

According to Chan, recent interactions with global business leaders revealed a shared skepticism toward the U.S. tariff strategy. Many voiced concerns that these measures not only risk damaging the American economy but could also isolate the U.S. from key international markets.

At the same time, investors are zeroing in on Hong Kong's distinct advantages: its zero-tariff status, common law legal system, and strategic position as a gateway to China and the wider Asian market.

“Hong Kong's role as a free port and international financial center allows it to efficiently support logistics, supply chains, and trade financing across Asia, especially within the ASEAN region,” Chan noted.

In recent months, a noticeable shift in capital flows has taken place. New listings of mainland Chinese companies in Hong Kong have seen a marked rise in foreign investment participation, reflecting growing investor confidence in China’s economic trajectory and technological advancement.

“Many investors don’t want to miss the window of opportunity in China,” Chan explained. “They’re responding to the country’s continued innovation momentum, resilient economic fundamentals, and ongoing commitment to high-level opening-up.”

Adding to its appeal, Hong Kong is actively positioning itself as a hub for global investment dialogue. Plans are underway to host more international forums and financial conferences, aiming to bridge communication between global capital and opportunities in the Greater Bay Area.

As uncertainties loom over U.S. trade policy, Hong Kong’s strategic clarity, economic openness, and legal transparency are proving more attractive than ever to global investors seeking diversification and security