Business

The financial landscape in 2025 has been dynamic, with trade tensions and policy shifts drawing intense market attention. In Hong Kong, the performance of local capital markets and the broader economy  have also been in focus. The rapid development of AI has been another major theme. We used three AI models with web-search capabilities, enabling them to access real-time information, to compile a preliminary ranking of the top financial news stories of 2025, both internationally and in Hong Kong.  The following prompt was used for all three AI models:  "Please select the top 5 economic and financial news stories related to [Hong Kong/International] in 2025. You must use credible news websites and official news reports as information sources. For each selected news story, provide a clear ranking, detailed reasons for the ranking, and the source of the news. Ensure the information is accurate and up-to-date,” The list is presented in the table. Duan Yang, a senior lecturer of the Department of Accountancy, Economics and Finance in HKBU,  noted that the results closely reflected key market developments, including the slow recovery of China’s real estate sector, weak consumer spending, the Hong Kong IPO surge, HSBC privatization, and Hong Kong government fiscal policies. In terms of Hong Kong’s financial market, Duan observed that the city’s position as a financial hub had strengthened this year. While (Global Financial Centres Index) rankings had declined in previous years, strong activity in the overall financial market, particularly in the IPO sector, combined with substantial capital inflows, contributed to consolidating Hong Kong’s financial standing. Duan also highlighted a notable trend in the Stock Connect program, with a majority of funds investing in Hong Kong equities now originating from mainland China, compared with a larger share from foreign investors in prior years, indicating a significant shift in market …

Floria Chen, a gold lover from mainland China, is leaning in to scan the gold jewelry at the counter, carefully inspecting it under the lighting as she contemplates her selections in a bustling Chow Tai Fook store in Mong Kok. “Gold prices have performed exceptionally well this year,” Chen said. Believing in the substantial potential for price appreciation, she planned to increase her gold holdings. The year 2025 has been record-breaking for gold , one of the most popular and best-performing assets globally. As of Oct. 31, the international gold spot price had surged more than 50% to $4,002.92 per ounce since the beginning of the year, and reached a new historic high at $4381.52 on Oct. 20.  Alongside the rapid rise,  the year also features a single-day drop of 5.3%, the largest since 2013, though analysts viewed this as a healthy correction following the metal's relentless climb.  Despite this, analysts say the fundamental drivers behind the strong rise in gold prices remain intact. Looking back to this year’s eye-catching alternative, the volatility always echoes the Federal Reserve's monetary policy shift, escalating geopolitical tensions, and ongoing gold purchases by central banks. As of Oct. 31, the US Federal Reserve has cut the basic interest rates twice by 25 basis points on Sep. 18 and Oct. 29 to sustain economic momentum, as a weakened domestic labor market showed.  On Oct. 29, the Federal Reserve announced its plan to end quantitative tightening starting in December. Alongside the evolving policy factors, escalating geopolitical tensions are also playing a significant role.  HSBC noted that on Oct. 8, gold prices first surpassed the $4,000 per ounce mark, driven primarily by various uncertainties, including the ongoing U.S. government shutdown,  resurgence of tariff concerns, and increasing political ambiguity in France. Market concerns over fiscal challenges are also …

The Hong Kong Trading Development Council held a seminar on Thursday on new consumption trends in the Greater Bay Area (GBA), guiding Hong Kong enterprises to seize opportunities in the GBA amid the city’s modest retail recovery. Howie Wong, General Manager of Kampery, a Hong Kong-based retailer and manufacturer, said that mainland China’s consumption momentum is robust, driven by highly convenient e-commerce. Therefore, it is a great opportunity for Hong Kong enterprises to expand their exports now. The latest data from the Census and Statistics Department shows that although Hong Kong’s total retail sales in November 2025 increased by 6.5% compared with the same period in 2024, reaching HK$33.7 billion, it is still much lower than the level before the COVID-19 pandemic. Wong added that some mid-tier, more value-for-money consumers may choose to spend in mainland stores, causing purchasing power to shift northwards. Sherriff Luk, professor of marketing at Emlyon Business School, cited research by Agent Ocean showing that mainland consumers are increasingly focused on product quality, safety, and health benefits. Hong Kong businesses need to understand the changes in the consumer base of the Greater Bay Area. If they stick to the old ways, they may not keep up with the trend. More specifically, Luk said that the pursuit of  “quality of life” is a new consumption trend and mainland consumers are shifting from price-driven to experience- and emotion-driven spending. On corporate strategy, Billy Cheung, founder and CEO of Sparkdemy, said that in an environment where social media content is highly saturated, brands need to enhance their exposure and content production capabilities.  “As long as you can be found in Search Engine Optimization searches, you win,” he added.  Regarding how Hong Kong enterprises can enter and capture the Greater Bay Area market, Cheung said that it is important to …

In 2025, the US Federal Reserve cut rates twice in the second half of the year. Under Hong Kong's dollar peg system, local rates followed the downward trajectory. For nearly four decades, Hong Kong has operated under a dollar peg system that ties the city's currency to the US dollar. This mechanism means local interest rates track Federal Reserve decisions, transmitting US monetary policy to the local economy.  AI Analogy: The Dollar Peg in Simple TermsImagine asking a fortune teller at Wong Tai Sin Temple about whether property prices will drop next year, only to receive the answer: “Everything depends on the mood of the US Federal Reserve.” In Hong Kong, even the gods of fortune sometimes have to check Powell’s latest speech before blessing your investments.   On Oct. 30, 2025, Federal Reserve Chairman Jerome Powell announced a 25 basis point cut to the federal funds rate to 3.75%-4.00%, marking the second rate cut of the year amid a sluggish job market. The same day after the rate cut, the Hong Kong Monetary Authority (HKMA) announced a reduction in its base rate to 4.25%. Under the linked exchange rate system, Hong Kong dollar interbank rates generally converge with US dollar interest rates, said Eddie Yue, Chief Executive at HKMA.  As the year 2025 unfolded, US President Donald John Trump challenged Powell’s January message of caution, pushing instead for faster rate cuts. The federal funds rate was cut twice, 25 basis pointsat a time, in September and October to the range of 3.75% to 4.00%.  Following HKMA’s adjustment, several major commercial banks such as HSBC, Hang Seng Bank, and Bank of China (Hong Kong) also lowered their prime lending rates accordingly. However, the banks' reductions were smaller than the Federal Reserve's cuts. Most major banks reduced their prime rates by …

At MegaBox shopping mall, Giuliana, a border collie known for the breed’s its intelligence and agility, sat quietly in a pet stroller while her owner, Gabriella Ng, bent over to straighten the hem of her dress, ensuring Giuliana could present her best performance during their walk show on Sep. 27. As a fashion designer and content creator, Ng took one month to design her and Giulian’s dress to match each other stylishly for the showcase during the Pet Walk Show 2025. “It cost about HK$10,000 for these two dresses,” said Ng, pointing at her piece. With an average cost of HK$700, Ng shared that Giuliana has around 20 items of clothing. According to Exhibition Group, the organiser of another pet show, 80.1% of about 1,000 respondents reported an increase in expenditure over the past 12 months, with average monthly spending reaching HK$2,086, up 6.3% from HK$1,962 the previous year. The proportion of people spending between HK$1,501 and HK$2,500 per month on pet care rose from 27.5% to 32.4%. Additionally, 79.1% of respondents expect their spending to increase within the next six to 12 months, over half anticipating at least a 10% rise. A trend toward premium, personalised pet care is redefining Hong Kong’s pet consumption economy as owners allocate larger  budgets into their “fur kids,” boosting the related products and services market. The global dog clothing market reached US$1.5 billion (HK$11.7 billion) in 2024, according to internal data and industry insights from 6Wresearch released in April. Tomas Yuen, a retired professor from the Department of Economics and Finance at Hong Kong Shue Yan University, noted the spending shift marks a broader change in consumption patterns. Most pet owners prefer high-quality and luxurious services and products for their “fur kids,” which could change the market’s business model. “They care about the …

Every time Liu Busi, a retail investor in the initial public offering (IPO) market in Hong Kong, checks the result of his new stock subscription, he feels a mix of uncertainty and excitement. Joining the IPO subscription game this year amid intense oversubscription, Liu has subscribed to 25 new listings and was allocated shares in 17 of them, including CATL and Zijin Gold, the two largest  IPOs in 2025, with approximately HK$ 41 billion and HK$ 25 billion raised respectively. Of the 17 allocations, 14 have gained value after subscription, with his best performing IPO investment - Bloks, a Chinese toy company , having generated HK$ 11,059 for him as of Nov. 6. However, Liu noticed a sharp change in his subscription success rate after Hong Kong Stock Exchange's (HKEX) new reforms on IPOs in August.  The HKEX implemented new optimisation measures on stock allocation and subscription mechanisms, including stipulating that issuers must allocate at least 40% of the shares in the IPO to the book-building placement portion and introducing two public subscription mechanism options. Before the reform, Liu was allocated shares in 10 out of 13 subscriptions, a 77% success rate. After the reform, he could only secure allocations for 7 out of 12 subscriptions, a 58% success rate.  The city has seen 69 IPOs raise over HK$160.4 billion as of Sept. 30, a 183% surge compared with last year. According to Deloitte China's analysis, the city is projected to see over 80 IPOs raising HK$250 billion to HK$280 billion for the full year 2025. HKEX did not comment on the reduced success rate of subscriptions by retail investors when asked by TYFP reporters. In an earlier news release, Katherine Ng, HKEX Head of Listing, said the exchange “has sought to enhance the robustness of the IPO pricing and …

Clutching a concert ticket for her idol, Amy Cao, 21, made her way straight to the Kai Tak Sports Park without any hesitation on the morning of Sep. 27. Having travelled from Shenzhen for 1.5 hours, Cao’s face betrayed no trace of travel fatigue, but showed unconcealed excitement and anticipation. "I'm incredibly excited!” said Cao, stating that this is the closest location for her of Seventeen’s world tour." I saw reviews on social media saying the Kai Tak Sports Stadium has excellent acoustics and is incredibly spacious, perfect for a large crowd. I'm looking forward to the venue." Located on the former runway area of Kai Tak Airport, Kai Tak Sports Park covers approximately 28 hectares, making it the largest sports infrastructure project in the city's history, capable of accommodating tens of thousands of spectators. According to the government’s estimate, the Kai Tak Stadium and Kai Tak Arena recorded about 590,000 spectators for all pop concerts as of May 31, 2025. Since its commissioning, the two venues have hosted 16 large-scale concerts by international and Asian performers. Edward Leung, a Legislative Council member, pointed out that Hong Kong is taking advantage of its unique location, attracting concerts, especially for Korean artists who struggle to gain approval in mainland China. "Moreover, Hong Kong's visa-free access for travellers from most countries makes it an ideal platform for international cultural and sports exchanges," he added. Echoing Leung, Tina Wong, the chairperson of the Hong Kong Rope Skipping Association, mentioned that the upgraded sports facilities in the newly established stadium have provided Hong Kong with more opportunities to host major national events. Since opening, the Kai Tak Stadium and Kai Tak Arena have hosted a total of 15 sports events, including rugby sevens, snooker, and other large-scale competitions. The Hong Kong government elevates the …