TOP STORIES

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 …