Hong Kong drives Asia's equity growth despite $1.3t market shortfall: report

The combined value of Hong Kong companies remains $1.3t lower than the 2020 level.  

Hong Kong, along with China, played a significant role in driving Asia’s listed equity growth, adding $870b to the region’s total market value in early 2025, financial provider Ocorian said.

This is despite the combined value of Hong Kong and Chinese companies remaining $1.3t lower than their levels five years ago (December 2020).

The city’s telecom industry is experiencing rapid digital transformation, fuelled by 5G expansion, AI-driven efficiencies, and growing private market investments. Hong Kong’s 5G adoption is accelerating, with telecom operators investing heavily in infrastructure to enhance connectivity and enable smart city initiatives.

Yet, Ocorian said monetising these investments remains difficult as intense competition and consumer price sensitivity put pressure on profitability.

Hong Kong’s private asset markets have also been expanding, growing 1.9% YtD, largely driven by private equity investments. Private markets in Hong Kong have grown 21 times larger than in 2009, far outpacing the global average.

AI is playing an increasingly vital role in network management and customer experience optimisation. Telecom operators are leveraging automation and machine learning to improve operational efficiency, reduce costs, and enhance service personalization.

However, despite these advances, Ocorian said revenue growth remains constrained by regulatory challenges and market saturation.