Hong Kong Draws Back Talent as IPO Boom Revives Financial Hub

Hong Kong is attracting back finance professionals after an exodus triggered by the 2019 unrest and stringent COVID-19 restrictions, as a booming IPO market and renewed demand for wealth management services restore the city's standing as a global financial centre.

The turnaround follows Hong Kong's rise to become the world's largest cross-border wealth hub, overtaking Switzerland. Total funds raised, including initial public offerings, climbed 76% year-on-year to about $83.5 billion in the first eight months of 2026.

Executive search firms and consultancies report that finance industry professionals are returning from Singapore, London, Dubai and mainland China to take up roles in wealth management and China-related business.

"Inquiries and relocation activity have rebounded strongly compared to the depths of 2023, gaining solid momentum over the past 18 to 24 months," said Lee Brantingham, a Hong Kong-based partner at global executive search firm H.I.E.C.

"Financial services, particularly asset management, private wealth and family offices, remain the cornerstone. The fastest-growing demand is around artificial intelligence integration, compliance, and risk management," he added.

Government investment agency InvestHK said more than 400 companies either established local entities or expanded their presence in the city in the first half of 2026, up 9% from a year earlier. These enterprises are expected to bring in over HK$53 billion ($6.8 billion) in foreign direct investment and create more than 8,600 jobs.

The revival has lifted demand for prime office space from mainland Chinese and multinational companies, with Grade A offices in the Central business district recovering after years of decline.

Savills' latest leasing market report showed Central's Grade A office market leading the recovery, with rents rising 4.8% in the second quarter from the previous three months, while vacancy rates fell to 9.4% from 10.2% in the first quarter.

"Hedge funds and quantitative funds are pre-leasing large contiguous floor plates to secure space for future expansion, making them a key driver of recent market activity in Central," said Jack Tong, director of research and consultancy at Savills. "Rents for quality office space in core districts are expected to see further recovery over the medium term."

Knight Frank said premium office space in Central remained the most sought after, with vacancy falling to 9.7% in July from 14.5% at the start of the year.

Hong Kong, aiming to strengthen its competitiveness as a global asset management hub, is also in the process of passing a bill to extend a tax incentive to more fund firms and fund managers.

Underscoring demand for office space, U.S. trading firm Susquehanna International Group plans to triple its office space in Hong Kong to bolster a major hiring push.

The city's revival is filtering into the broader economy. Economic growth accelerated to 5.9% in the first quarter of 2026 and remained robust in the second quarter, with officials citing strong demand for AI-related products, rising cross-border financial activity and resilient domestic consumption.

Beijing's imposition of a national security law in 2020 rattled some professionals and expatriates, given a lack of clarity on what overstepping "red lines" constituted, although relative stability in the city over the past few years appears to have allayed some of those concerns. The law criminalises acts including secession, subversion, terrorism and collusion with foreign forces, and has been used to prosecute numerous opposition politicians, activists and media figures.

The Hong Kong that some professionals are returning to, however, is still structurally distinct from the one they left. In a city where the stock market is valued at about $6 trillion and financial services account for around a fifth of gross domestic product, the nature of corporate hiring has shifted.

Government talent schemes have attracted tens of thousands of applicants, many from China, highlighting the city's growing ties with the mainland and its role as the world's biggest offshore centre for Chinese capital.

And while property prices in Hong Kong remain stubbornly high, in addition to a high cost of living, some returnees find they can still build wealth more effectively in the city than in lower-cost regional alternatives.

"The cost of living is more but we will be able to save more. That's the goal ... I think we're able to save more in the long term than we can here in Thailand," said Emily Hampson-Ford, a teacher who returned to the territory this year, adding that the city also offers a great lifestyle. "You've got the beaches, the mountains, the metropolitan city, all really on your doorstep."

Relocation and property agents have reported a significant shift in market dynamics over the past year, pointing to a sharp increase in inbound assignments, with overseas executives accounting for a growing share of new corporate housing leases.

Ultimately, observers emphasize that the current influx points to a deeper shift in the city's identity.

"This is a structural evolution rather than a simple cyclical recovery," Brantingham said. "Hong Kong is developing as a more China-integrated international hub."