Goldman Sachs and Mainland Funds Back Hong Kong as Beijing Steps Up Market Support

Capital is being directed toward Hong Kong's markets from two sources at once. Goldman Sachs reaffirmed its buy rating on Hong Kong Exchanges and Clearing, citing Beijing's policy support for the city as an international financial center and a boost from artificial-intelligence-linked stocks, in what the South China Morning Post described as a vote of confidence in Hong Kong's financial future.

At the same time, mainland Chinese institutional managers have built up positions in Hong Kong-listed biotechnology, drawn by low valuations and a surge in cross-border licensing deals. The South China Morning Post reported that China's largest mutual fund manager was among those increasing stakes in the sector over the past month.

The two moves point to a deliberate effort, backed by both a Wall Street bank and mainland state-linked capital, to strengthen Hong Kong's position as the venue where Chinese growth industries raise money and where global and domestic investors meet outside the United States market.