Traders rotate out of stocks and into bonds on worries about entrenched inflation in the US and the Trump administration’s tariffs.

High interest rates in the US, which translate directly to Hong Kong due to the territory’s dollar peg, had depressed dealmaking in the city. Coupled with its exposure to China’s economic slowdown, the city’s capital markets entered a prolonged slump.

Hong Kong's bourse operator reported on Thursday a 10% rise in profit in 2024, beating forecasts, bolstered by a sharp jump in trading revenues after China's announcement of economic stimulus measures boosted investor sentiment.

Net profit in 2024 rose 10 per cent to HK$13 billion (US$1.7 billion), aided by higher fees from handling market transactions and new stock listings.