Financial Secretary Paul Chan said on Sunday that Hong Kong's asset and wealth management business remained resilient despite geopolitical headwinds last year.

Writing in his weekly blog, Chan said assets under management stood at more than HK$31 trillion in 2023, up about 2.1 per cent year-on-year, with two-thirds of the assets coming from outside the territory.

The finance chief added that the SAR remained the second largest private equity management centre after the mainland, with private equity fund assets exceeding HK$1.7 trillion last year.

"The above figures show that despite the changing international geopolitical situation, investors still have confidence in the prospects of the mainland and Hong Kong markets," he wrote.

"It is important for us to do our job well and continue to explain how the country is steadily improving, the central government's strong support for Hong Kong and the unique benefits under the 'One Country, Two Systems' principle."

Separately, Chan said the city's flagship carrier, Cathay Pacific, had announced that it would buy back the remaining preference shares from the government this month, showing that the aviation industry was moving towards full normalcy.