Financial Secretary Paul Chan said on Sunday it's high time for Hong Kong to step up efforts to promote its markets and attract more capital, as the global investment environment showed signs of improvement.

He made the comment as he set off for a week-long duty visit to Madrid and London alongside tech executives from the Science Park and Cyberport.

The delegation will meet local start-ups, as well as attend events to promote the SAR's advantages.

Chan will embark on another similar visit to the Middle East in late October.

Writing on his weekly blog, Chan noted that investors' appetite for risk had picked up as they seek higher returns, after the US Federal Reserve cut interest rates for the first time in four years.

He said Hong Kong has been recording a sustained net capital inflow, as total bank deposits edged up to HK$16.8 trillion for the first seven months of this year.

"As the general environment gradually turns relatively favourable, we need to further strengthen our efforts to promote the Hong Kong market, and to find wider, more diversified capital sources as the risk appetite of investors gradually improves," Chan said.

The minister also noted that, after a large initial public offering last week, the Hong Kong market now ranks fourth in the world in terms of funds raised this year.