As trade uncertainties loom large, Hong Kong stands as a flagbearer of free and open trade, with all the elements of a stronghold for businesses establishing and expanding their presence in markets across the Chinese mainland and Asia.
This is the view of policymakers who attended the 58th Annual Meeting of the Asian Development Bank, Financial Secretary Paul Chan Mo-po wrote in his Sunday blog.
Amid mounting concern over unilateralist forces and a gloomy global outlook, the real and pressing issue for policymakers worldwide is how to boost their countries' economy and improve people’s livelihood, said Chan who participated in the conference in Italy last week.
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Citing Central Asian countries that bet on their young populations, rich natural resources and growth potential to make a meaningful impact on foreign trade, as well as the minerals and renewable energy sectors, Chan said many ADB members want to attract more international investment, sophisticated technical solutions and the finest minds while seeking closer collaboration in infrastructure projects, as well as people’s well-being.
“This is where Hong Kong could come into play, riding high on its full-spectrum financial service system, particularly innovative financing solutions, such as infrastructure loan securitization and catastrophe bonds,” the finance chief said.
“And, with its entrenched status as a ‘super-connector’ and ‘super value-adder’ reinforced, Hong Kong is well positioned to bring together a diverse cohort of global investors, financial service providers and enterprises with various industry backgrounds to serve the development of ADB member states and regions.”
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On the sidelines of the annual meeting, finance ministers and central bank governors of China, the Association of Southeast Asian Nations, Japan and South Korea reaffirmed their “full commitment to multilateralism and a rules-based, non-discriminatory, free, fair, open, inclusive, equitable and transparent multilateral trading system, with the World Trade Organization at its core”. They also vowed to promote greater intra-regional trade and investment flow.
What’s commonly agreed among many ADB economies, Chan pointed out, is that Asia continues to be a major growth engine for the global economy, with more investments pledged for the region.
“Hong Kong’s appeal as a free port, with its free flow of capital, goods and information, as well as an open, friendly business environment, is also widely accepted,” Chan said, adding that the world-renowned financial hub has what it takes to be a “strategic stronghold” for them to make inroads into the mainland and Asian markets.
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As spending in artificial intelligence has become one of the few certainties in these unsettled times, Chan said there’s no doubt among ADB members about the transformative power of technological innovations as a pivotal driving force for economies making a leap.
He said many member economies are making good efforts in facilitating tech development and regulatory frameworks. “They have shown keen interest in Hong Kong’s learning lesson of setting up the Fintech Supervisory Sandbox to get technological solutions off the ground, and accelerating the launch of more inclusive and accessible financial services,” he said.
