The significance of the Hong Kong Special Administrative Region as a gateway and a platform will only grow, as the Chinese mainland offers a high degree of stability and predictability amid the global fragmentation environment marked by volatility and unilateralism.
Panelists made this observation on the first day of the 19th Asian Financial Forum, co-organized by the Hong Kong SAR government and Hong Kong Trade Development Council. The two-day conference runs from Monday to Tuesday.
In the plenary session discussing “the charting of the future of finance in times of uncertainty”, Securities and Futures Commission CEO Julia Leung Fung-yee warned about high global debt levels due to expansionary fiscal policies, the valuation bubble brought by the artificial intelligence boom, and the pressure of rising inflation require market vigilance.
Bank of Korea Governor Rhee Chang-yong said financial stability is the most worrying issue this year, as it potentially imposes greater constraints on the monetary and fiscal policies of many countries. Rhee said a more pronounced divergence in monetary policy, and the rise of nonbank institutions in the financial market, will pose a threat to financial market stability.
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Financial Secretary Paul Chan Mo-po said at the AFF’s keynote luncheon, “Countries are reassessing their economic and security relationships, seeking to build strategic resilience and adapting to a more fragmented global environment.”
The finance chief added that the Chinese mainland’s solid and resilient medium-to-long-term growth trajectory and emphasis on technological advancement in the upcoming 15th Five-year Plan (2026-30) will lead to growth innovation as well as business and investment opportunities.
“Hong Kong stands out as a reliable, trusted, resourceful and well-positioned partner reaching the mainland and the world, whereas economies are reconfiguring value chains and seeking more resilient and diversified partnerships,” he said.
The SAR pledges to be the premier two-way international fund-raising platform, the connected financial center with other markets, and the premier offshore renminbi financing hub, the finance chief added.
“The Hong Kong stock market continues to attract significant international interests, with more than 400 companies currently in the initial public offering pipeline, and our secondary market is deep and liquid enough to support listed companies to get access to both international and mainland capital,” Chan said.
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Regarding financial connectivity, the Hong Kong stock exchange since 2023 has expanded its list of recognized exchanges that covers 20 markets, and has expanded mutual listing of exchange-traded funds with Saudi Arabia and South Korea.
Chan said that in renminbi internationalization, the SAR is expanding its offerings in renminbi-denominated investment and risk management products, strengthening the related infrastructures and enhancing market liquidity.
Financial Services Development Council Chairman Benjamin Hung Pi-cheng said at the event that “Hong Kong needs to play a unique role in the global wave of asset diversification, while seizing business opportunities such as trade finance and risk management brought by supply chain restructuring, and strengthening its cross-border resource allocation capabilities”.
Jose Barroso — the former president of the European Commission, the former prime minister of Portugal, and the chairman of Goldman Sachs International — said, “Hong Kong is a great platform for global stakeholders to gauge what they can do together in the financial world, in terms of trade, economic growth, and prosperity across regions, as well as safeguarding the value of peace.”
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During the AFF forum, HKTDC and global business advisory firm EY released their joint market survey regarding how businesses and financial leaders are responding to disruptive challenges. The survey showed that 78 percent of surveyed executives see Hong Kong as either a critical hub or important node to enable enterprises execute their Asia’s growth strategy, given the city’s financial market ecosystem, accessibility to the Chinese mainland, international legal and regulatory framework, global connectivity, professional services, and East-West cultural interface for business.
EY China Chairman Jack Chan said, “The survey shows Hong Kong is more than a superconnector; rather, it can become a proactive growth orchestrator whereas capital compliance, productivity and capability converge.”
