The Hong Kong Special Administrative Region is exploring ways to link its digital trade finance infrastructure with systems in Southeast Asia to help businesses conduct cross-border transactions and secure financing, Financial Secretary Paul Chan Mo-po said on Wednesday.

Speaking after the Asia-Pacific Economic Cooperation Finance Ministerial Meeting in Hong Kong, Chan said in a group interview that delegates expressed interest in infrastructure that would allow banks to use trade data to assess loan applications.

He cited the Hong Kong Monetary Authority’s Project CargoX as an example, saying traders can share transaction data with lenders to expedite credit assessments, improve access to loans for small and medium-sized businesses, and reduce borrowing costs.

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“We are talking with the Hong Kong Monetary Authority to extend this infrastructure to other jurisdictions in Southeast Asia,” Chan told China Daily. Connecting the systems would make cross-border transactions easier, he added.

Among a range of outcomes, the meeting reviewed and adopted the Policy Statement on Digital Infrastructure Financing across the Asia-Pacific Region. Chan said discussions also covered how to finance infrastructure and improve public services when government budgets remain under pressure.

Hong Kong has shared its experience of pursuing fiscal consolidation in stages, as well as examples of how private capital can be mobilized to support development rather than relying solely on direct government spending, he said.

Chan added that he encouraged other economies to raise funds in Hong Kong for infrastructure projects, saying this will help finance their development while boosting activity in the city’s financial markets.

On capital market cooperation, Chan said Hong Kong encourages companies to consider listings both in their home markets and in the city. Using Malaysian companies as an example, he said regulators in the two markets could cooperate on cross-border oversight. “Dual listings can significantly boost companies’ ability to attract capital and improve the liquidity of their shares,” he said, adding that delegates expressed strong interest to the idea.

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Chan said that Hong Kong welcomes AI companies seeking to list in the city, while cautioning that heavy investment in the sector worldwide is driving valuations higher and creating risks.

“We need to be conscious of the risks, but at the same time, we need to embrace AI and facilitate its development,” he said, describing AI as a major technological innovation that will affect every sector and continue to develop.

He said the Securities and Futures Commission and the Hong Kong stock exchange will continue to act as “gatekeepers”, ensuring the quality of companies coming to market.

Zhao Ziwen contributed to this story.

Contact the writers at irisli@chinadailyhk.com