Blog
Expanding Partnerships and Deepening Connections
In recent years, our efforts in investment promotion have successfully drawn many enterprises to set up or expand their operations in Hong Kong, accelerating the vibrant development of various industry ecosystems. For instance, the first two batches of strategic partners brought to Hong Kong by the Office for Attracting Strategic Enterprises (OASES) have successively launched their businesses locally. Among them, 70% chose to establish their operations at the Hong Kong Science Park or Cyberport, while some sought to explore further business opportunities through collaboration with other enterprises.
Tomorrow, we will hold a signing ceremony with the third batch of OASES partners. The 17 participating strategic enterprises come from the Mainland, the United States and Europe, and engage in fields including artificial intelligence and data science, life and health technology, fintech, and advanced manufacturing and new energy technology. 90% of them have planned to set up their international or regional headquarters in Hong Kong. Together with the first two batches of OASES partners, these 60-plus strategic enterprises are expected to bring in $42 billion in investments and create over 17,000 jobs. In addition, as of September this year, Invest Hong Kong has assisted 470 companies in setting up or expanding their businesses in Hong Kong. They are expected to bring in over $45 billion of direct investments, and create over 5,700 jobs.
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| Last week, I attended the 2024 Hong Kong Investment Promotion Conference – Shanghai Forum in Shanghai to promote Hong Kong's advantages to over 400 representatives from Mainland enterprises. |
Last week, I attended the “China International Import Expo” in Shanghai and participated in the “2024 Hong Kong Investment Promotion Conference – Shanghai Forum” organised by the HKSAR Government and the Hong Kong Trade Development Council, and introduced Hong Kong's strengths to over 400 Mainland enterprise representatives. In fact, for Mainland or overseas enterprises, whether having settled in Hong Kong in recent years or considering to establish presence in Hong Kong, they generally understand the challenges faced by Hong Kong. Yet, more importantly, they could see the opportunities with the city alongside with these challenges, and value our strengths that could create vast opportunities for them. These strengths include robust support from the Central Government, a highly transparent and business-friendly regulatory system, the clustering of international financial institutions and capital, a global business network, a diverse talent pool and a multicultural environment. Furthermore, supportive government policies and an efficient capital market provide much assistance to enterprises seeking to expand their regional and global reach.
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| Last week, I joined a delegation of the HKSAR Government to Shanghai to participate in the 7th China International Import Expo and visited the Hong Kong Product Pavilion. |
During my visits to Europe, the United States, and the Middle East, I noticed that many enterprises are actively exploring or advancing the idea of establishing presence in Hong Kong, with a view to accelerating their development in the Mainland and Asian markets. In particular, during our trip to Riyadh, Saudi Arabia, several Hong Kong institutions and enterprises signed a series of cooperation agreements with local partners, further deepening the financial, innovation, and professional service connections between Hong Kong and the Middle East. This has enhanced Hong Kong's international network and potential to serve as a “super connector” and a “super value-adder” for the Global South.
Riding on Hong Kong's competitive edge as an international financial centre, along with its drive to promote the application and development of innovation and technology, a technology-driven investment ecosystem is taking shape and thriving with our continuous efforts on all fronts, from research and development activities to outcome transformation, and from the growth of startups to the establishment of industry chains. This is conducive to accelerating the development of new quality productive forces.
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| Among the third batch of strategic enterprise partners to be announced tomorrow is a French company which develops sensor chips. During my visit to Paris, France in May this year, I met with the company's executives and learnt about their technologies and business development. |
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| Another strategic enterprise partner in the third batch is an artificial intelligence enterprise focusing on the application of big data in the financial industry. I attended the opening ceremony of its global headquarters in Hong Kong last month. |
The economy of our country is also making steady progress. The recently concluded Standing Committee meeting of the National People's Congress passed a series of measures totaling RMB 10 trillion to effectively address local debt. These measures will effectively reduce local governments' interest expenses and enhance development momentum. The steady growth of the national economy will continue to be Hong Kong's strongest support for its economic advancement.
On the international front, the US Federal Reserve decided to cut interest rates further by 25 basis points last week, marking the second rate cut in three months. The market generally expects another rate cut by the end of the year. The expectation of lower interest rates by the investment market should continue to benefit asset market sentiment and increase investors' risk appetite. Meanwhile, following the conclusion of the US election, many analyses indicate that the election outcome will have a profound impact on the future global political and economic landscape. Regardless of how the international environment would evolve in the future, it would be most important for us to get prepared and equipped, and to “understand changes accurately, respond to changes scientifically, and embrace changes proactively”. This will allow us to flexibly cope with challenges and seize opportunities, and enhance economic resilience through more stable and rapid development.
The HKSAR Government recently announced that the real GDP growth rate for the first three quarters of this year was 2.6%, according to advance estimates. While the growth pace has moderated in the third quarter, the gradual decline in external interest rates, coupled with the Mainland's introduction of a series of measures to stabilise the economy, has improved market sentiment and injected energy to the stock and property markets. We expect the local economy to maintain its growth momentum for the remainder of the year, and the economic growth for the full year to come in near the lower end of the prevailing forecast range.
November 10, 2024
