Blog

Reinforcing Connectivity and Broadening Friendships

Leveraging its institutional strengths under the "one country, two systems" framework and its geographical advantages, Hong Kong has consistently served as a platform that brings together international capital, talent and information. Events like last November's Global Financial Leaders' Investment Summit, and the Asian Financial Forum (AFF) concluded just last week, underscored Hong Kong's vital role and functions as an international platform.

This year marks the 18th edition of the AFF, which brought together 3,600 financial, political and business leaders from over 50 countries and regions. Participants engaged in in-depth discussions on topics such as sustainable development and artificial intelligence. Fruitful outcomes were achieved. Among the heavyweight participants were the Governor of the People's Bank of China (PBOC), Mr Pan Gongsheng, and the former Chief Economist and Senior Vice President of the World Bank, Professor Lin Yifu. They shared valuable insights on the latest economic, social and financial developments in the Mainland, and illustrated China's steady economic growth and promising prospects, both at present and in the medium to long term, with solid facts and data.

I delivered a speech at the cocktail reception of the Asian Financial Forum last week.

At the AFF, I met and exchanged views with many political and business leaders from Europe, the US and emerging markets along the Belt and Road. Today, I would like to share with you some of my observations.

First, both returning and new guests at the AFF noted the large scale of the event and the high level of international participation, which had exceeded their expectations. The AFF provided them with the opportunity to engage directly with officials and financial leaders from different regions and backgrounds. This facilitated further collaboration.

I met with Mr Adylbek Kasymaliev, the Chairman of the Cabinet of Ministers – Head of the Presidential Administration of the Kyrgyz Republic, who attended the Asian Financial Forum in Hong Kong.

Second, leaders of financial institutions from Europe and the US told me that Hong Kong indeed plays an unparalleled role in helping them enhance connections to the Mainland and global markets. For instance, in the asset and wealth management sector, the rapid growth of the middle class and affluent individuals in the Mainland and Asia has led to an increasing demand for diversified asset allocation. This trend helps position Hong Kong as an ideal platform and base for these institutions to expand their operations. Indeed, some institutions have already initiated their expansion plans.

Third, representatives from some "Global South" countries acknowledged Hong Kong's standing as an international financial centre and the comprehensive range of fundraising options it provides. They aim to leverage Hong Kong's diverse fundraising services to accelerate their domestic infrastructure and economic development, facilitate green transition and share disaster risks. Moreover, they seek to draw on Hong Kong's knowledge and experience in professional services and strengthen cooperation in talent training to enhance their financial systems as well as support local economic and social development.

I met with Mr Gilles Roth, the Minister of Finance of Luxembourg, who attended the Asian Financial Forum in Hong Kong.

I met with Dr Olli Rehn, the Governor of the Bank of Finland.

With the staunch support from our country, Hong Kong continues to accelerate its development and expand its role as an international financial centre. This has instilled greater confidence by different sectors, local and abroad, in Hong Kong's future. Last week, the Governor of the PBOC, Mr Pan Gongsheng, announced at the AFF various measures to deepen mutual market access between the Mainland and Hong Kong. They will focus on four key areas: first, to support the development of Hong Kong's capital market and continuously deepen the mutual access between the financial markets of the two places; second, to expand and strengthen Hong Kong's position as an offshore Renminbi business hub; third, to enhance Hong Kong's functions as an international asset and wealth management centre; and fourth, to resolutely safeguard Hong Kong's financial stability and security.

To support the development of Hong Kong's capital market, the Central Government will increase the asset allocation of the country's foreign exchange reserves to Hong Kong. Further deepening mutual market access will attract more international capital to invest in the Mainland through Hong Kong, thereby promoting the growth of various industries in the Mainland and accelerating the formation of a new development pattern. These measures will create greater opportunities for the development of Hong Kong's capital markets.

We are actively enhancing the content and depth of Hong Kong as an international financial centre, through undertaking continuous reforms and innovation that attract capital, investors and financial products from both traditional and emerging markets. By doing so, we will promote better regional cooperation and development to achieve mutual benefits.

Tomorrow morning, I will depart for Davos, Switzerland, to attend the World Economic Forum (WEF) Annual Meeting. The theme of this year's Meeting is "Collaboration for the Intelligent Age". Given the prevailing geopolitical tensions, it is essential to explore how jurisdictions can enhance cooperation to harness the opportunities for development presented by artificial intelligence and innovation, and advance towards green transition to address the challenges of climate change.

This year, Vice-Premier of the State Council, Mr Ding Xuexiang, will also attend the WEF Annual Meeting and deliver a highly anticipated Special Address. The current situation, strategic directions and focal areas of the Mainland's economic development have emerged as key topics of interest at recent WEF Annual Meetings. Many satellite events held during the Meeting have also centered on themes related to the Mainland, reflecting the significant attention our country has received on the world stage.

During my visit to Davos, I will be invited to speak at several thematic seminars and luncheons, as well as participate in bilateral and roundtable sessions. Many regional political and business leaders are eager to use these occasions to gain insights into Hong Kong, the regional political and economic landscape, and regional perspectives on international issues. I will take this opportunity to explain the strategies and measures Hong Kong has adopted in various areas, while promoting our advantages and value as a "super connector" and "super value-adder."

January 19, 2025