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Nurturing Emerging Industries and Reinforcing Traditional Strengths

The two-day China Development Forum (CDF) opened in Beijing this morning. Under the theme of "Unleashing Development Momentum for Stable Growth of Global Economy", the CDF has brought together hundreds of chairpersons and chief executive officers of multinational enterprises, business leaders, scholars and representatives of international organisations from around the globe to explore the latest global development trends and potential collaboration opportunities.

Since its inaugural session in 2000, the CDF, hosted by the Development Research Centre of the State Council, has the mission of "Engaging with the World for Common Prosperity". Through high-level interactive discussions, it seeks to foster broader international co-operation, knowledge exchange and experience sharing. I have been invited to attend this year's CDF in Beijing, where I will deliver a keynote speech at one of its thematic seminars focused on igniting growth momentum through reform.

Delivering a keynote speech at the Symposium on Igniting Growth Momentum through Reform while attending the annual China Development Forum in Beijing.

Currently, global economic and social development is facing multiple challenges. Protectionism and policy flip-flopping of certain Western countries have heightened geopolitical risks and increased economic fragmentation. Technological innovation is driving disruptive changes in business operations and models. Aging populations are leading to gradual yet profound shifts in consumer demand and investment preferences. Although these trends pose significant challenges to development, they also present opportunities for Hong Kong.

For instance, the cultural and creative industry has flourished in recent years. Popular intellectual property (IP) products have become vital conduits for cultural identity and emotional connections. These IPs have spawned a multitude of products and sparked a wide range of cross-sector creations, including animation, film, music, toys, theme parks and catering services. When combined with the power of smart devices and online marketing, these products generate vast business opportunities. A "Guzi Economy" has emerged in the Mainland, with products and entertainment offerings immensely popular among young people. The market size is estimated to reach hundreds of billions of RMB.

While in Beijing, I visited a leading pop culture and entertainment company, and studied the incubation of cultural IP products. I also learnt about the company's extensive experience in IP product management and marketing. It is evident that its success hinges on several key elements: (1) effective communication of concepts and emotions between products and customers; (2) ability to provide diverse experiences for customers; and (3) inherent potential for the products to evolve.

During my visit to a leading pop culture and entertainment company in the Mainland, I toured its product display area.

I met with the senior management of the pop culture and entertainment company.

The stories conveyed through various characters and designs of products express a wide range of thoughts and emotions, forging strong connections with people. These connections would translate into consumers' affection for the products and their brands. Indeed, the popularity of certain IP products stems not only from meeting consumers' needs but also from the enjoyment and experiences associated with the purchase.

Hong Kong possesses numerous unique advantages in the development of cultural and creative industries. In addition to being a melting pot of East and West with a diverse and inclusive creative space, our creators possess an understanding of the Mainland market and international perspectives. This has enabled them to create content and characters that resonate deeply with the public. In the latest Budget, I proposed that the Government will support cultural and intellectual property creators and producers in advancing over 30 cultural IP projects over the next five years. To accelerate the development of IP-intensive industries, the Budget has also announced that we would review the tax deduction arrangements for various expenditures, including the lump sum licensing fees for acquiring the rights to use IP, and related expenses incurred on purchase of IP or the rights to use IP from associates.

Furthermore, the Office for Attracting Strategic Enterprises will broaden the scope of targeted business sectors to strategically attract more cultural and creative enterprises that integrate innovation and technology into their work. This initiative will drive the vibrant development of local creative industries. We encourage more enterprises in these sectors to make use of Hong Kong as an international platform and capitalise on our strengths in funding, talent, information, global presence and professional services to expand their business worldwide.

Visiting a company in Beijing that specialises in the research and development of high-precision artificial intelligence products and solutions, and viewing its latest technological products.

Engaging in discussions with the company's senior management and the research team.

In fact, we have been reinforcing the advantages of Hong Kong as an international financial centre. According to the latest Global Financial Centre Index released by the Z/Yen from the United Kingdom and the China Development Institute from Shenzhen, Hong Kong's overall score increased by 11 points, ranking third globally and further narrowing the gap with champion New York. We rank first in the Asia Pacific. Even more encouraging is the notable 30-point rise for Hong Kong in "fintech", where our ranking has leapt five places to fourth. This is strong evidence that our efforts to develop the fintech ecosystem are bearing fruit.

Currently, Hong Kong Exchanges and Clearing Limited (HKEX) is processing over 100 listing applications, including global leading enterprises in the new energy sector as well as emerging stars from the Mainland. The atmosphere is vibrant. While in Beijing, I visited a company that specialises in applying artificial intelligence to intelligent traffic management, autonomous driving, perception robotics, etc. The company shared plans to establish its international business headquarters as well as global research and development centre in Hong Kong. They are also preparing for an initial public offering in the city to further expand their international business presence.

In the future, we will continue to enhance the publicity and promotion efforts in both traditional and emerging markets. We will encourage enterprises from around the world to take advantage of Hong Kong's comprehensive fund-raising capabilities, as well as the vibrant innovation and technology ecosystem across the entire Guangdong-Hong Kong-Macao Greater Bay Area. This will enable companies to expedite their business expansion and achieve greater development.

March 23, 2025