Financial Secretary Paul Chan Highlights Hong Kong's Investment Opportunities at Global Financial Leaders' Summit

Speech by FS at "Conversations with Global Investors" Investment Forum of Global Financial Leaders' Investment Summit (with photos/video)

Following is the speech by the Financial Secretary, Mr Paul Chan, at the "Conversations with Global Investors" Investment Forum of the Global Financial Leaders' Investment Summit today (November 20):

Kelvin (Chairman of the Securities and Futures Commission (SFC), Dr Kelvin Wong), Julia (Chief Executive Officer of the SFC, Ms Julia Leung), Eddie (Chief Executive of the Hong Kong Monetary Authority, Mr Eddie Yue), distinguished guests, ladies and gentlemen,

Good morning. I'm delighted to join the second day of the Summit and take part in this conversation with global investors.

In a world beset by uncertainty, we are all eager to identify and harness major emerging trends that will drive growth and prosperity. This morning, we look into a range of such pertinent trends, from the prospects of alternative assets and private equity, to the future of investments in blockchain and generative AI (artificial intelligence).

As we navigate the complexities of a fragmented world, Hong Kong has also been striving to move along with these trends to foster the growth of new and promising horizons. And we continue to thrive on connecting with the rest of the world, proactively reaching out to both traditional and new markets. This has given us valuable insights into the strategies we should embrace. Allow me to take the next few minutes to share some thoughts with you.

My first observation is that in the face of shifting global dynamics, we must stay agile, responsive and innovative.

With changing geopolitical landscape, and a new administration in the US (United States) on the horizon, the market has been bracing for potential headwinds. But there is no reason to succumb to pessimism. As a matter of fact, countries and businesses are adapting and transforming.

China, for example, has been undergoing remarkable economic transformation, marked by a shift towards high-quality economic growth, supported by domestic consumption, technological innovation, green investment, advanced manufacturing, and many more. Chinese enterprises are also expanding their global industry and supply chain footprint in response to shifting geopolitics.

For Hong Kong, our strategy is to continue to engage with traditional markets like the US and Europe, focusing on co-operation in areas of common interests and mutual benefits.

Earlier this year, I had the opportunity to visit the US and Europe again, where I met with financial, business and industry leaders, as well as entrepreneurs of different backgrounds.

The key takeaway from the visits was straightforward: Notwithstanding the long shadow cast by geopolitics, there is still potential and ample room for co-operation across many areas, from urban planning to infrastructure, to ESG (environmental, social and governance) standards and combating climate change.

Taking green transition as an example. This is a process that requires comprehensive transformation of our society and business activities, demanding long-term collaboration across industries, regions and at various levels. Sectors such as aviation, shipping, transportation and construction, along with businesses involved in trade and manufacturing, all need robust support in terms of policy, funding, technology and talent. Given the complexity of the transformation process, we must seek innovative solutions tailored to address different challenges.

By fostering cross-regional exchanges and engaging in cross-industry discussions at the local level, we can uncover new opportunities for collaboration and identify promising areas of common interests for development.

My second observation is that, with shifting global economic gravity, the rising Belt and Road countries, and the Global South at large, present boundless business opportunities.

The Global South now contributes to about 60 per cent of global GDP (Gross Domestic Product) in terms of purchasing power parity, and accounts for over 40 per cent of global imports and exports. If we just look at ASEAN (Association of Southeast Asian Nations), it is collectively on track to become the fourth largest economy in the world by 2030.

What characterise these markets are rapid economic growth, young population and an expanding middle class. And above all, they all share a strong aspiration for progress by pursuing investments in infrastructure, green transformation and technologies. Amid challenging global landscape, they are also seeking to diversify their investments and asset allocation.

We are making significant strides to capitalise on the opportunities presented by the growth of these emerging markets. My recent visit to Saudi Arabia exemplifies this well.

Joined by a delegation of over 100 members from the financial and innovation sectors, we returned with rewarding outcomes, including the successful listing of two ETFs (exchange-traded funds) in the Saudi Tadawul investing in the Hong Kong market, signing of investment and business co-operation agreements, pitches by Hong Kong start-ups, etc.

A significant insight from our endeavours in entering the Middle East market is the importance of a shared vision. For example, Saudi Arabia, undergoing economic and societal transformation, has underlined in its "Vision 2030" the need for diversification, modernisation and greater openness of their economy. They are also actively embracing digitalisation and green transformation.

When looking for opportunities in overseas markets, their focus extends beyond simply investing capital for financial returns. They are committed to fostering reciprocal investments, sharing experience and best practices, aligning professional standards and forging partnerships that will support their national development objectives.

This visionary mindset fully resonates with ours. The strategic investment made by our investment arm, the Hong Kong Investment Corporation, as I mentioned in my speech yesterday, is clearly one example. What's more, it is our belief that the "Hong Kong brand", comprising, among others, our world-class professional services, solutions by our tech sector, and internationally aligned standards and practices, can very much contribute to their growth and development.

And we are doing just that. The fund that Saudi Arabia's PIF (Public Investment Fund) and the Hong Kong Monetary Authority will jointly set up is a testament to this shared vision. We will be investing together to help companies with a Hong Kong and Greater Bay Area nexus expand into Saudi Arabia in target sectors, including manufacturing, renewables, fintech and healthcare, driving their economic growth, while reinforcing Hong Kong's position as one of the world's leading international financial centres, as well as a rising innovation and technology centre. This is a win-win scenario.

Ladies and gentlemen, despite the challenges posed by a fragmented world, I have no doubt that Hong Kong will continue to thrive. Adapting to uncertainties and changes is, and will be, the new normal. To navigate in a landscape of change, adapting our strategies and harmonising our vision with the evolving aspirations of our economic partners is essential. But with all the unique advantages of our city - not least our internationalisation and our commitment to innovation and progress, Hong Kong is set to remain an attractive partner for investors and businesses from around the world.

Thank you very much.

Speech by FS at "Conversations with Global Investors" Investment Forum of Global Financial Leaders' Investment Summit Source: HKSAR Government Press Releases

Speech by FS at "Conversations with Global Investors" Investment Forum of Global Financial Leaders' Investment Summit Source: HKSAR Government Press Releases

Speech by FS at CUHK EMBA Annual Conference

Following is the speech by the Financial Secretary, Mr Paul Chan, at the CUHK EMBA Annual Conference today (May 9):

Professor Dennis Lo (Vice-Chancellor and President, the Chinese University of Hong Kong (CUHK)), Professor Lin Zhou (Dean, CUHK Business School), Macy (Chairperson of Organizing Committee, Ms Macy Chan), Michael (Chairperson of Organizing Committee, Mr Michael Chan), CUHK EMBA alumni and students, business leaders, distinguished guests and friends,

Good evening.

Addressing a room full of Executive MBA students and graduates is both an honour and a privilege. There is a particular kind of ambition in this room — one that is not content with success alone, but driven to understand it more deeply, in the belief that better ideas lead to greater impact.

That kind of commitment — to learning, to growth, to asking harder questions — is precisely what today's conversation is about.

The theme of this conference, which focuses on innovation and agile leadership, could not be more timely. Most of us here have lived through the Internet age and the smartphone revolution, which made communication faster and more seamless than anyone had imagined.

Today, the rise of AI places us at a more fundamental tipping point. Technology is not merely changing the answers — it is redefining the questions themselves.

Consider what is already within reach. An AI assistant can learn your preferences, curate a personalised shortlist, and simply ask for your confirmation. We should even ask whether the smartphone and the search engine will remain our primary gateways to the digital world, or whether something altogether new is already taking shape.

To draw an analogy, the power of technology does not lie in drawing the old map with greater precision. It lies in revealing how much of that map remains uncharted — and in showing us that entirely new maps, with new co-ordinates, are being drawn.

This redefinition is unfolding across three dimensions simultaneously.

First, the redefinition of products. Products are no longer discrete, standalone objects. A smart car is a vehicle, but also a mobile platform for data. An insurance policy can be a contract, but equally a dynamic reflection of health data. Innovation today is born from cross-sector convergence and continuous evolution.

Second, the redefinition of services. Services are no longer delivered solely by enterprises. They emerge from collaborative networks of people and AI. But the more profound shift is in what customers now expect. In the past, good service meant reaching the right person quickly. Today, customers expect a solution that anticipates their needs before articulating them. This requires a new architecture of service delivery: human and machine, with AI handling the scale, the speed, and the personalisation that no human team alone could sustain.

Third, and most importantly, the redefinition of business models. In the past, we sought optimal solutions within established frameworks — when demand rose, we expanded capacity; when service needs grew, we opened more branches. Technology invites us to break out of those frameworks entirely. Intelligent manufacturing means that "economies of scale" is no longer the only answer; flexible supply chains have made customised, on-demand production the new normal.

These three redefinitions are opening a commercial frontier unlike anything we have seen before. But if the benefits of technology accrue only to a small circle, its power remains fundamentally constrained. This brings me to the second message I want to leave with you today: inclusivity.

Inclusivity is not charity. Yet it is the smartest business strategy available. The unmet needs of the broader public represent the largest and most underserved market opportunity in existence. When you make quality healthcare, education and financial services accessible and affordable to ordinary residents, you are not serving a group in need of handouts — you are unlocking a vast market that traditional business models have consistently overlooked.

Hong Kong has a distinctive role to play here. We can be a co-architect of standards, a hub for capital, and a bridge between innovation and real-world deployment — from clinical validation of smart healthcare, to green technology financing, to regulatory sandboxes for fintech. Our contribution draws not only on institutional strengths and international networks, but on our genuine commitment to broad-based participation.

Yet inclusive products and services are only the first step. The deeper dimension is empowerment.

History reminds us that the dividends of technological revolution need to be actively guided to reach the many. In the age of steam, and again in the Internet era, early gains concentrated among capital owners and top-tier talent. But today we have the opportunity to write a different story. AI, as an amplifier of human capability, is already enabling what was previously unimaginable: a solo entrepreneur, with the right tools and the right vision, can build a unicorn.

In other words, the unit of competitive advantage is shifting — from the size of your team to the skill with which you orchestrate your tools.

Our mission should be to make that shift available to everyone. To turn individual readiness into collective prosperity, and to ensure that the productivity gains of AI flow broadly across the society.

This is precisely why, in this year's Budget, I placed such emphasis on the "AI Training for All" initiative.

We are not trying to turn everyone into an engineer. We are ensuring that workers, managers, SME (small and medium-sized enterprise) owners, and ordinary residents become capable collaborators with AI: people who can access it, use it effectively, and put it to work as their assistant.

That may sound ambitious, but consider this: if AI can one day be as intuitive as the smartphone, then mass adoption is not difficult to imagine at all. Just as computers once migrated from specialist facilities into offices and homes, AI will find its way into everyone's daily work and life.

For business leaders, it may be tempting to think of AI as "digital employee" that can replace existing workers. But think of a different framing: equipping your workforce with powerful digital assistants can achieve productivity gains, while also freeing your people to do what humans do best — create, imagine and innovate.

Companies that take those extra steps, and think those extra moves ahead, will find that an empowered workforce is also a more innovative one.

All in all, the power of technology must ultimately be measured by its contribution to inclusive growth. And inclusive growth, in the end, depends on, yes, commercial acumen — but also empathy, compassion, and the conviction that a rising tide should lift all boats. I can see that those qualities live in this room.

I will close with this thought. Someone once joked that economists know the price of everything and the value of nothing. With AI, let us never fall into the same trap — in our race to price every efficiency gain, let us not lose sight of the deeper value we are trying to create: a society where the fruits of innovation are broadly shared, and where technology lifts not just the fortunate few, but everyone willing to reach for it.

So here is my ask: let us grow the pie together. And make sure we cut it well.

Thank you very much.

Source: AI-found images

Speech by FS at CUHK EMBA Annual Conference Source: HKSAR Government Press Releases

Speech by FS at CUHK EMBA Annual Conference Source: HKSAR Government Press Releases

Source: AI-found images