Paul Chan Highlights Business Opportunities Between Hong Kong and Italy at Milan Symposium

Speech by FS at "Think Business, Think Hong Kong" Symposium in Milan

Following is the speech by the Financial Secretary, Mr Paul Chan, at the "Think Business, Think Hong Kong" Symposium in Milan today (Milan time, November 27):

Frederick (Chairman of the Hong Kong Trade Development Council, Professor Frederick Ma), distinguished guests, ladies and gentlemen,

Ciao. Good morning.

Thank you for observing a moment of silence with us together, for the 55 lives lost in a tragic fire that took place in Hong Kong yesterday. Our hearts and thoughts are with all the victims and their families. The HKSAR (Hong Kong Special Administrative Region) Government is now doing as much as we can to help all those who are affected by this very unfortunate incident.

To officially begin this Symposium, may I first express our heartfelt thanks to the magnificent city of Milan - Italy's fast-beating economic heart, and one of the world's foremost fashion and design capitals, home of elegance, enterprise, for hosting this event. My thanks also go to the Hong Kong Trade Development Council for putting this Symposium together.

A tale of two cities, two economies

For long, Hong Kong and Italy have much in common. We share a passion for creativity, craftsmanship, and elegance. Italian style has captured our hearts.

Our two cities are gateways connecting continents, blending Eastern and Western ingenuity. And we both thrive on openness, creativity, innovation and entrepreneurial spirit.

Our economic partnership is flourishing and remarkably diverse, too. In 2024, bilateral merchandise trade reached €7.2 billion. Some 200 Italian companies, from world-beating brands to leading players in banking, insurance, logistics and chocolate, have their regional headquarters, offices or operations in Hong Kong.

Think business, do business, with Hong Kong

Today's symposium is not just about thinking business. It's about doing business. Together.

We've brought with us an 80-strong delegation of Hong Kong business leaders spanning finance, innovation, technology, logistics, and the creative industries. I invite you to rise. Yes, they're here to explore opportunities with you, and to invite you to consider the vast possibilities Hong Kong, Asia's world city, can offer you.

For the next few minutes, allow me to explain why Hong Kong is uniquely positioned to be your long-term partner.

One country, two systems: our enduring strength

Hong Kong's unique strength is premised on our "one country, two systems" framework. It gives us the best of both worlds: seamless access to the Chinese Mainland's vast market, and unfettered connectivity with the world, with unparalleled opportunities for business and investment. We are a market economy upholding the common law system with a strong tradition of rule of law, a low and simple tax regime and business practices aligning with the highest international standards.

We are a free port, maintaining a free flow of goods, capital, information and people.

And the "one country, two systems" framework is here to stay for the long term, a position reiterated time and again by President Xi Jinping and affirmed at high-level state and party meetings in Beijing.

The rule of law is a defining feature of our city. Our judiciary exercises its powers independently, and the Court of Final Appeal sits in Hong Kong, with six non-permanent judges from overseas common law jurisdictions such as the United Kingdom, Australia, and New Zealand.

Hong Kong also offers robust intellectual property protection. Our legal framework is fully compliant with WTO standards, and our High Court has specialist judges for IP cases. That makes Hong Kong a city you can count on to protect your innovations and creative work. And that, I know, is essential to Italian businesses, where design is both a profession and a passion.

Where Hong Kong stands today

The Hong Kong economy has, again, had a good year.

In international reports, Hong Kong continues to be ranked the world's freest economy, and we are consistently among the top three global financial centres. The IMD World Competitiveness Yearbook this year placed us third, globally. And all three major international credit rating agencies have reaffirmed our strong standing.

Hong Kong is also the gateway to the GBA - the Guangdong-Hong Kong-Macao Greater Bay Area, a fast-growing, young and affluent market with an increasingly global outlook.

The GBA has a combined GDP of €1.8 trillion, a population of 87 million, and a per capita GDP of about €20,000. It is a vast and promising market for Italian goods and services, offering opportunities from luxury and lifestyle to technology and healthcare.

The Greater Bay Area is also a global leader in innovation and technology. This year, the Shenzhen-Hong Kong-Guangzhou science and technology cluster was named the world's number one innovation cluster by the World Intellectual Property Organization.

These and other fundamental strengths make Hong Kong a prime springboard for Italian businesses eager to realise opportunities in China and across Asia.

Hong Kong: a leading IFC

Let me highlight a few areas that I believe will be particularly attractive to Italian businesses, starting with finance.

Hong Kong is one of the world's leading international financial centres. Some 70 of the world's top 100 banks and six of the top 10 global insurance companies operate in our city.

Our stock market, with a market capitalisation of €5.3 trillion, and the Hang Seng Index up by more than 25 per cent to date, is among the world's best performers this year.

We have a singular advantage: the "Connect Schemes" – that provide mutual-market access between Hong Kong and the Mainland. For international investors, it is a trusted avenue for accessing the Mainland's capital market. More than 70 per cent of China A-shares' foreign holdings, for example, were acquired through our Stock Connect Scheme.

Italian companies like Prada and Ferretti are already listed on the Hong Kong Stock Exchange, and I encourage more Italian companies to pursue dual listings on both Borsa Italiana and the Hong Kong Stock Exchange.

Through our Southbound Connect, Italian companies can tap into Mainland liquidity, gaining a level of access no other international financial centre can provide.

We also invite Italian companies and banks to issue Renminbi bonds in Hong Kong. Our vibrant bond market offers multi-currency options, including USD, euro and RMB. Italian banks can use Hong Kong's Renminbi clearing and settlement system for trade settlement and other Renminbi-denominated financial transactions. That can only enable more efficient trade between Italy and China.

International innovation and technology hub

Hong Kong is also rapidly developing as an international hub for innovation and technology. We focus on four key areas: artificial intelligence, biotech, fintech, and new energy and new materials.

Our academic and research capabilities are world-class. Five of our universities are ranked among the global top 100. Three are ranked in the top 20 globally for AI and data science, and two of our medical schools are among the world's top 25.

We are now building a more complete innovation value chain, one that integrates basic research, commercialisation and advanced manufacturing. To that end, we are attracting strategic enterprises, either world leaders in their fields or companies engaged in cutting-edge technologies. Over the past three years, we have welcomed more than 100 strategic enterprises to Hong Kong, including four of the world's top 10 pharmaceutical companies. They are establishing R&D centres, expanding their operations in Hong Kong and investing in our shared future.

Hong Kong Science Park and Cyberport welcome Italian start-ups and innovators. Our I&T centres provide a range of services, from incubation, funding, professional advisory to market development support.

The Northern Metropolis, an area bordering Shenzhen and covering one-third of Hong Kong's landmass, will be the heart of our I&T future. The San Tin Technopole, a cluster similar to the Milan Innovation District, will rise as one of its innovation hubs.

We are working closely with Shenzhen, in a co-operation zone along the border. Within that zone, Mainland capital, talent, goods, data and even biosamples will move freely to Hong Kong, giving companies access to both international and Mainland data, a significant advantage for artificial intelligence, bio and pharmaceutical companies looking to tap the vast Chinese market.

I invite Italian innovators and companies, particularly those in life sciences, precision engineering, advanced manufacturing, and luxury tech, to establish R&D centres and operations in this Northern Metropolis. There, they can collaborate with tech companies from Hong Kong and the Mainland, along with start-ups, universities and research institutions.

Culture and creativity

Finally, let me speak about culture and creativity, an area close to the Italian heart.

Hong Kong is Asia's cultural hub and a rising design hub. Our West Kowloon Cultural District has emerged as a world-class arts and cultural centre. It features M+ Museum, Asia's global museum of contemporary visual arts, design and architecture, as well as the Hong Kong Palace Museum, with more than 900 treasures from Beijing's Palace Museum.

Business of Design Week, or BODW, opening next Monday, has become Asia's most anticipated design event, bringing together creative minds from around the world to showcase their innovation and design excellence.

And we thank Italy for being so kind as the BODW's Partner Country again this year. Italian contributions to furniture design, textile innovation, the intersection of design with technology and sport, and much more will be featured at the Design Week.

Closing remarks

Ladies and gentlemen, the opportunities there for us are both wide-ranging and far-reaching, whether you are in luxury goods, industrial design, fintech, biotech, healthcare, logistics or the creative industries.

Italian businesses can tap into Asia's dynamism through Hong Kong and our connectivity, financial services, innovation and cultural bridges.

You'll hear about that, and much more, in today's panel discussions and the plenary session beginning in just a few minutes.

Let us think business - and do business - together. Build a rewarding future. Together.

Grazie mille. Thank you very much.

Speech by FS at "Think Business, Think Hong Kong" Symposium in Milan Source: HKSAR Government Press Releases

Re-launch of Reporting Scheme for Unauthorised Building Works in New Territories Exempted Houses

Following the direction of earlier proposals, the Buildings Department (BD) announced today (April 1) the re-launch of the Reporting Scheme for Unauthorised Building Works (UBWs) in New Territories Exempted Houses (NTEHs). The reporting period will last for one year from April 1, 2026 to March 31, 2027.

"In view of the history and unique circumstances of the NTEHs (commonly known as village houses), the Government launched a one-off administrative reporting scheme in 2012 as a special arrangement. Under the scheme, owners could report to the BD about UBWs that were erected before June 28, 2011, posed lower risks or constituted less serious contravention of the law. The reporting period ended in December 2012. The Development Bureau (DEVB) put forward proposals to amend the Buildings Ordinance in December 2024, which included rationalising the policy for handling UBWs. The DEVB also pointed out that in response to the views of villagers and Legislative Council members that the reporting period was too short, the Government prepared to re-launch the Reporting Scheme to allow owners who at that time did not report their UBWs to do so," a spokesman for the BD said.

Relevant stakeholders and Legislative Council members generally considered the above proposals practical and feasible, and they welcomed the proposals. The DEVB and the BD have also consulted Heung Yee Kuk on the relevant implementation arrangements.

The re-launched Reporting Scheme will maintain the original criteria, including:

(1) The types of UBWs that can be reported and their erection dates are the same as the original Reporting Scheme, meaning that only UBWs erected before June 28, 2011, posed lower risks or constituted less serious contravention of the law and were not the First Round Targets (Note) are eligible. Examples include signboards projecting from the external walls of village houses; enclosed rooftop structures with a coverage of not more than 50 per cent of the roofed-over area of the main building.

(2) Same as the original Reporting Scheme, owners are required to conduct safety inspections on the reported UBWs every five years.

"The BD will not require the immediate removal of the reported UBWs unless their structures become obviously dangerous. Regarding UBWs in village houses, the BD is prioritising the handling of First Round Targets. If any relevant UBWs remain not reported after the application deadline of March 31, 2027, the BD will, after dealing with the First Round Targets, take priority enforcement action against the non-reported UBWs. The BD will formulate enforcement strategy for the reported UBWs at a later stage in accordance with the risks and the actual situation," the spokesman added.

To enhance the efficiency of processing applications, reports must be submitted via the electronic platform on the BD's website by technically competent persons or registered professional engineers appointed by owners. In accordance with the user-pays principle, an administrative fee of $600 is payable for each application. Upon successful reports, owners must also pay the relevant administrative fee when conducting safety inspections of the reported UBWs every five years.

Details of the re-launched Reporting Scheme are available on the BD's website at https://www.bd.gov.hk/en/safety-inspection/ubw/UBW-in-new-territories-exempted-houses/index_relaunch_reporting_scheme.html; Villagers who wish to report can call 2626 1616 for enquiry. The BD will also use different channels such as distributing leaflets and posters to Rural Committees to enable villagers to know more about the re-launch of the Reporting Scheme.

Owners who had successfully participated in the Reporting Scheme in 2012 are not required to submit reports again. However, they must continue to comply with the requirements of the original Reporting Scheme, including conducting safety inspections of the reported UBWs every five years, submitting safety certificates and paying administrative fees to the BD.

Note: The First Round Targets refer to UBWs with higher potential risks and more serious nature, such as village houses of four storeys or more, and enclosed rooftop structures covering more than 50 per cent of the roofed-over area.

Source: AI-found images