Speech by FS at Asian Financial Forum Keynote Luncheon (with photo/video)
Following is the speech by the Financial Secretary, Mr Paul Chan, at Asian Financial Forum Keynote Luncheon today (January 26):
Dr Barroso (Former President of the European Commission and former Prime Minister of Portugal, Dr José Manuel Barroso), Fred (Chairman of the Hong Kong Trade Development Council, Professor Frederick Ma), your Excellencies, distinguished guests, ladies and gentlemen,
Good afternoon. It is my honour to welcome you to this year's Asian Financial Forum Luncheon.
Let me begin by extending a very warm welcome to Dr José Manuel Barroso, who will deliver today's keynote address. Dr Barroso served as Prime Minister of Portugal from 2002 to 2004 and as President of the European Commission from 2004 to 2014. His presence here is particularly timely. At a moment when Europe stands at a geopolitical crossroads - navigating rising tensions and a shifting transatlantic dynamic - we look forward to Dr Barroso's insights on developments not only across Europe, but also for the world at large.
Reflections from Davos
Ladies and gentlemen, we are living through an era of profound complexity and transformation. Having just returned from the World Economic Forum in Davos, I can attest to the deep sense of reflection shared among global leaders. While opinions may diverge on many fronts, there is a striking convergence on one point: the world is becoming increasingly unfamiliar. Longstanding allies stand at the risk of becoming adversaries. The very principles that underpin the international order for eight decades - sovereignty, territorial integrity, and the authority of the United Nations - are being openly denounced.
Some speak of the end of the rules-based international order. Others push for Europe's independence. Yet the underlying message is clear: countries are reassessing their economic and security relationships, seeking to build strategic resilience, and adapting to a more fragmented global environment.
A key theme emerging from Davos was diversification - across trade, supply chains and finance. Faced with growing uncertainty, economies are striving to forge new partnerships and gain access to alternative markets.
China's opportunities
It is against this backdrop that China's role becomes particularly relevant.
In a world marked by volatility and unilateralism, China offers a high degree of stability and predictability. At the World Economic Forum, Vice Premier He Lifeng reaffirmed China's unwavering commitment to openness and co-operation, emphasising that reform and opening-up remain fundamental pillars of national policy. He also reiterated China's support for free trade, multilateralism, and mutual respect.
These are not aspirational statements. They signal policy continuity and consistency, qualities that are vital for global investors and businesses.
Looking ahead, China's development will continue to create substantial opportunities for the world. Two areas are particularly notable.
First, China's medium-to-long-term growth trajectory remains solid and resilient. Its economy met its 5 per cent growth target last year, averaging 5.4 per cent during the 14th Five-Year Plan period, and accounted for around 30 per cent of global GDP (Gross Domestic Product) growth.
The Central authorities' focus is now on stimulating domestic demand as a key driver of sustained growth. As the middle-income population expands, so too does the appetite for high-quality goods and services. It has made clear that foreign products and services are welcome. And in fact, China has been organising the China International Import Expo since 2018. This is creating considerable opportunities for international businesses.
Second, China is placing strategic emphasis on technological advancement. In the recommendations for the upcoming 15th Five-Year Plan, science and technological self-reliance are at the forefront of national development. China's growing capabilities in AI, robotics and biotechnology have already captured global attention - and this momentum will only accelerate. With a strong focus on integrating technological and industrial innovation, China is determined to lead in critical technologies that will define the future global economy.
Together, with a growing Southeast Asia, this part of the world is becoming as a vital source of growth, innovation, as well as business and investment opportunities.
Hong Kong's value proposition
This naturally brings us to Hong Kong. What is our role in this evolving landscape? And what is our value proposition?
We believe Hong Kong's significance will only grow. Hong Kong is very much the gateway for the world to access China's and Asia's opportunities, and vice versa. We have convenient and often priority access to the Mainland market, while maintaining all the characteristics that define us as an international metropolitan city: the common law system; a judiciary exercising powers independently; free flow of capital, goods, people and information; a low and simple tax system; a currency pegged to the US dollar; and more. As a free port, Hong Kong remains steadfastly committed to free trade and supportive of a rules-based multilateral trading system.
In a world where economies are reconfiguring value chains and seeking more resilient, diversified partnerships, Hong Kong stands out as a reliable, trusted, resourceful and well-positioned partner, bridging the Mainland and the world.
In the realms of finance, allow me to highlight two key specific areas that may be of interest to you.
Two-way funding platform
First, our role as the premier two-way international fundraising platform. Our stock market had a strong performance in the past two years, and in fact topped the IPO (initial public offering) league table last year. It continues to attract significant international interest, with more than 400 companies currently in the IPO pipeline. Many of them are Mainland enterprises engaged in frontier technologies and advanced manufacturing. These companies are choosing Hong Kong to fund and support their global expansion and supply chain diversification. A notable example is CATL, which launched the world's then largest IPO in Hong Kong last year to fund its expansion into Hungary.
In other words, Hong Kong serves as a gateway for global investors to access China's innovation-driven opportunities.
At the same time, we are working to bring more global companies to the Hong Kong market. For those exploring listing venues beyond the US (United States), Hong Kong offers a compelling choice. Our secondary market is deep, liquid and international. Statistics show that approximately 50 per cent of capital in our stock market comes from global institutional investors, 25 per cent from Mainland Southbound flows, and another 25 per cent from local institutional and retail investors. That is to say, by listing in Hong Kong, companies can gain access to both international and Mainland capital.
Hong Kong is indeed emerging as a listing hub for companies from across the globe. To drive this forward, the Hong Kong Stock Exchange has since 2023 expanded its list of recognised exchanges for dual primary or secondary listings - now covering 20 markets, including those in the Middle East and ASEAN (Association of Southeast Asian Nations). In fact, recently, issuers from Thailand, Indonesia, Kazakhstan, Singapore, and the UAE (United Arab Emirates), have chosen Hong Kong as their platform to access global capital.
We are also strengthening connectivity with other markets through mutual listing of ETFs (exchange-traded funds) that invest in each other's market, providing investors with more choices. For example, Hong Kong and Saudi Arabia each have listed two ETFs tracking each other's markets. We are also working with Korea on similar arrangements.
Offshore RMB business hub
The second area is our position as the world's leading offshore Renminbi (RMB) business hub. This is particularly relevant today, as the use of RMB continues to grow globally - driven by two key forces.
First, the reconfiguration of global supply chains. As more Chinese enterprises expand overseas and deepen co-operation with international partners, the cross-border use of the RMB is naturally increasing.
Second, the growing demand for diversification. RMB assets tend to have a lower correlation with traditional global markets, making them an appealing option for investors seeking to manage risk.
Besides, China currently accounts for around 13 per cent of global trade, but the RMB currently represents just 3 to 4 per cent of global payments via SWIFT. The potential for further expansion is significant, especially at a time when the US dollar is being weaponised.
Hong Kong is expanding its offerings in RMB-denominated investment and risk management products, strengthening the related infrastructure, and enhancing its market liquidity. These efforts are creating more investment channels for international holders of the currency, and supporting the prudent internationlisation of the RMB.
Concluding remarks
Ladies and gentlemen, let me conclude by reflecting on Hong Kong's enduring role in a rapidly changing world.
Hong Kong has always thrived as an open, transparent and outward-looking financial and commercial hub. We believe that prosperity is built not by erecting barriers, but by building bridges - bridges that connect capital with innovation, East with West, and ideas with impact.
At a time of global fragmentation, Hong Kong will continue to remain open for business, welcome partners from around the world to join us in shaping the future of Asia - and the world at large.
Thank you very much.
Speech by FS at Asian Financial Forum Keynote Luncheon (with photo/video) Source: HKSAR Government Press Releases
Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape
The 19th Asian Financial Forum (AFF) opened today (January 26). Featuring the theme "Co-creating New Horizons Amid an Evolving Landscape", the forum gathered heavyweight speakers from around the world to exchange insights on the latest developments in the financial market and to explore ways to foster co-operation among economies to gain mutual benefits in times of change.
The AFF, co-organised by the Hong Kong Special Administrative Region Government and the Hong Kong Trade Development Council (HKTDC), has been a flagship financial event in the region. The two-day forum is expected to attract over 3 600 participants from more than 60 countries or regions. This year's AFF has brought together over 150 distinguished speakers, including government officials, representatives from central banks and regulatory bodies, financial and business leaders, scholars and economists, to discuss key financial and economic trends, as well as emerging opportunities in various facets of the financial sector, including asset and wealth management, fintech, trade finance, gold and precious metals trading, green finance, insurance and risk management. This year's forum also includes significant upgrades to its content, introducing the new Global Business Summit. The summit explores how finance empowers businesses, focusing on Mainland economic opportunities and examining how Hong Kong leverages the synergy between finance and industries to support Mainland enterprises in "going global" while facilitating the "bringing in" of international businesses.
The Chief Executive, Mr John Lee, when addressing the opening session of the AFF this morning, highlighted Hong Kong's prowess as an international financial hub. He said, "Hong Kong's financial regulatory system is robust, and our financial market stands out for its deep liquidity, innovative products and world-class investor protection. We also boast a highly educated workforce, a welcoming environment for global talent and transparent financial regulations aligned with international standards."
He stressed that these strengths are widely recognised, citing the fact that Hong Kong ranked third, globally, and first in Asia, in the most recent Global Financial Centres Index, while placing third in the 2025 World Competitiveness Yearbook, up two places over the previous year. He added that the city will focus on three fronts to further boost its status as an international financial centre. First, Hong Kong will further reinforce its existing strengths, including those in the equity market, the bond market, and the asset management and wealth management sector. Second, Hong Kong will expedite the development of new growth areas, including building an international gold trading market and commodities trading ecosystem in Hong Kong. Third, international exchanges and co-operation will remain a priority for Hong Kong, including assisting companies interested in re-domiciling to Hong Kong.
In the opening session, the Deputy Governor of the People's Bank of China (PBOC), Mr Zou Lan said that China's financial market has developed rapidly in recent years, with its international influence and attractiveness being continuously enhanced. As Renminbi is more widely used in cross-boundary transactions, Hong Kong has emerged as the world's largest and most influential offshore Renminbi business hub. He said that as a next step to steadfastly support and further steadily advance the development of Hong Kong's offshore Renminbi market, the PBOC will focus on four key directions: first, to increase the scale of Renminbi funding arrangements to provide more ample liquidity support for Hong Kong's offshore market; second, to continue to advance financial market connectivity, enriching liquidity management and risk hedging tools for overseas investors; third, to expand the supply of offshore Renminbi sovereign bonds to enhance market liquidity; and fourth, to support the development of Hong Kong's gold market to strengthen the offshore Renminbi market function of Hong Kong.
The Financial Secretary, Mr Paul Chan, delivered welcome remarks at the keynote luncheon. He said, "In a world where economies are reconfiguring value chains and seeking more resilient, diversified partnerships, Hong Kong stands out as a reliable, trusted, resourceful and well-positioned partner, bridging the Mainland and the world."
He emphasised that Hong Kong’s significance will only grow, pointing out that Hong Kong serves as a gateway for global investors to access China's innovation-driven opportunities. In the realms of finance, he highlighted two key specific areas: as the premier two-way international fundraising platform, welcoming both Mainland and international companies to list in Hong Kong to support their growth; and as the world’s leading offshore Renminbi (RMB) hub, with a wide range of RMB-denominated investment and risk management products for global investors.
He added that at a time of global fragmentation, Hong Kong will continue to remain open for business, and welcome partners from around the world in shaping the future of Asia – and the world at large – together.
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, signed today a co-operation agreement with the Chairman of the Shanghai Gold Exchange, Mr Yu Wenjian, in the presence of Mr Lee; Mr Zou; Member of the Standing Committee of the Communist Party of China (CPC) Shanghai Municipal Committee and Executive Vice Mayor of the Shanghai Municipal People's Government, Mr Wu Wei; and the Executive Deputy Director of the Office of the Financial Commission of the CPC Shanghai Municipal Committee, Mr Zhou Xiaoquan. The co-operation agreement marks a new milestone for deepening the co-operation between gold markets in the two places, such as establishing a high-level, collaborative governance structure for Hong Kong's gold central clearing system, opening new avenues for physical infrastructure synergy and market interconnectivity. Separately, a panel discussion on gold exchange was held in the afternoon, analysing the market developments of the global gold industry and Hong Kong's role.
Mr Hui also chaired a plenary session today themed "Fostering Co-operation for Shared Success". Mr Hui and the panellists shared their thoughts on how to strengthen communication and dialogue among economies and pursue shared development amid the evolving global political and economic landscape. Speakers joining this session included the Deputy Prime Minister and Minister for Finance of Slovenia, Mr Klemen Boštjani; the Minister of Treasury and Finance of Türkiye, Mr Mehmet imek; the President of the Asian Infrastructure Investment Bank, Ms Zou Jiayi; and the Vice-President (East and Southeast Asia, and the Pacific) of Asian Development Bank, Mr Scott Morris.
Former President of the European Commission, former Prime Minister of Portugal, and Chairman of Advisory Board at Goldman Sachs International, Dr José Manuel Barroso, also delivered a keynote speech at the luncheon, sharing his views on the changes in global political and economic landscapes and their impact on international markets.
The 19th AFF will continue tomorrow (January 27). The inaugurl Global Business Summit, co-organised by the Financial Services and the Treasury Bureau, the HKTDC, and the Office for Attracting Strategic Enterprises, will be held. Focusing on how finance empowers businesses, the summit will cover the potential of high-growth industries such as artificial intelligence and technology, robotics, high-growth consumer products, and biopharmaceuticals and healthcare. It will also explore how Hong Kong can support Mainland enterprises going global, and the prospects of foreign enterprises entering the Mainland market. The summit will feature heavyweight speakers. Among them, Mr Chan; the Executive Vice Mayor of the Shanghai Municipal People's Government, Mr Wu Wei; and Vice Governor of the People's Government of Hunan Province Mr Wang Junshou will deliver speeches.
Business leader, investor and philanthropist Mr Paul Polman will be the speaker for the keynote luncheon tomorrow. The forum will also feature thematic workshops on topics such as artificial intelligence, sustainable banking, and family office.
The two-day AFF encompasses diverse events, including Global Spectrum series, Dialogues for Tomorrow series, and a breakfast panel. Investment opportunities are highlighted through the AFF Deal-making and a range of exhibition zones. Moreover, to showcase Hong Kong's various cultures and facilities, the forum offers experiential activities, sightseeing tours and dining discounts for international participants, encouraging them to make the most of their stay and experience the city's vitality.
Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape Source: HKSAR Government Press Releases
Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape Source: HKSAR Government Press Releases
Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape Source: HKSAR Government Press Releases
Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape Source: HKSAR Government Press Releases
Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape Source: HKSAR Government Press Releases
Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape Source: HKSAR Government Press Releases
Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape Source: HKSAR Government Press Releases
Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape Source: HKSAR Government Press Releases
Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape Source: HKSAR Government Press Releases
Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape Source: HKSAR Government Press Releases
