Organized by the Hong Kong Special Administrative Region government and the Hong Kong Trade Development Council (HKTDC), the 17th Asian Financial Forum (AFF) was held at the Hong Kong Convention and Exhibition Centre on Jan 24-25, under the theme “Multilateral Cooperation for a Shared Tomorrow”. 

The forum focused on topics including promoting global development, business opportunities and sustainable economic models, all of which are highly relevant nowadays. 

The theme of this event was perfectly timed, now that Hong Kong and the Chinese mainland have fully reopened to the world, and with the world facing so many economic challenges this year.

The AFF brought together influential leaders from the government, finance, and business communities across the globe. More than 3,000 government officials, representatives of regulatory bodies and business heavyweights gathered in Hong Kong for the event, with more than 130 high-profile speakers participating, while an exhibition zone brought together more than 140 exhibitors from different countries and regions.

Peter K N Lam, chairman of the HKTDC, said: “This is the first time for the forum to be held entirely in person since 2020. Yes, we are back to business and finance, to deal-making, and day-to-day and day-to-night networking — today, tomorrow and, I’m sure, long down the road.”

While the AFF 2023 edition was a big success, it was “hybrid”; this year’s event was again completely in-person.

Furthermore, speaking at last week’s Executive Council meeting, Chief Executive John Lee Ka-chiu said that nearly 70 trade groups had confirmed they would be attending the AFF. Lee said the groups were from the Chinese mainland, Southeast Asia, the Middle East, Australia, the United States and Europe, which “reflected that Hong Kong remains attractive” for overseas investors.

“The number of speakers from the Middle East has increased from two to eight this time, whereas the number of those from ASEAN increased from five to 14. It fully shows that authorities have made progress in promoting the city to the two regions,” Lee said.

Also, on the first day of the conference, Hong Kong and Saudi Arabia agreed to deepen collaboration between their financial markets. More specifically, Hong Kong’s Financial Services Development Council and Saudi Arabia’s Financial Sector Development Program signed a memorandum of understanding to strengthen collaboration between their financial markets.

The memorandum signifies collaboration in key areas, including supporting capital market connectivity, conducting joint research and knowledge sharing, organizing exchange programs and joint events, and harnessing synergy and mutual interests. It aims to enhance cross-border investments, share best practices in fintech and talent development, boost connectivity through market promotion activities, and strengthen the financial alliance between Hong Kong and Saudi Arabia.

The success of the AFF as well as all the initiatives derived from it, such as the memorandum I just mentioned, clearly show that not only is business in Hong Kong completely back to normal following the pandemic, but also that, as Lee said, the city remains attractive to overseas investors.

To sum up, Hong Kong is constantly showing that it has the potential not only to maintain its role as one of the world’s most important financial centers but to enhance it, thanks to its international role, expertise in the financial industry and related industries, and also thanks to tapping into newer industries like Web3, all this in the midst of the city’s involvement in the GBA and other projects

While Hong Kong has indeed been through some rough years, its attractiveness has not diminished at all, to the point that the city remains one of the world’s most important financial centers.

Hong Kong now is embracing opportunities from the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) development; and, by playing an active role in China’s 14th Five-Year Plan (2021-25), the HKSAR is unleashing its potential thanks to unreserved support from the central authorities for advancing key strategies to upgrade the city’s “superconnector” role, including the digital yuan (or digital renminbi) and the environmental, social and governance regime.

In addition to the huge role that the GBA will play in Hong Kong’s future, we can also look forward to other opportunities such as fintech developments in Hong Kong, the HKSAR’s anticipated entry into the Regional Comprehensive Economic Partnership, and the connect schemes.

As for fintech, Hong Kong and the rest of the GBA are increasing their role as fintech hubs. The “Fintech 2025” strategy aims at pivoting the HKSAR toward a friendlier regulatory regime for digital assets, proving that the city is positioning itself to become a virtual assets center or crypto hub.

Hong Kong has stepped up efforts to develop itself into one of the world’s most important Web3 hubs. A few months ago, Financial Secretary Paul Chan Mo-po reportedly said that the time is ripe for Hong Kong to invest in the Web3 digital economy despite recent volatility, as competent market players that survived a “burst bubble” can focus on innovation and make significant strides. Shortly afterward, Lee said that the city must “dare to become a leader” in Web3 innovation.

Also, Hong Kong ranks very high in finance-related indexes. For example, Hong Kong maintained fourth place in the “Global Financial Centres Index 34” ranking report, published in September by Z/Yen from the UK and the China Development Institute from Shenzhen. 

Hong Kong is also an innovation hub, with the Shenzhen-Hong Kong-Guangzhou science and technology cluster being ranked second globally for the fourth consecutive year in the “Global Innovation Index 2023”, published a few months ago by the World Intellectual Property Organization: Hong Kong’s ranking remained at fifth in Asia and 17th globally among 132 economies. Hong Kong continued to perform well in the “Innovation Input” subindex, ranking eighth globally. Its ranking in the “Innovation Output” subindex improved to 24th.

Hong Kong also has a strong and solid legal system, which is an asset when it comes to attracting foreign investors. The city has consistently ranked high in the World Justice Project’s Rule of Law Index; it was ranked at 23rd in 2023 (out of the 142 places surveyed). Regionally, Hong Kong ranked sixth out of 15 jurisdictions in East Asia and Pacific in 2023. The region’s top performer was New Zealand (ranking eighth globally), followed by Australia and Japan. Furthermore, Hong Kong’s legal system is also strong when it comes to alternative dispute resolution. 

To sum up, Hong Kong is constantly showing that it has the potential not only to maintain its role as one of the world’s most important financial centers but to enhance it, thanks to its international role, expertise in the financial industry and related industries, and also thanks to tapping into newer industries like Web3, all this in the midst of the city’s involvement in the GBA and other projects.

The author is a fintech adviser and researcher. He holds a Master of Business Administration and a doctorate in Hong Kong real estate law and economics. He has worked as a business analyst for a Hong Kong publicly listed company.

The views do not necessarily reflect those of China Daily.