Despite rising global economic uncertainties in recent months, Hong Kong has continued to see capital inflows, which reflects international investors' confidence in the special administrative region’s investment environment and opportunities, the city’s finance chief said on Friday.
Paul Chan Mo-po said this during an in-conversation session organized by the Institute of International Finance (IIF) after the plenary session of the International Monetary Fund and the World Bank Group annual meetings in Washington, DC.
Hong Kong is continuously reforming its capital markets to facilitate corporate fundraising and enhance market liquidity, attracting high-quality issuers and investors from both local and overseas markets, he said.
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At the same time, the SAR is embracing financial innovation with a prudent approach, promoting the development of digital assets including stablecoins, he added.
Besides attending the IMF and the World Bank Group annual meetings on the last day of his US visit, the financial secretary also participated in various events, meeting with leaders in the financial sector, major business representatives and think tank figures to brief them on the latest developments and business environment in Hong Kong.
Speaking at the IIF session, Chan shared his insights on the current state of Hong Kong's economy, its strategy of development as a financial center, opportunities in innovation and technology —particularly artificial intelligence — the development of digital assets, and the building of a patient capital ecosystem.
He also highlighted the SAR’s unique advantages under the "one country, two systems" arrangement, including free flow of capital, a freely convertible currency pegged to the US dollar, a highly internationalized market, and close alignment with international best practices.
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Sharing initiatives in nurturing patient capital, Chan talked about the establishment of the Hong Kong Investment Corporation Limited (HKIC), which invests early, in smaller-sized enterprises, and with a long-term perspective and mobilizes private capital to support innovation and technology industries.
The HKIC has so far invested in over 130 projects, and for every HK$1 invested, it has attracted around HK$6 in co-investment from the market, he added.
Chan delivered a keynote speech at a business luncheon hosted by the US-China Business Council and the Hong Kong Economic and Trade Office in Washington, with over 40 American business leaders in attendance.
Besides updating participants on Hong Kong's latest economic situation and future development directions, he exchanged views with guests on topics including opportunities in Hong Kong and the Chinese mainland.
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Regarding innovation and technology development, Hong Kong benefits from access to both mainland and international data, which is advantageous for research and development activities in sectors like healthcare and makes the SAR particularly attractive to overseas biomedical enterprises, said Chan.
He reaffirmed that Hong Kong will continue to welcome American businesses and talent to invest and develop their careers in the city.
Attending a roundtable discussion hosted by the US think tank Atlantic Council, he exchanged views with representatives from multinational corporations, financial institutions, and local think tanks on topics including trade, finance, digital assets and innovation.