Leading financiers endorsed the Hong Kong Special Administrative Region’s deepening integration with the Chinese mainland market as a catalyst for tangible economic growth at the China International Finance Forum (CIFF) on Wednesday.
The annual forum, which was held in Hong Kong for the first time, focused on “Global economic and financial trends and China’s economic outlook”.
Hong Kong Financial Secretary Paul Chan Mo-po sounded a resolute note on the special administrative region’s financial blueprint on the back of the “one country, two systems” principle.
He said that Hong Kong is “the only city in the world that enjoys both the mainland’s advantages and the international advantages”. This ensures “convenient and high-quality access to the mainland market” while maintaining international advantages including “the common law, rule of law, independent judiciary, and free flow of information and capital”.
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He said that Hong Kong will continue to play the role of superconnector, reaching not only traditional markets in Western countries but also emerging markets in the Global South, such as the Association of Southeast Asian Nations and the Middle East.
“The shifting economic reality presents new opportunities that include a rising Asia which accounts for about 60 percent of global GDP in terms of purchasing power parity,” the finance chief noted.
Speaking about market connectivity, Chan highlighted the decade-long success of the Stock Connect program, which he called “a prime example of this much-envied connectivity with the mainland”. The program’s expansion now included “bonds, exchange-traded funds, and derivatives”, with further growth anticipated.
In the digital asset space, Chan announced “We are seeking to put stablecoins under regulation by introducing legislation within this year”. On artificial intelligence, he revealed a recent policy statement outlining a “regulatory approach towards the responsible application of AI in financial services”.
Convenor of the Hong Kong Executive Council and Legislative Council member Regina Ip Lau Suk-yee noted that market connectivity initiatives between Hong Kong and the mainland have borne fruit, with “the three markets in Hong Kong, Shanghai, and Shenzhen” rising to “the third, eighth, and ninth position, respectively, in the Global Financial Centres Index” this year.
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She added that the city’s foundation as “a global financial center (is) well recognized for its open and transparent system, its strong rule of law based on the common law system, and the clear and predictable regulatory framework”.
The veteran politician acknowledged current global challenges, noting that “the global financial community faces volatility and turbulence caused by the rising threat of imbalance in global capital flows, uncertain future of interest rates and inflation, and mounting government debt”.
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“We have much to learn from how the Chinese mainland works with its global partners to navigate the emerging changes,” she added.
Samuel Yung Wing-ki, vice-chairman of the Committee on Economic Affairs of the 14th National Committee of the Chinese People’s Political Consultative Conference, noted the growing synergy between Hong Kong and the mainland’s financial markets.
Yung commented on the interconnections of various financial sectors, such as social security funds, insurance, and wealth management funds. He said that “utilizing capital market funds and financial institution investments will significantly benefit the real economy”.
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CIFF, which has been held in Shanghai since its 2004 inception, aims to offer a platform for gathering policymakers and global financial professionals to discuss topics such as fintech innovation, digital transformation and cross-border cooperation, to propel the Chinese markets’ opening.
The International Banking Federation, along with the International Capital Market Association and the Global Association of Central Counterparties, hosted the forum. The event was also backed by the Shanghai Municipal Government.
