Hong Kong can harness the opportunities arising from the technological revolution and a shifting global trading landscape to drive its economic transformation and upgrading, fostering new growth engines, Financial Secretary Paul Chan Mo-po said on Sunday.

Writing in his weekly blog, he said geopolitical uncertainties and recent tariff tensions have reshaped international trade and supply chains, opening up new development opportunities for the special administrative region’s many sectors, including shipping, finance, and professional services.

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The financial chief highlighted, for example, the city’s solid processes in building a commodity trading ecosystem. The SAR government has stepped up efforts to become an international gold trading hub, and is reviewing related areas, including support for physical gold delivery, with relevant plans to be unveiled later this year, according to Chan.

Chan also underscored Hong Kong’s advances in the non-ferrous metals market. Earlier this year, the SAR became a part of the London Metal Exchange’s global warehouse network, an achievement he described as a “significant milestone” that has brought China closer to the world’s most active metals trading markets.

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Eight LME-approved warehouses in Hong Kong have been operational since January, with more than 8,000 tons of exchange-registered warrants available to facilitate LME contract delivery as of early August, according to Chan.

Beyond ensuring a stable regional metal supply, the move can also strengthen Hong Kong’s shipping industry and support the growth of related services, such as trade finance, insurance and risk management, hedging and derivatives, he added.

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Meanwhile, with more Chinese mainland enterprises expanding overseas through the deployment of industrial and supply chains across regions involved in the Global South and the Belt and Road Initiative, Hong Kong has been actively promoting its role as a multinational supply chain management center, Chan said.

The SAR’s strengths, such as its international capital pool, comprehensive financial services, and efficient logistics connectivity via its world-class airport and ports, make it an attractive and preferred platform for mainland businesses to establish offshore treasury centers and cross-border supply chain management operations.

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Chan also highlighted the robust performance of the exports sector, citing that Hong Kong has experienced double-digit year-on-year growth in merchandise trade in recent months. In the first half of this year, the SAR’s overall goods exports to Vietnam and Malaysia surged by more than 50 percent and 30 percent, respectively.

“Hong Kong’s roles and advantages as a ‘super-connector’ and ‘super value-adder’ are becoming increasingly evident,” Chan noted.

“As long as we continue to open up new business areas and growth points, while giving full play to our strengths and serving the country’s needs, we will certainly pave a broader path for the sustainable development of Hong Kong’s economy.”  

Contact the writer at gabylin@chinadailyhk.com