The Hong Kong Special Administrative Region’s role as a gateway to the Chinese mainland, its business potential, free-market economy, and simple and low-tax regime remain the most appealing advantages for Swedish companies, the city’s finance chief said on Friday.

“Hong Kong is proud to offer Swedish companies a favorable and dynamic business environment,” Paul Chan Mo-po said while speaking at the National Day of Sweden reception.

Referring to the recent business climate survey by Team Sweden in the SAR, which points to a steady improvement in how Swedish companies perceive the city’s business climate over the past three years, he said the survey also shows that 67 percent of them use Hong Kong as a regional hub.

Pointing out the strong emphasis the national 15th Five-Year Plan places on the country's high-level two-way opening up, he said he is sure that more Swedish and European goods and services will be welcomed by the expanding and increasingly sophisticated consumer market on the mainland.

There is far-reaching opportunity in Hong Kong's good and growing ties with Sweden, Chan said. “Our bilateral merchandise trade last year rose by a cheering 11.5 percent over the previous year, to about $950 million. Services trade, too, grew by nearly 8 percent in 2024, to about $900 million.”

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Hong Kong can certainly help Swedish enterprises seize the opportunities ahead, he said, adding that the potential for collaboration between the two places in innovation and technology is equally compelling.

“Hong Kong is rising fast as an international innovation and technology center, supported by the accelerated development of the Northern Metropolis. Sweden has world-class innovation capabilities and industrial strengths. There is much we can achieve together,” he said.

According to Chan, there is much scope for collaboration with Sweden in the fields of AI – from research and application to education and talent development – and life science and health technology.

Referring to Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone along the Shenzhen River, which is fast becoming a major hub for life and health technologies, he said, “Over there, we are enabling the cross-boundary flow of biological samples and clinical data. We are also working to host a branch of the mainland's regulatory authority.”

This will facilitate quicker access of pharmaceutical products and medical devices to the mainland market, the financial secretary said, adding that mainland and overseas clinical trial institutions are already operating there.

“Beyond business and investment, our partnership can extend to many other areas, from arts and culture to sports,” he added.

Consul General of Sweden to Hong Kong Louise Bergholm and Deputy Commissioner of the Office of the Commissioner of the Ministry of Foreign Affairs of the People's Republic of China in the HKSAR Zhang Changwei were among the dignitaries who attended the event.