European fintech firms eyeing Hong Kong as Asia base, Paul Chan says Some leading European fintech companies are planning to make Hong Kong their base in Asia, the finance chief has said, touting his recent trip to a global economic forum in Switzerland as a way to expand the city’s network. Financial Secretary Paul Chan Mo-po also said on Sunday that Beijing’s support for collaboration provided stability to the global economy, with business leaders at the World Economic Forum in Davos last week voicing worries over increased fragmentation. Chan said his five-day trip, which ended on Friday last week, allowed him to further expand Hong Kong’s “network of friends”. He said he had invited senior financial officials, business leaders and executives to lead delegations to the city and the Greater Bay Area to explore the vast opportunities available. “During this annual meeting, leading financial technology companies from Europe expressed plans to settle in Hong Kong as a base for expanding their businesses in Asia,” Chan said, without naming the firms. “This year, we will continue to intensify efforts to promote Hong Kong, allowing more friends from both domestic and international regions to understand, leverage and contribute to Hong Kong.” In the meeting, the finance minister said the city had a vibrant fintech ecosystem and was the best entry point into the mainland Chinese market. Last year, 539 mainland and overseas firms set up bases or expanded their presence in Hong Kong, a 41 per cent rise from 382 in 2023. Half of the companies last year were from the mainland, followed by ones from the United States, France, the United Kingdom and Singapore, according to data from government investment promotion agency InvestHK. The mainland and overseas businesses primarily operated in innovation and technology, finance, the family office sector, tourism and hospitality, professional services and green industries, with investments reaching a record high of HK$67.7 billion (US$8.7 billion) last year. The finance chief added that the economic and diplomatic policies of the new US government, particularly its current stance on global trade, international relations and climate change, were also a concern for global business leaders. Donald Trump wasted no time on Monday last week, the first day of his second term as US president, by signing a series of executive orders, including directing the country to withdraw from the World Health Organization and the Paris climate accord for a second time. The Paris Agreement, signed by 196 countries, set out a framework to limit global warming to below 1.5 degrees Celsius (2.7 Fahrenheit) or “well below” 2 degrees by the end of the century. The White House also announced on Friday last week it was conducting a “compliance review” of what it called the “economic and trade agreement” between China and the US. “Hong Kong is still a gateway to China, and China is still a big market,” Chong said. He added the US’ targeting of the country would only harm its own economy, while the rest of the world would continue to show interest in investing in China. Lau Siu-kai, a consultant to the semi-official Chinese Association of Hong Kong and Macau Studies think tank, said the city’s attractiveness for investment would not be significantly hurt under Trump. But he warned that potential tariffs on Chinese goods could affect Hong Kong’s re-exports. Addressing the interest expressed by some European companies to set up in Hong Kong, Lau said the city served as “an important gateway to enter the Chinese and Asian markets”. Finance minister Chan said the opinions expressed at this year’s forum in Davos underscored the latest global changes. “It is worth noting that this year’s annual meeting presented two starkly different viewpoints, which to a significant extent foreshadow the future direction of the international landscape,” Chan said. He said the international economic system faced a greater risk of fragmentation under the shadows of unilateralism and protectionism, which would inevitably lead to increased uncertainty in global development. Chan said Hong Kong would continue to capitalise on the advantages of the “one country, two systems” governing principle to contribute to the nation’s openness and explore new growth opportunities. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3296326/european-fintech-firms-eyeing-hong-kong-asia-base-paul-chan-says (ICE HONG KONG)

Fonte notizia: South China Morning Post