Paul Chan highlights Hong Kong’s unique edge in challenging geopolitical times Hong Kong will achieve new economic breakthroughs despite a “complicated and volatile” external environment, the finance chief has said while unveiling the government’s first business report in four years to attract investors. Financial Secretary Paul Chan Mo-po said on Wednesday that the city was in the midst of transformation and upgrading, but warned that some traditional industries would struggle more than others. Overseas misperceptions about Hong Kong had prompted the government to detail the city’s latest economic situation in the report, which is accessible online to investors abroad. He also said that the 102-page report, titled “Unique Strengths under ‘One Country, Two Systems’”, clearly and systematically showed the world that the development of Hong Kong had been picking up in recent years as social stability had been restored. The report cited Chinese President Xi Jinping’s backing of Hong Kong’s one country, two systems governing principle, which it called a cornerstone of the city’s long-term prosperity and stability, as well as a pillar supporting further development. It also highlighted recent investments as part of efforts to build up the city’s innovation and technology ecosystem, as well as emerging opportunities in artificial intelligence, green finance and Web3. The report also pointed to Hong Kong’s well-established edge as a free port and free economy. Chan said that over the last few years, many overseas visitors had not had the opportunity to come to Hong Kong and that there were misperceptions about the city’s situation due to geopolitics. Authorities have been striving to revive the city’s economy and restore business confidence after a tumultuous period marked by political changes and the Covid-19 pandemic. The government last issued a business report in 2021 when the city was emerging from the 2019 anti-government protests and the enactment of the national security law the following year. The city has this year once again found itself caught in the geopolitical headwinds of a trade war between the United States and China following Donald Trump’s re-election as US president. The government has taken great strides to offset the effects of the geopolitical tensions, investing billions of Hong Kong dollars into strategic industries and developments while seeking to diversify the economy and forge partnerships with Asean and Middle Eastern markets. The daily turnover on the stock market in the first half of the year was up by 120 per cent to about HK$240 billion (US$30.6 billion), he said. Chan said the city’s 52 initial public offerings in the first seven months raised HK$130 billion, a sixfold increase from the same period last year. Chan said InvestHK had helped 1,300 mainland Chinese and overseas enterprises to set up or expand their operations in the city between January 2023 and the first half of 2025, bringing in more than HK$160 billion in investment. Asked whether he was worried about the impact of US tariffs on the local business environment, Chan said the direct effects would be “minimal”, given Hong Kong had a service-oriented economy. But the indirect effects could be more significant due to the city’s role as a re-export hub for mainland products, he said. It was increasingly difficult for mainland companies to list in the US, with Hong Kong able to offer them a platform for accessing international and mainland capital, he said. Discussing the report, Secretary for Justice Paul Lam Ting-kwok said Hong Kong’s rule of law had contributed to the excellent business environment as the city was a recognised hub for international legal and dispute resolution services. Benjamin Hung Pi-cheng, chairman of the Financial Services Development Council, said the city could leverage its unique role as a two-way platform to attract foreign investment while facilitating global expansion, connecting China with international supply chains and positioning itself as a Global South-facing regional treasury centre. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3320122/hong-kong-set-economic-breakthroughs-paul-chan-tells-foreign-investors?module=top_story&pgtype=homepage?module=inline&pgtype=article (ICE HONG KONG)

Fonte notizia: South China Morning Post