Exclusive | Paul Chan upbeat about Hong Kong economy despite ‘volatility’ from Trump policies Shifting policies under US President Donald Trump’s administration are expected to heighten market volatility in Hong Kong this year, the finance chief has said, while also expressing “cautious optimism” about the capital market. Explaining his upbeat outlook despite the tense geopolitical climate, Financial Secretary Paul Chan Mo-po said business and political leaders he met at the World Economic Forum in Davos viewed the city much more positively than in previous years. “Despite the [geopolitical] challenges, as long as we keep the Hong Kong market open, free and properly regulated, adhering to best international standards and attracting quality companies to list here, [Western investors] will remain very interested in our market,” Chan told the Post in an exclusive, wide-ranging interview. Wrapping up his four-day stay in Switzerland, Chan said Hong Kong had to accelerate innovation and technology (I&T) development for quality jobs and economic growth, and that strategically attracting companies to the city was crucial for strengthening its tech ecosystem. Discussing the market outlook amid escalating tensions between the United States and its European allies over Greenland, Chan said political and business leaders in Davos had focused on evolving American policies and their implications for the global economy. The finance minister remained tight-lipped about his recent conversations with Jensen Huang, CEO of the AI chipmaking giant Nvidia, but said his exchanges with other participants at the forum showed that sentiments about Hong Kong’s prospects this year had shifted, with more viewing the city “a lot more positively” after earlier scepticism about investing in Hong Kong and mainland China. According to Chan, many business leaders had expressed keen interest in the city’s technology sector, while some had visited the mainland to explore potential investments in the pharmaceutical and biotech industries. He noted that only one person he spoke to had raised concerns about Hong Kong’s national security legislation. But he stressed that the government would continue to do its best to ensure financial stability and remained “cautiously optimistic” about Hong Kong’s economic outlook, given the city’s stock market performance and US trade figures. Breaking down those figures, Chan said the US had recorded a deficit in goods trade with the rest of the world, but a services trade surplus of US$300 billion in 2024. He also said that despite Trump’s announcement of sweeping tariff increases on various countries on April 2 last year – which the US president referred to as “Liberation Day” – Hong Kong had regained its status as the top global market for initial public offerings. He pointed out that US and European institutions were among Hong Kong’s key investors, and predicted that their interest in the city would “remain very high” in the coming year. Chan also pledged to diversify the range of companies listed on the Hong Kong stock exchange by looking beyond mainland businesses and actively exploring new markets in the Middle East and Southeast Asia. The shifting geopolitical climate also saw Trump use this year’s forum to reiterate his desire to acquire Greenland and outline his “Board of Peace” initiative for Gaza. In Davos, Chan said challenges to multilateral cooperation under a rules-based order would lead to greater rivalry among three “major regions”: China and Southeast Asia; America; and India and Europe. He argued that US-China tensions had caused certain foreign investors to feel “discomfort” about adopting Chinese technologies despite advancements in innovation. During the interview, Chan also brought up “tech-based survival”, a term coined at this year’s meeting to depict a highly fragmented future world in which businesses and nations relied heavily on technological acceleration to create jobs and navigate geopolitical instability. He said this was a hotly discussed trend that shaped discussions among business elites during the summit, adding that Hong Kong must intensify its efforts to develop its I&T sector as a major driver of economic growth and job creation. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3340943/paul-chan-upbeat-about-hong-kong-economy-despite-volatile-market-trump-policies?module=top_story&pgtype=homepage (ICE HONG KONG)

Fonte notizia: South China Morning Post