Source: Hong Kong Government special administrative region – 4
Following is the speech by the Financial Secretary, Mr Paul Chan, at the Hong Kong Institute of Certified Public Accountants (HKICPA) Annual Dinner today (November 7):
Director-General Hu (Director-General of the Department of Administration and Finance of the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region, Mr Hu Zhongyong), Deputy Director-General of the Commissioner’s Office of China’s Ministry in the Hong Kong Special Administrative Region Mr Zhu Xiufeng, Edward (President of the Hong Kong Institute of Certified Public Accountants, Mr Edward Au), Past Presidents, fellow members, ladies and gentlemen,
It is a pleasure to join you once again at the Annual Dinner of the Hong Kong Institute of Certified Public Accountants.
Each year, as I attend this event, I am reminded of the strength, dedication and unity of our accounting community. Seeing so many familiar and new faces tonight, I am heartened by the collective commitment we share to serve our beloved Hong Kong.
The theme of this year’s dinner, “Sustainable Impact, Enduring Value”, could not be more timely. It encapsulates the essence of what the accounting profession must strive for – not just ensuring financial integrity and regulatory compliance, but also making valuable contributions to the success of the organisation they serve, and the long-term development of our economy and our society.
Indeed, we are living in a time of profound transformation and uncertainty. The global political and economic landscape is undergoing deep structural shifts. Technological advancements, particularly artificial intelligence, are reshaping industries, redefining competitiveness and transforming our way of life. Meanwhile, the challenges of climate change are daunting. Amid such sweeping changes, what role does the accounting profession play? Are we facing declining relevance – or untapped opportunity? And above all, what lies ahead for our profession?
Global trends and our opportunities
In my view, Hong Kong is entering a new era, and we must have a clear vision, versatility in skills, and the agility and determination to navigate change. Allow me to share three key observations – along with my perspective on how the accounting profession can adapt and thrive.
Reconfiguration of global economy
First, the reconfiguration of the global economic landscape. Geopolitical tensions have reshaped the global trade order, moving it from multilateralism to regionalisation, characterised by enhanced multilateral or bilateral collaboration within regions. This is evident in the push to expand regional trade frameworks such as RCEP (Regional Comprehensive Economic Partnership) and CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership). The FTA (Free Trade Area) 3.0 recently signed between China and ASEAN (Association of Southeast Asian Nations), as well as renewed calls to resume negotiations on a trilateral FTA among China, Korea and Japan, are good examples.
It is noteworthy that despite all the external pressure, China continues to advance steadily. The recent Fourth Plenary Session of the CPC Central Committee offered a clear roadmap for China’s development under the forthcoming 15th Five-Year Plan. It has reaffirmed the country’s steadfastcommitment to high-level two-way opening up. It has emphasised technological self-reliance, with particular focus on the integration of innovation with industrial development.
Under the “one country, two systems” framework, Hong Kong will continue to thrive as a two-way platform with our “super connector” and “super value-adder” role. Our national policy is to encourage Mainland enterprises to go global. Increasingly, these enterprises are expanding their presence across the globe to reconfigure their own supply chain and industry chain – particularly in regions such as Southeast Asia, the Middle East, and other parts of the Global South. This outward push is not only a strategic use of their domestic production capacity, but also a broader effort to drive international industrial collaboration.
Many Mainland enterprises are choosing to go global through Hong Kong. They are leveraging our city as a strategic platform for raising capital, and providing support services like treasury and supply chain management, transport and logistics, and as an offshore hub for R&D (research and development) and talent. In doing so, they require a comprehensive suite of financial and professional services – from trade finance and tax advisory to ESG (environmental, social, and governance) consulting. This is evidenced by the recent uptake of substantial office space in Hong Kong, with some Mainland companies even securing entire office blocks to establish their regional and international headquarters here.
To capture this opportunity, the Government has established the GoGlobal Task Force (Task Force on Supporting Mainland Enterprises in Going Global), led by the Secretary for Commerce and Economic Development, to co-ordinate institutional support across the public and private sectors to facilitate their smooth landing in Hong Kong and overseas expansion.
For accounting professionals, this presents a wealth of opportunities. It is noteworthy that our professional expertise, international experience and exposure, language skills, extensive networks, work ethics and integrity are very much treasured by them.
Fellow members, joining them and helping them in their journey of global expansion is a promising and rewarding career choice.
At the same time, many businesses from Southeast Asia, the Middle East, and Central Asia are looking to Hong Kong as a springboard and gateway into the Mainland. Hong Kong is where they can raise funds, find partners and get professional support to tap into the vast Mainland market. Over the past year or so, companies from Thailand, Indonesia, Kazakhstan, and Singapore have come to list on the Hong Kong Stock Exchange. We will soon welcome the first Middle Eastern company from the UAE (United Arab Emirates). These developments are opening up a broader career stage for accounting professionals.
Technological advancement
Second, technological disruption, particularly AI. AI is transforming industries and ways of life at an unprecedented scale and pace. And the accounting profession is no exception. We need to embrace it.
The challenge is upskilling ourselves to leverage AI as a powerful tool, while focusing on areas where ethics, human judgement and strategic thinking are irreplaceable. For example, the identification of algorithmic bias, scenario contemplation, disaster recovery, cybersecurity, cross-sectoral collaboration, human resources deployment, and team building – these are domains where professional expertise and human judgement can truly make a difference, and the service is highly valued.
In other words, we need to transform ourselves, enhance our digital and AI preparedness, embrace technology transformation, and sharpen our soft skills. These are becoming the foundational pillars of our professional career and growth.
Green transition
Third, green transition and sustainability. While the US has rolled back on their climate commitments, Asia, and China in particular, remains firmly committed to green transformation and sustainable development.
And I believe the accounting profession will play an increasingly vital role in this transition. From tracking emission footprint to advising on sustainability transition strategy, to green and sustainability reporting, disclosures and assurance – accountants are at the heart of this transformation.
For example, as demand for ESG-related disclosure from investors, regulators and the public continues to grow, the accounting profession’s services will become more relevant and recognised. For our part, the Government is also working to enable full adoption of ISSB standards in financial reporting, on a phased basis, by 2028.
A shared responsibility
Fellow accountants, ladies and gentlemen, the road ahead is both demanding and promising. Realising that promise requires the collective effort and wisdom of all stakeholders: from businesses to standard setters like the HKICPA, and from regulators to consultants, auditors and, indeed, every member of the accounting community.
As we gather tonight to celebrate the past accomplishments of the Institute and the profession, let us also look ahead and reaffirm our shared commitment: as steward of public interest, and the pursuit of excellence.
Before I conclude, may I also take this opportunity to encourage all of you to cast your votes in the Legislative Council General Election on December 7. This will help shape the future of our city.
Closing
Thank you once again for the invitation to join you this evening. I extend my heartfelt appreciation to all of you for your dedication to the profession and Hong Kong. Let us put our minds and hearts together to build a more inclusive, sustainable and resilient future for the profession, for Hong Kong and for the country.
I wish you all an enjoyable evening, and continued good health, prosperity and success in the year ahead. Thank you.