Source: Hong Kong Government special administrative region – 4
Following is the speech by the Financial Secretary, Mr Paul Chan, at Asian Financial Forum Global Business Summit today (January 27):
Fred (Chairman of the Hong Kong Trade Development Council, Professor Frederick Ma), Vice Mayor Wu Wei (Member of the Standing Committee of the Communist Party of China Shanghai Municipal Committee and Executive Vice Mayor of the Shanghai Municipal People’s Government, Mr Wu Wei), Vice Governor Tang (Vice-Governor of the People’s Government of Shanxi Province, Mr Tang Zhiping), Vice Governor Wang (Vice-Governor of the People’s Government of Hunan Province, Mr Wang Junshou), 張文武副董事長 (Vice Chairman and President of CITIC Group, Mr Zhang Wenwu), your Excellencies, distinguished guests, ladies and gentlemen,
Welcome to this inaugural Global Business Summit. To government officials and business leaders joining us from around the world, a very warm welcome to Hong Kong.
We are meeting at a pivotal moment, marked by a deep structural transformation in industrial development – driven by several powerful forces.
Global industries in transformation
First, artificial intelligence (AI) and other frontier technologies are reshaping how products are designed, factories operate, supply chains are managed, and services are delivered. AI is not only an industry in its own right; its greatest value lies in its ability to scale across processes and supply chains, accelerating innovation in areas such as advanced manufacturing and biotechnology. It ultimately will become a defining competitive advantage.
Second, the green transition. Around the world, most economies continue to move steadily towards carbon neutrality, with rising demand for decarbonised industrial processes and green products. The shift to renewable energy, electric vehicles and emerging solutions such as green hydrogen is creating new industrial chains and investment cycles, and better responds to consumers’ aspirations for green products.
Third, geopolitics and supply-chain reconfiguration. Geoeconomic fragmentation is reshaping economic relationships and driving businesses to diversify production networks, balancing efficiency with resilience. For businesses, the key question is far more than “where is cheapest?”, but “where is secure, scalable, sustainable and cost-competitive?”
China under spotlight
Clearly, China is at the heart of these developments. It has the world’s most comprehensive and complete industrial system. It is a global leader in technological innovation, such as AI, robotics and biotech. It is advancing rapidly in green transformation. In a changing geoeconomic landscape, Chinese companies are also diversifying their supply and industrial bases, and deepening participation in international industrial and supply-chain co-operation.
It is noteworthy that in the Recommendations for the 15th Five-Year Plan, the country will continue to pursue high quality development as well as technological self-reliance. It has emphasised the deep integration of technological and industry innovation.
Hong Kong’s catalytic role
Ladies and gentlemen, allow me to turn to Hong Kong. Looking ahead, trade, finance and innovation and technology will be the three principal drivers of our economic growth.
On innovation and technology, over the past few years, we have invested more than HK$200 billion to drive its development, and formulated a comprehensive strategy to expedite progress across the spectrum. From supporting R&D (research and development) and building the relevant infrastructure, to nurturing start-ups and attracting talent, we are strengthening Hong Kong’s tech ecosystem from upstream to downstream.
Our priority sectors are clear: artificial intelligence and data science, biotech, fintech, and new energy and new materials. These are areas where we have strong foundations and clear competitive advantages.
A further essential piece in building a more vibrant tech ecosystem is technology enterprises. This is why this Government is determined to attract the world’s leading frontier-technology enterprises to Hong Kong. Over the past three years, the Office for Attracting Strategic Enterprises has attracted more than 100 strategic enterprises, which are expected to invest over HK$60 billion and create more than 22 000 jobs. Moreover, these companies will bring in partners across their value chains, further strengthening and broadening Hong Kong’s innovation ecosystem.
To better integrate I&T (innovation and technology) with industrial development, this Government has made it a priority to expedite the development of the Northern Metropolis, a strategic development area comprising around one-third of Hong Kong’s landmass.
We welcome technology and industrial enterprises to establish a presence in the Northern Metropolis. Where justified, we are prepared to tailor incentive packages, which may include land grants, premium concessions, tax incentives and other facilitation measures. Everything is negotiable. Specific arrangements will be considered in light of factors such as the frontier technologies and investment to be brought in, the project’s economic benefits, the jobs to be created, and the extent to which the projects will strengthen Hong Kong’s innovation ecosystem.
We are also providing for more flexible development models in the Northern Metropolis, including large-scale land disposals for high-impact projects.
It helps that Hong Kong is an international financial centre, offering a full spectrum of funding options to support tech companies at different development stages to scale up. That includes a vibrant private equity and venture capital ecosystem. That, of course, also includes a deep and liquid stock market.
The HKSAR (Hong Kong Special Administrative Region) Government has established the Hong Kong Investment Corporation Limited, or HKIC. It provides patient capital and makes strategic investments in high-potential ventures, particularly in hard technology. HKIC is willing to co-invest in projects where justified.
Taken together, we are leveraging finance to power tech and industry development. Our world-class financial services and international connectivity further enhance Hong Kong’s overall value proposition.
Closing remarks
Ladies and gentlemen, the message I wish to leave with you today is this: Hong Kong is not just a platform that connects capital, market, projects, talent and opportunity. Hong Kong is willing to be a strategic partner to help you grow, scale up and go global.
Thank you very much. I wish the Summit every success, and the best of health and business to you all.