HK boldly attracts talent enterprises

When I spoke to you at last year’s conference, I had only assumed the office of the Chief Executive of the Hong Kong Special Administrative Region for less than a month. I stressed that the Government under my leadership would be a “results-oriented” one.

 

One year on, as we approach this Government’s first anniversary, allow me to touch on a few areas that speak to our belief in the primacy of “results”, our pledge to work “pragmatically, and passionately, for Hong Kong – and our country”.

 

Attracting talent and enterprises

As we emerge from the COVID-19 pandemic, Hong Kong is striving our best to make up for lost time.

 

I outlined in my Policy Address last October an array of new and unprecedented initiatives to proactively and aggressively compete for enterprises and talent. To get things done. To achieve results.

 

We introduced the Top Talent Pass Scheme and enhanced various talent schemes about half a year ago. The enhanced talent admission regime had received, in half a year, 84,000 applications by the end of May, and we’ve approved some 49,000 of them. This is solid proof of Hong Kong’s attractiveness for global talent to come and settle, live and work in.

 

The new Office for Attracting Strategic Enterprises has already met more than 150 enterprises from around the world in just the past six months. We aim to attract at least 1,130 companies to set up or expand their operations in Hong Kong from 2023 to 2025.

 

By the way, that 49,000 approved talent means what? I set a target of attracting 35,000 talent a year, that 49,000 means I have beat it almost by a double, by the end of the year, looking at this trend. That tells Hong Kong’s attractiveness. 

 

Telling good stories of HK

The pandemic has made it a global trend to “work from home”, and in many aspects, working from home has proven to improve work efficiency. However, my team and I don’t just “work from home” in attracting talent and enterprises. We have travelled abroad to tell the world that Hong Kong is back in business, back in the business of creating opportunities, back on the world’s centre stage.

 

Last November, I made my first visit overseas as the Chief Executive. At the annual APEC (Asia-Pacific Economic Cooperation) Economic Leaders’ Meeting and my subsequent visit to Thailand, I reassured our trading partners of Hong Kong’s commitment to regional economic co-operation. More importantly, I told the business and political leaders there about the uniqueness of Hong Kong, where the China advantage and the global advantage converge in a single city.

 

In February, I visited Saudi Arabia and the United Arab Emirates. The Middle East is an area of increasing importance to the Belt & Road Initiative, a key national strategy personally launched by President Xi Jinping 10 years ago. During my visit, we signed 13 MOUs (memoranda of understanding) and co-operation letters of intent. The Dubai Chambers announced the establishment of a new office in Hong Kong.

 

We kept seeing good results of stronger relations between Hong Kong and the Middle East. Just yesterday, the Future Investment Initiative Institute, which is headquartered in Saudi Arabia, announced that it will host its inaugural PRIORITY Asia Summit in Hong Kong this December.

 

Since our visits, I have personally welcomed potential investors from Thailand, the Middle East and other economies. I am pleased to note that many of them have shown keen interest in investing in Hong Kong.

  

Maintaining HK’s international status and connections

Hong Kong’s presence in international organisations is important to our status as a cosmopolitan city, as well as our continuous growth as one of the world’s freest economies.

 

Since 1997, we have continued as a separate member of WTO (World Trade Organization) and APEC respectively under the name “Hong Kong, China”. This is another piece of solid evidence that shows the central government’s strong and long-standing support for Hong Kong to maintain its role as an international city, under the unique principle of “one country, two systems”.

 

In just the past two months, four of the principal officials on my team travelled to different parts of the world to take part in important international conferences on behalf of Hong Kong. The Secretary for Labour & Welfare was in Geneva for the International Labour Conference. The Secretary for Health was also in Geneva for the WHO (World Health Organization)’s World Health Assembly. The Secretary for Transport & Logistics and the Secretary for Commerce & Economic Development were in Detroit for APEC ministerial meetings.

 

The commerce secretary also travelled to Paris for the OECD (Organisation for Economic Co-operation & Development)’s annual Ministerial Council Meeting. At the trade session, he spoke of the importance of fighting against protectionism, highlighting Hong Kong’s experience in enabling SMEs (small and medium enterprises) to drive sustainable economic development.

 

Continued commitment to regional co-operation

Hong Kong champions multilateralism and accords high priority to establishing partnerships with different economies.

 

Later this summer, I will lead a high-profile business delegation to a number of ASEAN (Association of Southeast Asian Nations) countries. ASEAN is the world’s fifth-largest economy and has been Hong Kong’s second-largest trade partner since 2010. This visit will be a welcome opportunity to highlight, to our partners in this fast-growing regional bloc, Hong Kong’s manifold advantages as the gateway to the Mainland, especially the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

 

It is an opportune time to underline our strengths in regional economic development, and the wide-ranging benefits we can bring, both to ASEAN economies and to RCEP (Regional Comprehensive Economic Partnership), on our proposed accession to the world’s largest free trade agreement.

 

Ladies and gentlemen, Hong Kong people are known for their benevolence. Just as how we are committed to promoting mutual prosperity, Hong Kong actively contributes to our country’s work in global governance and lends its helping hand to those in need in the global community.

 

Following the severe earthquakes in Türkiye earlier this year, we sent a 59-strong search and rescue team from Hong Kong all the way to Türkiye’s quake-stricken areas. The team’s valiant effort has helped to save four precious lives. We will continue our liaison with the relevant authorities of the United Nations, on Hong Kong’s establishment of a medium urban search and rescue team for different missions.

 

Growing HK’s budding strengths

As Hong Kong embarks on the journey from stability to prosperity, we are working to fully unleash our great potential in development in a variety of budding sectors.

 

Innovation and technology is a policy priority of this term of the Government, and the results are encouraging. In the 2023 IMD (International Institute for Management Development) Smart City Index, Hong Kong finished 19th out of 141 cities. That’s up from 38th place in the previous index, I’m pleased to note.

 

The Shenzhen-Hong Kong-Guangzhou science and technology cluster has been ranked second globally for three consecutive years in the Global Innovation Index. This highlights the strength of complementarity among GBA cities.

 

This year, we’ve signed I&T (innovation and technology) co-operation agreements with Shenzhen, Guangdong and Chongqing. More importantly, we have signed, in March, an arrangement with the Mainland’s Ministry of Science & Technology that will expedite Hong Kong’s development as an international I&T centre.

 

Consolidating HK’s traditional strengths

When it comes to finance, Hong Kong has long been a global leader. Thanks to the 14th Five-Year Plan, our status as an international financial centre and the world’s largest offshore renminbi hub is primed for continuing growth.

 

Over the past year, Stock Connect has been expanded to include stocks of foreign companies primary listed in Hong Kong under southbound trading and exchange-traded funds. Last month, we welcomed the launch of Swap Connect’s northbound trading.

  

Just yesterday, HKEX (Hong Kong Exchanges & Clearing) introduced a “Hong Kong Dollar-Renminbi dual counter model” and “dual counter market maker”. This allows investors to trade the same listed security in both Hong Kong dollars and renminbi.

 

This term of the Government sees promises, too, in financial technology and virtual assets, which draw together our traditional strengths in finance and Hong Kong’s burgeoning I&T sector. Our new licensing regime for virtual assets service providers began operation this month. That makes Hong Kong among the world’s first authorities to introduce a comprehensive regime regulating virtual asset activities. We are committed to ensuring investor protection and market integrity, while managing key risks to financial institutions and encouraging more investors.

 

In short, the Government is committed to innovative financial and economic development, to pursuing opportunities, wherever they arise.

 

Closing remarks

Ladies and gentlemen, life in Hong Kong is back to the business, and many pleasures, of entertainment as well. In recent months, we’ve hosted the Rugby Sevens and the largest Art Basel Hong Kong since 2019. The Hong Kong International Dragon Boat Races is returning to Victoria Harbour later this week, in celebration of the Dragon Boat Festival. Also coming to the harbourfront is the brand-new Harbour Chill Carnival, which opens on July 8 in Wan Chai, and will be making a splash with live shows and refreshments for five weekends in a row.

 

And we’re just getting going, ladies and gentlemen. I am a believer. That’s why I’ve stated in my election manifesto a year ago that we will be “starting a new chapter for Hong Kong together”.

 

About working together, I feel obliged to point out that both my visits to Thailand and the Middle East were joined by leaders of Hong Kong’s business and professional sectors. This shows their passion for Hong Kong and a high level of team spirit. A clear sense of “togetherness” of the whole community, from both the public and private sectors.

 

We are all living in a world with growing volatility and tensions in geopolitics. We in Hong Kong must stay united in telling the world all about the good stories of Hong Kong.

 

Together, we can make a better future for Hong Kong, for our country, and for the world.

 

A supplement to what has been described as Hong Kong’s strength, a super-connector. Yes, we are, but we are more than a super-connector. We are a value-added super-connector. We have professional services. We have a lot of professional workforce. So we don’t just connect, we add value. We help people to grow and we help people to thrive. We help people to know the way and be successful.

 

Chief Executive John Lee gave these remarks at the South China Morning Post China Conference Hong Kong 2023 on June 20.

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RMB internationalisation to accelerate

With the launch of the new Dual-Counter Model, it is encouraging to see that 24 companies will be offering their shares in both the Hong Kong dollar and the renminbi (RMB). Many of them, to be sure, are highly sought-after stocks with promising liquidity, accounting for, as alluded earlier to by Gucho (Hong Kong Exchanges & Clearing Chief Executive Nicolas Aguzin), around 40% of the average daily turnover of our stock market. Their participation is clearly a vote of confidence for the new offering.

 

This is certainly good news for local and global offshore RMB holders as the regime offers more diversified investment options.

 

For those who have yet to join, I look forward to welcoming you to the Dual-Counter family soon enough.

 

While some may say that the first RMB listing in Hong Kong took place more than 10 years ago, and there are plenty of RMB securities such as exchange-traded funds and debt instruments on the market, the new Dual-Counter Model offers much excitement.

 

Shares traded under this model would belong to the same class, with the same rights and entitlements, and be fully tradable across counters. Together with the market makers selected to ensure adequate liquidity for the designated shares trading in RMB, this will substantially facilitate transactions and enhance price efficiency of such stocks.

 

And the model is launched right at a time when the strategic importance of RMB – in terms of fund flow, liquidity and popularity – is rising.

 

In 2021, the total amount of cross-border use of RMB reached over RMB36 trillion, representing an increase of nearly 30% over the year before. As at the first quarter this year, the proportion of RMB in cross-border payments and receipts in the Mainland has risen to 48%, surpassing the US dollar for the first time. In addition, using RMB as a settlement currency for international trade and investment has become increasingly prevalent.

 

Of course, viewing it holistically, there is still ample room for the global use of RMB to grow. While our country is the world’s second largest economy, accounting for more than 18% of the world’s gross domestic product, and is the largest trading economy contributing to about 13.5% of global trade, the use of RMB in SWIFT, ie cross-border trade settlement, and as a worldwide reserve currency, constitutes less than 3% respectively.

 

It is clear that the internationalisation of the RMB will only accelerate in the future, particularly under this rapidly changing global geopolitical and environment – which is unseen in a century. Seeking diversification for greater security is on everyone’s agenda.

 

As countries trade and invest in RMB and use it as a reserve currency, the demand for various investment and risk management products is bound to rise.

 

Hong Kong will play a pivotal role in this great process of change, and we are keen to grasp the opportunities ahead. We have long been the offshore RMB hub, no matter in terms of liquidity, trade settlement or product variety.

 

And thanks to the staunch support of the central government, our currency swap arrangement with the People’s Bank of China ensures that we have more-than-enough liquidity.

 

Looking ahead, we are determined to expand the channels for cross-boundary RMB flow, provide more investment and risk management products, and upgrade our related infrastructure to build an even more vibrant offshore RMB ecosystem.

 

A short-term priority is, of course, the inclusion of RMB-denominated securities under the Southbound Connect, so that Mainland investors can trade Hong Kong shares with their onshore RMB.

 

And rest assured, we will continue to collaborate with our Mainland counterparts to expand the mutual-market access programme, with a view to promoting greater connectivity between the investors and capital markets of the Mainland and the world.

 

Financial Secretary Paul Chan gave these remarks at the Gong Striking Ceremony for the launch of the HKD-RMB Dual Counter Model on June 19.

via Moroccan Trader RMB internationalisation to accelerate

HK to thrive as an RMB hub: FS

The HKEX (Hong Kong Exchanges & Clearing) has been the Government’s staunch partner, being an active contributor, participant and witness to the successful development of Hong Kong as an international financial centre.

 

Thanks to the staunch support of our country, Hong Kong, with its unique advantages under the “one country, two systems” framework, has contributed to the spectacular development of the Mainland over the past four and a half decades. In the process, we have also benefited tremendously and developed into Asia’s best international financial centre.

 

For a long time, we have been playing an instrumental role in helping Mainland enterprises in going global, for which they have undertaken reforms and continuously enhanced their financial reporting and governance standards. We have also created the platform that connects international companies and capital to their Mainland counterparts.

 

Over the past two decades or so, we have seen remarkable growth of our listing platform. As elucidated by Laura (HKEX Chairman Laura Cha) just now, our stock market capitalisation now stands at around HK$35 trillion. That is indeed 13 times of our gross domestic product, indicating a huge hinterland, the Mainland, that it serves. Back in 1997, the figure was just two times.

 

In fact, we never stop moving to enhance our platform’s competitiveness. As you could remember, in 2018, we introduced reforms to the listing rules to allow new economy companies with weighted voting rights structure to get listed in our stock exchange.

 

This has injected much liquidity and vibrancy to our stock market – today, we are home to more than 250 such companies. Although they constitute just 10% of the number of listed companies in Hong Kong, their market capitalisation and average daily turnover both stand at around 25% of our market. The average daily turnover of our stock market has also reached a new height, from HK$88 billion in 2017 to HK$125 billion in 2022.

 

Just in March, the HKEX rolled out a new listing regime for pre-profit or pre-revenue hard tech companies, covering next-generation information technology to new materials and new energy. This is a move that will guide the needed capital to support frontier technological research, and help drive the development of relevant industries in Hong Kong and the region. This is all the more timely as our country is actively seeking to achieve high-level technological self-reliance.

 

No less promising is the more pivotal role that Hong Kong will play in connecting the capital markets of the Mainland and the world, and in the internationalisation of the renminbi (RMB). The gradual expansion and success of the connect schemes are testimony to this. From Stock Connect to Bond Connect, and the recent inclusion of exchange-traded funds and the rolling out of Swap Connect, the channels for two-way fund flows have been broadening and deepening.

 

Come Monday morning, the new Hong Kong dollar and RMB dual-counter trading will go live, allowing investors to trade securities from the same issuer in both currencies and across counters. No Monday morning blues next week, I can assure you.

 

Next, we will press ahead with the inclusion of RMB-denominated securities under Southbound Connect, so that Mainland investors can trade Hong Kong shares with their onshore RMB.

 

Amid the lingering challenges brought by the still-tentative global economy and daunting geopolitical concerns, we will need to work together and harder to fortify our status as a world-class fund-raising platform.

 

As our country continues to embrace high-level two-way opening up and strengthen collaboration with economies around the world for mutual development and common prosperity, we have an important role to play. That is to better serve the financing needs of our partner countries – whether they relate to infrastructure financing or green projects.

 

In particular, as the world moves towards green and low-carbon transition, there is a lot more that Hong Kong can do to contribute to the global initiative. We have set our sights on becoming a leading green technology and green finance centre of the world, to create an entire new industry chain that will provide the impetus to sustain the further social and economic development of Hong Kong.

 

We are pleased to note that the HKEX is also an enthusiastic partner to green and environmental, social and governance development, including, as alluded to by Laura earlier, the launch of Core Climate as well as setting out proposals to enhance climate-related disclosures.

 

And, as RMB becomes more popular as a trading, investment and reserve currency, we are well positioned to offer more RMB-denominated investment and risk management products to satisfy such growing needs and further strengthen Hong Kong’s role as the offshore RMB business hub.

 

Financial Secretary Paul Chan gave these remarks at the Hong Kong Exchanges & Clearing Limited 23rd Anniversary Celebrations on June 14.

via Moroccan Trader HK to thrive as an RMB hub: FS

Stock dual counter model set

The Hong Kong Dollar (HKD)-Renminbi (RMB) Dual Counter Model, which has drawn much attention, will be officially launched next week, allowing investors to trade securities issued by the same issuer in both HKD and RMB, and transact across HKD and RMB counters. This will mark an important milestone in the development of offshore RMB business in Hong Kong.

 

Some may say that the model is not a new thing and they may wonder what is the significance of the initiative, as a similar mechanism has previously been implemented for securities products (such as exchange-traded funds) in Hong Kong. This is only half correct. The Hong Kong Exchanges & Clearing (HKEX) did establish a mechanism as early as in 2010 to allow the issuance and trading of RMB securities under a single-tranche, single-counter model or dual-tranche, dual-counter model. However, the market environment today has changed, with both the liquidity of RMB and the size of RMB liquidity pool reaching an unprecedented level. Being the world’s largest offshore RMB hub, Hong Kong processes about 75% of the global offshore RMB settlement. With a solid foundation for further strengthening our offshore RMB business, we are now better positioned to launch the model at this juncture.

 

As such, the current-term Government has been actively promoting the issuance and trading of RMB securities as well as strengthening the overall support in this regard with a three-step strategy since taking office, with the aim to better realise the potential of using RMB in the stock market.

 

Our first step is to facilitate the formation of a dedicated working group comprising regulators and a market operator to conduct an in-depth study on ways to promote the use of RMB in the stock market and address the liquidity problem of RMB counters. The working group has proposed to improve the trading mechanism of dual counter securities, including the establishment of the Dual Counter Market Maker (DCMM) regime, with a view to enhancing the liquidity and price efficiency of RMB securities by offering buy and sell quotes at RMB counters, so that investors can have the confidence that trading can be carried out at their preferred prices. Moreover, market makers can conduct arbitrage transactions of the same stock across the two currency counters, so as to minimise the price discrepancies between the two. The Government then commenced a legislative amendment exercise in relation to stamp duty exemption for specified transactions conducted by market makers, and subsequently secured the Legislative Council’s approval of the relevant ordinance this January, creating favourable conditions for launching the DCMM regime.

 

The improvement of the mechanism is just a supporting measure. We also need to ensure the availability of quality RMB‑denominated stocks in the market for investors. Hence, our second step is to encourage listed issuers to set up RMB trading counters. In this regard, the Government and the HKEX have been maintaining close and direct communication with listed issuers, briefing them on the strategic significance of dual counters and the actual benefits for them while understanding their needs and providing them with the required support. With the concerted efforts of various parties, a total of 24 listed companies, most of which are Hang Seng Index constituent stocks with promising turnover, accounting for around 40% of the average daily turnover of the stock market, will set up RMB counters on the launch day of the model. Their participation is a vote of confidence for the development of RMB securities in Hong Kong.

 

Here comes the final step: the rollout of the model, which will definitely create a win-win situation for Hong Kong investors. If investors holding Hong Kong stocks wish to hold RMB or increase their holdings of RMB, they may do so by directly cashing in their Hong Kong stocks; if those holding offshore RMB wish to invest in Hong Kong stocks, they may conduct the trading without the need to convert their RMB into HKD, thereby reducing the costs and risks of currency exchange. Various parties in the market are now at the final stage of preparation to ensure the smooth conduct of all trading and settlement activities upon the launch of the model.

 

Of course, our work to promote RMB stocks does not end here. As a matter of fact, since the above trading model is newly introduced, it is anticipated that the share of RMB-denominated transactions in the overall market might not be very significant at the initial stage. The main objective of launching the model is to achieve smooth operation, accumulate more experience in key areas such as issuance, trading, market-making mechanism and settlement of RMB stocks in Hong Kong, and encourage market participants to prepare for further development of the RMB securities market.  We will continue to make greater efforts to promote offshore RMB business on different fronts, including collaborating with regulatory bodies to step up preparations for including RMB trading counters in Southbound Trading of Stock Connect for early implementation. This will provide a new catalyst for the issuance and trading of RMB stocks in Hong Kong, enabling us to give fuller play to our function as a global offshore RMB business hub as stated in the National 14th Five-Year Plan and assist our country in steadily promoting the internationalisation of the RMB in a prudent manner.

 

Secretary for Financial Services & the Treasury Christopher Hui wrote this article and posted it on his blog on June 13.

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Family office network launched

Welcome to this milestone event in our effort to promote Hong Kong as a hub and premier destination for family offices. As you know, Hong Kong, with our vibrant financial ecosystem, sophisticated financial infrastructure and the best professional services providers like you all, is naturally the preferred choice of location for global family offices. Let alone our connectivity with the Mainland which has made us the only place in the world where Mainland and global investment opportunities converge.

 

The Chief Executive, in his Policy Address last October, has set a target of attracting at least 200 family offices to establish or expand in Hong Kong by the end of 2025. This year, we had a great event, the Wealth for Good in Hong Kong Summit. Taking that opportunity, the Financial Services & the Treasury Bureau launched a policy statement outlining our vision and action plan to develop Hong Kong into a premier hub for family offices. On that particular occasion, more than 200 top family offices owners and managers went to Hong Kong. Now, after the summit, we are pleased to report that you will be seeing some of them relocate here, and a lot more are in the pipeline.

 

On the Government’s side, we have passed legislation to enhance the competitiveness of our tax system for family offices. We have also set up a dedicated team in Invest Hong Kong, FamilyOfficeHK. With the support of the financial regulators – the Securities & Futures Commission (SFC), the Hong Kong Monetary Authority (HKMA), you name it – the Hong Kong Inc. as a team will give it our all to accelerate development in this particular area.

 

Indeed, this Network of Family Office Service Providers brings together the relevant professional services providers, including private bankers, trustees, lawyers, accountants, wealth management professionals, etc, where you can meet each other and make mutual business referrals. And at the same time, help us, as a team, to promote Hong Kong to our target markets.

 

Very important too, is the network’s representation of the sector for policy advocacy, to give us advice on how we can better facilitate the sector’s business growth and thrive together.

 

One particular point that I would like to make here is that when you speak to family office owners and managers about the business opportunities in Hong Kong – of course, you are more than able to tell it well in the frontline – please impress upon them that Hong Kong is much more than business. Hong Kong is indeed a very good place to live in. We have over 200 restaurants recommended by Michelin. We have no duty on wine. So if you like food and beverage, Hong Kong is the place. What’s more, if they like the countryside, our trails are excellent. We have many diverse cultural activities, which is a strength of Hong Kong.

 

Speaking of cultural activities, the recently completed cultural infrastructure, such as the Palace Museum, the M+ Museum, the Hong Kong Museum of Arts, are fantastic places for people to visit. So do share with them.

 

And of course, highlight the diversity of our education programmes here, where we have more than 50 international schools covering programmes of different countries and jurisdictions. And for law and order, Hong Kong is a very safe city. These are all important factors for family offices owners and their managers to consider in making decisions on where they would base.

 

I hope and I believe you will, having heard the above, be as optimistic as I am about our prospects in family offices development in Hong Kong.

 

Financial Secretary Paul Chan gave these remarks at the Network of Family Office Service Providers Launch Ceremony organised by Invest Hong Kong on June 12.

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Belt-Road promotion is HK’s mission

On this day, thanks to our organiser, the Bauhinia Culture Group, I’m pleased to speak to you on the occasion of the Belt & Road Initiative’s 10th anniversary.

 

Since President Xi Jinping announced the vision of the Belt & Road in 2013, this all-embracing global initiative has inspired regional and international collaboration in policy, infrastructure, trade, finance, people-to-people bonds and much more.

 

Today, more than 150 countries and over 30 international organisations have signed Belt & Road agreements with our country. Together, they account for about 40% of global GDP (gross domestic product) and 45% of the world’s merchandise trade.

 

The Belt & Road has now become a big, important impetus in forging ties among countries, regions and peoples. It has enabled co-operation with numerous regional and country-based development strategies, including Indonesia’s Global Maritime Fulcrum, Saudi Vision 2030, and the African Union Agenda 2063, to name but a few.

 

Over the last decade, trade has expanded tremendously along the Belt & Road. The Mainland’s trade in goods with Belt & Road-related countries has doubled, from just over US$1 trillion in 2013 to more than US$2 trillion in 2022, with an enviable average annual growth rate of 8%. By the end of 2022, Chinese enterprises had invested more than US$57 billion in the economic and trade co-operation zones of Belt & Road-related countries.

 

With the COVID-19 pandemic easing and the world largely back to normal, the future of the Belt & Road is all the more promising.

 

Belt-Road’s pivot

And that, ladies and gentlemen, is good news for Hong Kong, a functional platform for the Belt & Road Initiative. With our many compelling advantages under the “one country, two systems” principle, we are the Belt & Road’s pivotal gateway. We make things happen.

 

At last year’s Belt & Road Summit held here in Hong Kong, the then Vice Premier Han Zheng reaffirmed Hong Kong’s role as a participant, contributor and beneficiary of the Belt & Road.

 

As a leading international financial centre and the world’s largest offshore renminbi business hub, Hong Kong is committed to supporting the financing needs of Belt & Road companies and their wide-ranging projects and investments.

 

Beyond capital, Hong Kong is blessed with world-class professional services – from feasibility studies, project management and architectural and engineering design, to risk management, insurance, legal and arbitration services and more. Everything, in short, the Belt & Road needs to flourish.

 

And, of course, as the business bridge between the Mainland and the rest of the world, Hong Kong is a natural base from which to expand into thriving markets throughout the Asian region and beyond.

 

To seize the vast opportunities ahead, the Hong Kong Special Administrative Region Government is busy renewing, and building, our links with Belt & Road countries and regions.

 

I am determined to pursue rewarding collaboration, between Hong Kong and economies along the Belt & Road, in trade and investment, innovation and technology, infrastructure development and a whole lot more.

 

In February, I led a high-level business delegation to Saudi Arabia and the United Arab Emirates (UAE). The Middle East region is important to the Belt & Road and its future. And I am confident it will become increasingly important to Hong Kong and our future.

 

During our visit, a total of 13 MOUs (memoranda of understanding) and co-operation letters of intent were signed between Hong Kong and Middle East organisations. We also learnt the encouraging news that the Dubai International Chamber would open a new representative office in Hong Kong. Different Hong Kong companies that accompanied me on the visit are now closing in on business deals in the Middle East.

 

Promising start

I would say that it was a great start. And we haven’t stopped since then, not for a moment. A number of potential investors from the Middle East have visited Hong Kong since our February trip, and I personally met a lot of them. They include key decision makers from family offices. Many of them have shown keen interest in investing in Hong Kong during our meetings.

 

Just over a week ago, the Hong Kong Monetary Authority, led by its Chief Executive Eddie Yue, and the Central Bank of the UAE, met in Abu Dhabi. The two central banks came away agreeing to boost co-operation in three significant areas: financial infrastructure, financial market connectivity, and virtual asset regulations and development.

 

They also held a seminar focused on key opportunities between Hong Kong and the UAE, and a panel discussion attended by some 80 senior representatives from more than 50 UAE financial institutions and corporations. The heads of major Hong Kong banks also took part.

 

I am pleased to note, as well, that different Hong Kong business delegations have visited the Middle East to boost our economic co-operation, and explored opportunities with some of the first countries to join the Belt & Road Initiative.

 

Ladies and gentlemen, when I spoke to you this time last year, I promised that my governing team would be results-driven, with a strong team spirit of collaboration and unity.

 

A year on, we remain committed to realising our goal of making a decidedly positive difference for the economy, and the people, of Hong Kong.

 

My team and I look forward to promoting Hong Kong to other Belt & Road countries and regions. They include our close trading partners, the 10 member states of ASEAN (Association of Southeast Asian Nations). They also include countries in Central Asia, Eastern Europe, Africa and all the other economies looking to do business with Hong Kong, our country and the flourishing Asian region.

 

Summit ahead

For those of you looking for the right partners to capitalise on Belt & Road opportunities, join us here in Hong Kong at the eighth Belt & Road Summit, on September 13 and 14.

 

Jointly organised by the Hong Kong SAR Government and the Hong Kong Trade Development Council, the Belt & Road Summit is renowned as one of the largest and most important Belt & Road business and investment platforms for enterprises from Hong Kong, the Mainland and overseas.

 

The past seven editions of the summit have attracted over 3,800 business-matching sessions, and attracted around 33,000 participants and sign-ups from over 80 countries and regions.

 

Connectivity is at the heart of the Belt & Road Initiative.  With the unwavering support of our country and the manifold advantages we can offer, Hong Kong will continue to do what Hong Kong does best: connecting countries and economies, companies and people everywhere, to drive the high-quality development of our country and the world.

 

Chief Executive John Lee gave these remarks at the Bauhinia Culture Forum on June 7.

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