Published: 00:39, January 15, 2025
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AFF highlights Hong Kong’s regional importance
By Tom Fowdy

On Monday, the 18th Asian Financial Forum (AFF) kicked off in the Hong Kong Special Administrative Region. Described as “Asia’s premier platform”, the AFF “brings together influential leaders from government, finance, and business communities globally for ground-breaking discussions and exchange of insights on the global economy from an Asian perspective”.

The event attracts hundreds of elite speakers from around the world, thousands of visitors, thought leaders and investors, facilitating new deals, business partnerships and opportunities.

A fundamental part of the AFF is to present opportunities not only in Hong Kong and elsewhere but also on the Chinese mainland and to help investors navigate the mainland market. In particular, one of the themes highlighted on Monday was the growth potential embedded in China’s technology markets, where its “strengths in technology policy support, market scale, and talent education provide a solid foundation for high-quality economic development, with the capital market playing a pivotal role in driving growth”, with one speaker noting, “Top opportunities for long-term investments in China consistently revolve around technology and innovation.”

China’s opportunities do not represent a zero-sum game in terms of regional markets and investments, but in fact a bonanza for all involved. The growth of the country’s domestic markets and consumption offers an opportunity for all Asian countries in terms of capital and exports respectively, serving as an engine of growth for all involved

Despite broader geopolitical tensions, China is arguably the most prospective technology market in the entire world. This is because the country has been developing rapidly and is making a transition in its economic structure toward becoming a high-technology powerhouse. When we use the term “technology”, this is a broad umbrella and can refer to anything, from engineering-related industries in automobiles and aviation to the rise of a mass e-consumer economy through the rapid growth of online commercial platforms, social media applications and artificial intelligence. These changes are being driven by the country’s increasingly educated workforce and thus both supply and demand are highly favorable in both aspects.

Hong Kong, as China’s primary financial center, and the largest in Asia, has a distinct role to play in facilitating the opening up of its technological markets accordingly. First, it is the national priority to accelerate reform and opening-up in 2025 and inspire increased foreign investment into China, showing what is on offer in its markets. Second, it is important that this is done not just on a global but also on a regional basis. The continued prosperity of the Asia-Pacific region is contingent upon increased economic integration between participating countries.

We are living at a time when some third parties seek to rip up regional integration through the deliberate incitement of geopolitical tensions among regional countries, to realign global economic currents and supply chains in new directions. Hong Kong’s prosperity and success has seen it established as the heart of an Asian financial system which has only accelerated since the financial crisis of 1997, producing a shared understanding that close economic cooperation is vital for the entire region’s prosperity.

China’s opportunities do not represent a zero-sum game in terms of regional markets and investments, but in fact a bonanza for all involved. The growth of the country’s domestic markets and consumption offers an opportunity for all Asian countries in terms of capital and exports respectively, serving as an engine of growth for all involved. Innovation creates growth, and this is why it is important that China’s technology markets continue to grow and further deepen its ties with foreign capital. By working together, all parties involved can offset the economic uncertainties that have plagued the world over the past few years and aim to establish stability and prosperity. It is simply not feasible or desirable to imagine a regional economic dynamic that is exclusive, separate or cut off from the opportunities of China and the lasting benefits and resources of Hong Kong’s financial markets.

The author is a British political and international-relations analyst.

The views do not necessarily reflect those of China Daily.