The development of new quality productive forces in Hong Kong can benefit from the city’s financial prowess and the Chinese mainland’s vibrant economic and manufacturing activities, experts and business leaders said at a forum hosted by the Hong Kong Productivity Council on Wednesday.
In his keynote speech at the event, themed “Navigating the Future of Hong Kong’s Economy With New Productive Forces”, former World Bank chief economist Lin Yifu said the concept of “new quality productive forces” includes not just emerging industries like artificial intelligence (AI), information technology (IT), new materials, and renewable energy, but also the transformation and upgrade of traditional industries with smart, green, and digital tools. It also refers to nurturing future industries that have yet to scale up, he said.
“Investment is key for all of this,” said Lin, who is dean of Peking University’s Institute of New Structural Economics. Hong Kong’s gross domestic product per capita surpassed $50,000 in 2023, and it is recognized as a leading international financial center, enabling the city to “harness both local and global wealth” to drive the development of new quality productive forces, he added.
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“This is Hong Kong’s unique advantage,” Lin said.
He added that Hong Kong should fully consider its own development situation, and focus on the sectors of new quality productive forces that align with these specific resources and industrial strengths.
The development of new quality productive forces is closely linked to advancements in technologies that are prone to potential tariff increases. HKPC Chairman Sunny Tan said Hong Kong’s financial market has proved to be resilient over multiple economic cycles, and the market has been capable of providing support to the real economy even in times of uncertainties.
Qu Kang, managing director of sustainability strategy at Bank of China (Hong Kong), underscored the role of finance in backing new quality productive forces, saying that “the function of finance is to serve the real economy”.
The push for new quality productive forces could also serve to bolster Hong Kong’s financial edge because “dynamic economic activities are a boost to the success of financial centers”, Qu said.
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Lin said he believes the mainland’s strong manufacturing sector is another factor that can help Hong Kong boost its new quality productive forces.
As part of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) — an 11-city cluster — Hong Kong is close to the top-notch manufacturing supply chain in Guangdong province. Dubbed the “world’s factory”, the southern province has strong industries such as electric vehicles (EV) and electronics, and is enhancing its smart manufacturing capabilities.
Lin said he suggests Hong Kong connect its research capabilities with Guangdong’s manufacturing strengths to drive the growth of new quality productive forces. “With the comprehensive supply chain in the Greater Bay Area, an innovative idea can turn into a product in a few days”.
Contact the writer at irisli@chinadailyhk.com
