As Hong Kong’s entrenched role as a world-renowned financial center continues to be put on top of the Budget agenda, experts have called for a “bigger picture” mindset, bold action and out-of-the-box thinking in the pursuit of new growth engines to maintain the city’s financial prowess.

Calling this year’s Budget “in line with market expectation and policy directions reflected in October’s Policy Address”, Bruce Pang, adjunct associate professor at CUHK Business School, said the whole package of finance-related measures demonstrates a holistic way of thinking, where the financial sector is interconnected with talent, technology and industrial policies in the government’s overall policymaking.

In his Budget speech on Wednesday, Financial Secretary Paul Chan Mo-po highlighted Hong Kong’s strategic positioning as “three centers, one hub” - the key areas of development in which Hong Kong has all the elements needed to make its mark, including finance and trade.

READ MORE: HKSAR govt to maintain efficient operation despite expenditure cuts

On top of the long-cherished roles as a super connector and financial hub, Hong Kong, at a critical juncture, is in a quest for new growth momentum to reinforce its impeccable strengths in traditional economic pillars.  

Policies such as promoting Hong Kong as a virtual asset hub through initiatives including tokenized bond issuance and propelling the city into the global gold and commodities market could be important economic drivers, Pang noted.

As a broad and deep financial market has long been Hong Kong’s calling card on the global map, Pang said these measures look to expand the width and depth of investment products and essentially enrich Hong Kong’s status as a world-leading financial center.

What matters is the building of a supporting ecosystem, which cannot go without concerted efforts and integrated planning from various sectors. “After all, fintech and tokenization seem to be empty talk if cash remains the only option in many local payment scenarios,” Pang said.

Lynn Song Lin, Hong Kong-based chief economist for Greater China at European bank ING, also noted the encouraging moves to promote Hong Kong SAR within the rapidly growing ASEAN market, which he described as “a natural fit given the strengthening trade and investment ties between China and the region”.

With geopolitics casting a shadow over capital flows and investment sentiment, “the most fundamental for Hong Kong is to continue enhancing the competitiveness of its capital market,” Chan told China Daily, during a press conference on Wednesday.

READ MORE: Chan aims at reinforced fiscal consolidation in HK budget speech

He pledged strong efforts to make the city a magnet for promising enterprises worldwide. This includes inviting more Chinese mainland companies to set up their regional or international headquarters in Hong Kong, leveraging the city as a platform to embark on a global adventure.

Echoing Chan’s remarks, Song said one could hardly expect the Hong Kong government to “have all the answers via the budget alone”, given the nature of the city as an international center and the uncertainties, chaos and complexities of the global stage.

“The best thing for Hong Kong is to keep its focus on the economy first and foremost, and to strengthen its reputation as an open and free market economy with low taxation and a robust legal system,” he said.

Contact the writer at sophialuo@chinadailyhk.com

Li Xiaoyun contributed to the story