Hong Kong must think more deeply about how to shore up its position as an international financial, shipping and trade center, as well as a magnet for global professionals in order to unlock greater and robust development for the city while contributing to the country’s modernization, Financial Secretary Paul Chan Mo-po said on Sunday.
He made the call in his weekly blog following a seminar organized by the Hong Kong Special Administrative Region government on Friday to discuss a resolution adopted at the third plenary session of the 20th Central Committee of the Communist Party of China.
The resolution, besides reaffirming the central government’s support in consolidating and enhancing the SAR’s status as a world financial, shipping and trade hub, proposed backing the city’s efforts to make itself an international pivot for high-caliber talents.
ALSO READ: Hong Kong should grasp plenum spirit, drive modernized reform
Chan said the three economic pillars are mutually reinforcing – a well-established financial market can better serve the real economy, including trade and shipping, while a more vibrant maritime services sector, plus high-value-added trade services, can drive demand for financial products.
To cement Hong Kong’s financial position, the finance chief said the city should diversify its financial products, enhance fundraising services to better meet the requirements of businesses, and increase cooperation with other markets to tap into a wider pool of capital sources.
Hong Kong is the world’s largest offshore renminbi business center, with a renminbi pool of more than 600 billion yuan ($84 billion). The Hong Kong Stock Exchange, for instance, has launched the HKD-RMB dual counter model, offering investors the choice of trading in the equities of Hong Kong-listed companies in either Hong Kong dollars or renminbi.
To promote renminbi’s internationalization, Chan said Hong Kong should expand its renminbi products and risk management tools, improve the infrastructure for the renminbi business, and explore new markets.
ALSO READ: HK hailed as thriving hub for high-caliber talent
In addition, smart shipping, green shipping and professional services are vital for the local maritime industry, as outlined in the city’s Action Plan on Maritime and Port Development Strategy released in December last year. The blueprint set out 10 strategies and 32 action measures in four directions to strengthen Hong Kong’s position as a global maritime center.
With an array of tax incentives to support the shipping industry already in place, Chan said the SAR government will conduct further research this year to optimize these measures.
As for trade, the 2024-25 Budget proposed making Hong Kong a multinational supply chain management center aimed at helping enterprises to expand worldwide with services such as consultation, financing and training.
As more Chinese mainland companies intensify their international presence, Hong Kong is well positioned to capture these opportunities, Chan said.
READ MORE: Chan: HK to play unique role in promoting high-quality development
Various industries, particularly the vibrant financial sector, have brought an influx of top professionals. Since late 2022, the SAR government’s talent attraction schemes have received more than 340,000 applications, with 210,000 having been approved and over 140,000 applicants already making the city their home.
The government will continue to provide more favorable policies and public amenities for talent development, Chan said.
