Hong Kong can provide much-needed support in infrastructure financing, green finance and green technology, as well as financial technology for use in cross-border payments and settlements for promoting economic innovation, resiliency and growth in Global South countries, Financial Secretary Paul Chan Mo-po said.
On Tuesday, the finance chief addressed the 8th edition of the Future Investment Initiative held in Riyadh, the capital of Saudi Arabia. This session focused on how the Global South could promote economic innovation, build resilience, and maintain growth while addressing the complexities of the international environment and the challenges of climate change.
“As an international financial center, Hong Kong is actively promoting the development of green finance and green technology. The city could provide capital support for infrastructure and green projects in the Global South and guide funding to new projects through innovative financial products, such as securitized loans,” he said.
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The finance chief said that many Global South countries are considering how to manage risks related to their trade and reserve currencies, and one option is to use their own currencies more for settlements. “Hong Kong is collaborating with multiple central banks to launch Project mBridge, aiming for faster, more cost effective, and more secure cross-border payments and settlements.”
He further added that digitalization and green transformation will be significant trends in the future development of the Global South, and investing in suitable projects in these areas will yield long-term returns.
“The development of fintech will help make financial services more accessible and inclusive, facilitating leapfrog development for developing countries. Hong Kong can contribute to the Global South in these areas,” Chan argued.
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Witnessed by Chan and Minister of Investment of Saudi Arabia Khalid Al-Falih, Hong Kong Science and Technology Parks Corp and Beta Lab — a venture capital firm focused on deep technology in Saudi Arabia — signed a strategic cooperation agreement under which both parties will share resources, recommend startups to each other, facilitate connections within their startup networks, and jointly engage in market promotions and events.
On Tuesday evening, Chan and the delegation members attended a reception hosted by Hong Kong’s flagship carrier Cathay Pacific Airways, and a reception organized by the Hang Seng Investment Management to celebrate the listing of its exchange-traded fund (tracking Hong Kong stock indices) on the Saudi Stock Exchange.
The finance chief said that the resumption of Cathay Pacific’s flights between Hong Kong and Riyadh is a clear testament to the airline's commitment to Hong Kong and Hong Kong’s strategic development.
“The resumption of flights will boost economic, cultural, business and people-to-people ties between Saudi Arabia and the Chinese mainland and Hong Kong, and — more so — between the East and West,” Chan said.
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The financial secretary is leading a huge business delegation, consisting of 110 Hong Kong financial, business and entrepreneurial leaders, to strengthen connections between Hong Kong and Middle East in areas of trade, finance, and innovation and technology.
The delegation comprises the heads or representatives of the Belt and Road Office, the Hong Kong Monetary Authority, the Hong Kong Exchanges and Clearing, the Hong Kong Science and Technology Parks Corp, and more.
It also includes representatives from various financial, I&T, and professional services institutions and associations, as well as founders or senior executives from more than 30 technology companies and startups.
