Hong Kong is reinforcing its value proposition for the innovation and technology sector with a new focus on developing artificial intelligence as a core industry, Financial Secretary Paul Chan Mo-po said on Wednesday.

“We are driving this development by concentrating on supercomputing capabilities, algorithms, data, capital and talent. Beyond investing more resources into AI development, we are committed to creating a more pro-innovation environment that facilitates the testing and trial of AI applications,” he said in opening remarks at the 5th annual “Technology for Change Asia” conference organized by Economist Impact – a partner of the Economist Group.

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“We are a convergence point for both Chinese mainland and international data, which are critical elements for research in AI and life and health technologies."

The finance chief said the Hong Kong Special Administrative Region has positioned itself as an international exchange and cooperation hub for the AI sector. “We will host events of global significance, including the inaugural International Young Scientist Forum on Artificial Intelligence and the International Conference on Embodied AI Robot, bringing together top-notch technology enterprises, academic institutions, talent and investors.”

He noted that the AI and data science courses offered by the Hong Kong University of Science and Technology, the Chinese University of Hong Kong and the University of Hong Kong are among the world’s top 25.

The SAR has cultivated strong value propositions for the I&T industry, such as its robust basic research capabilities, a growing I&T ecosystem, a legal regime based on common law, the free flow of people, capital, goods and information, the revival of the city’s fund-raising market, and the building of a patient capital ecosystem, Chan said.

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He expects the local initial public offering market to raise $17 to $20 billion this year amid optimism in the technology field sector, as well as the central government’s continued support for leading mainland companies to list on the Hong Kong Stock Exchange. Last year, the city’s IPO market raised about $11 billion, ranking fourth globally.

Chan emphasized that by combining Hong Kong’s value propositions for the I&T industry with the innovative strengths and complementary advantages of the Guangdong-Hong Kong-Macao Greater Bay Area, Hong Kong and the GBA will emerge as a leading international financial and innovation center “more than combining the advantages of both the San Francisco Bay Area and the New York Bay Area”.

Business leaders from the I&T, financial services and venture capital segments agreed that Hong Kong has to brush up its I&T ecosystem in other perspectives.

“Besides funding and building infrastructure, the next frontier is the building of the talent ecosystem in Hong Kong so we can have both local and global talents. We need to build up that pool of talent for companies to come to Hong Kong,” Albert Wong Hak-keung, chief executive officer at Hong Kong Science & Technology Parks Corporation, told the conference.

Allan Zeman, chairman of Lan Kwai Fong Group, said Hong Kong, as a superconnector between East and West, boasts a common law system and low tax regime that are big attractions for businesses.

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Prudential Greater China Regional’s chief executive officer, Angel Ng Yin-yee, suggested that Hong Kong cultivate an innovation-focused approach in cementing the ecosystem as the city already has a strong entrepreneurship spirit.

“Do not focus on technology alone. The focus should be equally on innovation because innovation is more than technology. Innovation is about ideation -- solving an old problem with a new way and by a new way. We should not just look at the hardware, but also look at solving problems through innovation,” she said.

George Hara, group chairman and chief executive of global venture capital firm, DEFTA Partners, said Hong Kong’s I&T ecosystem should be aligned with the manufacturing sector.

“The idea is about creating a real industry in technology sectors that is not only the technology itself, but also brings a new idea of the capital called public interest capital,” he said.