Analysts call on Hong Kong to embrace global trends, opportunities amid shifting global dynamics

HONG KONG, June 14 (Xinhua) -- In the context of significant global shifts, government officials, business leaders and scholars participating in the Caixin Summer Summit 2025 in Hong Kong underscored the need for the city to adapt and seize opportunities presented by these changes and leverage its unique position to enhance connectivity and foster growth.

Paul Chan, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government, said that three key trends -- geopolitical dynamics, technological transformation, and green transition -- will significantly influence global development over the next decade and beyond.

The expansion of South-South cooperation mechanisms, along with initiatives such as the Belt and Road, BRICS cooperation, and networks established by multilateral development banks, is driving increased mutually beneficial collaboration, Chan said.

Artificial intelligence is redefining competitiveness, while the enormous funding demand for global green transformation will give rise to a large number of green technology products and solutions, he said.

In a world characterized by complex changes, Hong Kong's advantages as an open, diverse, and inclusive international metropolis are becoming increasingly prominent, the financial secretary said, noting that to effectively navigate these transformations, Hong Kong must not only nurture new momentum in sectors such as finance, trade, and innovation but also explore emerging markets, including those in ASEAN and the Middle East.

To capitalize on asset reallocation trends among international investors, Julia Leung, chief executive officer of the Securities and Futures Commission, announced a strategy to enhance Hong Kong's status as a premier financing and wealth management center. This includes deepening connectivity between the Chinese mainland and Hong Kong markets and encouraging responsible innovation.

Andrew Sheng, a distinguished fellow of the Asia Global Institute, University of Hong Kong, emphasized that initiatives like the Belt and Road and the digital yuan are expanding the currency's use in cross-border trade, facilitating its internationalization in Asia. He noted that Chinese mainland enterprises can leverage Hong Kong's position as an offshore RMB center to establish international headquarters.

Participants also discussed the impact of artificial intelligence and developments in the global virtual asset market. Leung also mentioned measures to attract quality tech firms to list in Hong Kong and streamlined processes for quality Chinese companies returning to the Hong Kong market.

Notably, the passage of the Stablecoins Bill by the Legislative Council in May marks a significant milestone, establishing a licensing framework for fiat-backed stablecoin issuers while enhancing regulatory oversight of virtual assets.

Joseph Chan, under secretary for financial services and the treasury of the HKSAR government, said that steps will be taken to explore integrating Hong Kong's traditional financial strengths with innovations in virtual assets to enhance economic resilience and flexibility.■