Paul Chan, Financial Secretary, Government of the Hong Kong SAR | Global Investors’ Symposium 2024

Event Context & Strategic Intent

• The Milken Institute is hosting its inaugural Global Investors Symposium in Hong Kong, marking its first large-scale event in the city.
• The symposium theme is "Thriving Together, Bridging Global Markets," featuring over 550 senior executives and online participants from 10 countries.
• Hong Kong Chief Executive Paul Chan (often referred to as Minister of Finance in the context of economic portfolios) is the keynote guest, positioned to leverage "Mega Finance Week" to attract global capital and talent.

Macroeconomic Performance & 2024 Outlook

• Hong Kong's GDP grew by 3.2% in 2023, driven by rebounds in inbound tourism, private consumption, and overall investment.
• Despite economic growth, asset markets underperformed: property prices dropped ~7% and the stock market fell ~14% due to high interest rates and geopolitical fragmentation.
• Inflation remains low at 1.7%, and the unemployment rate is 2.9%.
• The 2024 economic growth forecast stands between 2.5% and 3.5%, supported by expected improvements in merchandise exports and continued capital inflow.

Enterprise & Talent Attraction Statistics

• Since December 2022, the Office for Attracting Strategic Enterprises has onboarded ~50 major companies, projected to invest >US$5 billion and create >13,000 jobs.
• Invest Hong Kong has attracted >380 additional companies with a combined investment commitment of US$7–8 billion.
• Over 100,000 of the 160,000 approved talent admission applications processed since December 2022 have resulted in actual arrivals in Hong Kong.

Policy Responses to Market Divergence

• Immediate Measures: All demand-side restrictions on the residential property market have been removed; stock market liquidity enhancements are being implemented per Task Force recommendations.
• Medium-to-Long Term Strategy: Focus includes green development, digital economy growth, and aligning with national five-year plan directives (including "ex-centres").
• SME Support: New liquidity, business development, and digital transformation support schemes have been launched for small and medium enterprises.

Financial Sector Developments & "Super Connector" Role

• Listing Platform: A task force is actively implementing recommendations to attract quality international issuers, lower costs, and enhance trading mechanisms.
• Stock Connect: Schemes now cover bonds, ETFs, and derivatives; >70% of foreign holdings in offshore equities flow through Northbound Connect.
• International Issuers: Hong Kong now facilitates access for international companies to both mainland and international capital; 24 major stocks are tradeable in both HKD and RMB.
• Asset Management: Total assets under management reached ~US$4 trillion at the end of 2022, with two-thirds originating from outside Hong Kong.
• Family Offices: Tax concessions and a new "Capital Investment Entrant Scheme" have been introduced to attract wealthy families.
• Green Finance: 2022 green bond issuance totaled >US$80 billion (1/3 of Asia's total); ESG funds have grown 24% year-on-year, with AUM exceeding HK$150 billion.
• Digital Assets: Hong Kong has implemented the world's first comprehensive licensing regime for virtual asset service providers, applying an "same activity, same risk, same regulation" principle.
• Stablecoins: A specific regulatory regime for stablecoins is currently in the planning stages.
• RMB Internationalization: With offshore RMB settlement at only ~4% and reserve currency share at ~2%, Hong Kong aims to leverage this gap to become the primary offshore RMB hub.
• Sustainability Standards: Hong Kong has issued a vision to align local disclosure standards with the International Sustainability Standards Board (ISSB) framework.

Geopolitical & Structural Advantages

• Hong Kong is positioned as the unique convergence point for China's market access and international financial standards under the "One Country, Two Systems" principle.
• The city maintains a separate legal system, free capital flow, and independent currency, serving as a testing ground for China's gradual financial market opening.
• The Greater Bay Area Wealth Management Connect, approved in February, is expected to leverage a customer base of 87 million to drive sector growth.