Hong Kong Financial Secretary Paul Chan: International capital is accelerating its allocation to Hong Kong and mainland markets.

Hong Kong Financial Secretary Paul Chan Mo-po expressed in a blog post on April 20th that many friends in the financial markets have indicated that in recent months, international capital is accelerating its allocation to the Hong Kong and mainland markets. The percentage of foreign subscriptions for some recently listed mainland enterprises has significantly increased compared to the past two years. In addition, foreign financial institutions have also stated that they are expanding their scale and hiring more staff in Hong Kong, with some transferring senior personnel from other regions to Hong Kong. These phenomena reflect two major trends: on one hand, due to the resilience of the national economy, breakthroughs in innovative technology, and the continuous deepening of the high-level opening-up policy, international investors are concerned about missing out on investment opportunities in the mainland; on the other hand, the unilateralism and policy uncertainty of the US authorities are prompting international capital to accelerate risk diversification, increasing their allocation in the mainland and Hong Kong markets. Undoubtedly, this shift in investment dynamics between the East and West is gradually becoming more prominent. Paul Chan Mo-po pointed out that the US authorities imposing so-called "equal tariffs" on trading partners and constantly adjusting tax rates have not only severely disrupted the global trade order and supply chain stability, but also significantly increased the uncertainty in the international trade and investment environment. This reckless protectionist behavior has triggered general market concerns, with many economic analysts predicting rising inflation and economic slowdown in the US, and even the possibility of entering a recession; the tariff war will also impact the global economic outlook, leading to a slowdown in global economic growth. In light of the responses from various countries around the world, the US's unilateral provocation of a tariff war not only backfires on its own economy, but also isolates itself. In recent exchanges with leaders of various countries' business communities, this sentiment is particularly clear. They unanimously criticize the current actions of the US authorities and explicitly point out that in today's turbulent geopolitical situation, markets that are transparent, open, politically stable, and welcoming to cooperation are where global enterprises hope to expand their businesses. In the face of this complex external environment, Hong Kong, as a highly outward-oriented economy, cannot thrive alone. Therefore, we must recognize that the current structural changes in the international economic and trade landscape will be medium- to long-term in nature, and we must consolidate the efforts of all sectors of society, rely on our motherland, and jointly respond; with proactive and targeted policy measures, turn crises into opportunities, and continue to promote sustainable high-quality economic development amidst the changing landscape. Paul Chan Mo-po believes that fully and promptly doing our own duties is the best strategy to respond to challenges. First, maintaining a safe and stable environment in Hong Kong, safeguarding national security, financial stability, and economic security are the foundation for Hong Kong's prosperity and stability; we need to show the international community that Hong Kong is a safe haven for global capital. Second, continue to communicate to the international community Hong Kong's unique position and advantages under the "one country, two systems" framework, especially as a duty-free port, common law jurisdiction, and an international financial center, while continuously optimizing Hong Kong's business environment. Many multinational enterprises invest in Hong Kong because they see the advantages of our connectivity with the mainland and the rest of the world, our strong legal system, international and friendly business environment, inclusive culture, and our link to the mainland, the world's largest and most dynamic consumer and innovation market. Against the backdrop of the tariff war that threatens to fragment global trade, Hong Kong is playing a key role as a "super connector," providing new development opportunities for global enterprises and capital. Many business friends have expressed to Paul Chan Mo-po that in the face of the shadow of the tariff war, it is crucial for Hong Kong to continue to uphold its status as a free port and implement a policy of free trade, providing the business community with a stable and predictable business environment to ensure their business operations in Hong Kong. In fact, many companies are adjusting their strategies from primarily connecting the mainland and European and American markets in the past, to expanding trade in more mainland and emerging markets in Asia. They particularly see the ASEAN market as promising due to its large scale, young population, rapid growth of the middle class, and consumer market. As a free port, Hong Kong conveniently facilitates these companies with flexible logistics and distribution as part of their plans to explore new markets. With strong relations between the country and the ASEAN region, deeply integrated industrial and supply chains, Hong Kong can play a significant role in supply chain management, trade finance, and Environmental, Social, and Governance (ESG) consulting in this dynamic environment. In the midst of global changes, both the country and Hong Kong present many new investment opportunities and are leading in many fields of innovation and technology. Through hosting more thematic large-scale summits, international conferences, and grand events that align with the overall trends, we can help more international business communities and investors better understand the unlimited opportunities in the country and Hong Kong, enabling them to participate and share in the outcomes. According to Paul Chan Mo-po, last week, Hong Kong hosted two large international conferences with different themes - the "World Internet Conference Asia-Pacific Summit" and the "2025 World Tourism Cities Federation Hong Kong Cheung Shan Tourism Summit." Representatives from dozens of countries and regions around the world, including government and business representatives, industry leaders, and scholars enthusiastically participated in both events. The World Internet Conference originated in the mainland in 2014 and this year, for the first time, held its Asia-Pacific Summit overseas in Hong Kong, marking Hong Kong's first time hosting such a national-level important academic summit. The theme of the summit was "Digital Intelligence Integration Leading the Future, Working Together to Build a Community of Shared Future in Cyberspace," where participants collectively discussed the latest developments and trends in various areas of the internet, digital, and innovation industries. As for the Cheung Shan Tourism Summit, held for the first time in Hong Kong, it also showcased Hong Kong's important position as an international tourism hub. Paul Chan Mo-po stated that at both summits, many participants pointed out their optimism for the future development of the country and Hong Kong. The advantages of "one country, two systems" allow Hong Kong to better play the roles of "super connector" and "super value-added person", promoting pragmatic cooperation between the country and various regions around the world in related fields, creating more economic and social development opportunities, and fostering deeper connections and friendships.