Chen Maobo: Cross-border capital flows will drive demand for trust and wealth management services in Hong Kong.

Paul Chan Mo-po, Financial Secretary of Hong Kong, pointed out in his speech at the 35th anniversary conference of the Hong Kong Trustees' Association that the increasing demand for diversified asset allocation in the context of geopolitically fragmented economies, the global wave of innovation and technology, and the country's promotion of high-level two-way opening-up in the "14th Five-Year Plan" will bring about more cross-border capital flows, leading to a greater demand for trust and wealth management services in Hong Kong. Paul Chan Mo-po stated that the trust industry plays a crucial role in the rapid development of Hong Kong as a local financial center. Hong Kong was recently ranked as the world's largest cross-border asset and wealth management center, with expected growth in the coming five years still leading globally. He mentioned that Hong Kong's score in the Global Financial Centers Index compared to New York and London has narrowed significantly from around 40 points a decade ago to only 1 or 2 points currently. He mentioned that the Hong Kong government proposed a "Financial+" strategy in this year's Budget, which includes measures to enhance the financing chain, promote the development of bonds and exchange traded products, strengthen the gold and commodity markets, and drive product innovation through digitization and tokenization. Furthermore, the government has been encouraging companies to relocate to Hong Kong, with 37 companies having switched their registration to Hong Kong while retaining their legal identity and business continuity since last year. The Hong Kong government will also propose legislation to optimize tax arrangements for funds and family offices within the year. He encouraged the trust industry to seize the opportunities brought about by "Financial+".