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Hong Kong to Deliver its “ABC” Positioning Strategy and Role as a Global Connector

Last Saturday, I finished my visit to New York and Chicago of the United States (US).  During the trip, I met with representatives of various organisations, including the Federal Reserve Bank of New York, the New York Stock Exchange, the National Committee on United States-China Relations, the Asia Society and the University of Chicago, updating them on the latest developments of Hong Kong’s economy and financial market as well as promoting our financial advantages and professional services.


Hong Kong and the US have long shared close economic and trade ties.  The US is Hong Kong’s third-largest trading partner, while Hong Kong is the second-largest economy with which the US enjoys a trade surplus.  Of the 9 000-odd firms established in Hong Kong with parent companies located overseas, more than 1 200 are from the US, which ranks third among all economies; and what’s more, over 200 of these US firms are regional headquarters.  In addition, among the latest batch of 25 enterprises which have set up or expanded their business in Hong Kong as announced by the Office for Attracting Strategic Enterprises, six, mainly in the fields of life and health technology and financial technology, came from the US.  As for the 4 200 plus companies currently operating in our startup ecosystem, more than a quarter of them are founded by non-locals, of which 12% are from the US, with the country having the third largest share among the non-local startups.  At present, the number of US citizens living in Hong Kong has exceeded 80 000, nearly returning to the pre-pandemic level.


One of the deepest impressions I have of this trip is my meeting with Mr Michael Bloomberg, the founder of Bloomberg L.P. and Bloomberg Philanthropies, in which I shared with him our vision to develop Hong Kong into an international hub of green and sustainable finance as well as family office business.  We also discussed the policy initiatives to turn the city into a global centre for philanthropy, and the measures to tackle climate change.  Michael pointed out that the number of Bloomberg employees in Hong Kong has exceeded the pre-pandemic level, highlighting the positive outlook and confidence he and Bloomberg have in the future development of Hong Kong.


During this trip, I briefed the local communities on Hong Kong’s unique positioning strategy as an international financial centre, which can be termed as the “ABC” strategy.  “A” stands for anchor, referring to our robust financial regulatory regime and monetary system that provide an excellent market environment for developing asset and wealth management business.  “B” stands for buffer, representing Hong Kong’s effort in promoting the development of insurance services and offshore Renminbi business amid global uncertainty as a means to diversify our role as an international risk management centre.  “C” stands for capstan (i.e. a winch on a ship that lifts heavy weights and sets the ship sailing), symbolising the function of the Hong Kong market to mobilise and connect with the rapid-growing ASEAN and Belt and Road regions to foster mutual development.  Furthermore, I explained to various sectors that the enactment of the Safeguarding National Security Ordinance is meant to effectively safeguard national security with the ultimate objective of better protecting the basic rights and freedoms of Hong Kong residents and other people living here, and allowing Hong Kong to press ahead with economic and financial development in a stable environment.

Enjoying strong connectivity with the Mainland and the rest of the world, Hong Kong is a strong supporter and facilitator of globalisation and the vision of building a human community with a shared future.  All the interlocutors whom I met in the US have shown a keen interest in the opportunities available in Asia, China in particular, Hong Kong’s role in this regard and the support that we can offer them.  They also look forward to coming to Hong Kong to see and feel for themselves the latest development of the city.  We will continue to follow up on that and further strengthen our role as a global connector.

 

15 April 2024