On the 16th of this month, Hong Kong Chief Executive John Lee delivered his third policy address during his tenure. In the chapter on consolidating and enhancing the status of an international financial center, there is a lot of content; in the chapter on new productivity, it also mentioned the need to build a financial technology innovation ecosystem .

Just two weeks after the Policy Address was released, Hong Kong announced several major news in financial technology.

First, the Hong Kong SAR government issued a policy statement on the responsible application of artificial intelligence in financial markets. The content includes Hong Kong’s adoption of a dual-track approach to promote the adoption and development of artificial intelligence in the financial services industry, while at the same time addressing potential challenges such as cybersecurity, data privacy and intellectual property protection.

Financial Secretary Paul Chan Mo-po bluntly stated that Hong Kong has an open and prudent attitude towards the application of artificial intelligence in the financial market. The policy statement clearly sets out the government’s policy stance and approach to promote the responsible application of artificial intelligence in financial markets. The Secretary for Financial Services and the Treasury, Paul Chan, stressed that the policy declaration has two legs: controlling risks and promoting development. He hopes that the financial industry can make greater use of AI to reduce costs and improve efficiency.

Secondly, the Hong Kong Stock Exchange has made big moves in the virtual currency market. The Hong Kong Stock Exchange announced that it will launch the Hong Kong Stock Exchange Virtual Asset Index Series on November 15 to provide a reliable benchmark price for this rapidly emerging asset class, supporting Hong Kong’s development into Asia’s leading digital asset center.

In fact, the Hong Kong SAR government issued a policy statement on the development of virtual assets in 2022, hoping to cultivate a vibrant virtual asset industry and ecosystem in Hong Kong. The index series provides an intuitive reference to help the public better understand virtual asset investment trends.

In addition, Hong Kong has taken the initiative to break down the cross-border payment barriers with the Mainland. The Hong Kong Monetary Authority is working closely with the People’s Bank of China to establish connectivity between Hong Kong’s Faster Payment System (FPS) and the mainland’s online banking payment system, with a pilot program expected to be launched in the middle of next year.

“FPS” is a successful innovation in the field of financial technology in Hong Kong in recent years. It has been interconnected with the Thai payment platform. If it can be connected with the mainland, it will bring huge convenience and integration.

In an exclusive interview with Hong Kong China News Service a few days ago, Chief Executive John Lee identified digitalization and greening as the two major elements for developing new quality productivity. These two items are also the focus of Hong Kong’s current efforts to establish growth points in the financial sector. A number of specific paths in the direction of digitalization have been released, and the financial and technology industries have demonstrated a proactive attitude.

HSBC Hong Kong Chief Executive Officer Carol Lam said at the meeting that artificial intelligence can change the way banks serve their customers and improve the industry’s operational efficiency. The bank is currently testing about 100 generative AI solutions and believes that in the future development of technology and AI, there will be more cooperation rather than competition between banks and fintech companies.

This year’s policy address emphasizes deepening reform and exploring new growth points. Hong Kong has an extremely mature and international financial market with a large scale and deep accumulation. As a testing ground for reform, it has taken the lead.

HSBC Holdings CEO Georges Elhedery said at the International Financial Leaders Investment Summit yesterday (19th) that Hong Kong’s wealth funds under management are expected to reach about US$3.2 trillion in 2028, surpassing Switzerland’s about US$3.1 trillion. Become the world’s largest offshore center.
The third International Financial Leaders Investment Summit opened in Hong Kong on the same day. The main summit was themed “Navigating Amid Change” and invited financial industry leaders from around the world to share the latest market developments. At the meeting, many heavyweight international foreign executives were optimistic about the economic prospects of Hong Kong, mainland China and even Asia.

Among them, Ai Qiaozhi mentioned that China’s per capita GDP has increased from US$250 to US$12,500 in the past 40 years, a 50-fold increase. As China’s wealth growth rate ranks among the highest in the world, Hong Kong has become an important center for offshore wealth transactions.

“Hong Kong will become the largest offshore center by 2028, with wealth funds under management reaching about US$3.2 trillion, surpassing Switzerland’s about US$3.1 trillion,” said Ai Qiaozhi. “This shows the journey that China has gone through in its development, as well as the The prospects that the market can offer.”

Earlier, UBS Group CEO Sergio Ermotti also said that Hong Kong’s wealth management business is growing at an annual rate of 7.6%, and has the opportunity to replace Switzerland as the world’s top wealth management center by 2027 or earlier.

Last year, the Boston Consulting Group (BCG) also concluded in its Global Wealth Report that Hong Kong is expected to surpass Switzerland to become the world’s largest offshore financial center by 2027.

The Neue Zürcher Zeitung pointed out that most of Hong Kong’s funds come from mainland China. The faster China’s economic development, the more Hong Kong will benefit as a global financial center. BCG predicts that by 2027, Hong Kong will become the only financial center to manage more than US$3 trillion in offshore assets, ranking first, with Switzerland and Singapore ranking second and third respectively.