Opinion | Driving Asia's future: Insights from the Asian Financial Forum

By Kevin Lau

At the 17th Asian Financial Forum (AFF), which took place in Hong Kong on Jan 24-25, Chief Executive John Lee Ka-chiu emphasized the potential for Hong Kong as a hub for companies to create opportunities in Asia and globally. He noted that international cooperation has become more important than ever in the context of globalization and decoupling upgrades. Lee stressed that market fragmentation only increases costs, reduces liquidity, and ultimately leads to the decline and instability of the financial system. Under the support of the nation, Lee stated that Hong Kong will continue to be a leading financial center for both the nation and the international community, leveraging the advantages of "one country, two systems" to create opportunities for Asian and global companies. As such, he invited forum participants to visit some of Hong Kong's attractions during the conference, for which free tickets and guided tours were provided.

During the forum, Hong Kong's Secretary for Financial Services and the Treasury Christopher Hui Ching-yu held several bilateral meetings. He discussed financial cooperation opportunities with the finance minister of Qatar, the finance minister of Egypt, and the minister of planning and economic development of Egypt. Regarding Qatar, Hui encouraged Qatari financial institutions to expand their asset and wealth management businesses in Hong Kong. In the case of Egypt, the possibility of utilizing Hong Kong's Islamic finance infrastructure and its role as a major fundraising center were discussed.

Furthermore, Hui met with Deputy Director-General for Financial Stability, Financial Services, and Capital Markets Union of the European Commission Alexandra Jour-Schroeder. He stated that Hong Kong will better integrate financial technology and green finance, striving to become a green fintech hub and driving the economy's green transformation. Additionally, Hong Kong is committed to improving its tax regime to meet the latest requirements of the European Union in combating cross-border tax evasion and preventing double taxation.

According to Peter K N Lam, chairman of the Hong Kong Trade Development Council, the forum serves as a platform that unites influential policymakers and industry leaders from the finance and business sectors. Its purpose is to facilitate valuable and forward-thinking discussions aimed at identifying collaborative solutions to address current pressing challenges. The forum aims to foster an environment of cooperation and shared success among participants.

At the forum, investment promotion agencies from various countries and regions introduced their local investment environments and projects to participants. Fintech also became a major highlight of the forum, with Hong Kong hosting several exhibition zones showcasing innovative concepts and applications in financial technology.

The AFF provided a platform for promoting multilateral cooperation, bringing together representatives from the financial industry and government officials from different countries and regions. The Hong Kong Special Administrative Region government emphasized the city's status as a financial center in Asia and globally, showcasing its strengths and efforts to promote financial technology, green finance, and international cooperation. This will help boost cross-border financial cooperation, attract more investment, and create more business opportunities.

In addition to the discussions and meetings held during the forum, several keynote speeches and panel discussions took place, addressing various topics relevant to the financial industry. Experts and industry leaders shared insights on emerging trends, challenges, and opportunities in areas such as sustainable finance, digital transformation, investment strategies, and regional economic development.

One of the key themes that emerged from the forum was the importance of sustainable finance and the integration of environmental, social, and governance (ESG) factors into investment decision-making. There was a consensus among speakers that sustainable finance has become a global priority, and Hong Kong has positioned itself as a leader in this field. The city has made significant efforts to develop green finance initiatives, including the establishment of the Hong Kong Green Finance Association and the issuance of green bonds. Speakers highlighted the role of financial institutions in promoting sustainable investments and the need for standardized ESG reporting and disclosure.

Digital transformation and the role of fintech were also prominent topics of discussion. The rapid advance of technology and the increasing adoption of digital solutions have transformed the financial industry. Speakers emphasized the need for financial institutions to embrace innovation and leverage fintech to enhance efficiency, improve customer experience, and mitigate risks. Hong Kong's status as a leading fintech hub in Asia was highlighted, especially its robust regulatory framework, supportive government initiatives, and vibrant startup ecosystem.

In addition, the forum provided a platform for startups and emerging companies to showcase their innovative products and solutions. The "Fintech Showcase" featured cutting-edge technologies and disruptive ideas that are reshaping the financial industry. This allowed participants to witness the transformative potential of fintech and explore opportunities for collaboration and investment.

The forum also provided a platform for exploring investment opportunities and collaborations with different regions. Representatives from various countries and regions, including the Chinese mainland, Association of Southeast Asian Nations countries, India, and Belt and Road Initiative participating economies, presented their investment projects and highlighted the potential for cooperation. Discussions focused on areas such as infrastructure development, cross-border investments, and the facilitation of trade and financial flows.

Furthermore, the forum facilitated networking opportunities for participants to establish connections, foster partnerships, and explore potential business collaborations. Numerous business matching sessions and networking events were organized, enabling participants to engage with potential investors, clients, and industry peers.

Overall, the 17th Asian Financial Forum served as a platform for thought-provoking discussions, knowledge sharing, and networking among industry professionals, government officials, and academics. It showcased Hong Kong's commitment to maintaining its position as a global financial hub and its efforts to drive sustainable finance, embrace digital transformation, and foster international cooperation. The outcomes of the forum are expected to contribute to the continued growth and development of the finance industry in the region and beyond.

Dr Kevin Lau is a specialist in radiology with a Master of Public Health from the University of Hong Kong, and is an adviser to Our Hong Kong Foundation.

The article was first published in China Daily.