HK's potential for growth: Exploring new opportunities, including maritime finance

Hong Kong's former chief executive, CY Leung, believes that Hong Kong is far from being in decline and has various untapped opportunities, including the potential to develop a larger maritime finance sub-sector. Leung, also a vice-chairman of China's top political advisory body, responded to remarks by former Morgan Stanley Asia head Stephen Roach, who suggested that Hong Kong is in a state of decline and that the Hang Seng Index is lagging behind its peers.

Leung disagreed with Roach's views, stating that they are outdated and out of touch with the current situation in Hong Kong. He expressed his willingness to have a conversation with Roach to discuss the new opportunities that Hong Kong possesses.

Leung highlighted the presence of numerous new economic sectors and sub-sectors in mainland China that he has personally identified over the past six years. He specifically mentioned the potential for developing a robust maritime insurance sector in Hong Kong. Given China's status as a major shipbuilding and maritime nation, Hong Kong, as the most competitive international financial center in China, can leverage its English language proficiency, fully convertible Hong Kong dollar, capable legal profession, and independent judicial system to establish itself as a prominent player in maritime insurance.

Regarding Hong Kong's fiscal deficit, Leung emphasized the importance of identifying ways to broaden the revenue base without introducing new taxes. He pointed out that in the high-quality development of the country, many manufacturers and exporters require third-party, independent, standard, testing, and certification services. Hong Kong excels in providing such services and has built a thriving audit business based on its goodwill and credibility.

Leung's remarks underscore his belief in Hong Kong's potential for growth and his focus on exploring new sectors and opportunities to enhance the city's economic prospects.