New ahead of HK under 'one country, two systems': Paul Chan

The China International Finance Forum • Hong Kong Summit took place today (Nov. 20). During his speech, Financial Secretary Paul Chan highlighted Hong Kong's unique advantages under the principle of "one country, two systems" and shared strategies for the city's future development as an international financial center.

Chan emphasized that Hong Kong remains the only city in the world that simultaneously enjoys both Chinese and international advantages. On one hand, Hong Kong has convenient and sometimes preferential access to the mainland market; on the other hand, it retains an independent judicial system based on common law, along with unique benefits such as free capital movement, abundant goods and information, and a low tax regime.

Regarding market connectivity, Chan noted that this feature has been a significant factor in Hong Kong's success as a global financial center. Programs like Stock Connect have achieved remarkable results.

“In the future, Hong Kong will continue to expand the coverage of these programs to include bonds, ETFs, and derivatives, providing international investors with more diversified investment options."

Chan stated that innovation is a key factor for Hong Kong's success as a global financial hub. The city has implemented various measures to encourage innovative practices, such as establishing regulatory sandboxes and introducing a comprehensive licensing system. Additionally, Hong Kong places emphasis on innovative financial regulation to ensure market integrity, stability, and investor protection.

On the topic of green and transitional finance, Chan pointed out that sustainable development has become an essential component of the global agenda. As Asia's free financial center, Hong Kong has issued over HK$63 billion in green bonds and sustainable debt. Moving forward, Hong Kong aims to continue leading in the green and sustainable finance sector by promoting the development and refinement of relevant standards and expanding related investments.

Chan also highlighted the importance of cooperation between Hong Kong and traditional markets beyond the mainland. He acknowledged the geopolitical challenges but assured that Hong Kong would continue to seek common interests with various markets and promote collaboration.