Recently, the U.S. announced the imposition of so-called "reciprocal tariffs" on global trade partners. Yesterday, Financial Secretary Paul Chan analyzed in a public event that although global markets becomes unstable, Hong Kong will maintain its status as a free port and its free trade policy, welcoming businesses and talents from around the world, and firmly ensuring the free flow of capital, goods, information, and talent, highlighting the stability and attractiveness of the Hong Kong market.
In a blog, Chan quoted President Xi Jinping, who recently stated during a meeting with Spanish Prime Minister Pedro Sánchez that there are no winners in a tariff war, and that opposing the world will isolate oneself.
Chan emphasized that the country is advancing high-level opening up with a firm and clear stance, promoting fair and inclusive economic globalization and free trade, and adhering to cooperation, mutual benefit, and win-win goals, providing stable support for global development.
"This is our strongest foundation in responding to this tariff war."
He revealed that since last week, the Hong Kong dollar has remained strong, and the HKD/USD exchange rate is still at a strong level, indicating that capital is staying in the local market. After a decline last Monday, the Hong Kong stock market has stabilized, and overall market operations continue smoothly and orderly.
He stressed that Hong Kong has strengthened its "round-the-clock, coordinated, cross-market" real-time market monitoring mechanism to prevent sudden risks that may arise, especially when market confidence is weak.
Seizing Opportunities to Attract Foreign Investment
In light of the extreme actions by the U.S., the world is reassessing the risks of the U.S. market and U.S. assets, accelerating the exploration of investment allocations that can reduce risks. Hong Kong is positioned to attract foreign capital, talent, and businesses by leveraging changes in the global market and the new demands they create.
He has instructed the Securities and Futures Commission and the Hong Kong Stock Exchange to prepare for the potential return of Chinese companies listed overseas, including enhancing promotions in ASEAN and Middle Eastern markets to attract quality companies to list in Hong Kong, further strengthening Hong Kong's status as an international financial center.
Additionally, many large international financial institutions are exploring increased participation in the Hong Kong market. Chan stated, "Hong Kong, backed by the motherland and benefiting from the advantages of 'one country, two systems,' appears even more stable and attractive under the current uncertain global market conditions. As long as we work together to manage our affairs well, Hong Kong can create new opportunities under more favorable conditions amidst this change."
Hong Kong Will Build New Connections and Partnerships
"Hong Kong provides convenient access to the mainland and Asian markets, a reliable common law system, and strong intellectual property protection, while also gathering data and capital from both the mainland and international sources, along with a vibrant international talent pool."
Chan pointed out at the opening ceremony of the Business of Innovation and Technology Week that due to the trade war and technological fragmentation, the world is reshaping industry chains, supply chains, and partnerships, with many companies seeking new partners and exploring new markets under the new normal, adopting more flexible business models.
"Hong Kong welcomes businesses and talents from around the world. We are willing to establish new connections and partnerships, ensuring our status as a free port and maintaining our free trade policy, while firmly supporting the free flow of capital, goods, information, and talent."
The Secretary for Innovation and Technology Sun Dong, stated to the media after attending the same event that in the face of trade wars and tariff conflicts, "Hong Kong must adhere to what we have successfully maintained for over a hundred years: our essence of being open and connected globally, now combined with collaborative innovation. I believe that as long as we stick to this path, we will widen and expand our opportunities."
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