Editor's note: The 2025 Hong Kong FinTech Week and the Global Financial Leaders' Investment Summit have been held consecutively, gathering global political figures and financial leaders.
【Anchor】Hello everyone, welcome to DDN Business Insider. I am Yunfei Zhang. The 2025 Hong Kong FinTech Week and the Global Financial Leaders' Investment Summit have been held consecutively, gathering global political figures and financial leaders. Today, we have invited Dun Zhigang, researcher Chongyang Institute for Financial Studies, Renmin University of China and observer of global governance; Li Daxiao, former chief economist at a brokerage firm; and Tang Bo, assistant dean of the Institute of Financial Studies at the Hong Kong University of Science and Technology, to delve into the market signals and development opportunities behind these recent financial events in Hong Kong.
Recently, at the financial summit, we observed a phenomenon where international financial institutions and leaders expressed optimism about the Asian market. In the current global economic environment, what qualities does the Asian market possess that continue to attract global attention? Does this indicate that the global economic order is accelerating its reconstruction, Mr. Dun?
【Dun】Their optimism has a profound basis in reality. Firstly, it reflects the strong resilience of the Asian economy. We can liken the current global economy to facing stormy weather. While Europe and the United States are still grappling with high inflation and debt, Asia, particularly China, with its vast domestic market and complete industrial chain, navigates relatively smoothly, much like a large ship with a heavier ballast, sailing relatively smoothly. Secondly, this optimism stems from Asia's leapfrogging in the field of financial technology. During this FinTech Week, the hottest discussions revolved around digital currencies and cross-border payments. Finally, this confidence arises from the recognition of regional stability and cooperation prospects in Asia. The current international situation is complex, but economic integration within the Asian region is deepening. For instance, the benefits of RCEP are becoming increasingly evident. Hong Kong has consistently ranked as a leading international financial center for years, driven by the deepening financial cooperation between the mainland and Hong Kong, creating a synergy where one plus one is greater than two. The attractiveness of the Asian market is not coincidental; it points to a larger trend. The global economic order is undergoing profound restructuring, with Asia being one of the core stages of this transformation. Emerging economies in Asia have maintained an average growth rate of around 5%, significantly higher than that of developed countries in Europe and America. This is underpinned by a large demographic dividend, rapid urbanization, and an increasingly prominent consumer base. For example, in Indonesia and Vietnam, along with our domestic market, the middle-class population is expanding rapidly, driving continuous demand for consumption upgrades and providing businesses with vast market opportunities. Furthermore, Asia is demonstrating boldness and efficiency in embracing the digital economy and green transformation, forming a new dimension of attractiveness. In areas like 5G, artificial intelligence, and e-commerce, Asia has already outpaced the globe in terms of adoption and application speed. Meanwhile, China's dual carbon goals have significantly propelled the region's green transition, with green finance and ESG investments burgeoning in Asia. This indicates that Asia is not only catching up but is also defining future industrial standards and growth models. This means that global capital aiming to seize the main investment themes of the next decade cannot overlook Asia as the primary battleground for digitalization and greening.
【Anchor】Right, and within the Asian market, there is particularly optimistic sentiment regarding the mainland and Hong Kong markets. Mr. Li, what do you believe are the advantages that allow the mainland and Hong Kong markets to stand out?
【Li】First, China's economic growth rate of 5% this year remains at the forefront among major global economies. Secondly, we are undergoing structural transformation, continuous innovation, and industrial upgrades, all of which demonstrate a clear trend. Strategies aimed at reducing internal competition, encouraging domestic circulation, and promoting dual circulation have all yielded positive results.
【Anchor】In fact, since the beginning of this year, Hong Kong's capital market has shown impressive performance. On the one hand, the Hong Kong stock market has risen over 30% this year. In the first ten months alone, 80 companies have gone public, raising over $26 billion, ranking first globally in IPO proceeds. Mr. Li, what do you believe is the fundamental driving force behind the development of Hong Kong's capital market?
【Li】The fundamental driving forces include a series of specific measures aimed at stimulating the market and improvements that have enhanced the efficiency of the Hong Kong stock market. For example, we have reformed various processes and procedures that previously affected efficiency. During typhoons, we have made significant progress in arrangements, such as keeping the market open during minor typhoons, which has greatly improved continuity and efficiency. Importantly, the Hong Kong stock market benefits not only from the hoomecoming of Chinese concept stocks but also from the inclusion of H-shares, a variety of red-chip stocks, and local Hong Kong stocks. The combined effect of these four factors contributes to the diversification and depth of the Hong Kong stock market, which is also home to many top global investment banks.
【Anchor】Mr. Dun, from a long-term development perspective, does this positive trend have sustainability?
【Dun】My judgment is cautiously optimistic. In the short term, with the implementation of a series of stimulus policies and the Federal Reserve reaching the peak of its interest rate hike cycle, the trend of gradual interest rate cuts will continue to improve the liquidity environment in Hong Kong's market. In the medium term, the expansion of the Guangdong-Hong Kong-Macau Greater Bay Area cross-border wealth management connect, and the ongoing promotion of digital currency pilot programs will bring new growth points. In the long term, as long as Hong Kong continues to leverage its unique advantages of being backed by the motherland and connected to the world and finds its rightful place in the international financial landscape, I believe that Hong Kong's status as an international financial center can not only be maintained but also achieve new leaps forward. Of course, we must also pay attention to geopolitical challenges, but with firm support from the central government and Hong Kong's own adaptability, I remain confident about the future of Hong Kong's capital market.
【Anchor】Indeed. The future development of both the mainland and Hong Kong markets is viewed positively. The cooperation between the two regions in the financial sector has been a major topic of discussion. Last week, officials from the China Securities Regulatory Commission, the People's Bank of China, and the National Financial Regulatory Administration mentioned numerous measures to promote cooperation during theGlobal Financial Leaders' Investment Summit. Mr. Li, what expectations do you foresee for future cooperation between the two regions?
【Li】The integration with the mainland market, along with the collaboration between the exchanges in Hong Kong, Shenzhen, Shanghai, and Beijing, presents a significant opportunity. If these partnerships can be strengthened, the functions of the Hong Kong stock market, bond market, and offshore RMB center will be significantly enhanced in the future. More importantly, protecting investors is crucial. I firmly believe that if the Hong Kong stock market can effectively safeguard investors, particularly small and medium-sized investors, and focus on creating value for retail investors rather than profiting from them, it will undoubtedly lead the world and stand out in the global market.
【Anchor】Looking back at last week's financial events, topics like virtual assets, relevant platform regulations, and financial technology were frequently mentioned. The Chief Executive of Hong Kong and financial officials also discussed future plans regarding virtual asset platform regulations and financial technology. The Monetary Authority has also proposed a "FinTech 2030" vision. Given the current complexities in the international situation, including tariff uncertainties, Mr. Tang, how should we interpret the emphasis placed by relevant departments in these emerging fields?
【Tang】I believe that Hong Kong's heightened focus on virtual assets and financial technology in the current international environment is a forward-looking and strategically necessary decision. This approach not only addresses uncertainties but also actively shapes Hong Kong's future core competitiveness. We can understand this from three perspectives.
First, innovation is aimed at enhancing the resilience of the financial system. In light of global changes, Hong Kong has chosen to reinforce its foundation as an international financial center through financial technology. The Monetary Authority's "FinTech 2030" vision focuses on future financial infrastructures such as data, AI, quantum computing, and tokenization, aiming to create a more robust, efficient, and forward-looking financial system that can better withstand external shocks.
Second, clear regulations are essential for building trust and promoting responsible innovation. Hong Kong recognizes that clear rules are a prerequisite for the development of emerging areas like virtual assets. Therefore, we have seen the implementation of stablecoin regulations and the refinement of the regulatory framework for virtual asset trading platforms. This sends a clear signal to global markets that Hong Kong is committed to encouraging genuine innovation while ensuring safety and compliance, providing a secure and reliable environment for global investors.
Third, from a macro perspective, this is a key step for Hong Kong to solidify its role as a super connector and seize the opportunities presented by the future financial wave. By taking the lead in these frontier areas, Hong Kong can attract top global talent, capital, and technology, ensuring that it maintains its leading position in the next round of financial competition.
【Anchor】So, in your view, how is Hong Kong currently developing in these areas, and what are its existing advantages and key issues that need to be addressed?
【Tang】It can be summarized as ecological prosperity, attracting industry giants, and the implementation of technology. From the current development perspective, our fintech ecosystem is already very active, with over 1,000 fintech companies and a high adoption rate that ranks among the best in the world. Through proactive policies, we have successfully attracted several industry giants, such as Ant Group and WeBank, to establish their headquarters or significant operations in Hong Kong. In terms of technological applications, digital banking, AI risk control, and blockchain trade financing have all been deeply integrated into various aspects of financial services.
From the perspective of existing strengths, I believe that Hong Kong's advantages are unique and significant. First, there is the institutional and locational advantage: we have a robust common law system, free flow of capital, a simple tax regime, and we are backed by the mainland, one of the most dynamic market globally. Secondly, we have a wealth of talent and professional services: a large pool of financial and professional service talent has gathered here, and the HKMA's talent program is continuously expanding this talent pool. Thirdly, we possess world-leading financial infrastructure, which is constantly being upgraded. For example, the recently launched cross-border payment system has greatly improved the efficiency of cross-border payments.
Key challenges include: the first challenge is technology transformation—we need to continuously push for how to convert cutting-edge technology into large-scale, profitable business applications. The second challenge is talent competition, especially in cutting-edge fields like AI and blockchain tokenization, where we still face global pressure in the competition for high-end talent. The third challenge is global competition, especially with the rapid development of financial centers like Singapore and Dubai; we need to continuously optimize our environment to maintain our leading position in global competition.
【Anchor】Yes. Looking specifically at the industry, what do you believe will be the key breakthroughs for development?
【Tang】The first breakthrough will be the integration of financial tokenization and real assets. For example, how to tokenize traditional financial assets like bonds and funds, and even more financial and industrial assets, to enhance trading efficiency, reduce costs, and increase transparency. The HKMA is currently promoting bond tokenization, which can not only create a new digital asset market but also solidify Hong Kong's position as a global asset and wealth management center.
The second breakthrough will be the full-chain integration of artificial intelligence and financial services. AI will fundamentally change the operational model of the financial industry. The HKMA is also encouraging banks to test AI applications in risk management and customer service through a generative AI sandbox. In the future, AI-driven personalized wealth management, intelligent advisory, and fraud detection systems will make financial services more intelligent, efficient, and secure.
The third breakthrough is to facilitate cross-border data and payment infrastructure. This is a direct manifestation of Hong Kong's role as a superconnector. We have already achieved interconnection between Hong Kong and mainland payment systems; the next step is to deepen applications in areas like cross-border trade financing and supply chain finance, using data integration to address the financing difficulties faced by SMEs. This will greatly promote economic integration in the Guangdong-Hong Kong-Macau Greater Bay Area, opening up broader markets for Hong Kong fintech.
Lastly, I want to emphasize the importance of embracing green fintech. By utilizing technologies like blockchain and the Internet of Things to provide credible traceability for the environmental benefits of green projects, we can effectively prevent greenwashing and enhance the transparency and credibility of the ESG financial market. This will attract global ESG-focused capital and help Hong Kong become a leading center for green technology and green finance.
【Anchor】OK, thank you to all the guests. That's all for this episode. Remember to follow us on YouTube or download our APP. I'm Yunfei Zhang, thanks for watching, and see you next time.
Anchor: Laura Cheung | Edited: Kelly Yang, Laura Cheung, Rachel Liu | Translate: Kato Ip | Proofread: Chris Liu
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