Hong Kong uses Forum to underline attraction for global asset & wealth managers and forge closer ties to GCC
The 18th Asian Financial Forum (AFF), themed "Powering the Next Growth Engine," recently wrapped up in Hong Kong, attracting around 3,600 participants from 50 countries and regions. This year's forum delved into pivotal topics such as artificial intelligence, the establishment of family offices, Islamic finance, and green and sustainable development, setting the stage for future financial innovations.
Hong Kong Chief Executive John Lee took the opportunity to unveil ambitious plans aimed at enhancing the city’s status as a global asset and wealth management hub. Key initiatives include the creation of an international gold trading center and the relaxation of investment entrant scheme requirements in March 2025, designed to attract top-tier global businesses and talent. Additionally, Hong Kong aims to expand joint asset projects with mainland financial markets, including the enhancement of Bond Connect trading.
In a significant move, People’s Bank of China (PBOC) Governor Pan Gongsheng highlighted China’s commitment to increasing the proportion of its foreign exchange reserves allocated to assets in Hong Kong. The PBOC will also support more high-quality companies in listing and issuing bonds in Hong Kong, reinforcing the city’s role in global asset and wealth management, ensuring financial stability, and maintaining a stable yuan exchange rate.
Hong Kong Financial Secretary Paul Chan underscored the city’s strengths as an international financial center, offering a comprehensive range of funding options to meet the diverse needs of governments and enterprises at various development stages. He also introduced innovative financial strategies to enhance product offerings, such as the securitization of infrastructure loans and catastrophe bonds. Meanwhile, Christopher Hui, Secretary for Financial Services and the Treasury, emphasized the potential for Hong Kong’s capital market to assist Middle Eastern companies in raising funds through listings or bond issuances. He pointed out the significant opportunities for cooperation between Hong Kong and Gulf Cooperation Council (GCC) countries in various financial services sectors, including the securities market, Islamic finance, and asset and wealth management.
Hong Kong Monetary Authority (HKMA) CEO Eddie Yue provided updates on the relaxation of cross-border payment rules within the Greater Bay Area, facilitating easier home purchases for Hong Kong and Macau residents in southern China. Other measures include expanding the e-CNY digital currency pilot in Hong Kong and sharing cross-border credit information among banks.
Vanessa Lau, Chief Operating Officer of Hong Kong Exchanges and Clearing Limited (HKEX), announced the opening of a new office in Riyadh, Saudi Arabia, complementing its existing locations in New York, London, Beijing, and Singapore. She highlighted the strategic opportunities in the Middle East and Association of Southeast Asian Nations (ASEAN) regions for Hong Kong and the Hong Kong exchange. China’s Special Envoy for Climate Change, Liu Zhenmin, emphasized Hong Kong’s potential to drive Asia’s energy transition through climate financing. He noted that the city could leverage its mature insurance market to develop climate insurance products, further supporting sustainable development in the region.
The AFF underscored Hong Kong’s pivotal role in the global financial landscape, highlighting the city’s strategic importance and influence. With significant developments and strategic initiatives poised to drive future growth and collaboration, Hong Kong seems set to strengthen its position as a leading financial hub.
