The Zhitong Finance App learned that on November 3, Hong Kong Financial Secretary Chen Maobo met with the media after the 5th International Financial Leaders Investment Summit. He said that global financial institutions are generally optimistic about Hong Kong, and many institutions plan to increase capital and expand their staff in Hong Kong. Regarding the economic outlook for next year, he mentioned that the economic forecast for next year will be officially released in the budget. As a highly open economy, Hong Kong's growth depends on mainland economic trends. At the same time, it also has to face multiple external uncertainties such as geopolitics, high interest rates, international elections, the situation in the Middle East, and capital reallocation. The authorities will carefully evaluate various variables.
1. Summit Outcome: Foreign investment confidence is sufficient, and a number of institutions plan to increase the layout of Hong Kong
The summit brought together about 280 international financial leaders, including 120 international financial institution chairmen or CEOs. Vice Premier He Lifeng of the State Council delivered a video message. Chen Maobo revealed that foreign investors attending the meeting were generally positive and optimistic about Hong Kong's prospects, and many financial giants are planning to increase their investment in Hong Kong and expand their local teams. This is already the 5th summit and has become an annual event on the fixed schedule of global investors. The next summit is scheduled to be held from November 1 to 3, 2027.
The summit focused on three major topics: first, policy sharing among mainland regulators; foreign investors further clarified Hong Kong's unique financial position under “one country, two systems”. Hong Kong's capital market, wealth management, green finance and science and technology innovation circuit has broad space; second, institutional restructuring of investment strategies, geographical conflicts, high debt and high capital costs are forcing investment back to corporate fundamentals; and third, the future of the artificial intelligence industry. The industry is concerned about whether high investment can be converted into revenue. Enterprises must balance technology implementation, operational efficiency improvement, and network governance.
Chen Maobo pointed out that Hong Kong will not only provide financing for science and innovation enterprises, but will also open up the four major elements of capital, technology, talent, and market, rely on the construction of the northern metropolitan area, connect with the global southern market, and create a full-chain science and innovation financing ecosystem.
2. Economic fundamentals: GDP increase, economic structure fragmentation, steady improvement in employment
In response to the increase in GDP but the uneven recovery of the industry, Chen Maobo responded:
Economic growth momentum was strong: GDP grew by 5.1% in the first half of the year, and the growth momentum continued in the third quarter; the growth “troika” gained momentum simultaneously, and exports (AI and electronic products re-export) and investment achieved double-digit growth.
The asset market is picking up: The residential property market has been rising steadily, with an increase of about 7%-10% during the year; office leasing in core commercial areas has improved dramatically, and retail rents and occupancy rates have gradually stabilized.
Tourism and consumption continue to recover: The number of visitors to Hong Kong is expected to exceed 50 million throughout the year, retail sales have been growing year-on-year for more than ten consecutive months, and the restaurant business is gradually stabilizing.
Employment differentiation: The overall unemployment rate remains at 3.9%, but unemployment pressure is high in the construction, catering, and retail industries; the government will continue to revitalize economic vitality and drive employment expansion.
3. New Interconnection Policy: Expanding Bond Connect, Promoting Housing Trust, and Taking the Opportunity to Officially Announce Optimization Measures
(1) Continued upgrading of bond market connectivity
Hong Kong is working closely with the People's Bank of China to enhance Bond Connect risk management tools. Following the launch of five-year treasury bond futures in August, the next step will be to study adding multi-term bond futures products, improve the investors' risk hedging toolbox, further invigorate the offshore bond market, and help internationalize the RMB. The relevant detailed plan will be announced to the public in due course.
(2) Real Estate Trust and New Stock Connect are progressing steadily
Housing Trust Fund Interconnection (REIT) discussions are progressing well, and various interconnection expansion projects will be implemented at the right time; the New Stock Connect is still in progress, and no clear schedule has yet been announced.
(3) The IPO boom continues for a long time
Chen Maobo judged that the listing of Chinese companies in Hong Kong is a major long-term trend. In the context of the Mainland's high level of two-way opening up, mainland enterprises are speeding up their overseas expansion. Hong Kong is not only a financing platform for enterprises to raise capital and recruit talents, but also provides one-stop professional services to help Chinese enterprises go global. The IPO fund-raising boom fluctuates in the short term as the market warms up and down, but the medium- to long-term momentum will continue to improve.
4. AI industry layout: attract companies to go public in Hong Kong and promote scientific research and industrial implementation
Hong Kong not only attracts AI companies to IPO in Hong Kong, but also focuses on attracting science and innovation companies to establish R&D departments in Hong Kong. AI companies are inseparable from cross-border data when going overseas, and Hong Kong can provide enterprises with convenient conditions to obtain international data in compliance. In the future, Hong Kong will build the first stop for science and innovation to go overseas, provide financing, talent and professional service facilities for AI companies, create high-paying local jobs, and expand the scale of Hong Kong's science and innovation industry.
5. Greater Bay Area Cooperation: Relying on APEC Opportunities to Deepen Cross-border Financial Innovation
Taking advantage of the APEC “One Meeting, Two Cities” Shenzhen-Hong Kong cooperation opportunity, Hong Kong will take advantage of the “9+2” Greater Bay Area synergy based on financial innovations such as digital payments and asset tokenization:
1. Finance empowers science and innovation enterprises in the Bay Area, relying on Hong Kong's financing platform and international data channels to help mainland AI and biomedical companies explore overseas markets and grow into multinational enterprises;
2. Link the real economy and science and innovation industry in the Greater Bay Area to provide enterprises with cross-border risk control, investment and financing, and integrated global business services, and continue to deepen cross-border financial innovation cooperation.