Financial Secretary Paul Chan says Hong Kong must remain agile and innovative amid evolving global dynamics, adding that countries and businesses are still adapting and transforming to thrive in a changing environment.

Giving a speech at the Global Financial Leaders’ Investment Summit, Chan said there is no reason for pessimism, despite the market bracing for potential headwinds from a changing geopolitical landscape and a new US administration.

“China, for example, has been undergoing remarkable economic transformation, marked by a shift towards high-quality economic growth, supported by domestic consumption, technological innovation, green investment, advanced manufacturing and many more. Chinese enterprises are also expanding their global industry and supply chain footprint in response to shifting geopolitics,” he said.

“For Hong Kong, our strategy is to continue to engage with traditional markets like the US and Europe, focusing on co-operation in areas of common interests and mutual benefits.”

Chan also said there is still potential and ample room for cooperation across various sectors, including urban planning, infrastructure, ESG (environmental, social and governance) standards and efforts to combat climate change, despite the influence of geopolitics.

He said the Belt and Road countries, along with the Global South as a whole, offer vast and untapped business opportunities.

“The Global South now contributes to about 60 percent of global GDP in terms of purchasing power parity, and accounts for over 40 percent of global imports and exports. If we just look at Asean (Association of Southeast Asian Nations), it is collectively on track to become the fourth largest economy in the world by 2030,” he said.

“What characterise these markets are rapid economic growth, young populations and an expanding middle class. And above all, they all share a strong aspiration for progress by pursuing investments in infrastructure, green transformation and technologies.

“Amid challenging global landscape, they are also seeking to diversify their investments and asset allocation. We are making significant strides to capitalise on the opportunities presented by the growth of these emerging markets.”

Chan said Hong Kong continues to be an attractive partner for investors and businesses globally, given the city’s international outlook and commitment to innovation.