Financial Secretary Paul Chan said on Tuesday that geopolitical developments are elevating instead of diminishing Hong Kong's position as an international financial centre.

Delivering a keynote speech at a financial conference in Admiralty, he noted that US policy shifts early this year had brought a new level of uncertainty to global markets and affected market volatility.

Chan said more investors were seeking out safe havens such as Hong Kong that offer transparent, consistent and stable policy environments and jurisdictions with familiar legal systems and trusted regulatory frameworks.

More leading firms have also expanded their businesses here, he added.

"Geoeconomic reconfiguration is accelerating regional economic co-operation and advancing trade and investment within blocs," Chan said.

"We are witnessing growing momentum in initiatives such as FTA (free trade agreement) 3.0 between China and Asean, as well as the expanding corridors of collaboration with the Middle East.

"Within these, Hong Kong plays a pivotal and strategic role – connecting markets, channelling capital, matching businesses and providing professional expertise."

Chan also revealed that the Hong Kong Monetary Authority and the Public Investment Fund of Saudi Arabia will soon jointly launch a US$1 billion fund to support Hong Kong and Greater Bay Area companies to expand into the Middle Eastern kingdom to contribute to non-oil sectors.

A major Saudi development firm will host roadshow here next month to look for partners to support its infrastructure development, he said.

Chan added that the SAR is among the few cities in the world that is moving strongly to accelerate its development as an international financial centre and a premier global hub.