Financial Secretary Paul Chan on Sunday said Hong Kong must take advantage of global capital flows that are currently being driven by geopolitical uncertainties and rapid advances in artificial intelligence.

Writing in his weekly blog, Chan said a global wealth report released last week addressed the two challenges and opportunities that Hong Kong faces.

"Amid intensifying geopolitical turbulence and the sweeping wave of artificial intelligence, capital is being reallocated at an unprecedented scale," he wrote.

"Unilateralism and regional conflicts have introduced significant uncertainty to the global economic outlook, prompting capital to accelerate its shift toward a stable and reliable safe haven.

"Meanwhile, breakthroughs in artificial intelligence, which shows vast development potential, are attracting substantial inflows of investment into relevant fields."

Chan also noted the report estimated that Hong Kong's cross-boundary wealth management assets grew by 10.7 percent year-on-year to about HK$23 trillion, surpassing Switzerland to become the world's top cross-boundary wealth management centre.

The report also projected annual growth of around nine percent for the city's wealth management sector through to 2030.

Chan described the figures as a "vote of confidence" in Hong Kong's institutional framework and investing environment.

The finance chief also noted the city's assets and wealth management business had exceeded HK$35 trillion, according to the Securities and Futures Commission's annual report.

He said the city's asset management sector had significant growth, with assets under management doubling, while the number of licensed asset managers had nearly doubled to over 2,200.

Chan added that retail sales figures for April, set to be released this coming week, are expected to maintain solid growth, marking the 12 consecutive month of increases.

He said it reflected the steady recovery of the retail sector.


Edited by Tony Sabine