Financial Secretary’s blog

Last week, an international consulting firm released its Global Wealth Report 2026, offering an observation that merits careful reflection: amid geopolitical turbulence and the sweeping global wave of artificial intelligence (AI), capital is being reallocated on an unprecedented scale. Unilateralism and regional conflicts have added significant uncertainty to the global economic outlook, accelerating capital flows towards stable and reliable safe havens. At the same time, continuing breakthroughs in AI have revealed enormous development potential, attracting substantial capital into related sectors. How Hong Kong can both capture and make good use of these two streams of capital is one of the key issues for our current development. The report estimates that Hong Kong's cross-boundary wealth under management grew by 10.7% year on year to approximately $23 trillion last year, enabling Hong Kong to Switzerland to become the world's largest cross-boundary wealth management centre — achieving our original target ahead of schedule. The report further projects that, from now to 2030, cross-boundary wealth managed in Hong Kong will grow by around 9% annually, outpacing Switzerland. This represents a vote of confidence from capital in both the Mainland and overseas in Hong Kong's institutions and investment environment. Under the "one country, two systems" framework, Hong Kong upholds the common law system, the free flow of capital, the free convertibility of its currency, a […]

Yesterday, I concluded a five-day visit to Europe, covering France, Belgium and Switzerland. During the trip, I held in-depth exchanges at multiple levels with leaders from the political, business and financial sectors. My strongest impression from this visit was Europe's clear and growing desire for change. This is evident on several fronts. Politically, unilateralism and intensifying competition among major powers have reinforced Europe's awareness of the need to secure greater strategic autonomy. In economic and trade relations, Europe is seeking stronger multilateral cooperation and better risk diversification to build stronger economic resilience. In industrial investment, particularly in cutting-edge innovation and technology fields such as artificial intelligence (AI), there is a clear recognition that discussion must be turned into action, and that Europe needs to pool its strengths and catch up as quickly as possible. Against this backdrop, there is significant room for Hong Kong and Europe to pursue pragmatic cooperation in trade, investment as well as innovation and technology, with a view to creating mutual benefits. Take investment as an example. Some representatives from the European financial sector pointed out that their current asset allocations were overly weighted towards US dollar assets, thereby resulting in excessive risk concentration. At the same time, households across the European Union possess wealth amounting to tens of trillions of euros, with […]

Late tonight, I will depart for Paris, Brussels and Zurich. My first stop will be Paris, where I will attend the “No Money for Terror” Ministerial Conference on Counter-Terrorism Financing. Thereafter, I will join representatives from more than 80 countries and regions to discuss ways to enhance co-operation, demonstrating Hong Kong’s commitment in this area as an international financial centre. I will also meet representatives of leading European financial institutions, private equity and venture capital funds, as well as family office principals in these cities, with a view to deepening partnerships and attracting investment. Strengthening international engagement through direct, face-to-face dialogue enables us to answer questions and address concerns in person. This helps the overseas business and financial communities gain a fuller understanding of Hong Kong’s current situation and development trajectory, as well as its strategic value for those seeking to expand their business in China and across Asia. Several years ago, Hong Kong, China became the first jurisdiction in the Asia-Pacific region to achieve overall compliance in the fourth-round mutual evaluation conducted by the Financial Action Task Force (FATF) on anti-money laundering and counter-terrorist financing. This recognition by the FATF, an organisation established under the auspices of the Organisation for Economic Co-operation and Development (OECD), has provided a solid foundation for Hong Kong […]

Across the world’s major bay-area economic clusters, the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) is unique in combining three distinctive strengths: cutting-edge artificial intelligence (AI) research and development, a comprehensive high-end manufacturing ecosystem, and an international financial centre. This powerful combination of “AI + manufacturing + finance” places Hong Kong in an ideal position during the 15th Five-Year Plan period to assume a strategic role and perform two key functions: industrial synergy and regulatory alignment. In particular, Hong Kong can serve as an international gateway for emerging industries seeking to establish a presence in the GBA, as well as a platform for exchange and conversion through which domestic and international standards can be aligned and mutually referenced. Last week, with the joint support of the Hong Kong SAR Government and the Dongguan Municipal Government, sustainable aviation fuel company EcoCeres signed an Investment Letter of Intent to establish its first supply chain operation in Dongguan. The company is a homegrown startup. The initiative exemplifies the synergy between Hong Kong’s strengths in upstream R&D and international green finance certification, and the GBA’s large-scale advanced manufacturing capabilities. It vividly illustrates the integration of technological and industrial innovation, demonstrating how the region’s cutting-edge green technologies can expand onto the global stage. […]

As Hong Kong enters the third day of the Golden Week holiday, the city remains vibrant, with strong foot traffic and a positive business atmosphere. According to Immigration Department figures, more than 602,000 visitors entered Hong Kong through various control points in the first two days of May, representing a 6% year-on-year increase. Over the past few days, streets, shopping malls and country parks have been bustling with visitors and local residents alike. Many retailers and restaurants expect solid business performance during this Golden Week holiday period. Over the past year, the local consumption market has shown a clear recovery trend. Businesses have actively upgraded and adapted to changing consumption patterns, while improving service standards and product quality. The Government has also continued to stage mega events to attract more visitors. At the same time, local spending by residents returned to growth in the second quarter of last year, and has strengthened further since the start of this year. Data from a major electronic payment platform in Hong Kong show that residents’ daily consumer spending has increased year-on-year for six consecutive quarters. In the first quarter of this year, retail- and dining-related spending rose by 5.2%, while spending at non-fast-food restaurants increased by nearly 8%. Asset market sentiment has remained positive. Stock market turnover stayed active, while the residential property market continued to improve. In the […]

Hong Kong's role and standing as an international financial centre continue to strengthen and evolve. Despite the challenges posed by an increasingly complex geopolitical landscape, the city is cultivating new drivers of growth through sustained innovation and deeper collaboration. Last week, alongside welcoming the city's largest IPO so far this year, Hong Kong also saw the listing of its largest gold exchange-traded fund (ETF). Meanwhile, the Hong Kong Exchanges and Clearing Limited (HKEX), following the launch of a co-branded index with Bursa Malaysia, also announced plans to introduce related ETFs. Building on its strong performance last year, Hong Kong has remained the world's leading IPO market so far this year. As of last week, funds raised through IPOs in Hong Kong had exceeded HK$140 billion. More high-quality companies are seizing the opportunity to leverage the city's vibrant fundraising platform to accelerate their global expansion. Since March, average daily turnover in the Hong Kong stock market has surpassed HK$280 billion. These developments show that, despite external uncertainties, Hong Kong's financial market continues to demonstrate strong momentum. This is the result of the concerted efforts of both the Government and the industry. At a time of rapid technological change and heightened geopolitical risk, global investors are accelerating the diversification of their asset allocation, reducing reliance on any single market or asset class. Meanwhile, […]

Today, the world is undergoing changes of a scale not seen in a century, and the pace is accelerating. Geopolitical dynamics are becoming more complex and fluid, while the global division of labour is steadily evolving toward deeper regional cooperation. At the same time, frontier technologies, particularly artificial intelligence (AI), are fundamentally reshaping production systems, business models and consumption patterns. Under the dual pressures of climate change and energy security, the global transition to a greener economy is also gathering momentum. Against this backdrop, we must see today through the lens of posterity, remain firmly committed to technology and innovation, and accelerate the development of emerging and future industries. Take AI as an example. From large language models to agentic AI, and from chatbots to embodied intelligent robots, human–machine collaboration is already delivering substantial productivity gains for businesses. A comprehensive push to deepen AI adoption, application and innovation will not only create new industries, but also inject fresh momentum into existing sectors. This will strengthen the core competitiveness across finance (intelligent risk management and compliance), healthcare (drug discovery and clinical solutions), trade (smart supply chains), shipping (smart port and logistics operations) and professional services (AI-assisted analysis). In this year's Budget, we have proposed establishing the Committee on AI+ and […]

This Wednesday (15 April) is the National Security Education Day. Across the country, themed activities are being held to help citizens better understand the vital importance of national security. In Hong Kong, the HKSAR Government and different sectors of the community are organising district-wide events to deepen public understanding of the nation’s development and achievements, and to highlight the close, mutually reinforcing relationship between development and security. The theme of this year’s National Security Education Day is: “Proactively Align with the 15th Five-Year Plan Follow a Holistic Approach to Development and Security”. Security underpins a nation’s survival and progress, and it is essential to social stability and people’s well-being. Development and security reinforce each other: security is the prerequisite for development, while development provides the guarantee for security. Only by advancing both in a coordinated way can we ensure lasting stability and sustained prosperity. Profound changes unseen in a century are accelerating, and the international landscape is growing more complex and volatile. In some regions, wars continue and flashpoints remain unresolved; in others, social unrest persists. These developments underscore that national security extends across multiple interconnected domains—including finance, energy, science and technology, food security and overseas interests. We must therefore firmly uphold a holistic approach to […]

As the first quarter of 2026 passed, the global landscape remains complex and highly fluid. The conflicts in the Middle East continue to weigh on the market sentiment. This external backdrop has dragged on Hong Kong’s equity market: the Hang Seng Index is down around 2% year to date. Even so, trading has remained active. The average daily turnover in the first two months exceeded HK$260 billion, up 17% year on year. Entering March, market activities strengthened further, with average daily turnover surpassing HK$300 billion—more than 8% higher than the same period last year. The increased asset allocations to Hong Kong by investors amid heightened uncertainty suggests that they not only view the city as a reliable safe haven for capital, but are also encouraged by the abundant investment opportunities created by the steady growth in the Mainland's economy and a strong pipeline of quality companies choosing to list in Hong Kong. Meanwhile, global competition in frontier technologies such as artificial intelligence has heated up. Breakthroughs in core technologies, the development of upstream and downstream segments of the industrial chain, and the exploration of broader application scenarios all require substantial capital support. Whether these companies and industries have smooth, stable, sustained and efficient access to financing is therefore critical. Hong Kong’s listing platform is playing a pivotal role in this regard—supporting the nation’s technological […]

A series of mega events held in Hong Kong over the past few weeks has drawn visitors from around the world, creating a lively atmosphere across the city. One of the highlights over the past two days has undoubtedly been Art Basel Hong Kong, which is being held at the Hong Kong Convention and Exhibition Centre in Wan Chai. This flagship arts event has been staged in Hong Kong for 14 consecutive years. It continued even during the pandemic by switching to an online format. Many art lovers, collectors and visitors have long set aside this time of the year to visit Hong Kong and attend this renowned art fair, while exploring the city and enjoying its culinary delights. A number of major conferences and investment forums targeting family offices and high-net-worth individuals have also been scheduled to take place in Hong Kong at this time, allowing financial conferences and cultural and arts events to reinforce each other and create synergy. Yesterday, I paid a visit to Art Basel, where participating artists and gallery directors told me that this year had seen an increase in attendance, with better art sales. They value Hong Kong’s openness and inclusiveness, its distinctive culture that bridges the East and the West. They regard Hong Kong as an ideal platform for expanding into the regional and even global market. At the Wealth for Good in Hong Kong Summit hosted by the HKSAR Government early last week, representatives from a number of family offices told me that their […]

Over the past few days, I have been on a visit to Beijing, where I called on several central ministries and financial regulators. We engaged in in-depth exchanges on the macroeconomic outlook, the current state and development of financial markets, and how Hong Kong can better play its role in the new phase of the country's development during the 15th Five-Year Plan period. This visit has enabled us to gain a more direct understanding of the direction and priority areas of the country's development, as well as its underlying rationale and considerations. This provides important guidance and reference for our work to better align Hong Kong with national development strategies, integrate into and serve the overall national development, and in turn achieve high-quality development for Hong Kong. The Director of the Hong Kong and Macao Work Office of the Communist Party of China (CPC) Central Committee and the Hong Kong and Macao Affairs Office of the State Council, Mr Xia Baolong, has shown great care and support for Hong Kong's development. He has also provided important guidance on Hong Kong's efforts to proactively align with the 15th Five-Year Plan. Central ministries and financial regulators have attached great importance to Hong Kong's unique functions and positive roles in contributing to the nation's vision of becoming a financial powerhouse, and have consistently offered strong support. We have been deeply impressed by the care, understanding and support for […]

The National Two Sessions concluded successfully in Beijing last week. At the Fourth Session of the 14th National People's Congress, the "Outline of the 15th Five-Year Plan for National Economic and Social Development of the People's Republic of China" (the "National 15th Five-Year Plan") was adopted, providing an extensive blueprint and action agenda for the nation's social and economic development over the next five years. Spanning more than 70,000 words, the National 15th Five-Year Plan offers sharp insights into the trends and developments in the evolving international macroeconomic landscape. With notable clarity, it sets out the direction and pathways for building a modernised industrial system and advancing high-level self-reliance and strength in science and technology. It also provides clear guidance on supporting Hong Kong in solidifying and enhancing its competitive advantages, as well as better integrating into and contributing to overall national development. Taking the development of a modernised industrial system as an example, the Plan clearly sets out directions such as upgrading traditional industries, fostering emerging industries, planning ahead for future industries, and promoting high-quality and efficient development of the service sector. It also underscores the importance of advancing original innovation and achieving breakthroughs in core technologies in key fields, thereby accelerating self-reliance and strengthening science and technology […]

The "Two Sessions" of our country are being held in Beijing. Deputies and members have gathered to engage in active discussions on the draft outline of the National 15th Five-Year Plan and its core elements. From building a modern industrial system to developing a robust domestic market, and from expanding high-level opening-up to solidly advancing rural revitalisation across the board, the 15th Five-Year Plan maps out a panoramic blueprint for high-quality development. While holding profound significance to the building of a great country through Chinese modernisation and the great cause of national rejuvenation, it serves as important ideological guidance for Hong Kong in seizing new development opportunities and opening up new horizons. The current international landscape is fraught with turbulence and uncertainties, with geopolitics becoming increasingly complex and volatile, and global economic momentum slowing down. That said, under the strong leadership of the Central Government, our country has stood up to external challenges and pressure, maintained overall economic stability and progress. The outlook of our country, which always focuses on managing our own affairs well, remains highly promising in terms of policy consistency, technological innovation and integrated sustainability. The intricate global landscape, compounded by regional conflicts, underscores an important message: to safeguard its strategic initiative amid accelerating changes unseen in a century, […]

Over the past few days, my colleagues and I have been making use of various channels to brief the public in greater depth on the newly released Budget, including its key contents, measures and underlying considerations. The theme of this year’s Budget is “Driving High-quality, Inclusive Growth with Innovation and Finance”. At its core, the Budget responds to a period in which great changes unseen in a century are accelerating and geopolitical uncertainties are intensifying. The question we must answer is how Hong Kong can seize opportunities to leverage its unique advantages and inject fresh momentum into our future growth, thereby making development more resilient and inclusive. A major focus of this Budget is to press ahead with the synergistic development of “AI+” and “Finance+”. We are now at a pivotal juncture in technological innovation. Artificial intelligence (AI) is not only a core technology for the future, but also a transformative force capable of reshaping every sector and industry. Accelerating “AI+” development is, in practice, about transforming and upgrading our industries with competitive edge and scaling up emerging ones. As an international financial centre, Hong Kong must deeply integrate cutting-edge AI technologies into its services. This will expand and strengthen our financial services while extending AI technologies into a wider range of application scenarios, with a view to achieving two-way empowerment and positive interaction. […]

Today is the sixth day of the Chinese New Year. I wish you good health, vitality, prosperity, and success in all endeavours in the year ahead. The 2026-27 Budget will be delivered this Wednesday. I would like to express my sincere gratitude to members of the public, as well as businesses and organisations from various sectors and backgrounds, for their valuable views and suggestions submitted during this period. We share a common aspiration for Hong Kong’s continued progress and enhanced support for different communities. The current-term Government has been making great strides to drive the economy forward and improve people’s livelihood, responding to the aspirations of the community. However, the strategies and pathways for achieving our goals – and the allocation of resources – are often shaped and constrained by current realities. We must set priorities, and difficult choices may have to be made. We have listened carefully to views and ideas from the community, and have adopted a holistic approach in preparing the Budget. In our proposals, we have sought to strike an appropriate balance among competing needs and considerations. Building on the sustained economic growth recorded last year, Hong Kong has made a good start this year. Nevertheless, amid a volatile external environment and uncertainties arising from economic transformation, we must exercise fiscal prudence. We will take into account the needs of our society in the short, medium and long term, while […]