Financial Secretary Paul Chan Mo-po said on Sunday that geopolitical tensions in the Middle East would trigger significant volatility in financial markets, while he emphasized that the government has established sufficient contingency plans to respond effectively.
While Hong Kong has limited direct trade and investment ties with Iran, the significant global uncertainty brought by the conflict will shock the financial markets in the world, he said on a programme.
He expected that some capital may flow from the Middle East to Hong Kong seeking a safe haven, adding that the government is prepared for the associated financial risks and volatility, and will manage the situation prudently with sufficient contingency plans in place.
He also predicted the conflict would impact oil and gold prices, extending to international trade transport costs and transit times, which the government is continuously assessing.
In addition, Chan said in his blog that promoting the synergy between “AI+” and “Finance+” is one of the highlights in the Budget 2026, which can bring new value and opportunities to the city.
As an international financial center, Hong Kong needs to integrate artificial intelligence into financial services, he noted, adding that this not only strengthens the financial sector but also expands AI applications to broader scenarios, achieving a synergy of mutual empowerment and positive interaction.
He pointed out that technological innovations like AI and blockchain are continuously empowering financial services, creating a more efficient and convenient trading ecosystem, and expanding new channels for corporate trade, financing, and risk management.
As AI drives industrial transformation and integrates deeply with finance, market demand for a range of novel professional services is set to accelerate, including the valuation and risk assessment of technology and data assets, as well as related accounting, auditing, and certification services, he added.
Looking ahead, Chan said that Hong Kong needs enterprises that master in utilizing AI, as well as financial and professional services adept at AI and innovative technology.
This will not only enrich Hong Kong's substance as an IFC but also leverage the synergy of finance and technological innovation to support the construction of China's modern industrial system, he added.
