Fiscal prudence, vigilant financial oversight, and closer co-operation in information sharing, risk monitoring, and emergency response are required to manage geopolitical and AI risks, Financial Secretary Paul Chan Mo-po said.
Speaking at a discussion at the Asia-Pacific Economic Cooperation Finance Ministers' Meeting 2026, Chan said that while the global economy has shown resilience, geopolitical tensions and trade policy uncertainty cloud the outlook, with risks tilted to the downside.
Prolonged geopolitical disruption would raise energy prices, further fuel inflation and tighten financial conditions, weighing on investment and constraining fiscal space, he said, adding that concentrated exposures to AI-related assets, particularly where leverage is involved, could amplify market corrections across sectors and borders.
Translation of technological advances into productivity gains, wider adoption of AI, green transition and other innovations require sustained investment, said Chan.
He urged governments in the region to provide predictable, investment-friendly policies and modernize regulatory frameworks, giving businesses the confidence to innovate and invest.
Chan also called for open channels for trade and investment, not new barriers, saying that connected markets allow capital to reach productive uses and technologies to be adopted across borders.
Hong Kong stands ready to work with fellow economies to seize opportunities, manage risks and support more resilient, sustainable and inclusive growth across the Asia Pacific, he added.
