Hong Kong Monetary Authority is set to roll out a US$1 billion (HK$7.8 billion) fund with Saudi Arabia’s Public Investment Fund to help Hong Kong and Greater Bay Area companies expand into the kingdom, financial secretary Paul Chan Mo-po said.

Speaking at a forum, Chan said the initiative aims to support the development of Saudi Arabia’s non-oil sectors.

A major Saudi developer will conduct a roadshow in Hong Kong next month to seek strategic partners for its infrastructure projects, Chan said.

Chan said innovation and technology remain Hong Kong’s new growth engines, with policy focus on artificial intelligence, biotechnology and fintech.

Chan said accelerating geopolitical and economic realignment is strengthening, rather than weakening, Hong Kong’s position as an international financial centre, and that the city is also emerging as a leading global innovation and technology hub.

Few cities, he said, can maintain leadership in both areas with such strong momentum.

He added that Hong Kong plays a key role in linking markets and channeling capital within regional cooperation frameworks, including China’s ties with the Association of Southeast Asian Nations and the Middle East.

Chan noted that Hong Kong’s equity market has rebounded sharply this year as global investors increased allocations to China.

The Hang Seng Index has risen about 30 percent so far this year, with average daily turnover more than double last year’s level. Initial public offering fundraising reached about US$28 billion, while post-listing fundraising totaled US$61 billion.

The city’s asset and wealth management sector also remained robust, recording US$45 billion of net inflows into locally registered funds in the first eight months.

Bank deposits have grown 10 percent so far this year to more than US$2.4 trillion, he added.

Meanwhile, Chan said the government is also accelerating development of the Northern Metropolis through new policies and targeted incentives.

He noted that Hong Kong’s talent admission schemes have received more than 550,000 applications to date, with over 370,000 approved and more than 250,000 arrivals.

Hong Kong, Saudi wealth fund to launch US$1 bln vehicle to support firms’ expansion, Paul Chan says