Staff reporter and Bloomberg
Hong Kong's Chief Executive John Lee Ka-chiu said the city is accelerating its economic recovery to make up for time lost during the Covid pandemic, with local authorities fostering the development of fintech and green financing.
Speaking at the Asian Financial Forum yesterday, Lee said Hong Kong's long-term prospects remain bright with the mainland's support, despite short-term challenges amid a weakening global economy.
Lee also said the Hong Kong Monetary Authority will reveal further steps in the regulatory regime for stablecoins in due course.
The authority is also carrying out pilot projects to look into the use of virtual assets in different scenarios in the financial market, including issuing the first tokenized government green bonds, and application of the e-HKD, the city's retail central bank digital currency.
Lee added his administration will be visiting different financial markets this year to demonstrate to the world that the city has returned to the international stage.
HKMA deputy chief executive Arthur Yuen Kwok-hang told a panel at the forum that any further tightening of global financial conditions could pose significant risks to Asia's economy despite recent capital inflows into the region. If global financial conditions further tighten, banks will tend to cut credit liquidity, which could add additional pressure to an already fragile economy, said Yuen.
Meanwhile, HSBC (0005) chairman Mark Tucker expects a significant boost to the global economy and a rebound in Hong Kong from China's reopening.
Speaking from New York on another panel at the forum, Tucker said Hong Kong and the Greater Bay Area are likely to be "immediate beneficiaries," adding that he expects a strong recovery from the second quarter.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said the event, which has returned to a physical format after two years, saw a greater number of participants physically present than the ones held before the pandemic.
It was attended by over 7,000 delegates and recorded a 20 percent rise in exhibitors compared to pre-pandemic numbers, which reaffirms Hong Kong's status as an international financial hub, Hui said.
Hui also reiterated that the city is committed to building a green economy and expected Hong Kong to become a hub for green and sustainable development.
