Hong Kong鈥檚 finance minister has dismissed concerns that foreigners are avoiding the city because of its strong connections to the mainland Chinese market amid the trade war, saying that investors are demonstrating their confidence with their capital.
At the 鈥淪ummer Davos鈥 forum on Wednesday, Financial Secretary Paul Chan Mo-po said Hong Kong鈥檚 strengths lie in giving investors priority access to the mainland market while helping businesses across the border go global and diversify their supply chains to Southeast Asia.
When asked if the city鈥檚 close ties to the mainland, amid the US-China trade war, could deter investors, Chan pointed out that capital from the United States and Europe contributed mostly to the Hong Kong stock market, which has grown by 15 per cent so far this year.
鈥淚nvestors do use their capital to cast a vote as to the confidence in our part of the world,鈥 said Chan.
He made the comments during a panel discussion titled 鈥淚s Asia鈥檚 Century at Risk?鈥 at the World Economic Forum鈥檚 Annual Meeting of the New Champions in Tianjin, northern China.
Chan was joined by Vietnamese Prime Minister Pham Minh Chinh, Sri Lanka鈥檚 Minister of Industry and Entrepreneurship Development Sunil Handunneththi, and Deputy Chair of the Great Indonesia Movement Party, Rahayu Saraswati Djojohadikusumo.
Chan said that since the enactment of the Beijing-imposed national security law in 2020, law and order in Hong Kong had been excellent and provided investors with a very stable environment.
鈥淔or us, the most fundamental thing is doing the right thing and focusing on economic development,鈥 he said.
Discussing how Asian economies could utilise soft power to mitigate risks, the finance chief emphasised Hong Kong鈥檚 鈥渙pen, free and diverse community鈥 as the fabric of its society.
鈥淗ong Kong鈥檚 soft power is very strong 鈥 we have a very strong expatriate population鈥nd 50 international schools 鈥 that demonstrates the diversity of this city,鈥 he said.
Pham acknowledged that 鈥淐hina is not without its own issues鈥 but suggested that countries in the region could navigate geopolitical challenges in a way that benefits them.
鈥淎ll countries are intelligent and can make choices in a way that can best make use of one side and the other, to address one issue without spoiling another, to win one鈥檚 heart without losing another,鈥 he said.
He added that multilateralism had been crucial to the 鈥渟uccess鈥 of Asian countries and expressed belief in regional leaders鈥 ability to make decisions and sacrifices for international cooperation.
In response to a question from a representative from the European software company SAP who raised concerns about whether Southeast Asian tech talent could satisfy Western investors, Pham assured that training programmes were in place to bridge skill gaps.
But, he stressed that faith in Asia and favourable conditions were needed to harness the talent.
鈥淲hatever the European people can do, the Asian people can do the same, please rest assured,鈥 he said.
Indonesia鈥檚 Saraswati highlighted that much of Asia鈥檚 soft power potential, particularly in the intellectual property economy, remained untapped.
She defined soft power as influence through culinary arts, fashion, film, music and gaming.
鈥淎sian countries need to start waking up to the new generation of engine of growth,鈥 she said.
鈥淚t might not look the same in terms of industrial growth 鈥 but it is one of the things a lot of leaders [need to untap].鈥