Edward Yau: Hong Kong's financing role will become even more important

On November 25, Hong Kong Financial Secretary Chan Mo-po attended the 2024 First Greater Bay Area Listed Companies Summit and stated that the GDP (Gross Domestic Product) of the Greater Bay Area is already equivalent to that of medium-sized developed economies such as Italy, making it one of the most dynamic and open regions in China's economy. He believes that from the perspective of Greater Bay Area enterprises, Hong Kong can play a role in the country's opening up in three aspects, including providing a capital platform, assisting enterprises in their international layout, and acting as a super connector. He pointed out that Hong Kong will create greater value and opportunities for entrepreneurs in the process of international development and expansion of Greater Bay Area enterprises.

First, as an international financial center, Hong Kong has been providing international, high-quality, full-chain and green financing services for enterprises in the Greater Bay Area, and this role will become increasingly important in the future. Over the past 30 years, Hong Kong has been the preferred platform for mainland enterprises to obtain international capital. In recent years, Hong Kong has promoted a series of listing system reforms to facilitate new economy companies and special technology enterprises to raise funds through listing, while contributing to the development of emerging technologies in the country.

In addition to the stock market, Hong Kong is leading in Asia in areas such as bonds, green finance, private sale funds, venture capital, etc., providing financial support for enterprises at different stages of development and different needs. Under the geopolitical gloom, mainland Chinese enterprises are facing unprecedented difficulties and challenges in raising funds in Western markets. In response to the situation, Hong Kong is promoting the reform of more securities and financial markets to attract more domestic and foreign funds to support the projects and development of enterprises in the Greater Bay Area.

Secondly, Hong Kong is the preferred base for companies in the Greater Bay Area and even the entire country to go global. In fact, many mainland companies have adapted to the situation and expanded their industrial and supply chains to 'Global South' and 'Belt and Road' countries, promoting international division of labor and cooperation in Depth. In this process, companies need project and trade financing, professional consulting services, as well as management of their finance, capital, logistics, and promotion. Hong Kong has world-class professional services, capital, and high-end talent, extensive international connections, which can support its expansion into international markets and seize the huge opportunities in the global cycle. This year's Budget and Policy Address both propose to establish a high-value-added cross-border supply chain management center to serve mainland enterprises.

Third, Hong Kong will play a better role as a 'super connector' and 'super value-added person'. While consolidating connections with advanced economies, it will also actively deepen relations with emerging markets such as Southeast Asia and the Middle East to explore new capital 'lifelines', promote more two-way, mutually beneficial capital flows and business cooperation. Recently, Hong Kong has cooperated with Saudi Arabia in the ETF field, with two ETFs (exchange-traded funds) investing in the Hong Kong stock market listed locally. The two sides have also signed a number of protocols involving the financial and innovation and technology sectors, including establishing a joint investment fund to support Hong Kong and Greater Bay Area enterprises in expanding into and developing markets in Saudi Arabia. Looking ahead, the SAR government will continue to promote the signing of more free trade agreements, promote and protect investment agreements, organize more business delegations from Hong Kong and the Greater Bay Area to 'go out', and facilitate more delegations from emerging markets to 'come in', creating greater business opportunities for our enterprises.

Chen Maobo believes that in the face of a complex and uncertain external environment, with challenges and opportunities coexisting, the strong financial, economic, and technological strength of the Greater Bay Area will enable enterprises to have great development space in the international market. As long as they accurately understand and respond to changes, proactively seek changes, seize opportunities, continuously explore new capital, launch new projects, and new markets, they will definitely be able to achieve better development for themselves.