HONG KONG will ramp up efforts to promote innovations in finance and technology, and strengthen its international profile and position as an important link between the Chinese mainland and overseas markets, Financial Secretary Paul Chan Mo-po said on Sunday.

Writing in his weekly blog, Chan said he was inspired by President Xi Jinping’s speech at a ceremony in Macao on Dec 20 celebrating the 25th anniversary of the city’s return to the motherland, in which the president said: “Hong Kong and Macao should be more open and inclusive, expand international linkages, and raise their global standing and appeal.” To ensure Hong Kong’s long-standing advantages in finance, Chan said the special administrative region should drive more innovations across systems, products and cross-border collaboration.

He cited the Stock Connect -- the two-way trading link between the mainland and Hong Kong -- which celebrated its 10th anniversary last month. As a policy innovation, the program has contributed net inflows of $690 billion to both stock markets, and has been the most important channel for external capital to invest in mainland markets. 

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The HKSAR government will further enhance the size and liquidity of the city’s financial market by facilitating connections between the mainland and emerging markets, while solidifying its ties with established markets, Chan said.

 “This would help Hong Kong better meet the financing needs of businesses amid (the complexities of) today’s technological transformation and geopolitical landscape.” Moreover, it would also fortify Hong Kong’s financial strengths, and cement its status as an international financial hub.

 Hong Kong is one of the world’s freest economies and among the top three international financial centers. Recent government data showed the SAR is home to 9,960 firms with parent companies located outside of the city this year -- an increase of more than 920, or 10 percent -- from the previous year. These firms hired 493,000 employees -- a five-percent rise year-on-year.

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 Chan said despite the challenges the country is facing, like growing protectionism and unilateralism, the central government’s commitment to high-standard opening-up remains unwavering. Hong Kong will follow suit, promoting more bilateral and multilateral exchanges, such as organizing more business visits and teaming up with the other 10 cities in the Guangdong-Hong Kong-Macao Greater Bay Area for joint investment roadshows and promotions.

 Each of the Greater Bay Area cities has its distinct advantages in innovation and technology -- Hong Kong boasts a wealth of talent and capital, Shenzhen leads in technology research and application, while Foshan is strong in advanced manufacturing, Chan emphasized. “With joint efforts, we can promote development in a more holistic and efficient way,” he said.

 The Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone serves as an example of such cross-boundary collaboration. Last month, the HKSAR government announced its development plan for the Hong Kong park of the cooperation zone, following the central government’s unveiling of the plan for Shenzhen park in August 2023.

 With breakthroughs and more proactive policy innovations, smoother and safer cross-boundary flows of people, goods, money and data will be achieved between the two parks, Chan said. 

This is expected to boost research and development efficiency, and accelerate the advancement of strategic sectors like artificial intelligence and life sciences, the finance chief added.