Speech by SCED at sub-forum of eighth China International Import Expo - Hongqiao International Economic Forum in Shanghai (English only)
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Honourable Vice Minister Sheng Qiuping (Vice Minister of Commerce), Executive Vice Mayor Wu Wei (Member of the Standing Committee of the Communist Party of China Shanghai Municipal Committee and Executive Vice Mayor of the Shanghai Municipal People's Government), Chairman and Executive Director Ren Deqi (Chairman and Executive Director of the Bank of Communications), distinguished guests, ladies and gentlemen,
Good afternoon. It gives me great pleasure to attend today's session on "Facilitating Cross-Border Trade's Resilience through Maritime Trade Finance" and, on behalf of the Hong Kong Special Administrative Region Government, speak about Hong Kong's role on this important topic.
Hong Kong is modest in size as compared with many megacities, with about 7.5 million people in terms of population and 1 100 square kilometres in area. Yet our significance on the global stage far outweighs our modest size. Rarely can you find a city that can excel on multiple fronts at the same time, but because of our convenient geographical location in Asia, world-class port and infrastructure, an extensive international trade network, presence of all major financial institutions from around the world, convergence of professional talents, and decades of tireless efforts in improving our regimes, Hong Kong has successfully achieved the status of being simultaneously an international trade centre, an international maritime centre and an international financial centre. The development of these three centres is not only closely intertwined, but in fact creates huge synergy and can reinforce one another. Our achievements are globally recognised, as Hong Kong is ranked the world's freest economy, the third largest financial centre, seventh in merchandise trade and fourth in the Xinhua-Baltic International Shipping Centre Development Index.
So, apart from the strengths I mentioned at the outset, what are the other ingredients of our formula for success? Hong Kong is part of China and enjoys the distinctive advantage of having the strong support of our motherland, the Chinese Mainland, which is the second-largest economy in the world. At the same time, under the principle of "one country, two systems", Hong Kong is a separate customs territory, adopts a free trade regime, has a simple and low tax system, applies common law, has a stable financial system and currency, and is well connected to the world. The convergence of all these advantages has placed Hong Kong in a unique position to talk about the topic today.
Maritime heritage
Let me begin with our maritime heritage. Hong Kong's maritime story stretches back more than one and a half centuries, and over that span, the city has evolved from a modest trading port into a leading international maritime centre. There are currently over 1 200 port and maritime companies in Hong Kong, representing an increase of about 10 per cent over the past five years, despite the impact of the pandemic on international trade during that period. Our port is known for its high efficiency, with a container vessel handling time of about one day, roughly half the world average, which underpins our reputation as a "catch-up port" that helps vessels make up for delays encountered elsewhere.
The quality of Hong Kong's maritime services is top-notch in the world. Three out of the world's top 10 ship management companies are headquartered in Hong Kong. In Hong Kong, one can also enjoy the services of 11 out of the 12 member associations of the International Group of Protection and Indemnity Clubs and eight of the world's top 10 bookrunners of ship finance. Hong Kong is designated as one of the four arbitration venues of the Baltic and International Maritime Council, and is also the sole Asian base for many of the world's leading shipping organisations, including the International Union of Marine Insurance of Germany and the International Chamber of Shipping of the United Kingdom. To foster a favourable business environment for the maritime industry, the Government has launched a series of tax concessions including tax exemptions for ship leasing business and half-rate tax concessions for marine insurance, ship management, ship agency and ship broking since 2020. We plan to enhance the existing tax concessions with a view to further driving up demand for professional shipping and maritime services. Hong Kong provides an unrivalled ecosystem for maritime services companies to grow their business, which in turn allows shipping companies to easily enjoy first class maritime services. We believe that Shanghai shipping enterprises may capitalise on Hong Kong's comprehensive high-value-added maritime services package for entering into the international market.
Digitalisation and green transformation of Hong Kong Port
As a constructive member of the international shipping community, the quality of the Hong Kong Port is closely aligned with international shipping trends, particularly digitalisation, smart transition, and green transformation. On digitalisation and smart transition, we will soon complete installation of a port community system to facilitate the flow and sharing of cargo data among stakeholders in the maritime, port and logistics industries for enabling real time cargo track-and-trace for goods routing through the Hong Kong Port. The system also has the potential to facilitate trade finance due to the use of blockchain technology to compile and store trusted data on cargo flows. We are also collaborating with the banking industry to explore leveraging blockchain-recorded cargo flow data in the system to enhance trade financing services.
Promoting green and sustainable maritime development is another strategic priority. To meet the International Maritime Organization's net-zero emission target for international shipping by or around 2050, we promulgated the Action Plan on Green Maritime Fuel Bunkering in 2024, setting out clear targets, strategies and measures to develop green maritime fuel bunkering and trading in Hong Kong. In particular, we target to develop Hong Kong into a green maritime fuel trading centre, and a key channel selling and exporting Mainland-produced green maritime fuels to worldwide user companies.
Commodity trading ecosystem
Notwithstanding our success in shipping, trade and finance, we have never stopped identifying new growth areas. The expansion of the commodity trading ecosystem serves as a new step to leverage our strengths to further promote the development of the Hong Kong economy.
Commodities, including metals and minerals, account for more than half of the global shipping trade volume, while shipowners and commodity traders are the key users of shipping routes and maritime services. Their presence and operation in Hong Kong can drive the maritime services industry, and boost demand for related financial and professional services such as hedging activities of related futures products. Creating a commodity trading ecosystem in Hong Kong will catalyse growth across related sectors. A landmark achievement in this regard is that the London Metal Exchange (LME), a wholly-owned subsidiary of the Hong Kong Exchanges and Clearing Limited (HKEX), has included Hong Kong as an approved delivery point within its global warehousing network since January this year, and 11 LME-licenced warehouses in Hong Kong have been approved. The establishment of such warehouses in Hong Kong not only will provide convenient, cost-effective and safe delivery channels for related metals trading in the region, but also increase the demand for Hong Kong's trade, shipping, warehousing and transportation industries, strengthen Hong Kong's commodities ecosystem, and lay a foundation for future expansion of related financial transactions such as futures.
At the same time, collaboration across the Guangdong-Hong Kong-Macao Greater Bay Area, which covers Guangdong Province on the Chinese Mainland, Hong Kong and Macao, further amplifies Hong Kong's role as a trade hub. Take the Qianhai Mercantile Exchange (QME) as an example. The QME, a subsidiary of the HKEX with turnover of RMB100 billion over the past year, operates our country's only offshore spot trading platform for soybeans. The HKEX continues to explore the feasibility of co-operation between the QME and Mainland commodities and futures exchanges to strengthen the two-way connectivity between domestic and overseas commodities market participants and attract more foreign enterprises to participate in trading at the platform, thereby contributing to the internationalisation of our country's commodity market.
Maritime trade finance innovation
At the heart of Hong Kong's vision for resilient cross-border trade lies maritime trade-finance innovation. In today's evolving global landscape where trade conflicts and supply chain disruptions are reshaping established trade patterns, a more digitalised and streamlined trade finance ecosystem can greatly benefit businesses, small and medium-sized enterprises (SMEs) in particular, as they transform their business model and supply chains. In this context, I am pleased to introduce Hong Kong's latest initiative to address these challenges and unlock new opportunities, i.e. Project CargoX.
Project CargoX is a public-private collaboration launched by the Hong Kong Monetary Authority, Hong Kong's central banking institution. Project CargoX aims to build a more inclusive and efficient digital ecosystem for trade finance infrastructure, leveraging cargo and trade data to streamline and enhance trade finance processes; developing digital solutions to improve accessibility to trade finance for SMEs; and exploring connections with international data partners to facilitate trade financing. One of the financing challenges in the logistics industry is the handling of extensive paperwork across different regions, which burdens banks and creates hurdles for SMEs seeking loan approvals. Banks can now obtain reliable and secured data through Project CargoX, significantly saving time and labour costs for both banks and businesses.
By aligning maritime infrastructure, green ambitions and digital trade-finance platforms, we are confident that Hong Kong will construct a resilient ecosystem capable of absorbing shocks, adapting to shifting geopolitical currents, and sustaining growth for the next generation of traders and shippers.
Hong Kong now stands at a pivotal crossroads where a storied maritime legacy meets cutting-edge technology and sustainability, but you can tell by my introduction that Hong Kong is ready to advance to a new stage. We invite shipping enterprises, financial institutions, commodity traders and technology partners from Shanghai, the Mainland and beyond to seize the opportunities that Hong Kong offers: a digitally empowered hub where maritime trade finance can thrive, underpinning a prosperous global supply chain. Thank you.
Ends/Thursday, November 6, 2025
Issued at HKT 16:33
Issued at HKT 16:33
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