Following is the speech by the Chief Executive, Mr John Lee, at the Hong Kong Association of Banks Distinguished Speaker Luncheon today (November 21):

Ms Mary Huen (Chairperson of the Hong Kong Association of Banks), distinguished guests, ladies and gentlemen,

     Good afternoon. I am pleased to join you, once again, for this Distinguished Speaker Luncheon. It brings together Hong Kong's financial industry leaders here today to share insights and intelligence on a wide variety of industry issues and developments. 

     The Association now represents 149 high-profile member banks from 33 countries and regions. More than a tradition, this event is – and you are – a powerful testament to the vitality and ambition of Hong Kong's banking sector. 

     Evidence of our collective progress is clear and compelling. From the beginning of the year to this September, bank deposits in Hong Kong went up more than 10 per cent, totalling some 2.4 trillion US Dollars. 

     And Hong Kong continues to shine on the global stage, recently ranked again world's no. 1 in economic freedom by the Canadian-based Fraser Institute. We placed third in the World Competitiveness Yearbook, and third again in the Global Financial Centres Index. 

     These and a good many other achievements demonstrate the resilience of our market and the dynamism you, our financial leaders, bring to Hong Kong. They reflect the confidence the international community places in our financial system, the rule of law and our future.

     A central pillar of the HKSAR (Hong Kong Special Administrative Region) Government's strategy for advancing Hong Kong's economic growth, is the strategic expansion of our international network. 

     My participation, three weeks ago, in the APEC (Asia-Pacific Economic Cooperation) Economic Leaders' Meeting in Korea and the China International Import Expo in Shanghai underscore the immense value of these global partnerships. 

     To better capitalise on Hong Kong's global connections, we launched the GoGlobal Task Force last month. This concerted, cross-sectoral Task Force will help to connect Mainland companies with global markets. Connecting Mainland companies with global markets is a key of my government's strategy this year and the years ahead. This will attract international capital and companies to Hong Kong. 

     The initiative is designed to strengthen Hong Kong's position as the premier gateway for two-way investment and trade, reinforcing our role as a "super connector" and "super value-adder".

     Expanding our international network also means intensifying our focus on the economies of Southeast Asia. I am pleased to note that the Hong Kong Monetary Authority is collaborating with your Association, as well as the Hong Kong General Chamber of Commerce and the Federation of Hong Kong Industries. Together, you will lead delegations comprising banking representatives and small and medium enterprises (SMEs) to explore business opportunities in key markets of the region.

     I'm also pleased to know that the Association is working to expand its connectivity, with ASEAN (Association of Southeast Asian Nations) a particular focus this year. 

     In boosting these connections, we open new markets. No less important, we build lasting economic ties to fuel Hong Kong's long-term growth.

     Of paramount importance to that bright future are our SMEs, which form the backbone of Hong Kong's economy. Supporting our 360,000 SMEs is critical to Hong Kong's overall development. To ensure that they thrive in this period of global economic uncertainty, we have introduced a wide variety of support measures.

     They include extending the application period for the 80 per cent Guarantee Product under the SME Financing Guarantee Scheme for two years, with a one-year extension of the principal moratorium arrangement. 

     I encourage banks to adopt a flexible and accommodating approach in processing loans by companies with a repayment ability. Together, we will work to ensure that temporary cash-flow challenges do not stifle or deter promising businesses.

     To fast-track that promising growth, we will also put the spotlight on driving innovation and efficiency. To promote digital trade, the Monetary Authority will develop a roadmap for Project CargoX by year's end, working with the Airport Authority Hong Kong and the Transport and Logistics Bureau's Port Community System. The Project will promote the use of authentic multi-modal cargo data in banking workflows, to reduce credit costs and processing times for both banks and SMEs.

     We are, as well, injecting 1.43 billion Hong Kong Dollars into the Dedicated Fund on Branding, Upgrading and Domestic Sales, expanding its geographical scope to eight more economies, including Belt and Road countries. Concurrently, we are enhancing Cyberport's Digital Transformation Support Pilot Programme. This will provide matching subsidies for SMEs adopting essential AI and cybersecurity solutions, future-proofing their operations in an increasingly digital world.

     A thriving market cannot be built on economic policies alone, however. It requires a foundation of trust and security. This is why our joint commitment to promoting anti-fraud education and combating financial crime is vital. 

     As digital threats intensify, the banking sector's frontline role in educating and protecting customers, especially the elderly and other vulnerable groups, is an invaluable social safeguard. 

     We welcome the Monetary Authority's ongoing development of relevant guidelines in collaboration with the industry. And the Association's establishment of the Anti-Fraud Education Taskforce, which has conducted over 110 outreach activities targeting different groups of the community, is encouraging. 

     The Banking (Amendment) Ordinance 2025 began operation this month, to enhance the ability of banks to combat fraud through wider information sharing. The collaborative work between the Monetary Authority and the Police, using tools like the "Scameter" search engine, is also hampering criminal networks. 

     Hong Kong takes a hard line against fraud and money laundering. Since the end of 2023, we have been applying to the courts, under relevant legal provisions, to seek enhanced penalties for cases involving stooge accounts. At last count, the sentences of 169 stooge account holders have risen, with terms of imprisonment ranging from 21 to 75 months. That's up at least 10 per cent and, in some cases, over 30 per cent than before. 

     The Association's vigilance at the counter, together with your educational campaigns and collaboration with law enforcement, contribute substantially to the integrity and stability of Hong Kong's entire financial system. 

     Ladies and gentlemen, the Government is committed to opening new markets, creating supportive environments for SMEs and ensuring a safe operating landscape. But the path to economic and market growth is a collective one. 

     The active participation of the Association, and the banking sector in general, is essential to the development and progress of our great city. Your expertise and commitment are the very engines of Hong Kong's long-term prosperity.

     Also vital to Hong Kong's development is the upcoming Legislative Council (LegCo) General Election. The LegCo is vested with the power of enacting laws, examining and approving government budgets, and debating issues concerning public interests. I am glad to note that different banks and financial corporations have responded, positively, to the Government's call for action, and are providing facilitation measures to staff for voting in the election. I appeal to all of you, and your friends and families, to cast your vote on December 7th. Together, we will create a brighter future for Hong Kong. 

     On that note, I wish you the best of business in the coming year. Thank you very much!

Ends/Friday, November 21, 2025
Issued at HKT 14:05

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