Speech by FS at Hong Kong Dinner in London (English only) (with photos/video)
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Fred (Chairman of the Hong Kong Trade Development Council, Professor Frederick Ma), Minister Wang (Minister of the Embassy of the People's Republic of China in the United Kingdom of Great Britain and Northern Ireland, Mr Wang Qi), distinguished guests, ladies and gentlemen,
Good evening. I'm pleased to welcome you to the Hong Kong Dinner in London, a longstanding tradition that celebrates the enduring ties between Hong Kong and the United Kingdom.
I'm delighted to be here, once again, for this good dinner and drinks among the best of company – from London and throughout the UK, from Hong Kong and the Chinese Mainland, too.
Strong relationship with the UK
Our relationship with the United Kingdom has been growing from strength to strength. And without a whisper of extortionist tariffs to unravel, I'm happy to add.
Bilateral trade continues to flourish. UK exports to Hong Kong in the four quarters preceding June rose by 6.6 per cent, reaching 16.8 billion pounds. Hong Kong exports to the UK rose even higher – up a rousing 14.8 per cent over the same period, reaching 10.5 billion pounds.
Investment ties are expanding, too. Next Tuesday, Hong Kong hosts the UK Investment Conference. The UK's growth priorities resonate strongly with our city's vision for development and strategic opportunities.
Cultural exchange is also looking good and sounding great. Earlier this year, Coldplay performed a record number of sold-out shows at Kai Tak Sports Park, our new cultural landmark. And without a kiss-cam scandal.
Four Premier League teams have also visited Hong Kong this year, each currently up there in the top ten, except Liverpool, which, surprisingly, trails behind Everton. But I have every confidence they'll bounce back soon.
Beyond culture, sports and entertainment, our shared opportunities are sure to expand. And I'm happy to tell you why.
It's been a challenging year for the global economy, for all of us. What with tariff numbers seemingly pulled out of a hat, then back in and out again. Despite these, and other bewilderments, I am pleased to report that Hong Kong is not only weathering the furies but has emerged stronger, more confident, more promising than ever.
The enduring strengths of "one country, two systems"
"One country, two systems" remains the cornerstone of our continuing prosperity. This has been repeatedly reiterated by President Xi Jinping. It's also reflected in the latest recommendations for the country's 15th Five-Year plan, which supports Hong Kong's singular global role.
The common law system and rule of law continue to be a defining feature of our city. The latest World Justice Project rankings show Hong Kong maintaining its position. And we're once again ahead of several advanced economies, the United States (US) among them.
A good number of Americans agree. In an American Chamber of Commerce survey, earlier this year, 83 per cent of its members expressed confidence in the rule of law in Hong Kong, up 10 per cent over two years ago.
The US Congress said that's because some US companies had left Hong Kong. Well, we say more and more international companies are coming to Hong Kong. Last year, some 1 400 US companies were operating in Hong Kong, up 9 per cent, while 720 companies from the UK called Hong Kong home, a 12 per cent rise. This year, we are optimistic that more foreign companies will look to Hong Kong for their future.
And in the first nine months of 2025, the number of American visitors to our city rose 15 per cent, to more than 710 000.
Obviously, American businesses and American people are smarter than their politicians.
We continue to keep our tax system simple and low. Last year, we even reduced import duties on high-value spirits. No surprise, we've been enjoying more fine single malts lately - some of them even older than I am!
Beyond the fundamentals, what sets Hong Kong apart is our resilience, agility and flexibility. These qualities are helping us navigate today's global challenges, including unilateralism, protectionism and tariffs.
We all know these measures are unfair, unreasonable and unwelcome. But Hong Kong isn't responding to tariffs with more tariffs. We continue to uphold our status as a free port, with free flow of capital, goods, talent, and information. We stay aligned with international standards and best practices. Because we know that certainty, consistency and credibility are the foundations of long-term economic success.
And that has proven to be rewarding. Hong Kong has become a destination for international investors seeking diversification with decent returns amid heightened policy uncertainty.
The financial market
The facts speak for themselves. The Hang Seng Index has gained more than 30 per cent, year-to-date, following an 18 per cent rise last year. Average daily turnover has more than doubled, year on year. Our IPO fundraising this year is leading the world, reaching 21 billion pounds by October. Currently, 300 companies are waiting to be listed.
The asset and wealth management industry is also flourishing. The total assets under management have reached some 3.5 trillion pounds.
Bank deposits are up by over 10 per cent – now over 2.4 trillion US dollars. And that, I'm pleased to say, is more than two times Elon Musk's new pay package.
Financial institutions are flocking to Hong Kong. They want to be closer to their investors and to the investment opportunities we're creating, day after day. Some fintech firms have even acquired entire buildings to house their expanding operations.
The Financial Times once described Hong Kong's financial market rebound as a "comeback with Chinese characteristics". In truth, it is a comeback driven by global participation.
Many cornerstone IPO investors for recent listings, for example, were top US and European funds and sovereign wealth funds from the Middle East, as well as institutions across Asia. For the stock market, international institutional investors account for about half the total trading volume.
The economy
Our economy is also gaining momentum. We have registered GDP (Gross Domestic Product) growth for 11 consecutive quarters. And just two weeks ago, we revised upward our GDP forecast for this year from 2 to 3 per cent to 3.2 per cent. That uptick is driven by robust goods and services exports, as well as rising private investment and consumption.
Despite the protectionism, merchandise exports are growing at double-digit rates. Hong Kong has pivoted to new markets, strengthening its role in regional and inter-regional trade, particularly as a conduit between the Mainland and ASEAN (Association of Southeast Asian Nations), the Middle East and Europe.
Tourism and events are back, and in a big way. Visitors are expected to reach 49 million this year, up more than 10 per cent. And Hong Kong is welcoming more visitors through our MICE (meetings, incentives, conferences and exhibitions) events and year-round concerts, festivals and wine-and-dine attractions.
Finance
Looking ahead, Hong Kong is brimming with opportunities. Let me touch on two of our major growth engines, finance, and then innovation and technology, as examples.
For finance, let me highlight just four points – no spreadsheets, I promise.
First, Hong Kong's super connector role is being enriched into a multidimensional platform. As China continues its high-level two-way opening up, Hong Kong is playing a pivotal role, helping Mainland enterprises go global - to the UK, Europe, and the Global South. A good case in point is CATL (Contemporary Amperex Technology Co Limited), the world's largest IPO (initial public offering) this year, which uses Hong Kong's fundraising and professional services to support its global expansion.
At the same time, we're forging new partnerships with markets keen to tap into opportunities in the Mainland and across the region. Our ties with the Middle East and Southeast Asia are growing stronger.
Over the past two years, we've collaborated closely with Saudi Arabia, launching reciprocal ETFs (exchange-traded funds) and enhancing regulatory cooperation. Just two weeks ago, the Hong Kong Stock Exchange welcomed its first-ever Middle Eastern listing - a significant milestone, hopefully the first of many.
Central Asia is showing promise, too. The Kazakhstan Development Bank recently issued "dim sum" bonds totalling renminbi 2 billion, while a Kazakhstani company got listed on our exchange.
Second, technology is empowering our capital markets. Nearly 60 per cent of our IPO proceeds this year come from new economy companies. This growth reflects the impact of listing reforms we've introduced since 2018, the most recent one smoothing the way for pre-commercial, hard-tech companies to get listed.
Third, we're driving financial innovation. Hong Kong is becoming a global leader in digital assets and Web3 development. We've made steady progress in areas such as asset tokenisation, recently issuing the world's largest tranche of tokenised green bonds. It totalled 1 billion pounds. And yes, you may have heard of our licensing regime for digital asset trading and stablecoins.
Fourth, we are building new growth sectors. This year, 12 metal warehouses in Hong Kong were approved by the London Metal Exchange, fuelling our vision as the region's commodity trading hub. And we're building a gold trading centre as well.
At last year's dinner, I said we were gunning for London. Well, we may not have overtaken the City just yet, but I'd say we've moved a few Tube stops closer. And we're certainly not getting off at Earl's Court.
Innovation and technology
Then there's innovation and technology.
We're focusing our efforts on sectors where Hong Kong has a clear competitive edge: AI, biotech, fintech, and new energy and new materials.
The Northern Metropolis, a strategic development area bordering Shenzhen, will play a critical role in realising this vision.
We're accelerating its development, by easing planning restrictions and allowing for more flexible development models, including large-scale land disposals for high-impact projects. It will be where land use and industry developments are deeply integrated.
And we're backing it with preferential policy packages to attract top-tier enterprises. These packages can include land grants, discounted premiums, tax incentives and other offers - all designed to make the Northern Metropolis internationally appealing. Think of it as the innovation district where your CFO and your CTO are both happy.
At the heart of the Northern Metropolis lies the Loop Area along the Shenzhen River - a cross-boundary innovation corridor where capital, talent, goods, data - even bio-samples - will flow seamlessly from the Mainland to Hong Kong. For international biotech and AI companies, this will be a genuine game-changer – one of the few places in the world where Mainland and international data sets will meet and mingle.
Enterprises and talent
To realise this vision, we need quality enterprises and a continuing flow of world-class talent.
OASES, our Office for Attracting Strategic Enterprises, has brought in more than 100 high-impact tech companies over the past three years. Many are global leaders in their respective fields, such as AstraZeneca and GSK. Collectively, the companies will invest about 6 billion pounds in Hong Kong, creating 22 000 quality jobs.
Attracting talented professionals is also a priority. Over the past three years, we have received over 550 000 applications and approved some 370 000. More than 250 000 individuals have already arrived, making a decided difference for themselves, their families and Hong Kong.
And I invite more UK companies and professionals to join them – to join us – in Hong Kong, where we are building the future.
Hong Kong: seeing is believing
Ladies and gentlemen, there's more. A great deal more to tell, but it's past dinner time.
Let me leave you with just one important thought: whatever the headlines say, Hong Kong is best understood through facts and figures. Even the Financial Times last week held its inaugural forum on Hong Kong's revival.
So I invite you to come and see for yourselves - today's Hong Kong. A city alive with arts and culture, sport and entertainment, and yes, fabulous food and drink, too. We are, after all, home to the best hotel and the best bar in the world.
And if you need fresh air after a night of drinking, venture into our country parks and hiking trails - a dazzling and immersive world that leaves the financial district and city lights behind.
Let me show you a little of that world now.
Enjoy the Hong Kong Dinner and the great and good company all about you.
And now, ladies and gentlemen, may I ask you to raise your glasses: let's drink to the enduring friendship between Hong Kong and Britain, Britain and Hong Kong.
Cheers!
Ends/Wednesday, November 26, 2025
Issued at HKT 9:34
Issued at HKT 9:34
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