Following is the speech by the Financial Secretary, Mr Paul Chan, at the Hong Kong Association Luncheon in the United Kingdom on November 26 (London time):

Adrian (Chairman, Hong Kong Association, Mr Adrian Cartwright), Members of the Hong Kong Association, ladies and gentlemen, Friends of Hong Kong all,

     Good afternoon.

     Thank you for inviting me to once again to this welcome lunch.

     As English writer Douglas Adams once said, "When people you greatly admire appear to be thinking deep thoughts, they probably are thinking about lunch." Now that we are together, again, over lunch, let's move on to deeper thoughts.

     Starting with dinner. I trust you had a splendid evening at the Hong Kong Dinner last night  ̶  good company, good conversation and just enough wine to encourage networking, but not enough to cloud your memory of it.

     This afternoon, I would like to speak about a subject central to Hong Kong's future: how we are reinventing Hong Kong and securing long-term economic growth through innovation and technology.

Innovation as an Economic Driver

     In Hong Kong, I&T is fast emerging as a cornerstone of our economic transformation. Over the past several years, we have invested more than £20 billion in I&T, underpinned by a comprehensive strategy that supports the entire innovation value chain.

     It helps that we are blessed with considerable strengths in basic research. Hong Kong is home to five universities ranked among the global top 100. Three are among the world's top 20 in artificial intelligence and data science, while both our medical schools rank in the top 25 globally.

     We know that research without commercialisation is a bit like inventing the lightbulb and forgetting to sell electricity. That is why we are focused on translating knowledge into usable, scalable innovation.

     To that end, we are attracting strategic enterprises to Hong Kong  ̶  companies that bring capital, as well as jobs, international networks, and ambition. We've introduced a broad range of funding schemes to boost collaboration between academia, research institutions and industry. Because innovation thrives best when silos are dismantled and partnerships built.

     At last count, Hong Kong was home to nearly 4 700 start-ups, up a remarkable 40 per cent over the past five years. Hong Kong Science Park and Cyberport, our innovation flagships, continue to support start-ups and scale-ups, providing everything from incubation and funding to professional consultancy and market development. I should note that 28 per cent of our start-up founders are non-locals, with the UK our largest source of foreign founders.

Strategic Industries

     We are prioritising four strategic industries: artificial intelligence, biotechnology, fintech, and new energy and new materials. For the next few moments, allow me to elaborate on the first two: AI and biotech, where we are making tremendous strides.

Artificial Intelligence

     AI is no longer the future. It's here now, transforming industries and ways of life at an unprecedented scale and pace. In Hong Kong, we are taking a dual-pronged strategy. First, by nurturing AI as a core industry; and second, by embedding AI technology into traditional sectors to improve productivity, efficiency, and competitiveness. We call this approach "AI+".

     Our progress is built on six pillars: computing power, algorithms, data access, application development, capital investment, and talent cultivation.

     And there's more. Including the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone, or Loop Area. There, Mainland and international data will converge, opening up unprecedented opportunities for data-driven innovation, including AI.

     Then there's the Greater Bay Area, which gives Hong Kong a geographic and strategic edge. It is the only region in the world where mechatronics and AI technologies coexist at scale. For companies looking to move from algorithm to application to deployment, the Greater Bay Area is the ideal testing ground. There, prototypes can be refined, validated, and scaled within a sophisticated supply chain.

     Hong Kong is also fast becoming a magnet for global AI talent. As Jensen Huang, CEO of Nvidia, pointed out, roughly half the world's top AI researchers are ethnic Chinese. A good many of them are choosing Hong Kong as their base – for academic research, for commercial ventures, and for partnerships across Asia.

Biotechnology

     Turning to biotech, we are now developing a primary evaluation mechanism for drug approvals. This will allow Hong Kong to independently assess and approve medical products and devices. And that, ladies and gentlemen, is a game-changer.

     It will strengthen Hong Kong's role as a regional centre for medical research and clinical development. To support this transition, we are establishing the Hong Kong Centre for Medical Products Regulation, and we have joined the International Council for Harmonisation as an observer. We are also investing in the infrastructure, systems and talent necessary to support the new regulatory regime. The plan is to begin phased implementation in 2026, with full rollout by 2030.

     And Hong Kong and Shenzhen have established cross-boundary clinical trial institutions in the Loop Area. These support studies complying with the standards and requirements of both jurisdictions.

     Already, major players like AstraZeneca and GSK have chosen Hong Kong as a base for R&D, while exploring opportunities in the Loop Area. For UK pharmaceutical firms and biotech ventures, this is a golden opportunity to gain direct access to Hong Kong, and to the vast Greater Bay Area, with its consumer population of some 87 million.

     We are also investing in the next generation of medical innovators. The Hong Kong University of Science and Technology is establishing Hong Kong's third medical school, which will admit its first cohort in 2028/29. This will boost our supply of clinician-scientists. I'm confident, too, that it will attract top international faculty and students, deepening our role as a centre for medical education and translational research. The medical school will eventually relocate to the Northern Metropolis, alongside the area’s innovation clusters.

Capital for Innovation

     For that, and more, we need capital. Hong Kong's capital markets have undergone substantial reforms to enable easier listing for biotech, deep-tech, and innovation-driven companies. These reforms are already making a difference, allowing high-potential firms to raise growth capital from global investors.

     We've updated our listing rules to make it easier for biotech, hard-tech, and other strategic companies to go public in Hong Kong. Our goal is simple: to mobilise market funds that support their development.

     Beyond the public markets, Hong Kong boasts a dynamic private capital sector. Our private equity funds manage about US$230 billion in assets, second only to the Mainland in Asia.

     And, through the Hong Kong Investment Corporation, we are strategically investing in high-potential, high-risk and high-return ventures, particularly in hard tech. The Investment Corporation has, to date, invested in more than 150 projects, taking in over six dollars of private investment for every public dollar invested.

     The Corporation is also working closely with international partners to support commercialisation and global expansion. I invite British firms to explore co-investment opportunities, joint ventures, and technology partnerships through the Corporation. Innovation, after all, respects no borders; nor should investment strategies.

Northern Metropolis: Infrastructure for Innovation

     More than home to Hong Kong's third medical school, the Northern Metropolis will rise as Hong Kong's new economic engine and innovation and technology centre. We are fast-tracking its development through dedicated legislation and flexible land development initiatives.

     Three key anchors within the Northern Metropolis will, I believe, be of particular interest to British businesses and institutions.

     First is the Loop Area, which I've already mentioned. The zone is being designed to enable seamless collaboration between Hong Kong and Shenzhen. That includes cross-boundary clinical trials and data flow from the Mainland to Hong Kong.

     Then there's the San Tin Technopole, which spans 210 hectares and is dedicated to high-end I&T development. Its outline plan has just been released. When fully realised, the Technopole is expected to contribute £25 billion annually to our GDP, generating 300 000 high-quality jobs.

     And third, the Northern Metropolis' University Town, which will cover some 90 hectares. University Town will attract top-tier local and international universities, encouraging collaboration between academia and industry, creating an environment where students, researchers and entrepreneurs work side by side, bridging theory and practice, classroom and commerce. And it will be where we advance the deep and integrated development of technology, education and talent.

     The Northern Metropolis is a project of scale, ambition, and purpose. We are building it to integrate technology, sustainability, and cross-boundary connectivity. And I would like to build it with you, with partners who share our vision, and our prodigious appetite for doing big things exceedingly well.

     I invite British construction, architecture, and engineering firms to take part in bringing to bright life this next-generation innovation corridor. And I also welcome UK universities, research institutions, and education partners to explore opportunities within University Town – and throughout this unprecedented innovation-driven development.

     Ladies and gentlemen, the opportunities Hong Kong presents are as diverse as they are substantial. For UK firms, businesses and academic institutions, this is your moment to engage. Whether in AI, biotech, advanced manufacturing, or other new tech areas, Hong Kong is where world-class ideas are inspired, funded and commercialised – across Asia and beyond.

     I look forward to welcoming you to Hong Kong, whether for business, pleasure or simply a well-earned break from the English weather.

     My thanks, once again, to the Hong Kong Association – to you all – for giving me this welcome opportunity to speak to you again. Over lunch.

     I'm now ready to take your questions.

     Thank you.

Ends/Thursday, November 27, 2025
Issued at HKT 0:30

NNNN