Following is the speech by the Financial Secretary, Mr Paul Chan, at the APEC (Asia-Pacific Economic Cooperation) Finance Ministers' Meeting 2026 Plenary Session 1 - Global and Regional Economic and Financial Outlook today (October 20): 

Chairman, fellow ministers, colleagues,

     It is a great pleasure to welcome you to Hong Kong, Asia's world city.

     The global economy has shown resilience, but that resilience is uneven and under strain. Geopolitical tensions and trade policy uncertainty cloud the outlook, with risks tilted to the downside.

     Asia continues to outpace global growth, supported by technology-related trade and investment. We see this momentum in Hong Kong, where merchandise exports rose by more than 40 per cent in value in the first eight months of this year, and around 70 per cent of our IPO (initial public offering) proceeds were attributable to AI-related companies. 

     Yet prolonged geopolitical disruption would raise energy prices, further fuel inflation and tighten financial conditions, weighing on investment and constraining fiscal space. Concentrated exposures to AI-related assets, particularly where leverage is involved, could amplify market corrections across sectors and borders.

     Managing these risks requires fiscal prudence, vigilant financial oversight and closer co-operation in information sharing, risk monitoring and emergency response.

     Translation of technological advances into productivity gains, wider adoption of AI, green transition and other innovations require sustained investment. Equally important are building digital infrastructure, developing related skills and literacy, and preparing businesses and communities for change.

     Mobilising private capital is essential. Governments need to provide predictable, investment-friendly policies and modernise regulatory frameworks, giving businesses the confidence to innovate and invest.

     Regionally, we need open channels for trade and investment, not new barriers. Connected markets allow capital to reach productive uses and technologies be adopted across borders.

     Hong Kong, China remains committed to these principles. As an international financial centre, we channel capital into productive investment, while our professional services help businesses enter new markets and commercialise technologies.

     Colleagues, interconnected challenges demand co-ordinated responses. Our collective task is to safeguard stability while strengthening the foundations for lasting prosperity. Hong Kong, China stands ready to work with fellow economies to seize opportunities, manage risks and support more resilient, sustainable and inclusive growth across the Asia Pacific.

     Thank you.

Ends/Tuesday, October 20, 2026
Issued at HKT 16:20

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