Hong Kong's Financial Secretary Advocates Bilateral Cooperation During Swiss Visit

SFST meets with Swiss financial officials and President of International Institute for Management Development in Switzerland

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, met with Swiss financial officials and top management of the International Institute for Management Development (IMD) in Bern and Lausanne, respectively, on the last day of his visit to Switzerland (November 7, Bern time).

In the morning, Mr Hui met with the State Secretary for International Finance at the Federal Department of Finance, Switzerland, Ms Daniela Stoffel. Mr Hui noted that Hong Kong has set out its strategic development as an international financial centre (IFC) on all fronts, including fintech, sustainable finance and the connect programmes facilitating the two-way flow of capital between China and the world. Both sides discussed opportunities for bilateral co-operation, given that Hong Kong is a leading IFC with its financial sector contributing nearly one-fourth of its Gross Domestic Product, while Switzerland has a well-developed service sector led by financial services.

Mr Hui participated in the IMD's luncheon, during which he met with the Director of the IMD World Competitiveness Center, Professor Arturo Bris. Mr Hui also met separately with the IMD's President, Mr David Bach. Mr Hui shared with Mr Bach Hong Kong's latest policy initiatives aimed at enhancing the asset and wealth management industry as well as green and sustainable finance. The two parties will maintain communication and explore more bilateral co-operation opportunities between Hong Kong and Switzerland.

The IMD's World Competitiveness Yearbook 2024, published earlier this year, continued to recognise Hong Kong as one of the most competitive economies in the world. Hong Kong's ranking rose two places to fifth globally in the Yearbook, with its ranking in "Business efficiency" placing within the top 10 globally. In terms of sub-factors, Hong Kong ranked among the global top five in "Tax policy", "International investment" and "Finance".

On the same day, Mr Hui paid a courtesy call to the charge d'affaires of the Chinese Embassy in Switzerland, Mr Mao Jun, in Bern.

Concluding his visit to Switzerland, Mr Hui said, "The Chief Executive clearly states in his 2024 Policy Address the principle that anything essential but lacking in the system must be established; and any areas in need of consolidation must be reinforced and improved. He also noted the need to continue to actively expand and deepen overseas networks. My visit to Switzerland is a step towards putting these ideas into practice.

"Switzerland has traditionally been a centre for asset and wealth management and risk management, and Hong Kong has also been developing these two areas in recent years. The Policy Address proposed several key measures to further strengthen Hong Kong's status as international asset and wealth management and risk management centres. Switzerland and Hong Kong offer financial services across different time zones. Through meetings with top figures from international organisations, the financial sector and the business community, all parties share the view that there is ample room for co-operation between the two places. In addition, Switzerland and Hong Kong, as well as the international community, attach great importance to sustainable disclosure. Hong Kong must capitalise on the momentum of this development and strive to be among the first jurisdictions to align the local sustainability disclosure requirements with the International Financial Reporting Standards - Sustainability Disclosure Standards (ISSB Standards), in order to consolidate our position as an international green and sustainable finance hub and attract more overseas enterprises to leverage our strengths for development in Hong Kong."

Mr Hui will return to Hong Kong today (November 8).

SFST meets with Swiss financial officials and President of International Institute for Management Development in Switzerland Source: HKSAR Government Press Releases

SFST meets with Swiss financial officials and President of International Institute for Management Development in Switzerland Source: HKSAR Government Press Releases

SFST meets with Swiss financial officials and President of International Institute for Management Development in Switzerland Source: HKSAR Government Press Releases

SFST meets with Swiss financial officials and President of International Institute for Management Development in Switzerland Source: HKSAR Government Press Releases

HKMA's response to US Fed's Interest Rate Decision

The following is issued on behalf of the Hong Kong Monetary Authority:

The Federal Open Market Committee of the United States Federal Reserve (the Fed) just announced its decision to cut thetarget range for the federal funds rate by 25 basis points, to 4.5-4.75 per cent. The HKMA has reduced the Base Rate to 5 per cent according to the established mechanism with immediate effect.

The Fed further cut interest rates as expected by the market to implement less restrictive monetary policy. However, the pace of future rate cuts remains uncertain as it is subject to US economic data, which will be influenced by fiscal, economic and trade policies. Furthermore, monetary policies across the major economies are not entirely in sync. The risk of global financial market volatility should continue to be closely monitored.

Our financial and monetary markets have continued to operate in a smooth and orderly manner. Market liquidity condition has remained stable, and the Hong Kong dollar exchange rate stays steady. Under the Linked Exchange Rate System, Hong Kong dollar interbank rates generally track the US dollar counterparts, while shorter-tenor interbank rates tend to be also influenced by the supply and demand of Hong Kong dollar funding in the local market such as seasonal effects and capital market activities.

With regard to deposit and lending rates, banks will normally take into account factors such as funding supply and demand in the interbank market, the level of interbank rates and their own funding cost structures to access the merit and extent of adjustments, if any. The rate-cut cycle in the US is still at its initial stage. Interest rates might still remain at relatively high levels for some time. The public should carefully assess and continue to manage the interest rate risk when making property purchase, mortgage or other borrowing decisions.

The rate-cut decision in the US will not affect our financial and monetary stability. The HKMA will closely monitor market developments including trends of interest rates and movements of funds around the global markets to ensure financial and monetary stability.