Hong Kong Emphasizes Digital Economy’s Role at Belt and Road Forum 2024

SFST's speech at Belt and Road Forum 2024

Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the Belt and Road Forum 2024 - Digital Economy & Payment Settlement today (December 5):

Regina (Co-Chair of the Maritime Silk Road Society, Mrs Regina Ip), Joseph (Chairman of theSilk Road Economic Development Research Center, Mr Joseph Chan), Chairman Lam (Chairman of the Board of Governors of Hong Kong Chu Hai College, Mr Lam Kwong-siu), Consuls-general, distinguished guests, ladies and gentlemen,

Good afternoon. It is my great pleasure to speak at the Belt and Road Forum 2024 on the theme of "Digital Economy & Payment Settlement", an invaluable platform for us to exchange insights and explore how we can drive digital transformation and foster deeper collaboration under the Belt and Road Initiative.

Since its introduction by President Xi in 2013, the Belt and Road Initiative has transformed global connectivity, bridging communities across continents through infrastructure development, trade, finance, and cultural exchanges. Over the past decade, it has delivered tangible benefits to economies worldwide, fostering unity, enhancing global collaboration, and contributing significantly to the creation of a shared future for humanity.

Hong Kong has long been an active participant in and beneficiary of the Belt and Road Initiative. Our strength lies in our role as a global connector - a hub where the East meets the West. As the Initiative continues to deepen, Hong Kong is well positioned to leverage our strategic advantages as an international centre for finance, trade, shipping, and professional services. Our city is committed to unlocking new opportunities and driving growth across Belt and Road economies, businesses, and communities.

Under the "one country, two systems" principle, Hong Kong enjoys a unique dual advantage: access to China's vast market while maintaining global connectivity. This framework allows Hong Kong to serve as a "super connector" and "super value-adder" in the Belt and Road Initiative. With world-class infrastructure, robust professional services, and a transparent regulatory environment, Hong Kong provides the critical support needed to facilitate trade and enhance Belt and Road projects. Ranked third globally and first in Asia in the latest Global Financial Centres Index (GFCI), Hong Kong is undoubtedly a pivotal player in realising the visionary goals of the Belt and Road Initiative.

As the Initiative evolves, so does the role of technology. Digitalisation has become a driving force behind modern economic transformation, and Hong Kong is always embracing this wave of innovation. According to the latest GFCI, Hong Kong is ranked among the top 10 fintech hubs worldwide, underscoring the seamless integration of technology into our financial markets. Technologies such as AI, big data analytics, blockchain, and distributed ledger systems are not only powering our economy but are also reshaping how businesses operate and collaborate across borders.

Our fintech sector is thriving, with over 1 100 fintech companies operating in Hong Kong. These companies span a wide range of fields, including mobile payments, cross-boundary wealth management, AI-powered financial consultancy, and regulatory technology. Additionally, Hong Kong has become a magnet for Web3 talent and investment, with over 280 companies in virtual asset exchanges, blockchain infrastructure, cybersecurity, and payment systems establishing their presence here. These developments indicate that Hong Kong is well prepared to lead as an advanced digital economy.

We are adopting a multipronged approach to ensure sustained progress by working closely with financial regulators, industry players, and academia to enhance our financial infrastructure, nurture fintech talent, and strengthen partnerships with the Mainland and Belt and Road economies. For instance, our regulator is actively collaborating with central banks in Belt and Road countries, such as Saudi Arabia, the UAE (United Arab Emirates), and Thailand, on the mBridge project to explore CBDC (Central Bank Digital Currency) applications.

Another example of collaboration is more at the retail level, which is our collaboration and partnership with the Bank of Thailand, which launched a Faster Payment System x PromptPay Link in December 2023. This initiative enables visitors from both places to conduct safe, efficient, and seamless electronic payments, further demonstrating how Hong Kong's expertise in payment infrastructure supports the Belt and Road vision.

To further position Hong Kong as a leader in the digital economy, we issued a Policy Statement on the Development of Virtual Assets in Hong Kong in October 2022, outlining our vision and regulatory approach. Following this, we introduced a licensing regime for virtual asset service providers in June 2023. To date, we have issued three licenses, with more approvals expected in the near future. These efforts highlight our commitment to fostering innovation while maintaining a well-regulated and transparent environment.

The integration of digital technologies into Belt and Road economies is accelerating, driving efficiency, connectivity, and growth. Advances in payment settlement systems, along with the adoption of AI and blockchain, are transforming financial services and unlocking new opportunities for collaboration. As a leader in finance and technology, Hong Kong plays a pivotal role in this digital revolution. To foster a sustainable and trustworthy market environment, we also issued the Policy Statement on Responsible Application of Artificial Intelligence in Financial Market at the Hong Kong FinTech Week in late October, providing clear guidance for financial institutions to adopt AI responsibly while promoting innovation, transparency, and public trust.

The Belt and Road Initiative is more than just a platform for infrastructure and trade - it is a vision for global connectivity and shared prosperity. As we integrate digital innovation into this framework, the opportunities for economic transformation and collaboration are boundless.

From providing world-class financial and professional services to advancing the adoption of cutting-edge technologies, Hong Kong always stands ready to contribute to the continued success of the Belt and Road Initiative. I encourage all of you to seize these emerging opportunities, foster meaningful partnerships, and work together to build a more interconnected, inclusive, and prosperous future for all. Thank you.

SFST's speech at Belt and Road Forum 2024 Source: HKSAR Government Press Releases

SFST's speech at Belt and Road Forum 2024 Source: HKSAR Government Press Releases

SFST's speech at Belt and Road Forum 2024 Source: HKSAR Government Press Releases

SFST's speech at Belt and Road Forum 2024 Source: HKSAR Government Press Releases

SFST's speech at Belt and Road Forum 2024 Source: HKSAR Government Press Releases

SFST's speech at Belt and Road Forum 2024 Source: HKSAR Government Press Releases

HKSARG responds to reauthorization of the so-called Sanctions Provisions under HKHRDA incorporated in National Defense Authorization Act for Fiscal Year 2025

​The Hong Kong Special Administrative Region (HKSAR) Government today (December 26) strongly disapproves of and firmly rejects US' reauthorization of the so-called Sanctions Provisions under the Hong Kong Human Rights and Democracy Act (HKHRDA) incorporated in National Defense Authorization Act for Fiscal Year 2025.

A spokesman for the Government said, "In accordance with international law and international practice based on the Charter of the United Nations, it is each and every sovereign state's inherent right to enact laws safeguarding national security, and it is also an international practice. With at least 21 pieces of laws safeguarding national security, the US has exposed its double standards by pointing the finger at the HKSAR's legal system and enforcement mechanism to safeguard national security."

"The Hong Kong National Security Law (NSL) and the Safeguarding National Security Ordinance (SNSO) also clearly stipulate that human rights shall be respected and protected in safeguarding national security in the HKSAR. The offences endangering national security stipulated by the related Ordinance target acts endangering national security with precision, and define the elements and penalties of the offences with clarity, aiming at addressing, combating, deterring and preventing acts and activities of endangering national security. It targets only an extremely small minority of people without affecting the basic rights and freedoms lawfully enjoyed by Hong Kong residents."

He said, "The US openly clamour for so-called 'sanctions' with an aim to intimidate HKSAR officials who resolutely safeguard national security. The HKSAR Government strongly condemns its political grandstanding rife with ill intentions, which have been seen through by all. The HKSAR despises the so-called 'sanctions' and will not be intimidated by such a despicable behaviour. The HKSAR will resolutely continue to discharge the duty of safeguarding national security."

The HKSAR Government has been enforcing the sanctions imposed by the United Nations Security Council (UNSC) fully and vigorously to fulfil our international obligations. We have long been maintaining an effective mechanism for implementing the resolutions of the UNSC. That includes denying entry of vessels designated by the UNSC as well as suspicious vessels, keeping a close watch on and inspecting suspicious Hong Kong-based companies to prevent them from participating in activities evading UNSC sanctions. At the same time, the HKSAR Government has been implementing a comprehensive and robust control regime over the import and export of strategic commodities and maintaining active participation in the Chemical Weapons Convention and the Arms Trade Treaty through the Central People's Government. The effectiveness of our work has been well respected and recognised by our trading partners and internationally.

The US has substantial economic interest in Hong Kong. Over the past decade, it registered a trade surplus of about US$270 billion with Hong Kong. Currently, some 1 390 US companies operate in Hong Kong. If the US insists on its acts, it will ultimately undermine the mutually beneficial relations between Hong Kong and the US, harming the interests of the US and its companies.

The spokesman reiterated that foreign governments and legislatures should not interfere in any form in the internal affairs of the HKSAR.