Upbeat and hopeful: China Conference panel optimistic about Hong Kong's future prospects

Overseas start-ups and entrepreneurs believe Hong Kong is an attractive place to develop their ventures because of the depth of the city's financial market, availability of capital and its status as an international centre, according to the chief of the government's investment arm.

"The international status of Hong Kong is very important for innovative industries and enterprises" because these start-ups need to have a global mindset, international clientele and supply chain, said Clara Chan Ka-chai, CEO of Hong Kong Investment Corporation (HKIC). "Hong Kong provides a great foothold for that. Hong Kong's low taxes, free flow of data, capital and [talent] and our robust financial system are helping businesses to grow."

Chan was speaking at "The China Boardroom", the opening session of the South China Morning Post's China Conference on Thursday. The conference has brought in scores of decision makers to the city, while hundreds of participants have registered online to explore opportunities and challenges in investments and technology in the world's second-largest economy.

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The HKIC manages HK$62 billion (US$8 billion) of government funds allocated to boost the city as an innovation and technology hub through investments and partnerships with start-ups.

Clara Chan, Chief Executive Officer of the Hong Kong Investment Corporation Limited, spoke at the South China Morning Post's 2024 China Conference held at the Hong Kong Ocean Park Marriott Hotel on 4 July 2024. Photo: May Tse. alt=Clara Chan, Chief Executive Officer of the Hong Kong Investment Corporation Limited, spoke at the South China Morning Post's 2024 China Conference held at the Hong Kong Ocean Park Marriott Hotel on 4 July 2024. Photo: May Tse.>

Last month, the HKIC formed its first partnership with home-grown artificial intelligence (AI) unicorn SmartMore, enlisting the firm to use Hong Kong as its base and to make the city's stock market its first choice if it goes public.

This was followed by a deal with Beijing-based Biomap - a biotech firm launched by Chinese internet giant Baidu's founder Robin Li Yanhong.

While the initial deals are with Hong Kong and mainland start-ups, Chan said the HKIC was keeping an eye on international start-ups as she travels the world in search of potential investments and partners.

"While we are investing in the future of Hong Kong, we are also investing for the long term in an innovative ecosystem," Chan said.

Chan said that from her conversations with investment bankers, industry players, academics and researchers she believes Hong Kong has a bright future in innovation and technology.

International start-ups, investors and entrepreneurs regard Hong Kong highly, as it is an ideal place for their families because the city is safe and vibrant, and is a melting pot of cultures from the East and the West, she added.

Phil Witherington, the regional CEO of Manulife, delivers the opening remarks at the China Conference on Thursday. Photo: May Tse alt=Phil Witherington, the regional CEO of Manulife, delivers the opening remarks at the China Conference on Thursday. Photo: May Tse>

That message was shared by Manulife, the Canadian insurer that sold its very first policy in Hong Kong 127 years ago. Phil Witherington, the Asia CEO of the Toronto-based insurer sees Hong Kong as an attractive destination for international firms to develop.

"Hong Kong serves as a global financial and business hub, acting as a gateway to mainland China and a regional centre for Asia," Witherington said. "Leveraging its strengths in finance, trade and connectivity, Hong Kong contributes significantly to global cooperation and understanding, making it an essential component of China's international engagement."

The Hong Kong-based insurance veteran is particularly excited about Beijing's new five-year travel permit for the city's 270,000 permanent residents holding foreign passports.

"This development will improve the convenience for me and many other non-Chinese permanent residents of Hong Kong and Macau who frequently visit the mainland for business and personal reasons," he said. "My family will be delighted that I will no longer be the one holding us up at the immigration counter."

Henry Wang Huiyao, founder and president of Center for China and Globalization, also welcomed the new travel permit, and noted that China has already extended visa-free privileges to visitors from dozens of countries. He said this form part of the country's open door policy to boost its economy growth.

"While there is the need to keep upbeat, let's put our own house in order first," Wang said in the same session with Chan. "For China, we have to really do things well for ourselves. That is why we are having this coming third plenum."

The third plenum, to be held from July 15 to 18, is widely expected to lay out a series of goals to be reached by 2035 that will narrow the technological gap with the United States and put China on firmer footing in the high-end value chain, according to state news agency Xinhua on July 1.

"China may become the world's largest economy in some years. The country has the best infrastructure in the world, the best financial networks and 12 million graduates every year. It continues to work on attracting foreign investments," Wang said. "We should avoid hot conflicts and keep the stability, but most important, we need to really keep the Chinese economy strong. That is the best solution for the world."

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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