Chen Maobo: "Combining AI with finance will create a 'flywheel effect'"

Hong Kong Financial Secretary Paul Chan Mo-po stated in his blog that the synergistic effect produced when "AI+" meets "finance+" will be huge and profound. This is not a simple addition, but more like a mutually reinforcing "flywheel effect," a development strategy that is tailored to local conditions and involves deep integration. In the mutual promotion of the two, new value and opportunities are created. Paul Chan Mo-po pointed out that one of the focuses of the budget is to actively promote the mutual promotion of "AI+" and "finance+". He noted that Hong Kong is at a crucial juncture in technological innovation, where artificial intelligence is not only the core technology of the future but also a powerful force that can impact various industries. Accelerating the development of AI+, in fact, is also the driving force behind the "transformation and upgrade" of advantageous industries and the accelerated growth of emerging industries. As an international financial center, Hong Kong needs to deeply integrate cutting-edge AI technology into its services to make financial services bigger and stronger, while also extending AI technology to a wider range of application scenarios to achieve mutual empowerment and positive interaction. In this process, depth is the core, and speed is the key. In terms of "AI+", Hong Kong's Financial Secretary has taken a multi-pronged approach. At the strategic level, Paul Chan Mo-po will establish and lead the "AI+ and Industrial Development Strategy Committee," bringing together experts, scholars, and business representatives to devise strategies for accelerating the development of different industries driven by AI, with the aim of becoming a catalyst for driving industrial innovation. The Hong Kong Financial Secretary is also fully committed to advancing the construction of multiple industrial parks in the Northern Metropolis areasuch as the Hong Kong Park in Hexie, the Xintian Science and Technology City, and the Hongshui Bridge Industrial Parkand accelerating the construction of the computing power infrastructure in the Shaling Data Park. These efforts will support the research and application of cutting-edge technologies such as AI and life sciences, as well as providing space for the development of high-end manufacturing industries. The overall aim is to attract more high value-added parts of the entire innovation and technology chain to Hong Kong, including research and development, pilot testing, commercialization, and advanced manufacturing, in order to create greater economic value and high-quality industries in Hong Kong. In terms of the development of AI+, investment in human resources is also crucial. The Hong Kong Financial Secretary aims to closely integrate investment in physical and human resources. To this end, one of the measures in the budget is to allocate HK$50 million to support public agencies, scientific enterprises, and tertiary institutions in organizing activities to promote the application, utilization, and proficiency of AI among the general public, in order to enhance the overall AI literacy of society. The concept of "finance+" has several noteworthy points. Firstly, finance provides solid support for technological innovation and the development of the real economy. Hong Kong's vibrant financial market and active capital circle can provide end-to-end financing support for enterprises from venture capital, private equity, and IPO listing. In the past year, the Hong Kong stock market has performed well, with many advanced technology leaders from the mainland fully utilizing Hong Kong to raise international funds, helping them accelerate their overseas expansion and expand their international industrial and supply chains. Secondly, the innovation of financial services itself further supports the increment expansion and breakthroughs of the real economy. Technological innovations such as AI and blockchain are continuously empowering financial services, creating more efficient and convenient transaction systems and opening up new channels for various business trades, financing, and risk management activities. Financial innovation will also bring great opportunities to the industry and help the entire sector explore potential new markets and develop new products. Thirdly, the development of the technology services industry. Professional services often closely follow industries and economic activities that are currently experiencing rapid growth. With AI being integrated into industrial transformation and upgrade, as well as deep integration with finance, a series of new professional services demands will accelerate, such as valuation and risk assessment of technological and data assets, as well as related accounting, auditing, and certification services. It can be foreseen that Hong Kong needs companies that are proficient in using AI, as well as financial and professional services that understand AI and innovative technology. This will enrich Hong Kong's status as an international financial center and further leverage financial innovation and technological innovation to support the construction of the country's modern industrial system. It is essential for Hong Kong to make good use of its own advantages and actively align with national development strategies as it moves towards achieving better development for itself. The budget proposal outlines the two main themes of "AI+" and "finance+" in the hope that, through the accelerated transformation of the economy, Hong Kong's high-quality development will reach higher levels.