Chen Maobo: Hong Kong's international financial center competitiveness continues to rise, leading multiple indicators globally.

On May 27th, Hong Kong Financial Secretary Paul Chan Mo-po attended a celebration dinner to mark the 50th anniversary of the establishment of the Hong Kong Financial Industry Association. He stated that in the past decade, Hong Kong's competitiveness has continued to improve, with the gap between Hong Kong and the top global markets significantly narrowing. For example, according to the Global Financial Centers Index, Hong Kong ranks third globally, with the gap in scores with the top-ranked New York narrowing from 39 points ten years ago to just two points currently. Hong Kong also leads in many aspects globally. Paul Chan Mo-po mentioned that in the past decade, the development of Hong Kong's financial markets has accelerated further. From dual-class shares, biotechnology to the fast track for listing of tech companies, the market capitalization of Hong Kong stocks has increased from HK$23 trillion to over HK$47 trillion; the number of listed companies has also increased from 1900 to 2700. International funds and high-quality enterprises are increasingly converging on Hong Kong, reflected in the bank deposits, which have increased by 80% over the past decade, reaching HK$19 trillion. In addition, the amount raised through IPOs in the past ten years saw Hong Kong take the top spot for four years. Furthermore, the size of asset and wealth management has nearly doubled over the past decade, with a report by Boston Consulting Group stating that Hong Kong has surpassed Switzerland to become the world's number one cross-border wealth management center. Looking ahead, Paul Chan Mo-po expressed optimism about the development of Hong Kong as an international financial center, stating that Hong Kong's banking sector is facing new opportunities. Firstly, Hong Kong's advantage as an international market continues to grow. While New York and London are often seen as the top international financial centers, the market capitalization of Hong Kong stocks has already exceeded that of London. With more funds, particularly those optimistic about China and the Asia-Pacific region, as well as funds realizing the previously underweighted market in Asia, entering the market, and with funds diversifying risks due to geopolitical issues, Hong Kong has become one of the key markets for international fund diversification, thus enhancing its international market advantage. Secondly, the accelerated growth of asset and wealth management business. In the past decade, this industry has been speeding up, with assets under management expected to increase to HK$35 trillion by the end of 2024. With more technology and other companies going public, creating more new wealthy individuals, the demand for wealth management and family offices will increase, bringing new business opportunities. Additionally, the rise of the digital asset industry and the demand for services like asset custody represent greater growth potential for the banking industry. Thirdly, the development of artificial intelligence leading to efficiency improvements and significant cost reductions, allowing banks to reallocate resources, develop more new products, provide more efficient and tailored services to customers, and improve profitability.