HKTDC: US Midterm Elections May Affect AI and Semiconductor Trade; Overall Impact on Hong Kong Expected to Be Limited

HKTDC Chairman Fred Lam said that Hong Kong's import and export trade saw strong growth in the first nine months, partly because AI products and semiconductors performed very well. After the US midterm elections, related imports and exports may undergo adjustments, which could affect Hong Kong's trade performance next year. However, in recent years Hong Kong has developed many new markets and he believes this will not have too great an impact on Hong Kong. Overall, he is cautiously optimistic about the outlook. He continued that the AI development trend will not stop, while the development of related US industries may slow due to the midterm election results, which means China's development could potentially be faster. Fred Lam also mentioned that a Kazakh railway company has received exchange approval to list in Hong Kong, expected to take place by the end of this year. In addition, the country's sovereign fund earlier issued RMB3 billion in dim sum bonds in Hong Kong, highlighting Hong Kong's role as an international financial center. He believes Hong Kong's international financial center ranking is expected to rise to second globally very soon.