A new year heralds fresh aspirations for businesses in Hong Kong. Last year was overshadowed by uncertainty caused by the pandemic, but signs of recovery are illuminating the Hong Kong economy. But will that prove sustainable in 2022?
The city’s political and business leaders have shared their views at the “Hong Kong Economic Summit 2022”, sponsored by HSBC, on the themes making a difference for businesses in the times ahead.
Path to recovery: compared with global growth, Hong Kong’s economic performance was buoyed by strong and steady export growth, an improved labour market and positive sentiment. Over the first three quarters of 2021, the local economy grew by 7%1 compared to the same period in previous year.
Rise of ESG (Environment, Social, Governance) investing: The UN Climate Change Conference (COP26) held in Glasgow in 2021 has given a fresh impetus to the idea of sustainable investing. In 2021, many anticipated global sustainable debt issuance to hit the USD1 trillion mark. Green bonds and sustainable financing are also popular in Hong Kong - as many as 90 ESG bonds raised HKD270 billion in 20212.
Innovations gain focus: Hong Kong is gearing up for what’s called its “re-industrialisation”, with an aim to spawn more high-value-added industries and evolve supply chains through innovations, as well as advanced manufacturing. Start-ups and tech firms can also benefit from the upcoming InnoPark upgrades and the proposed creation of a Northern Metropolis. Meanwhile, FinTech is pushing the frontiers and amongst all the developments the exploration of central bank digital currencies, such as e-HKD and e-CNY, and that for cross-border payments provides a catalyst for even more to happen.
Cross-border capital flows: facilities like Bond Connect and Stock Connect will continue to channel investments into both Hong Kong and mainland Chinese capital markets, underscoring Hong Kong’s role as a hub for asset management and risk management activities. The Wealth Management Connect for retail investors will create breakthroughs and new opportunities in the Greater Bay Area wealth market. Launching an insurance connect scheme will be the next milestone.
Want to find out more about the insights from experts and industry leaders on these key trends? Click the link below to review the contents of "Hong Kong Economic Summit 2022" (available in Chinese only).