Hong Kong as an IFC

Despite the global macroeconomic uncertainties that have characterised recent years, Hong Kong’s core advantages remain unchanged. As growth in Asia continues to outpace much of the world, demand for sophisticated financial services is expected to remain strong, with Hong Kong well-placed to serve as the region’s financial gateway.

Hong Kong’s reputation as a leading international financial centre rests on widely recognised fundamentals. Its location at the heart of Asia and excellent connectivity are as important as ever, while the low and simple tax rate remains globally competitive. The city boasts a superb professional services ecosystem with world-class talent including lawyers, advisors and accountants. All of these are underpinned by the strong foundation of the rule of law, with the benefits of a common law system, independent judiciary, clean transparency index and trust in the core system.

Crucially, as the global trade and business landscape evolves, Hong Kong will continue to provide essential services as a bridge between the Mainland and the rest of the world. This involves helping Chinese companies seeking growth in new markets including Southeast Asia, the Middle East and Central Asia, as well as supporting international corporates keen to explore emerging onshore opportunities.

Looking ahead, Hong Kong should continue to innovate in areas where it already excels. The government has demonstrated strong commitment to positioning the city as a global hub for virtual assets with coordinated regulatory, government, and private sector partnerships.

Hong Kong’s regulatory framework for virtual assets now stands out as one of the most sophisticated and forward-looking in the region. The city has also made rapid progress in developing a clear licensing regime for stablecoin issuers. Earlier this year, the city officially enacted legislation that will take affect later this year, requiring stablecoin issuers to be licensed, making Hong Kong one of the first jurisdictions in the world to establish a statutory regulatory framework for stablecoins.

Central Bank Digital Currencies (CBDCs) are another frontier where Hong Kong is making tangible progress. This year, the eHKD pilot has taken concrete steps towards implementation, while the ongoing digital RMB pilots have deepened cross-border connectivity with the Chinese Mainland.

The development of the Commercial Data Interchange (CDI) has also been a major step forward. The CDI is now widely used across the banking sector, enabling secure, consent-based data sharing that is bringing real benefits to both financial institutions and their customers, particularly SMEs seeking access to credit.