18th Asian Financial Forum: Hong Kong Leads Global Financial Collaboration and Innovation in 2025

Tuesday, January 14, 2025

The 18th Asian Financial Forum (AFF), held on January 13-14, 2025, in Hong Kong, marked the year’s first major finance event in Asia, uniting 3,600 policymakers, business leaders, investors, and scholars from around the world. Under the theme “Powering the Next Growth Engine,” the forum provided a platform for high-level discussions, deal-making, and networking, with insights from 130 elite speakers on emerging trends in global finance and investment.

Hong Kong’s Role as a ‘Super Connector’

In his opening remarks, Hong Kong Special Administrative Region (HKSAR) Chief Executive John Lee emphasized Hong Kong’s pivotal role as a global financial hub.

Lee highlighted how Hong Kong’s unique positioning under the “one country, two systems” framework enables it to enjoy strong backing from China while maintaining extensive global ties. He cited the city’s robust common law system, bilingual workforce, and its alignment with major global financial hubs as key advantages that cement its status as a “super connector” and “super value-adder” in international finance.

GCC Chapter: Strengthening Middle East Partnerships

A significant highlight of AFF 2025 was the debut of the Gulf Cooperation Council (GCC) Chapter on January 14, underscoring growing financial ties between Hong Kong and Middle Eastern markets. Secretary for Financial Services and the Treasury Christopher Hui outlined opportunities for collaboration in green finance, securities markets, Islamic finance, and asset and wealth management. These areas, he noted, have immense potential to drive bilateral cooperation and mutual prosperity.

Secretary General of the Cooperation Council for the Arab States of the Gulf, Jasem Mohamed Albudaiwi, reiterated the GCC’s commitment to enhancing dialogue and cooperation with Hong Kong to achieve shared economic growth and development.

China’s Support for Hong Kong’s Financial Leadership

Pan Gongsheng, Governor of the People’s Bank of China (PBOC), reaffirmed Hong Kong’s critical role in China’s financial strategy. Highlighting Hong Kong’s creativity and resilience, Pan identified four strategic directions to bolster its standing as an international financial centre:

1. Strengthening Capital Markets: Expanding the depth and breadth of Hong Kong’s capital markets and enhancing mutual access with mainland China.
2. Offshore Renminbi Hub: Cementing Hong Kong’s position as a leading offshore Renminbi business centre.
3. Asset and Wealth Management: Building on Hong Kong’s status as a premier hub for international asset and wealth management.
4. Financial Stability: Safeguarding Hong Kong’s financial stability and security.

Pan’s remarks highlighted the alignment between Beijing’s support and Hong Kong’s aspirations to remain a leading global financial centre.

Innovative Financing Solutions Highlighted

During the first Keynote Luncheon, Financial Secretary Paul Chan emphasized Hong Kong’s competitive edge in offering diverse funding options for governments and enterprises at varying development stages. He also highlighted innovative financial strategies, such as the securitisation of infrastructure loans and the introduction of catastrophe bonds, as key tools to drive financial innovation and resilience.

Global Economic Insights from Justin Yifu Lin

Former World Bank Chief Economist and Senior Vice President, Professor Justin Yifu Lin, delivered the main keynote address during the luncheon. Lin provided a comprehensive analysis of the shifting global economic landscape, examining its impact on international markets and investment opportunities. He also shed light on China’s evolving economic trajectory and its growing influence in shaping global financial systems.

Key Themes and Takeaways

1. Collaboration with Middle Eastern Markets: The new GCC Chapter signifies Hong Kong’s proactive approach to diversifying its financial partnerships, particularly in green and Islamic finance.
2. Sustainability in Finance: Discussions on green finance reflect a broader commitment to environmental, social, and governance (ESG) principles across the financial sector.
3. China’s Backing: Continued support from the Central Government underscores Hong Kong’s critical role in connecting mainland China with global financial markets.
4. Innovation-Driven Growth: Strategies like catastrophe bonds and infrastructure loan securitisation demonstrate Hong Kong’s focus on staying at the forefront of financial innovation.

A Platform for Global Financial Collaboration

As the first major financial event of 2025 in Asia, the AFF set the tone for the year ahead in global finance. By addressing key themes such as sustainable finance, innovative investment strategies, and strengthened Middle Eastern partnerships, the forum reaffirmed Hong Kong’s role as a vital international financial hub.

The inclusion of the GCC Chapter reflects Hong Kong’s efforts to diversify and deepen its financial connections, highlighting opportunities for collaboration in sectors like Islamic finance and green investments. Meanwhile, China’s unequivocal support ensures Hong Kong remains a cornerstone of the global financial system.