By hannover-web.com On October 16, Hong Kong Chief Executive John Lee presented his third policy address, unveiling a series of measures aimed at stimulating business investment, fostering innovation, and providing additional support for small and medium-sized enterprises (SMEs). These proposals have garnered significant attention and positive feedback from the local business community.
In the policy address, it was highlighted that Hong Kong ranks among the top in the world for gold import and export volumes. The government intends to promote the establishment of international-grade gold storage facilities, enabling users and investors to store and settle physical gold in Hong Kong. This initiative aims to drive derivative financial services related to collateral and borrowing, thereby creating new growth opportunities for the financial sector. The Financial Services and the Treasury Bureau will form a task force to spearhead the development of an international gold trading center.
Historically, Hong Kong’s economy has relied heavily on traditional industries such as finance and real estate. The establishment of an international gold trading market is expected to offer new opportunities for economic diversification. With an influx of more commodities and financial derivatives, Hong Kong’s economic structure could become more resilient, reducing dependence on any single sector and enhancing its ability to withstand risks.
According to Zhao Shande, Senior Strategy Analyst for ETF business at Value Partners, this initiative could enhance liquidity for commodities trading during Asian market hours, helping to lower overall trading costs. He believes that Hong Kong has the potential to become a hub for commodities trading in Asia. Zhao expressed confidence that the planned international-grade storage facilities and improved trading mechanisms will showcase Hong Kong’s advantages as a secure and stable international financial center, encouraging related industries in commodities trading.
Notably, the policy address explicitly emphasizes the need to consolidate and enhance Hong Kong’s status as an international financial center. The Hong Kong Investment Fund Association pointed out that the address includes a range of reform measures aimed at deepening and broadening the financial market, further strengthening Hong Kong’s role as a center for international risk management and asset and wealth management.
“The measures introduced by the government will inject new vitality into Hong Kong’s asset management industry,” said Lian Shaodong, President of the Hong Kong Investment Fund Association. He noted that Chinese asset management institutions are prepared to actively engage with the favorable policies created by the government, striving to participate in various asset management businesses and fund product innovations, thereby reinforcing Hong Kong’s position as an international financial hub.
The policy address also specifically outlines support measures for SMEs, including allowing borrowers under the “SME Financing Guarantee Scheme” to apply for a maximum of 12 months of interest-only repayments; and assisting SMEs in upgrading and transforming their businesses through a dedicated fund aimed at brand development, market expansion, and domestic sales.
The Hong Kong Chinese Manufacturers’ Association has indicated that these measures can play a significant role as a “timely rain” for policy support, helping SMEs navigate short-term challenges while exploring new business models and directions.
Reflecting on the success of the first “Hong Kong Goodies Festival” hosted by the Hong Kong Trade Development Council (HKTDC) in August, Chairman Lin Jianyue highlighted that the event significantly increased brand exposure for participating companies, allowing them to gain practical experience in e-commerce strategies. Plans are already in place to hold the festival again next August, potentially expanding to ASEAN markets, to assist Hong Kong brands in leveraging e-commerce and social commerce opportunities. There are also ongoing efforts to enhance SMEs’ understanding of e-commerce marketing and conduct research on the e-commerce ecosystems in different markets to lay a solid foundation for their e-commerce initiatives.
