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IMF reaffirms Hong Kong’s position as an international financial centre 

The International Monetary Fund (IMF) reaffirmed Hong Kong’s position as an international financial centre and fiscal consolidation path in its concluding statement (Jan 10), following the completion of the 2024 Article IV Consultation with the Hong Kong Special Administrative Region (HKSAR). The IMF recognised that Hong Kong’s financial system remains resilient, supported by robust institutional frameworks, ample room for policy buffers, and smooth functioning of the Linked Exchange Rate System. The IMF mission projected the city’s real GDP to grow by 2.7% in both 2024 and 2025. Welcoming the IMF’s recognition of Hong Kong’s steady economic recovery and reaffirmation of the resilience of the city's financial system, Financial Secretary Paul Chan said the HKSAR Government will continue to reinforce and enhance Hong Kong’s position as an international financial centre, and give full play to the unique function of connecting with both the Mainland and the world under the “one country, two systems” arrangement.

Financial Secretary attends World Economic Forum

Financial Secretary Paul Chan arrived (Jan 20) in Davos, Switzerland, to attend the World Economic Forum Annual Meeting 2025. In a lunch meeting with representatives of several large-scale financial, transportation, industrial and technology enterprises in Europe, America, the Middle East and Japan, Mr Chan briefed them on Hong Kong’s social and economic situation, emphasising recent progress in the local financial markets and the city’s achievements in attracting businesses and talent. He outlined Hong Kong’s strategies and measures to develop its finance, innovation and technology, trade and aviation sectors, and to create opportunities for businesses and talent worldwide. Mr Chan also met with Secretary-General of the Gulf Cooperation Council Jasem Mohamed Albudaiwi to discuss strengthening bilateral trade co-operation; and the Chair of UK-based fintech company Revolut Martin Gilbert to learn about developments in its digital banking operations, cryptocurrency trading and security risk management.

Asian Financial Forum highlights new growth areas

Global finance leaders gathered in Hong Kong for the 18th Asian Financial Forum (Jan 13-14), themed “Powering the Next Growth Engine”. Over 130 elite speakers, including government officials, representatives from central banks and regulatory bodies, financial and business leaders, scholars and economists, discussed global economic and financial development, growth potential of emerging markets like the Association of Southeast Asian Nations and the Middle East, and advancements in new financial areas such as artificial intelligence, fintech, sustainable development, family offices and philanthropy. Addressing the opening session of the forum (Jan 13), Chief Executive John Lee highlighted Hong Kong’s status as an international financial centre, and as the world’s foremost ‘super connector’ and ‘super value-adder’, under ‘one country, two systems’. He added that Hong Kong is poised to power its next growth engine and contribute to the region’s overall development. Delivering keynote luncheon remarks (Jan 13), Financial Secretary Paul Chan elaborated on Hong Kong’s strengths in innovation and technology in partnership with sister cities in the Greater Bay Area, and the contributions it can make to productivity enhancement and sustainable development in the region. The two-day forum has attracted about 3,600 participants from around 50 countries or regions.

Record-breaking year for Invest Hong Kong

Invest Hong Kong achieved a record-breaking year for foreign direct investment in 2024 by assisting 539 overseas and Mainland companies to set up or expand operations in Hong Kong, an increase of 41% year-on-year, bringing a total investment over US$8.68 billion, a record high representing a nearly 10% increase compared to 2023. These companies are expected to create 6,864 job opportunities. Of the 539 companies, 273 came from the Mainland, followed by the US (52) and France (24), with top sectors from innovation and technology, financial services and fintech, and family offices. Director-General of Investment Promotion Alpha Lau said (Jan 20) the results reflect overseas and Mainland enterprises having full confidence in Hong Kong, selecting the city as their base to expand regional businesses in Asia to capture the unique opportunities brought by Hong Kong.

Number of companies registered in Hong Kong increases

The total number of local companies and non-Hong Kong companies registered under the Companies Ordinance reached 1,460,494 and 15,126 respectively by the end of 2024, both all-time high, according to the Companies Registry (Jan 17). This demonstrated fully Hong Kong’s attractiveness as an international business hub. Hong Kong’s fund industry also showed strong growth momentum with an increase in the numbers of Limited Partnership Funds (LPFs), and Open-ended Fund Companies (OFCs). By the end of 2024, Hong Kong has a total of 997 LPFs and 472 OFCs, up 35% and 93% respectively, compared to the end of 2023. The Government will press ahead with the implementation of the company re-domiciliation regime to attract foreign companies, bringing demand for professional services, investment and job opportunities while injecting impetus into the development of the local market.

New investment scheme enhanced

Enhancement measures for Hong Kong’s New Capital Investment Entrant Scheme (New CIES) will take effect on Mar 1 and is expected to bring in investment exceeding US$3 billion. The measures include the relaxation of the applicants’ asset assessment and calculation requirements. An applicant under the New CIES is only required to demonstrate net assets or net equity to which the applicant is absolutely beneficially entitled with a market value of not less than US$3.8 million net throughout six months, in the two years preceding the application. Additionally, net assets or net equity jointly owned with the applicant’s family members can be taken into consideration for the calculation of the net asset requirement for the respective portion. Investments made through an eligible private company wholly owned by an applicant will also be counted towards their eligible investment in the scheme. These measures are expected to encourage more investors to join the scheme and can create synergy with the tax concession regime for family offices, thereby promoting the development of family office businesses in Hong Kong.

The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBoC) announced (Jan 13) new policy measures to deepen the financial market connectivity between Hong Kong and the Mainland, and consolidate Hong Kong’s status as the global offshore RMB business hub. These measures include the introduction of HKMA-RMB Trade Financing Liquidity Facility in late February to provide a stable source of relatively lower-cost RMB funds to support banks in providing RMB trade finance services to their corporate customers; further enhancement and expansion of Bond Connect (Southbound); offshore RMB repurchase using Northbound Bond Connect bonds as collateral; and the inclusion of Northbound Bond Connect bonds as eligible margin collateral at OTC Clearing Hong Kong Limited. The HKMA and the PBoC are working closely together to implement the linkage of faster payment systems in the Mainland and Hong Kong, with some services to be launched around mid-2025.

London Metal Exchange’s inclusion of Hong Kong as approved delivery point welcomed

The HKSAR Government welcomed the inclusion of Hong Kong as a delivery point within the global warehousing network of the London Metal Exchange (LME), a subsidiary of Hong Kong Exchanges & Clearing. The establishment of LME-accredited warehouses in Hong Kong will provide the most convenient, more cost-effective and safer delivery channels for related metals trading in the region. It will also increase the demand for Hong Kong's trade, shipping, warehousing and transportation industries, strengthen Hong Kong’s commodities ecosystem, and lay a foundation for future financial-related trading. Secretary for Financial Services & the Treasury Christopher Hui said this will bring efficient and comprehensive services to the global metal markets, leveraging Hong Kong’s institutional and legal advantages and help consolidate and enhance Hong Kong’s position as an international financial, shipping and trade centre.

HKETONY, HK arts experts discuss support for emerging artists

On Jan 14, Director of Hong Kong Economic and Trade Office in New York (HKETONY) Maisie Ho, former Executive Director of the Hong Kong Arts Festival Tisa Ho, Executive Director (Performing Arts) of West Kowloon Cultural District Authority (WKCDA) Paul Tam; Head of Marketing & Branding (Performing Arts) at WKCDA Nick Chan; Producer of TS Crew Andy Lo; and Executive Artistic Director of Toolbox Percussion Louis Siu engaged in a productive discussions on promoting art exchanges and supporting emerging Hong Kong artists in expanding their reach to the US East Coast. The distinguished Hong Kong delegates were in town for the International Society for the Performing Arts’ (ISPA) 2025 New York Congress. Tisa Ho was named the recipient of this year’s ISPA Patrick Hayes Award, which honours transformative leadership in the performing arts.

HKETONY Director officiates at UIC Boston Center opening

Director of HKETONY Maisie Ho officiated at the grand opening of the Beijing Normal University-Hong Kong Baptist University United International College (UIC) Boston Center on Jan 16. In her congratulatory remarks, she highlighted Hong Kong’s commitment to being an international education hub, increasing non-local student quotas, expanding scholarships, and enhancing talent admission schemes. Additionally, Hong Kong’s research and development initiatives, such as InnoHK, foster global collaboration, with notable achievements in healthcare technology. The UIC Boston Center, in collaboration with institutions like Northeastern University, Brandeis University, Emerson College, and Harvard University, will enrich academic exchanges and research partnerships.

CNY Night Parade to usher in Year of the Snake

Hong Kong is ready to usher in the Year of the Snake when the Cathay International Chinese New Year Night Parade roars in exuberant style to welcome the first day of the Year of the Snake on Jan 29, kicking off a host of seasonal events across Hong Kong. Themed “Unfold a Year of Good Fortune” this year, the annual event will feature performers from Hong Kong and around the world including the winner of 2020 America's Got Talent: The Champions, V.UNBEATABLE DANCE GROUP. Top performers from the US, France, Australia and Japan will join the show by Hong Kong Rope Skipping Association. Another highlight will be the 2025 Lunar New Year Fireworks Display, a 23-minute pyrotechnic extravaganza lighting up Victoria Harbour on Jan 30.

Giant panda twins to make public debut on Feb 16

Get ready for it! Hong Kong’s giant panda twin cubs will make their public debut on Feb 16 at Ocean Park’s “Giant Panda Adventure” exhibit. This follows a Giant Panda Twin Cubs Greeting Ceremony to be held on Feb 15, which coincides with their six-month birth milestone. The cubs, nicknamed “Elder Sister” and “Little Brother” were born on Aug 15, 2024 to Ying Ying and Le Le, making them the first-ever giant pandas born at Ocean Park. Members of the public will have the chance to name the twin cubs, with details to be announced in due course.

2024 visitor arrivals to Hong Kong close to 45 million

Hong Kong welcomed close to 45 million visitors in 2024, up 31% year-on-year, according to figures released (Jan 15) by the Hong Kong Tourism Board. The Mainland remained the largest visitor source market, contributing to about 34 million visitor arrivals, up 27% year-on-year. Hong Kong received a total of 10.5 million non-Mainland visitors in 2024, up 44% from the previous year. With the gradual resumption of flight capacity, visitors from long-haul markets, including the US, Canada, Australia and Europe, also grew by more than 50%.

“SKYTOPIA” airport city unveiled

The Airport Authority Hong Kong (AAHK) presented (Jan 16) its new brand vision - “SKYTOPIA” Airport City blueprint, showcasing the development potential and investment opportunities for Hong Kong as well as the Greater Bay Area and beyond. Capitalising on the land and marine resources near Hong Kong International Airport in Chek Lap Kok, “SKYTOPIA” features a wide variety of projects such as a one-stop art hub and a dedicated art storage facility, 500-berth yacht marina, jet fresh gourmet food market, large scale “sportainment” complex, marine resort and luxury hotel and much more.

2025 Legal Year opens

Chief Justice Andrew Cheung said the Judiciary is firmly committed to upholding basic rights while safeguarding national security. Speaking at the Ceremonial Opening of the Legal Year 2025 (Jan 20). “The presumption of innocence, the requirement that guilt be proved beyond reasonable doubt, and the right to a fair trial are all essential safeguards that remain firmly in place. Indeed, they are specifically affirmed under Article 5 of the National Security Law as well as section 2 of the Safeguarding National Security Ordinance,” he said. Also speaking at the event, Secretary for Justice Paul Lam noted that the participation of eminent foreign judges in the work of the CFA not only benefits Hong Kong but also the common law world, adding that the HKSAR Government is in full support of the Judiciary in its continuous efforts to appoint and retain foreign Non-Permanent Judges in future.

HKSAR Government defends rule of law

The HKSAR Government said (Jan 16) it strongly disapproves of and condemns the US’ malicious attack through signing a memorandum which slanders Hong Kong’s rule of law, democracy and human rights situation, and extends and expands the Deferred Enforced Departure eligibility for certain Hong Kong residents in the US. In a press statement, the HKSAR Government pointed out that the US, having at least 21 pieces of laws about national security, is in no position to point its finger at Hong Kong’s legal system and enforcement mechanisms to safeguard national security. The HKSAR Government reiterated that it will resolutely, fully and faithfully implement the National Security Law, the Safeguarding National Security Ordinance and other relevant laws safeguarding national security in the Hong Kong SAR, and at the same time protects the legal interests, rights and freedoms enjoyed by Hong Kong residents and other people in Hong Kong in accordance with the law, ensuring the steadfast and successful implementation of “one country, two systems”.

The Basic Law (BL) is the constitutional document of the HKSAR. It provides the guarantees to maintain our existing way of life, including socio-economic development, the rights and duties of Hong Kong people, the rule of law and other areas. The Basic Law was put into effect on July 1, 1997.

Q1: Who shall preside over the Executive Council of the HKSAR as prescribed by the Basic Law?

A1: According to Article 56 of the Basic Law, the Executive Council of the HKSAR shall be presided over by the Chief Executive.