Hong Kong’s financial minister acknowledged the looming threat of sanctions could reduce U.S. investment but insisted the city remains well-placed to attract international talent and businesses.
When asked by The Post if he was worried about the impact of possible new US sanctions on Hong Kong, Chan replied: “Given these geopolitical tensions, capital markets will become more volatile. US funds, for example, may reduce their allocations to the region.”
“But in engaging with the US investment community, they are still very enthusiastic about the development of the Guangdong-Hong Kong-Macao Greater Bay Area and China, and believe this is the growing future.”
US direct investment in Hong Kong in 2022 was US$89.4 billion, down 3.3% from 2021.
Chan was answering questions from local and mainland Chinese journalists who were taking part in the “Hong Kong Opportunities” media tour, which aimed to promote the strengths of various Bay Area cities.
The finance minister was visiting the United States with officials from Macau and Guangdong province, spending four days in San Francisco and Berkeley as part of the country’s first joint delegation to promote the Bay Area.
On Friday, the minister praised Hong Kong’s financial services and the city’s international connections.
“Hong Kong, as an international financial centre, provides a great platform for mainland Chinese technology companies for their various fund-raising needs,” Chan said.
Secretary for Commerce and Economic Development Algernon Yau Ying-wah told reporters at a separate briefing that foreign businesses had a favourable view of Hong Kong.
“Business sectors around the world view Hong Kong favorably,” Yau said. [foreign] All the chamber officials here believe that Hong Kong has very good development prospects for investment.”
The Commerce Minister noted that about 200 companies set up shop in Hong Kong in the first quarter of this year, adding that the city remains an attractive destination for foreign investors.
Yau revealed that the government’s Strategic Investment Promotion Office, established in 2022, will help about 50 enterprises in strategic industries set up offices in Hong Kong, promising to create more than 13,000 jobs and a total investment of HK$40 billion.
He said that due to geopolitical tensions, overseas trade officials from the Economic and Trade Office, the Trade Development Council and Invest Hong Kong have been vigorously promoting Hong Kong overseas and encouraging investors to visit.
