Enhancing HK's role as 'three centers and a hub' for national growth

Editor's note: Decision Makers is a global platform for decision makers to share their insights on events shaping today's world. Rex Chang is the Director of Office of the Government of the Hong Kong Special Administrative Region in Beijing (Beijing Office). The article reflects the author's opinions and not necessarily the views of CGTN.

The Resolution of the Central Committee of the Communist Party of China (CPC) on Further Deepening Reform Comprehensively to Advance Chinese Modernization, adopted at the third plenary session of the 20th CPC Central Committee, has emphasized the need for the Hong Kong Special Administrative Region (HKSAR) to harness the institutional strengths under "One Country, Two Systems," to consolidate and enhance Hong Kong's status as an international financial, shipping and trade center, while supporting its transformation into a global hub for high-caliber talent.

Hong Kong's status as the "three centers" is attributed not only to its unique geographical advantages and inherent strengths, but also to the strong support from our country and the concerted efforts of the HKSAR government and the community.

Under "One Country, Two Systems," Hong Kong is firmly rooted in "One Country" while enjoying the benefits of "Two Systems." Hong Kong serves our country's needs with its own strengths and, at the same time, benefits from our country's policies and development opportunities. As "Asia's World City," Hong Kong maintains its capitalist system, with free flow of capital, people and information. Its simple tax regime, robust legal system, international business environment and efficient professional services, as well as access to both the Chinese and world markets, all help make it a "super-connector" and a "super value-adder," facilitating national and global development.

Hong Kong is ranked among the top three international financial centers, boasting a diverse financial market and is home to world-class institutions and talents. In 2024, Hong Kong was among the top four initial public offering (IPO) markets globally, with total IPO funds raised exceeding $11.1 billion, a nearly 90 percent year-over-year increase. This year, Hong Kong leads the world in IPO fundraising, with 29 listings and raising almost $10 billion in the first five months.

Hong Kong continues to serve as a "testing ground" and "firewall" in the country's reform of the financial sector. Hong Kong is the premier global offshore RMB business hub, possessing the world's largest offshore pool of RMB funds, valued at approximately 1.1 trillion Chinese yuan (over $150 billion) and operating the largest offshore RMB foreign exchange and over-the-counter interest rate derivatives market. 

The HKSAR will continue to spare no effort in building the offshore RMB ecosystem, taking forward mutual market access measures supported by regulators of the HKSAR and the Chinese mainland, including the inclusion of real estate investment trusts under Stock Connect and exploring new initiatives with mainland regulators.

Hong Kong has strategically developed into an international shipping center, focusing on smart shipping technologies and green maritime initiatives. Over the years, the HKSAR has attracted shipping companies from all over the world to operate in the city. Among the top 10 ship management companies in the world, five have operations in Hong Kong, with three of them headquartered here, making the HKSAR the region with the most headquarters among the world's top 10.

To ensure the sustainable growth of its maritime and port industry, the HKSAR government launched the Action Plan on Maritime and Port Development Strategy in December 2023, outlining 10 key strategies and 32 action measures. A core priority is advancing high-value-added maritime services to enhance port competitiveness, allowing Hong Kong to serve as the "super-connector" within the Guangdong-Hong Kong-Macao Greater Bay Area.

In June this year, Hong Kong successfully completed its largest single liquefied natural gas (LNG) bunkering operation to date, with about 10,000 cubic meters of LNG supplied to a vessel. This milestone achievement advances the city's development as a premium green marine fuel bunkering hub and demonstrates the HKSAR government's strong commitment to enhancing both the sustainability and competitiveness of Hong Kong's port operations.

Furthermore, efforts are being made to establish the Hong Kong Maritime and Port Development Board. This high-level advisory body will assist the HKSAR government in formulating policies and long-term development strategies, thereby solidifying Hong Kong's position as a premier international shipping center.

Hong Kong is the world's seventh-largest trading entity in merchandise trade and 21st-largest in commercial services as of 2024. To strengthen Hong Kong's role as an international trade hub, we aim to establish the city as a leading center for multinational supply chain management. 

In 2024, Invest Hong Kong (InvestHK) assisted 539 mainland and overseas enterprises in establishing and expanding their businesses in Hong Kong, of which 273 were from the mainland. These enterprises have chosen the HKSAR as their base to expand their international business, leveraging the commercial value that Hong Kong can offer as a "super connector" and "super value-adder." 

In December 2024, InvestHK and the Hong Kong Trade Development Council established a mechanism specifically designed to attract mainland enterprises to develop international or regional headquarters in the HKSAR for managing offshore trading and supply chains, as well as providing one-stop, professional advisory services for enterprises in Hong Kong seeking to expand globally.

When it comes to an "international hub for high-caliber talents," Hong Kong stands out as the only city in the world with five of the top 100 global universities and over 50 international schools. A pluralistic and inclusive society with a blend of Chinese and Western cultures, Hong Kong offers good law and order, a low and simple tax regime and a high quality of life, making it a magnet for high-caliber talents from the mainland and overseas.

To reinforce its advantage in attracting talent, the HKSAR government has rolled out measures such as the Top Talent Pass Scheme to streamline talent recruitment. At the same time, our investment and enterprise attraction strategies are generating high-value job opportunities, further attracting and helping to retain talent. Since 2022, InvestHK has attracted over 1,400 mainland and overseas companies, with investments of more than HK$100 billion (approximately $12.74 billion) and 20,000 jobs created.

Since late 2022, the HKSAR has received over 480,000 applications for various talent admission schemes, with more than 310,000 approved, and over 210,000 talents have arrived in Hong Kong. Together with our local talents, these new talents will empower Hong Kong's high-quality development and contribute to our country's new quality productive forces.

This year marks the 28th year since Hong Kong's return to the motherland. The HKSAR's GDP has surpassed HK$3 trillion. Hong Kong's business appeal continues to grow, with local registered companies reaching a record high of over 145,000 in 2024, including 1,079 non-Hong Kong companies newly established in the territory. We are also pleased to see Hong Kong's global competitiveness rising to third globally, as announced by the International Institute for Management Development recently. 

Moreover, major rating agencies have affirmed Hong Kong's credit ratings with a stable outlook, demonstrating the city's resilience in maintaining stability amid increasing global economic and financial uncertainties. Making the most of our unique combination of advantages in the Chinese and world markets under "One Country, Two Systems," the HKSAR government is committed to advancing Hong Kong's innovation-driven growth, fostering new quality productive forces and exploring fresh areas of growth. 

At the same time, the HKSAR government will continue to improve the livelihood of Hong Kong people and unite all in building an even brighter future for our motherland.

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