Hong Kong Financial Secretary Chen Maobo recently concluded a five-day visit to Europe, where he engaged in multi-layered and in-depth discussions with political, business, and financial communities in France, Belgium, and Switzerland. Chen noted that, regarding investment, local financial representatives pointed out their current asset allocation is overly concentrated in US dollar assets, leading to excessive risk concentration. Meanwhile, despite the European public holding tens of trillions of euros in wealth and having a high savings rate globally, much of these savings are placed in conservative bank deposits and fixed-income markets, rather than being actively invested in capital markets with greater growth potential. This has hindered the channeling of funds to support local technological innovation and enhance economic dynamism. Europe also faces a funding gap of trillions of euros in addressing climate change and making strategic industrial investments. How to mobilize wealth and direct funds into the real economy to support technological innovation and application has become a key focus for Europe. For them, Hong Kong's value proposition stands out in three main areas:

First, Hong Kong is an under-allocated market for European financial institutions and investors. As one of the world's most active stock markets, a hub for venture capital, private equity, and cross-border asset and wealth management, Hong Kong offers a wide range of investment products and risk management tools, including securities, bonds, currencies, derivatives, and digital assets. Coupled with its connectivity to the cutting-edge innovation and advanced manufacturing capabilities of the Guangdong-Hong Kong-Macao Greater Bay Area and mainland China, the Hong Kong market provides diversified, high-potential investment opportunities that are highly attractive. In discussions with local asset management, venture capital, and private equity representatives, their inquiries were very specific, covering topics such as licensing requirements in Hong Kong, suitable timing for business operations, the local investment ecosystem, and how to engage with regulatory authorities.

Second, Hong Kong and Europe can explore cross-border investment and regulatory cooperation to mutually expand their markets. In recent years, Hong Kong has actively promoted connectivity with mainland and overseas capital markets, enhancing market liquidity and expanding investor options (such as cross-listing ETF products with Saudi Arabia and South Korea), while seeking dual listings for high-quality companies and cross-border regulatory cooperation. Additionally, Hong Kong is gradually building an ecosystem for "patient capital" to increase long-term support for emerging and future industries. During exchanges with European financial institutions, they showed considerable interest in Hong Kong's experience in these areas and agreed to work together to advance them.

Third, financial innovation. Leveraging blockchain and artificial intelligence technologies is an inevitable trend in future financial development, but they also present practical governance challenges, such as criminals and terrorists attempting to exploit regulatory differences between countries for money laundering and fundraising activities. At the recent "No Money for Terror" ministerial conference, preventing the misuse of financial innovation for illegal purposes became a hot topic. Chen shared Hong Kong's principles, practices, and experiences in digital asset development and regulation at the meeting. Indeed, Hong Kong is ahead of Europe in these areas, offering significant opportunities for cooperation and mutual learning, which can not only promote the healthy development of the industry but also contribute to global governance in this field.

Chen mentioned that the International Monetary Fund (IMF) recently published an assessment report praising Hong Kong's resilient and stronger-than-expected economic growth and reaffirming its status as an international financial center. The report particularly emphasized Hong Kong's role as a "super-connector" as a key advantage and acknowledged that Hong Kong's policies to advance digital finance, along with initiatives like the Northern Metropolis, can enhance cross-border integration, support innovation, and promote high-value-added services.