The Financial Secretary, Mr Paul Chan yesterday (October 29, Riyadh time) led a delegation from the financial and innovation sectors on a visit to Riyadh, Saudi Arabia.

Mr Chan, along with the delegation, attended the first day of the 8th edition of the Future Investment Initiative (FII). He was one of the speakers in the panel discussion titled "Is the Global South Now the Engine of Growth?". This session focused on how the Global South could promote economic innovation, build resilience, and maintain growth while addressing the complexities of the international environment and the challenges of climate change.

During the discussion, Mr Chan stated that as an international financial centre, Hong Kong is actively promoting the development of green finance and green technology. He emphasised that Hong Kong could provide capital support for infrastructure and green projects in the Global South and guide funding to new projects through innovative financial products, such as securitised loans.

In response to a question, Mr Chan noted that a number of countries in the Global South are considering how to manage risks related to their trade and reserve currencies. Some are increasingly using their own currencies more for settlements. He mentioned that Hong Kong is collaborating with multiple central banks to launch the Project mBridge, aiming for faster, more cost effective, and more secure cross-border payments and settlements. He also pointed out that digitalisation and green transformation will be significant trends for the future development of the Global South, and investing in suitable projects in these areas will yield long-term returns. Furthermore, the development of fintech will help make financial services more accessible and inclusive, facilitating leapfrog development for developing countries. Hong Kong can contribute to the Global South in these areas.

During the FII, Mr Chan witnessed, together with the Minister of Investment of Saudi Arabia, Mr Khalid Al-Falih, the signing of a strategic co-operation agreement between the Hong Kong Science and Technology Parks Corporation and Beta Lab, a venture capital firm focused on deep technology in Saudi Arabia. Both parties will share resources, recommend startups to each other, facilitate connections within their startup networks, and jointly engage in market promotion and events.

A number of delegation members also spoke at various sessions of the FII, promoting Hong Kong's unique advantages as a "super connector" and "super value-adder," and how it can connect the Mainland and global capital markets and investors in multiple ways.

In the evening, Mr Chan and the delegation members attended a reception hosted by the Cathay Pacific; as well as a reception organised by the Hang Seng Investment Management to celebrate the upcoming listing of its exchange-traded fund.

Mr Chan will continue his visit in Riyadh today (October 30, Riyadh time).