Jonathan Choi:
Hong Kong’s participation in RCEP can lead to a win-win situation with regional Chinese businesses
Jonathan Choi, the Chamber’s Chairman, pointed out that Hong Kong is actively striving to join the RCEP which can lead to mutual benefits and win-win outcomes with Chinese entrepreneurs and companies in the region in four key aspects: (1) Leveraging Hong Kong’s extensive experience in supply chain management to establish a more refined and complete industrial chain division of labour with Chinese entrepreneurs to strengthen economic and trade ties in the region; (2) Making good use of Hong Kong’s unique advantages under the “One Country, Two Systems” principle to become an important gateway for Chinese entrepreneurs to the Mainland and provide “One-stop” professional service support; (3) Deepening regional financial cooperation to provide Chinese entrepreneurs with efficient and flexible financing channels; (4) By collaborating closely with Chinese entrepreneurs across various innovation fields, Hong Kong can become a springboard to enter the Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area) and Mainland I&T markets.
Expecting Hong Kong to join RCEP as soon as possible
John Lee, Chief Executive of the HKSAR, said, Under the “One Country, Two Systems” principle, Hong Kong uniquely benefits from China's advantages with global strengths. This enables Hong Kong to leverage its unique position and grab the opportunities presented by the RCEP. Hong Kong can offer high-quality services to RCEP member companies, including supply chain management, financial and professional services. These services can help companies better connect with the Greater Bay Area and boost the development of the economies and I&T industries of RCEP members and the region as a whole. At the same time, the HKSAR Government has actively led delegations for overseas visits, including to ASEAN and the Middle East, to garner support from relevant government and organization members for Hong Kong’s bid to join the RCEP, receiving positive responses. He expressed hope that Hong Kong could join the RCEP as soon as possible. He also looks to Chinese entrepreneurs worldwide continuing to tell the good story of Hong Kong and working together in promoting regional cooperation, creating mutual benefits and achieving win-win outcomes.
Kao Kim Hourn:
Hoping RCEP can further deepen regional economic connections
Kao Kim Hourn, Secretary-General of the ASEAN, pointed out that ASEAN is set to remain a key driver of economic growth in the Asia-Pacific region, with growth in the ASEAN region projected to reach 4.6% this year and 4.7% next year. China has been ASEAN’s largest trading partner since 2009. Last year, the total trade volume between China and ASEAN made up 19.7% of ASEAN’s total trade. In terms of foreign direct investment, China is the third largest source for ASEAN, following the US and the EU. The RCEP has boosted the growth of regional trade and investment, while China and ASEAN have close trade relations. The continuing growth in trade between them will offer a vast market for companies. In addition, the RCEP has reinforced supply chain connections and stability among ASEAN, China and Hong Kong. Kao expects Hong Kong to join RCEP as soon as possible and he looks to the RCEP further deepening regional economic ties and enhancing cooperation in areas such as green economy, supply chains and consumer protection, and providing an effective platform for companies in the region to promote business development.
Make Use of Hong Kong’s Financial Services to Explore Market
Opportunities of the RCEP
The Summit featured three panel discussions. The first panel session focused on making use of Hong Kong’s financial services to explore the RCEP’s market opportunities. KC Chan, Chairman of WeLab Bank and Senior Advisor of WeLab, served as the moderator. Christopher Hui, Secretary for Financial Services and the Treasury; SAR Senera, Deputy Secretary General of the Cambodian Investment Board of the Council for the Development of Cambodia; Wilfred Yiu, Deputy Chief Executive Officer of Hong Kong Exchanges and Clearing Limited; Ma Jun, Chairman and President of Hong Kong Green Finance Association and Li Tong, Deputy Chief Executive of Bank of China (Hong Kong) Limited exchanged views at the session.
KC Chan:
Hong Kong can serve as a wealth manager for RCEP
Finance is vital for the economic development of ASEAN and other RCEP countries. However, Chan said, geopolitical tensions in recent years have impacted capital liquidity and may lead to shifts in the financial industry. As a result, financing forms and channels need to be adapted to the current conditions. Over the past few decades, capital inflows and wealth in RCEP countries, particularly in the ASEAN region, have significantly increased, attracting substantial investment. How to make good use of the wealth in this region has become an important issue. Hong Kong is poised to play a role as a wealth and capital manager in this region.
SAR Serena:
Looking forward to exploring financial opportunities in Cambodia together with Hong Kong
SAR Senera said, as a RCEP member, Cambodia is experiencing new business opportunities brought by joining the agreement. The country aims to strengthen its ties with China and Hong Kong to explore even greater prospects together. RCEP member countries, especially less developed ones such as Cambodia, can leverage Hong Kong’s strengths in finance, professional services and I&T to explore cooperative business opportunities with each other. Cambodia’s financial sector has gradually shown development potential in recent years. To align with the rules of the RCEP and address the competition it brings, Cambodia has relaxed its planning regulations and established a robust regulatory framework. This has created a welcoming environment for overseas financial companies, such as those in the fintech sector, to capitalize on Cambodia’s financial opportunities.
Wilfred Yiu:
Hong Kong should continue leveraging mutual market access platforms
Hong Kong is a resilient and agile international financial center with a robust core financial infrastructure, and increasingly diversified channels, platforms and product ecosystem. These give Hong Kong a unique role as an East-West superconnector, especially in connecting China and the world, facilitating the two-way flow of capital between them. We are pleased to see RCEP’s growing importance in encouraging foreign trade and investment activities across the globe, especially in the Asia-Pacific region. In future, Hong Kong should continue leveraging mutual market access platforms to help Hong Kong and international companies to access capital in Mainland China, and facilitate Chinese enterprises’ gaining access to the rest of the world. This will enable investors and businesses to further tap on the greater growth opportunities within the RCEP bloc and beyond.
Ma Jun:
Hong Kong becomes a driving force for green financial cooperation within the Asian region
Hong Kong has made significant strides in the field of green finance, such as green bonds. Ma pointed out that, it has been providing green financing for many companies in the Mainland and RCEP markets. Going forward, Hong Kong can further promote green finance cooperation in the region, especially in promoting the compatibility of green finance standards, as well as measurement and certification of product carbon footprints in the Asian region. This initiative will contribute to regional exports.. Moreover, Hong Kong can offer a variety of green financing options, including rapidly developing sustainability-linked loans and bonds. These arrangements can help companies committed to reducing carbon emissions secure lower-cost funding. Also, many Mainland companies engaged in electric vehicles, batteries, wind energy and photovoltaics are looking to invest and establish factories in Southeast Asia. Hong Kong is well-positioned to meet their financing needs.
Li Tong:
RCEP promotes Hong Kong’s high-level professional services exports to ASEAN
Li said, Hong Kong has always maintained close economic and trade relations with RCEP member countries. Hong Kong’s participation in the RCEP will help expand its business network and strengthen its financial interconnections with the Mainland and other RCEP countries. This is expected to boost demand for financial services and create new business opportunities. Hong Kong has always served as a bridge between China and the rest of the world, playing a central role in the Greater Bay Area. The RCEP can further enhance Hong Kong’s position as an investment hub between the Mainland and international markets, providing new momentum for in-depth regional financial cooperation and collaboration. In addition, the RCEP can promote the export of Hong Kong's high-level professional services to ASEAN. This not only facilitates the regional development of Hong Kong’s professional services but also attracts new customer to cross-border financial services.
Market Development of the RCEP and Opportunities for Hong Kong
Professional Services
The second panel session discussed market development in the RCEP and the opportunities for Hong Kong’s professional services. Algernon Yau, Secretary for Commerce and Economic Development; Teresa Cheng, Founder and Co-chairman of Asian Academy of International Law; CM Chan, Immediate Past President of the Law Society of Hong Kong; Natalie Chan, Banking & Capital Markets Leader (Hong Kong) of Deloitte Touché Tohmatsu and Antony Chan, Vice President of the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. served as guest speakers. Thomas So, Chairman of eBRAM International Online Dispute Resolution Centre was the moderator.
Thomas So:
Hong Kong’s advantages provide strong support for business expansion
Hong Kong, as an international financial center and professional services hub, offers unique advantages that can significantly support companies aiming to expand into the Mainland and RCEP markets, and strengthen collaborative development among RCEP member countries. So pointed out that the demand for cross-border arbitration and mediation will increase after the RCEP has come into effect. Hong Kong’s accession to the RCEP will further enhance its strengths in international arbitration and mediation, offering more comprehensive and convenient dispute resolution services for companies in the region. The online dispute resolution platform currently available in Hong Kong can help cross-border companies overcome geographical and time constraints, thereby reducing unnecessary administrative costs for companies to a certain extent.
Algernon Yau:
Hong Kong’s participation in RCEP can expand its network of free trade agreements
Yau said, as an export-oriented economy, Hong Kong needs to fully leverage its role as a “super connector” to address external challenges, enhance its ties with other economies, and solidify its status as a financial center and international trade hub. Hong Kong’s accession to the RCEP can expand its network of free trade agreements and bring more opportunities to various industries. Yau anticipates strong support from the business community for the HKSAR Government’s application to join the RCEP, including strengthening external publicity, telling the good story of Hong Kong, and inviting more overseas companies to Hong Kong to understand the actual situation of the city. Hong Kong companies should leverage the Professional Services Advancement Support Scheme (PASS) to enhance their external promotion efforts and elevate the quality of their professional services.
Teresa Cheng:
Hong Kong’s arbitration credibility receives international recognition
Hong Kong’s legal framework emphasizes judicial independence, transparency and impartiality, offering robust protection for investors. Cheng pointed out that, as a common law jurisdiction, Hong Kong is internationally recognized and well-equipped to deal with transnational commercial disputes, making it an attractive destination for global investment. Currently, arbitration is the preferred method for resolving cross-border commercial disputes. Hong Kong has consistently been ranked as one of the top three preferred arbitration venues globally. It has a unique arbitration preservation arrangement with the Mainland, applicable only to Hong Kong and Macao. Hong Kong hosts seven arbitration institutions, including the international organization AALCO Hong Kong Regional Arbitration Centre. This underscores the credibility and reliability of Hong Kong’s arbitration system. Furthermore, Hong Kong has advocated for the establishment of an international mediation court to offer more options for resolving international disputes.
CM Chan:
Hong Kong can assist Mainland enterprises in investing in RCEP member countries
Chan pointed out that, as the only common law jurisdiction in China, Hong Kong is well-versed in the local legal systems of these countries and can assist Mainland companies in investing in them. RCEP companies looking to expand their business in the Mainland can consider setting up companies in Hong Kong. By doing so, they can sign contracts with Mainland companies through their Hong Kong entities, utilize services offered by the Hong Kong legal profession, and resolve legal disputes in Hong Kong.
He said, Hong Kong has over 15,000 lawyers, while the Mainland boasts more than 700,000 lawyers. However, only around 10,000 of these Mainland lawyers possess experience in foreign-related legal matters. Therefore, the Hong Kong legal profession can leverage its strengths and add value to Mainland companies in their international dealings through the common law system.
Natalie Chan:
Hong Kong’s competitiveness is strong in financial, tax and risk management consulting
Hong Kong, as an international financial center, boasts a robust legal system, comprehensive financial infrastructure, and a wealth of skilled professionals. Chan said, Hong Kong’s professional service institutions have achieved international standards and excel in finance, taxation and risk management consulting. They can assist companies in conducting business in the Mainland and RCEP markets, including optimizing their capital structures and minimizing tax risks. These institutions also have a broad international network and can offer one-stop services for RCEP companies to invest and operate in the Mainland. Hong Kong’s professional services can provide service solutions such as data analysis and cloud technology to support RCEP companies in developing cross-border e-commerce, creating new opportunities for the digital economy.
Antony Chan:
Hong Kong’s professional services assist Chinese businesses in expanding into the RCEP market
Chan pointed out that, Hong Kong’s professional services can collaborate with global Chinese entrepreneurs to promote products and services within the RCEP markets. The FFCCCII strongly supports Hong Kong’s accession to the RCEP because Hong Kong has the most favourable tax system and the most open market. The FFCCCII can assist Hong Kong’s professional service institutions in entering the Philippine market. The Philippines offers significant development opportunities in sectors such as green energy, department stores, light industry and holiday resorts, which Hong Kong companies may consider exploring.
How the RCEP can Drive the Momentum of Hong Kong’s Innovation
and Technology
The panel session in the afternoon focused on the development prospects of the innovation and technology (I&T) industry in the RCEP markets. Lillian Cheong, Under Secretary for Innovation, Technology and Industry; Yang Qiuhua, Chairman of Shanghai Pharmaceutical Holding Co Ltd; Levi Nguyen, Chief Executive Officer of FPT Greater Bay Indochina and JB Kim, Founder and CEO of SuperBin Co Ltd shared their views. Hendrick Sin, Co-founder and Vice-Chairman of CMGE Technology Group was the moderator.
Hendrick Sin:
RCEP can broaden the prospects of Hong Kong’s innovation and technology development
The RCEP can indeed broaden Hong Kong’s prospects for I&T development. Sin pointed out that It can also drive the development of biotechnology and pharmaceuticals, with biomedicine being one of Hong Kong’s key development areas. At the same time, I&T and digitalization, especially AI, are the keys to many companies expanding their businesses. They also aim to leverage Hong Kong and the RCEP region to expand their business internationally.
Lillian Cheong:
RCEP holds significant importance in constructing a common market in the Asia-Pacific region
Cheong said, in recent years, Hong Kong has committed to building a new physical economy through I&T. One significant aspect of the RCEP is its aim to create a common market in the Asia-Pacific region. The member countries and economies within the RCEP region are rapidly advancing in areas such as internet platforms, AI, biomedicine and robotics. This progress is set to provide greater development opportunities and market space for Hong Kong’s I&T companies. At the same time, Hong Kong has always maintained close ties with various RCEP member countries and regions. It can enable Mainland technology companies to expand into the RCEP markets. For instance, Mainland companies can set up international headquarters, R&D centers, IP centers and investment hubs in Hong Kong. Leveraging its unique institutional and locational advantages, Hong Kong can effectively help Mainland I&T companies in accessing the vast RCEP market.
Yang Qiuhua:
Hong Kong’s geographical advantage contributes to the internationalization of the domestic pharmaceutical industry
Yang pointed out that the company leverages Hong Kong’s geographical advantages, the convenience brought by the integration of financial industries, and the RCEP policy framework to develop the biopharmaceutical industry. The domestic biopharmaceutical industry can strengthen its R&D capabilities and be more internationalized by setting up research laboratories in Hong Kong, sourcing significant quantities of raw and auxiliary materials and testing instruments through Hong Kong, and exporting innovative drugs and key intermediates under the RCEP framework.
Levi Nguyen:
Generative AI can enhance Hong Kong’s financial competitiveness
Nguyen said, Hong Kong, as an international financial center, can further enhance its competitive edge in the region through generative AI. For example, using AI to provide automated claims solutions for insurance companies, or using AI to promote banking products faster and at a lower cost. We can use this to optimize the cost of the technology platform in Hong Kong and then expand this approach to other countries and the RCEP region, which can achieve substantial benefits.
JB Kim:
Collaboration realizes progress in innovative technology
Kim said, the application of AI and technologies can facilitate the development of circular economies in various regions, making industries and businesses cleaner and more environmentally friendly. Therefore, the company has established a waste recycling system using various technologies such as fintech, AI and UI, which it believes can benefit different countries and foster regional cooperation, such as within the RCEP. Going forward, through increased collaboration and ongoing talent development, it will continue to drive continuous technological innovation to meet societal needs.
Funded by Trade and Industrial Organisation Support Fund, Trade and Industry Department
Any opinions, findings, conclusions or recommendations expressed in this material /event (or by members of the project team) do not reflect the views of the Government of the Hong Kong Special Administrative Region or the Vetting Committee of the Trade and Industrial Organisation Support Fund.
