New challenges faced by Hong Kong as an international financial centre  - (2015/06/11)

President, first of all, I have to thank Mr NG Leung-sing for moving this far-sighted motion. Mr Martin LIAO and Mr Jeffrey LAM even mentioned the new challenges brought by the "One Belt One Road" initiative in their respective amendments. I think this exactly is an important topic of people's concern. The "One Belt One Road" initiative brings about many opportunities and challenges to the Hong Kong economy and is thus worthy of our in-depth exploration.

Regarding the two routes of the "One Belt One Road" initiative, one will go past central and west Asia on land, and connect China with Europe; and the other one is a sea route connecting China with Southeast Asia, the Middle East and Europe. The objective is to promote linkage of trading activities, financial integration, infrastructural investment, as well as policy co-ordination among different countries in Asia and Europe. The significance of the "One Belt One Road" strategy is on the way to develop the economies of various countries along the routes and bring about new opportunities. This can enhance the infrastructural capacity of developing Asian countries, inject new vitality to Europe which is stuck in the bottleneck of development, and create a new global economic structure.

One of the important financing arrangements is to make use of the established Asian Infrastructure Investment Bank (AIIB) as the infrastructural investment platform in the region. Due to the very high economic incentive, within just a few months, a total of 57 countries have been included as the prospective founding members of AIIB, and 20 of them come from Europe. Among the 10 major economies of the world, eight of them have already joined the AIIB, including China, Germany, France, the United Kingdom, Brazil, Italy, Russia and India. We can see that this strategic arrangement has received very positive response across the world. People all hope that the "One Belt One Road" initiative can bring new opportunities to the economy of their respective nations.

Under the framework of "one country, two systems", Hong Kong can, through the "One Belt One Road" arrangement, give full play to its good foundation and abundant experience in pursuing market economy. It can thus take up an important intermediary and investment role for the AIIB and the nation in the promotion of economic related projects. In regard to the existing pillar industries of finance, professional services, shipping, logistics and tourism, we can play our supportive role properly and look for business opportunities. Therefore, I think that at the present stage, the Government may consider getting well-prepared in the following aspects:

Firstly, a clear positioning is needed. Hong Kong enjoys unique geographical advantages. It is one of the cities along the Maritime Silk Road. Hong Kong has been playing an important role of connecting the Mainland and overseas countries. We have good legal foundation solid experience in upholding the rule of law, our political affairs are open and our degree of probity is high. We are able to create an impartial, transparent and highly efficient business environment for enterprises. In Asia and even elsewhere across the world, we have been highly appraised for our port efficiency, freight services and aviation services. Under the "One Belt One Road" arrangements, exchanges among different countries will increase. The Hong Kong Government can make use of its own advantages and act as a bridge of communication between the nation and other countries. For Hong Kong's financial, professional services, shipping and logistics, as well as tourism, we should fight for more concessionary policies from the Mainland. We should strive for the right to hold various kinds of high-end exhibitions, summit meetings and forums in Hong Kong. Through skewed policies and holding of activities, Hong Kong can make our professional status stand out in the economic arena within the region, and can seek for more business opportunities.

Secondly, the international maritime and aviation networks should be further extended. Under the "One Belt One Road" initiative, some countries which were unknown, undeveloped or rather enclosed in the past can make use of the AIIB funding to develop their economies. The volume of commercial and tourist activities will definitely increase. Therefore, it is necessary for the Government to have further planning of the future transportation development on the basis of the existing transportation network. It should also commence the project of the third runway system as soon as possible, and assist the maritime and aviation industries in exploring routes to cater for the increasing passenger flow and logistics needs in the coming future.

Thirdly, we should proactively seek opportunities and make concerted efforts to consolidate our status as a financial centre. Hong Kong is a free port where most of the import and export goods are tariff free, and foreign exchange is also free of control as well. Our financial and professional services have developed to a mature stage. Hong Kong is also the largest asset management centre in Asia and the most well established offshore Renminbi business centre in the world. However, as Mainland cities are setting up free trade zones one after another, lowering the tariff of commodities, improving the rule of law gradually and seeking to turn Renminbi into a freely convertible currency, our competitive edges have started to be weakened slowly. Hong Kong is backed up by the Mainland, and the nation also hopes that Hong Kong will be prosperous. Under such circumstances, the Government should make good use of Hong Kong's unique edges in the financial area to capitalize on the early opportunities available, so as to strive for a more important role under the "One Belt One Road" initiative. In my opinion, the few specific proposals in the amendment of Mr Paul TSE are worth our reference.

President, in recent years, the Mainland has been conducting economic reforms while various countries are also putting great efforts in developing their economies. On the contrary, we just argue incessantly. Some people even advocate "independence of Hong Kong" and try to damage the harmonious relationship between the Hong Kong people and the Mainland people. I hope that we can treasure the opportunities brought by the "One Belt One Road" initiative and minimize internal friction, so that we can create more and better development space for our next generation.

I so submit.