Hong Kong and Europe can pursue practical, mutually beneficial cooperation in areas like trade and investment, as well as innovation and technology, as Europe has strong appetite for change, seeking to build greater economic resilience through multilateral collaboration and risk diversification, Financial Secretary Paul Chan Mo-po said on Sunday.
Writing in his weekly blog, Chan said the Chinese and broader Asia-Pacific markets represent major opportunities for European businesses, with Hong Kong as the ideal gateway for them to seize these prospects and expand operations.
Chan, who ended a five-day visit to France, Belgium and Switzerland on Saturday, said channeling capital into the real economy and supporting technological innovation have become major priorities for Europe. The special administrative region’s value proposition aligns well with these goals and can facilitate mutually beneficial outcomes.
He said representatives of asset management firms, venture capital funds and private equity groups have been seeking his advice on licensing requirements in the SAR, the optimal timing to set up operations, the local investment ecosystem, and how to engage effectively with regulators.
Hong Kong is an under-allocated market for many European financial institutions and investors, he said. As one of the world’s most active stock markets, a hub for venture capital, startup investment and private equity funds, and a leading center for cross-border asset-and-wealth management, the city offers a wide range of investment products and risk management tools.
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Combined with its strong connectivity to the advanced innovation and technology ecosystem and manufacturing capabilities of the Guangdong-Hong Kong-Macao Greater Bay Area and the Chinese mainland, Hong Kong offers European investors attractive opportunities for diversified asset allocation and high potential returns.
Chan said the SAR and Europe could further unlock mutual market access by exploring cross-border investment and regulatory cooperation. To bolster liquidity and diversify options, Hong Kong is strengthening its links with the Chinese mainland and global capital markets, while encouraging high-caliber firms to pursue dual listings and cross-border regulatory collaboration.
Hong Kong is also fostering a “patient capital” ecosystem designed to provide sustained backing for frontier industries. Chan said European financial institutions have shown keen interest in Hong Kong’s experience in these areas and pledged to work together to advance these initiatives.
In financial innovation, he pointed out that the effective application of blockchain and artificial intelligence technologies is an inevitable trend although it also presents real governance challenges. Hong Kong is ahead of Europe in digital asset development and regulation, creating substantial scope for cooperation and mutual learning. Such collaboration can help foster healthy industry growth and contribute to global governance standards in this field.
The International Monetary Fund released its 2026 Article IV Consultation for Hong Kong document on Friday, strongly endorsing the city’s economic resilience and status as an international financial center. The report highlighted Hong Kong’s “super connector” role as its key strength.
According to Chan, high-quality enterprises from the mainland are accelerating their global production and supply-chain deployment, and Hong Kong is well positioned to play a key bridging role in supporting their outbound expansion.
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He said he has invited representatives of the European Union and international institutions to visit Hong Kong and the Greater Bay Area to better understand the opportunities available, and explore flexible cooperation models, with the aim of fostering more stable, long-term and mutually beneficial development for both sides.