Hong Kong's Financial Secretary Paul Chan Warns of Risks from Geopolitical Uncertainty

Hong Kong's Financial Secretary Paul Chanwarned of the downside risks brought by geopolitical uncertainties to the financial market at an Asia-Pacific Economic Cooperation (APEC) finance ministers' meeting, advocating for a prudent approach. He noted that while the global economy has shown resilience, growth remains uneven and under strain. Asia's growth has surpassed the global average, supported by technology-related trade and investments, and this momentum can be seen in Hong Kong's strong export growth and significant AI-related IPO proceeds.

Uneven Growth in Asia

While the global economy has shown resilience, growth remains uneven and under strain. Asia's growth has surpassed the global average, driven by technology-related trade and investments, and this momentum can be seen in Hong Kong's strong export growth and significant proceeds from initial public offerings (IPOs) attributed to AI-related companies.

Addressing the Challenges

Paul Chan highlighted that concentrating on AI-related assets could lead to amplified market corrections across sectors and borders, while geopolitical disruptions would constrain fiscal space. Managing these risks requires fiscal prudence, vigilant financial oversight, and closer cooperation in information sharing, risk monitoring, and emergency response.