China-US dialogue will ease concerns, but competition will remain, Paul Chan says

Despite ongoing competition between China and the US, increased dialogue between the two nations will provide greater global certainty and ease geopolitical concerns, according to Hong Kong's Financial Secretary Paul Chan Mo-po. In an interview with the South China Morning Post, Chan emphasized that enhanced communication between the two superpowers would be beneficial for everyone, as President Xi Jinping and President Trump concluded their historic summit in Washington last week.

Chan also discussed the upcoming Apec Finance Ministers’ Meeting, which will take place in Hong Kong on October 20 and 21. The event will feature hundreds of global leaders, providing them with a firsthand view of Hong Kong's vibrancy. The city has been supported by Beijing in hosting this finance ministers' meeting, as the central government aims to enhance Hong Kong's reputation as a global financial center.

In regards to his future plans, Chan stated that officials have been focusing their efforts on advancing various policy agendas and initiatives. He also addressed the three-day China-US summit, which saw tensions ease and a trade truce extended by two months until January. Chan reiterated that dialogue and communication are crucial for all parties involved, not just China, the US, and Hong Kong, but also for the global community.

Despite geopolitical tensions, Chan expects Hong Kong to continue attracting foreign capital and connecting mainland China to the rest of the world. Net inflows into Hong Kong-domiciled funds reached HK$118 billion (US$15 billion) in the first five months of 2026, marking a 118% year-on-year surge from HK$357 billion in 2025. Total assets under management grew by 20% to HK$42.2 trillion in 2025, with most capital coming from outside the mainland and Hong Kong.

Chan highlighted the city's robust stock market, which has seen robust trading volumes and a larger number of new listings in recent years. The IPO market grew by 153% in the first eight months of 2026 compared to the same period last year. Chan also mentioned plans to expand the global use of the yuan, as Hong Kong currently serves as a "firewall" for the wider nation's financial security.

The city aims to develop yuan product offerings to raise liquidity and act as a testing bed for yuan products, as several central banks plan to increase their yuan holdings to pursue diversification.