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

China and the United States will continue to engage in competition, but increased dialogue between the two economic superpowers will foster global certainty and reduce geopolitical concerns, according to Hong Kong's Financial Secretary, Paul Chan Mo-po. During a wide-ranging interview, Chan emphasized that more communication and dialogue between the nations would be "good for everyone," including Hong Kong and the global community.

This sentiment came as Chinese President Xi Jinping and US President Donald Trump concluded a historic summit in Washington, D.C., last Friday.

Chan also discussed his expectations for the upcoming Apec Finance Ministers' Meeting, scheduled for October 20 and 21 in Hong Kong. He anticipated that visiting political leaders would witness Hong Kong's vibrancy firsthand, as the city prepares to host the summit ahead of the Asia-Pacific Economic Cooperation summit in Shenzhen on November 18 and 19. Chan affirmed that Beijing supported Hong Kong's hosting of the finance ministers' meeting, aiming to elevate the city's international financial reputation.

Regarding his future plans, Chan noted that the current Hong Kong administration, with less than a year before the new term, has been working diligently under the capable leadership of the chief executive. Officials are prioritizing the execution of various policy agendas and initiatives. The interview also touched upon the three-day China-US summit, which saw tensions ease and a trade truce extended by two months until January.

Chan reiterated the belief that increased communication and dialogue are beneficial for all parties involved, providing global certainty and alleviating geopolitical concerns.

However, Chan acknowledged that competition between China and the US would persist in specific areas such as financial services. He highlighted Hong Kong's role as a unique connector between mainland China and the rest of the world, asserting that the city plays a crucial role under the "one country, two systems" arrangement. Chan emphasized that Hong Kong's primary focus remains on ensuring financial stability while capitalizing on development opportunities.

Net inflows into Hong Kong-domiciled funds surged by 118% year-on-year to HK$118 billion (US$15 billion) in the first five months of 2026, following a substantial 118% rise to HK$357 billion in 2025. Total assets under management also grew by 20% to HK$42.2 trillion in 2025 from 2024, with a significant portion of the influx coming from outside Hong Kong and mainland China.

Chan pointed to the robust performance of Hong Kong's stock market, which has recorded strong trading volumes and increased new listings recently. The market saw 153% higher proceeds from initial public offerings (IPOs) in the first eight months of 2026 compared to the same period in 2025, reaching HK$342.4 billion. This already surpassed the HK$286.9 billion achieved in the same period last year, marking a 226% year-on-year growth.

The finance chief also highlighted plans to expand the global use of the yuan. While Hong Kong currently serves as a "firewall" for the mainland's financial security, the city aims to promote yuan product offerings to boost liquidity and serve as a testing ground for yuan products. With the world's largest pool of yuan outside the mainland, Hong Kong plans to enhance product offerings, build necessary infrastructure, and provide the liquidity required to attract more investors.