Good morning, President. In recent years, Hong Kong has actively sought to drive economic growth through diversifying its industries with the aim of fostering development that brings prosperity to all sectors. As a traditional pillar industry, the financial industry is constantly expanding with new business and new products, thereby providing core momentum for economic growth on an ongoing basis. Meanwhile, emerging industries such as innovation and technology will support Hong Kong’s enhancement of its overall competitiveness in the new era. I would like to thank Ms YUNG Hoi-yan for proposing today’s motion, which calls on the Government to further tap into Hong Kong’s potential and inject fresh vitality into the city’s economy.
After roughly a decade of development, virtual assets have evolved from a niche technology product to a favourite in the investment market, and have opened up an important direction for Hong Kong’s financial innovation. At present, Hong Kong has established a licensing regime for virtual asset trading platforms, so the risks at the platform level are effectively reduced. Meanwhile, the licensing regime for stablecoin issuers is established under the Stablecoins Bill, a development which shows the vigilance of the Government and regulatory authorities in response to potential risks. On the basis of such a regulatory framework that maintains a fine balance between the ongoing refinement of the regulatory regime and growth, the attributes of virtual assets as a tool of transaction can be further developed. Some banks have already launched tokenized fund products and gold products, while the Hong Kong Monetary Authority has also succeeded in executing two tokenized green bond issuances. Looking forward, the application scope of tokenized real-world assets should be expanded continuously to support investment tools such as real estate and insurance, and their circulation in tokenized form should be made possible, so that cross-boundary trade settlement and everyday transactions can be conducted using tokenized assets.
In addition, as Hong Kong’s economic and trade ties with the Middle East become increasingly close, the financial industry must also foster a Muslim-friendly environment. Regarding the finance market, Islamic doctrine imposes unique regulations on many aspects, including day-to-day operation, profit sharing, risk management and the relations between the lender and the borrower. For Islamic finance, ASEAN countries have the more maturely developed market structure, legal system and regulatory framework. The Government is advised to set out the specific goals to achieve based on a comprehensive review of the current situation, and then take the lead in organizing seminars to learn about and draw references from targeted aspects. Through this, we can create the favourable conditions for the development of Islamic finance in Hong Kong.
The plan of developing the Islamic finance market was proposed as early as in 2007. Subsequently, the Government issued three US dollar-denominated sukuk in 2014, 2015 and 2017. The listing of exchange-traded funds (ETFs) tracking Hong Kong stocks and the Saudi Arabia market in 2023 and 2024 has further deepened the financial cooperation between the two places. However, progress in other areas is less noticeable. I suggest that the Government should continue to strengthen research on Islamic financial products in order to achieve mutually beneficial outcomes.
On the other hand, last year’s Policy Address proposed the creation of the “Study in Hong Kong” brand. While post-secondary students are the focus of this policy, it should be noted that Hong Kong also has high-quality resources in secondary education. English is used as the medium of instruction in many schools, and our DSE (Diploma of Secondary Education) Examination is recognized internationally. The Government is advised to consider pilot progammes that expand the “Study in Hong Kong” brand to secondary school students. Moreover, a licensing system can be introduced to better manage the host families, so that incoming students (especially the younger ones) will have more choices. In addition to relieving the pressure on schools/institutions to provide hostels for students, the formation of a hosting economy may also be a bonus of such a development.
I wish to follow up on Ms Maggie CHAN’s proposal about the pet economy. As a “cat’s slave” who has kept pets for decades, I have witnessed obvious changes in people’s spending on pets in recent years. Nowadays, many young couples would rather keep pets than have children, and the resources spent on pets are on a par with raising a child. That includes renovations to make homes pet-friendly, grooming, animal health, veterinary care, and even services catering to ageing pets and their passing. This may not grow into an industry in its own right, but the trend is irreversible, like the silver economy. By applying business savviness to the various day-to-day needs of pet-keeping, including food, accommodation and outdoor movement, a new growth point can be created for the economy.
President, finance is the main artery of Hong Kong’s economy. Innovations in the financial industry not only ensure the sustainable development of the industry itself and contribute to economic growth, but also nourish the flourishing of other sectors. To achieve the coordinated development of traditional pillar industries and emerging industries with strong potential, the Government needs to allocate resources to the right place reasonably, so as to nurture strengths that will support the long-term prosperity of Hong Kong.
I support the original motion and all the amendments. I so submit.