The Consulate General of Switzerland in Hong Kong

European fintech firms eye Hong Kong as Asian base after Davos talks
Finance chief Paul Chan has revealed that leading European fintech companies are planning to establish Hong Kong as their Asian base, following his recent trip to the World Economic Forum in Davos, Switzerland. Chan highlighted Beijing’s support for international collaboration as a stabilizing force for the global economy, addressing concerns over fragmentation raised by business leaders at the forum. During his five- day visit, Chan expanded Hong Kong’s network by inviting senior financial officials, business leaders, and executives to explore opportunities in the city and the Greater Bay Area. Paul Chan also promoted Hong Kong's advantages as a "superconnector" and "super value-adder". He briefed global political and business leaders on the city's strategies and views on international issues. SCMP1, SCMP2, Jan 16, 26

UBS' Khan emphasizes diversification amid geopolitical tensions
Speaking at UBS's Greater China conference in Shanghai, Iqbal Khan, the Swiss bank's global co-head of wealth management, highlighted the importance of diversification in a geopolitically charged environment. Khan reiterated UBS's commitment to Asia and China, despite relocating him to Hong Kong last year amid economic challenges. Bloomberg, Jan 13

Switzerland's stance on Russia may drive family office business to Hong Kong
Hong Kong’s treasury chief, Christopher Hui, stated that Switzerland’s image of neutrality has been affected by its stance on the Russia-Ukraine war, making Hong Kong a more attractive destination for wealthy individuals seeking to set up family offices. He mentioned interest from parties in Indonesia and highlighted Hong Kong's stable and predictable investment environment, supported by the Basic Law's guarantee of free capital flow. SCMP, Jan 5

Former Legislative Council President urges politicians to rebuild connections with the West
Former Legislative Council president Jasper Tsang Yok-sing emphasized that stern condemnations won't eliminate smears and criticisms against Hong Kong. Instead, he urged the SAR government to rebuild ties with the West and tell positive stories about Hong Kong and China. Tsang highlighted Hong Kong's advantage of facing the Western world and stressed the importance of maintaining communication despite geopolitical tensions. He also expressed concerns about the government's HKD 100 billion (USD 12.83 billion) deficit and the challenges of increasing revenue without harming citizens' livelihoods. HKEJ, Jan 27

John Lee to promote ‘positive relations’ with US under Trump
Hong Kong’s leader, John Lee, expressed his hope to promote “positive relations” with the United States under President Donald Trump, while warning against any attempts to interfere in the city’s political and judicial affairs. Speaking to the press just hours after Trump’s inauguration, Lee said the new US leadership could serve as a “good starting point” for Hong Kong-US relations. He emphasized the common interests between Hong Kong and the US, but also stressed the importance of protecting the rights of Hong Kong's people and companies. SCMP, Jan 21

Mike Pence blasted for attempt to interfere in national security trial
Former US Vice President Mike Pence visited the city and called for the release of Jimmy Lai ‘to send a message of good will to the people of the US, or the free world’ in a business conference. Beijing’s Office for Safeguarding National Security in Hong Kong strongly condemned Pence. The Office stressed in a statement that ‘Pence’s bid to politically manipulate and interfere with Hong Kong’s judiciary is a challenge to the city’s rule of law and efforts to safeguard national security.’ WSJ, China Daily, Jan 16, 22

Joe Biden extends special status for Hongkongers in US for two more years
Outgoing US president Joe Biden extended the Deferred Enforced Departure programme, allowing Hong Kong residents in the country to stay beyond the expiry of their visas by another two years until 5 February, 2027. The programme is only eligible to those who have lived in the country since the programme first became effective in August 2021. ‘The United States supports the human rights and fundamental freedoms of the residents of Hong Kong,’ Biden, who is set to leave office on January 20, declared. SCMP, Jan 16

Chief Executive met Singapore Deputy Prime Minister
Chief Executive John Lee met with Singapore's Deputy Prime Minister Gan Kim Yong at Government House to discuss mutual interests, emphasizing the close bilateral trade ties and the potential for collaboration in trade, digital economy, financial services, and green technologies. Lee highlighted Hong Kong's strategic advantages and encouraged Singaporean enterprises to explore business opportunities in the Mainland market. He also thanked Singapore for supporting Hong Kong's early accession to the Regional Comprehensive Economic Partnership. Dot Dot News, Jan 13

HK Financial Secretary Paul Chan traveled to Indonesia as city’s firms eye huge market
The Financial Secretary arrived in Indonesia with a business delegation for a three-day visit to promote the city’s advantages to local companies. Business leaders traveling with Chan included Asia Financial Holdings Chairman Bernard Chan and Swire Pacific Chairman Guy Bradley, as well as around 40 members from the city’s tech sector. Gary Ng, a senior economist at Natixis, explained that Chan’s visit to Jakarta signaled efforts by Hong Kong to diversify from traditional markets and seek new growth drivers. SCMP, Jan 7

Beijing slams US sanctions bill targeting Hong Kong officials, judges and prosecutors
US Congresswoman Young Kim and Congressman Jim McGovern reintroduced the Hong Kong Sanctions Act, requiring the US President to assess whether to sanction 48 Hong Kong officials for human rights violations, including Secretary for Justice Paul Lam and Chief Justice Andrew Cheung. The Commissioner’s Office of China’s Foreign Ministry in Hong Kong issued a statement emphasising that ‘any intimidation or threats will not shake Hong Kong’s prosperous and stable situation, nor can they conceal the fact that the rights and freedoms of Hong Kong residents are fully protected.’ SCMP, Jan 25

Key Beijing official in Hong Kong calls for white paper to elevate capital market
Deputy Director Qi Bin emphasized the key role of Hong Kong’s financial system in national strategies but noted shortcomings in market regulation, transaction costs, and corporate governance. He suggested developing a capital market white paper to propose improvements and solicit input from global institutions. Financial Secretary Paul Chan also mentioned that Hong Kong ranked 4th in global IPO rankings. SCMP, Jan 15

Central government eyes stronger role in Hong Kong-Macao integration
The semi-official Chinese Association of Hong Kong and Macao Studies organised a seminar to study the two speeches delivered by Chinese President Xi Jinping in Macao last December. In addition to repeating Xi’s words, Director of Hong Kong and Macao Affairs Office Xia Baolong called for better integration of the two Special Administrative Regions into the Greater Bay Area. It was reported that the central government could take a stronger coordination role going forward to speed up the process and avoid duplicated efforts. SCMP, China Daily, Jan 9, 10

Pollster taken away by national security police again
Veteran pollster Robert Chung Ting-yiu, head of the Hong Kong Public Opinion Research Institute, was taken away by national security police for questioning. He is accused of aiding former deputy executive director Chung Kim-wah, who moved to the UK in 2022 and is wanted for allegedly contravening the national security law. National security police have been investigating Chung Kim-wah's funds and accused him of advocating Hong Kong's independence and calling for foreign sanctions. A HKD 1 million (USD 128,400) bounty was placed on him last month. The Standard, Jan 27

China condemns UK for harboring Hong Kong fugitives
Chinese officials criticized the UK after British Foreign Minister David Lammy and Parliamentary Undersecretary of State Catherine West met with four Hong Kong fugitives charged with incitement to secession and collusion. The fugitives are wanted by police, with bounties of HKD 1 million (USD 128,400). Chinese embassy officials stated that the meeting interferes with Hong Kong's rule of law and China's internal affairs, urging the UK to respect Chinese sovereignty and cease harboring criminals. China Daily, Jan 22

Chief Justice says recruiting foreigners to Hong Kong’s top court now more complex
Chief Justice Andrew Cheung acknowledged that recruiting overseas judges for Hong Kong's Court of Final Appeal has become challenging amid geopolitical tensions, but assured it wouldn't undermine the legal system's integrity. He warned against drawing broad conclusions about the rule of law based on a few high-profile national security cases. Bar Association Chairman Victor Dawes urged authorities to handle national security issues in a measured and respectful manner to demonstrate the city's commitment to civil rights. SCMP1, SCMP 2, Jan 20

Hong Kong considers raising taxes on top earners for second year
Hong Kong’s government is exploring options to raise taxes on the highest earners for a second consecutive year to address budget shortfalls. Officials are considering raising the 16% tax rate on the top income band of HKD 5 million (USD 640,000) or more, or including more people in the highest tax bracket by lowering the threshold. Bloomberg, Jan 16

Jimmy Lai´s ongoing trial
The trial of media tycoon Jimmy Lai over collusion with foreign forces continued with his defense attempting to justify his calls for Chinese President Xi Jinping's resignation, arguing that Xi's leadership made it harder for Beijing to improve relations with the West. Lai was also accused of paying two former US officials, Jack Keane and Paul Wolfowitz, over USD 3.25 million for advising Taiwan's Tsai Ing-wen on US policies toward the island. In addition, Lai's email exchanges with US officials revealed discussions about potential US sanctions before Beijing imposed the National Security Law on Hong Kong.
Throughout the trial, the defense focused on Lai’s denial of advocating Taiwan's independence or inciting hatred, as the prosecution pursues a cross-examination that is expected to finish by February. SCMP1, SCMP2, HKFP, Jan 7, 13, 24

Chinese and US banks compete for CATL's major secondary listing on Hong Kong Stock Exchange
Chinese banks are competing for the secondary listing of EV battery maker CATL on the Hong Kong stock exchange by offering ultra-low fees of 0.01% to secure business. The listing could raise up to USD 7.7 billion, making it one of the biggest offerings in recent years. Due to the scarcity of business on the mainland, banks like CICC and CSC are vying for top roles despite the low fees. US banks are also involved, despite CATL being added to a Pentagon blacklist. FT, Jan 26

Economist warns alternatives to US dollar peg too ‘risky’
Economist John Greenwood, who was the architect behind the Linked Exchange Rate System for the Hong Kong dollar created in 1983, reiterated that the currency peg to the US dollar remains the best option and alternatives to the resilient link could introduce greater risks and instability. Greenwood dismissed options such as a peg to the yuan, a currency basket and a free-floating Hong Kong dollar as ‘unrealistic and destabilizing’ in a recent interview with think tank Chartwell Institute. The Standard, Jan 21

Hong Kong gains approval as LME warehouse hub for base metals
The London Metal Exchange (LME) has approved Hong Kong as a warehouse location for the first time, aiming to strengthen its connection with mainland China, the world's largest metals market. The Hong Kong site will store LME's main base metals, such as copper, zinc, and aluminum, and will become an active delivery point three months after the first warehouse company's approval. This move could reduce price disparities between China and the rest of the world and facilitate more Chinese exports. Despite high costs in Hong Kong, which may require additional government support, the plan is expected to be welcomed by metals buyers in China. The warehouse approval is part of Hong Kong's broader effort to revive its economy and enhance its role in the global commodities market. Bloomberg, Jan 20

Hong Kong sees record foreign investments as mainland firms dominate
Hong Kong attracted 41% more mainland and foreign companies last year, achieving record investments of HKD 67.7 billion (USD 8.68 billion). Over 539 new firms set up operations, with half from mainland China, creating 6,864 new jobs. This growth stems from government incentives aimed at economic revival, such as tax concessions and an upgraded investment-for-residency scheme. SCMP, Jan 20.

Hudson Bay among three more hedge funds expanding to Hong Kong
A Bloomberg analysis reported that three global hedge funds are expanding to Hong Kong. Stamford-based Hudson Bay, UK’s Sona Asset Management, and New York-based Centiva Capital are establishing a foothold in the city. This expansion is a relief for Hong Kong, which aims to revive its appeal as a regional financial hub. These firms are hiring local talent and relocating employees to their Hong Kong offices, amidst growing rivalry from Singapore and Middle Eastern cities. The city also saw a record addition of nearly 42,000 financial professionals licensed with the Securities and Futures Commission. Bloomberg, Jan 16

People's Bank of China unveils major initiatives to enhance Hong Kong's financial integration
At the Asian Financial Forum, People’s Bank of China Governor Pan Gongsheng pledged to boost the proportion of foreign exchange reserves allocated to assets in Hong Kong. He announced six measures: establishing a CNY 100 billion (USD 13.12 billion) liquidity facility for Hong Kong banks to support trade finance; extending settlement time for Bond Connect transactions and supporting multi-currency bond settlements; developing offshore CNY repurchase business using Northbound Bond Connect bonds as collateral; allowing offshore investors to use onshore bonds as margin collateral for derivative transactions; linking faster payment systems in mainland China and Hong Kong for real-time, small-value, cross- boundary remittances; and adding new participating banks for account opening by attestation services for Hong Kong residents. SCMP, The Standard, Jan 13, 14

Chief Executive John Lee engages with global leaders at Asian Financial Forum
At the Asian Financial Forum, Chief Executive John Lee met with Chairman of the Cabinet of Ministers of the Kyrgyz Republic Adylbek Kasymaliev and President of the Asian Infrastructure Investment Bank Jin Liqun. He also met with Federal Minister for Finance and Revenue of Pakistan Muhammad Aurangzeb. All three leaders spoke at the Forum. Additionally, Hong Kong and countries in the Middle East are looking to deepen collaboration in finance, artificial intelligence, logistics, and big infrastructure projects, according to officials from the Gulf Cooperation Council countries who spoke at the Forum. Dot Dot News, SCMP, Nikkei Asia, Jan 13, 14

IMF turns less upbeat on Hong Kong growth with 2025 forecast cut
The International Monetary Fund lowered its forecast for Hong Kong’s economic growth this year and warned of the risks the city faces as it integrates more closely with mainland China. Gross domestic product will likely expand at a weaker pace from last year, with the IMF downgrading its forecast for 2025 to 2.7% — from the 3% it predicted in an October report. The fund then expects growth to ‘slow modestly’ and reach
about 2.5% by 2029. Bloomberg, Jan 10

Hong Kong’s surging dollar makes city more expensive
Hong Kong’s surging dollar is making the city increasingly expensive for visitors and global businesses. The local currency has jumped to a two-decade high against a gauge of Asian currencies, despite the property market downturn, sluggish economic growth, and low inflation. This rapid appreciation is undermining efforts to attract travelers, with city leader John Lee focusing on culture, sports, and mega- events to boost appeal. Foreign businesses are also concerned about rising costs. However, locals benefit from fewer visitors and cheaper imports. Bloomberg, Jan 9

Policy measures boost Hong Kong’s capital market
Fundraising in Hong Kong is picking up as the global IPO market recovers momentum. Despite ongoing geopolitical tensions, inflation and interest rates have peaked and are gradually declining. These improved economic prospects, along with government policy, have led to a recovery in Hong Kong’s IPO market. PwC expects IPO fundraising in Hong Kong to reach HKD 130-160 billion (USD 16.7-20.6 billion) in 2025, potentially ranking among the global top three IPO venues. Pwc, Jan 2

Hong Kong sees surge in tourists during Lunar New Year
Hong Kong welcomed approximately 680,000 tourists between Lunar New Year’s Eve and Friday, marking a 6% increase compared to the same period in 2024. Mainland Chinese visitors rose by 4% to 564,000, while international tourists surged by 16% to 114,000. Tourism Board executive director Dane Cheng Ting-yat described the numbers as "encouraging" and expects further growth, particularly during the mainland's ongoing eight-day "golden week" holiday. He noted that mainland travelers often begin touring after the third or fourth day of Lunar New Year, and arrivals from regions like South Korea and Southeast Asia also performed well. SCMP, Feb 1

Vibrant Lunar New Year parade welcomes Year of the Snake in Hong Kong
Residents and tourists in Hong Kong's Tsim Sha Tsui cheered as the Lunar New Year parade, featuring nine floats and numerous performing groups, welcomed the Year of the Snake. Chief Executive John Lee Ka-chiu addressed the crowds in English, Cantonese, and Mandarin, highlighting the city's strengths as a tourist attraction and inviting spectators to celebrate Hong Kong's Chinese New Year Night parade. SCMP, Jan 29

Kai Tak Stadium opens doors to public with university rugby sevens tournament
Thousands attended the “University Rugby Sevens” tournament at the Kai Tak Stadium, marking the first test of Hong Kong’s new 50,000-seat venue. Gates opened at 10 am with 4,300 people entering within the first hour. Organisers distributed 17,500 tickets, with 10,247 spectators attending. The event, part of the University Sports Federation of Hong Kong, gave a preview of the upcoming Hong Kong Sevens Rugby Tournament, Coldplay concert, and the National Games. SCMP, Jan 5

Macau Chief Executive defines national security as a priority
In his Lunar New Year speech, Chief Executive of Macau Sam Hou Fai stated that deepening the implementation of the 'one country, two systems' principle and safeguarding national security are two priorities for his administration. Sam also reiterated plans to diversify the economy. MacauGov, Jan 28

Macao and Hong Kong link bond clearance systems to create larger market for fundraising
Macao and Hong Kong linked up their bond clearance and settlement systems, creating a larger market for fixed-income financial products that could help companies and local authorities raise capital. The linkage, first announced in September last year, connected the larger Hong Kong market, with USD 435 billion of outstanding bonds last year, with the Chongwa (Macao) Financial Asset Exchange, where USD 28.1 billion of instruments were issued in 2024. SCMP, Jan 21

This is a review of the Hong Kong media and does not necessarly represent the opinion of the Consulate General of Switzerland. The Consulate General of Switzerland in Hong Kong does not bear any responsibility for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which might be incomplete or incorrect, will therefore be rejected.

31.1.2025