Hong Kong’s Paul Chan aims to ‘clear up doubts about city’ at World Economic Forum in Davos

Finance chief considers promoting Hong Kong’s rule of law, economy his main priorities at conference amid scrutiny over coming local security law, the Post learns
‘He will also offer his outlook for the Chinese and Hong Kong economies and how headwinds could engender opportunities for the city,’ insider says

World Economic Forum

Natalie Wong

Published: 9:00pm, 15 Jan 2024

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Hong Kong’s finance chief will seek to combat negative narratives about the city and discuss his outlook on the local and mainland Chinese economies at the World Economic Forum in Switzerland, the Post has learned.

A source with direct knowledge of the matter on Monday said Financial Secretary Paul Chan Mo-po considered the promotion of Hong Kong’s economy and rule of law his main priorities at the annual conference, as the city was expected to come under the spotlight over plans to enact a home-grown national security law in the coming months.

“[Chan] will strive to clear up doubts about Hong Kong in every aspect,” the insider said. “He will also offer his outlook for the Chinese and Hong Kong economies and how headwinds could engender opportunities for the city.”

The five-day forum in Davos opened on Monday with the theme of “Rebuilding Trust” focusing on the basic principles of transparency, coherence and responsibility.

Finance chief Paul Chan arrived in Switzerland on Monday and is expected to speak at two sessions during the five-day forum. Photo: Jelly Tse

Chan arrived in Switzerland on Monday and is expected to speak at two sessions during the forum. The first one, with the theme “Yes in My Backyard”, will involve the minister and five other speakers discussing how to tackle opposition to developments considered undesirable by some people living in the affected area.

Chan will also join Daniela Stoffel, Switzerland’s state secretary for international finance, for the “Clear Eyed about Crypto” discussion on Friday, which will look at how digital currency regulators can promote innovation and protect consumers.

At last year’s annual forum, Hong Kong’s finance chief focused on discussing the pace of the city’s post-pandemic recovery and expressed optimism that local economic growth would “pick up very fast”.

‘Hong Kong is an ideal option for foreign investment despite market pressures’

But Hong Kong’s economy struggled to recover swiftly in 2023 amid weak consumption, geopolitical tensions and changes in international monetary policies.

The city is currently grappling with slumping stock and property markets, shortages in manpower, and a large number of residents heading elsewhere to spend their money, such as the mainland.

Chan earlier this month said Hong Kong could record a bigger-than-expected deficit of more than HK$110 billion (US$14.1 billion) for the 2023-24 financial year, following massive spending during the pandemic.

Last Saturday, the local government said its delegation to Davos would “actively tell the good Hong Kong and China stories” and explain the city’s economic and social developments, as well as its unique role in connecting the mainland and the rest of the world.

Hong Kong last year struggled to regrow its economy at the rapid pace previously anticipated. Photo: Xiaomei Chen

This year’s event will welcome more than 60 global political heavyweights and hundreds of business leaders, including French President Emmanuel Macron, Chinese Premier Li Qiang and United States Secretary of State Antony Blinken.

Political pundits are also waiting to see whether Chan will have a chance to meet Li during the summit, with the premier to follow up the event with visits to the rest of Switzerland and Ireland as part of Beijing’s high-level exchanges with European countries.

At last year’s forum, the finance chief attended a special address by then vice-premier Liu He.

The insider on Monday said Chan would meet “a number of ministers, CEOs and esteemed figures” to explain Hong Kong’s current situation.

Last year, he met Thai Minister of Finance Arkhom Termpittayapaisith, Saudi Minister of Finance Mohammed al-Jadaan and the senior management for several international private equity firms and multinational companies.

China’s Li Qiang to attend World Economic Forum in Davos

The forum’s Centre for the New Economy and Society also published a report on Monday that found 56 per cent of 30 chief economists at top multinational firms expected the global economy to weaken this year. According to the survey, 70 per cent also predicted that the pace of geoeconomic fragmentation would accelerate in 2024.

The report also showed that 69 per cent of respondents expected moderate growth for China as “weak consumption, lower industrial production and property market concerns weigh on the prospects of a stronger rebound”.

Outlooks for the wider East Asia and Pacific region, as well as South Asia were more positive as 86 and 93 per cent of respondents, respectively, anticipated moderate growth in 2024 for both areas.