Chan Ma-po Urges APEC Economies to Maintain Fiscal Discipline, Strengthen Financial Oversight
Crhk · 2 SOURCESabout 3 hours ago3 MIN
Summary
Financial Secretary Chan Ma-po addressed the Asia-Pacific Economic Cooperation (APEC) Finance Ministers' Meeting in Hong Kong on Tuesday, delivering remarks during a session titled "Global and Regional Macroeconomic and Financial Outlook." While acknowledging the global economy's resilience, Chan warned that recovery remains uneven, with downside risks from geopolitical tensions and uncertain trade policies. He cited robust figures for Hong Kong, noting merchandise exports climbed more than 40 percent year-on-year in the first eight months of 2026, with artificial intelligence companies comprising approximately 70 percent of IPO fundraising. Chan emphasized that persistent geopolitical instability could drive up energy prices and inflation, constrain investment, and narrow fiscal flexibility. He also flagged that concentrated AI-related asset investments, particularly those involving leverage, may amplify market corrections and spill over into other sectors and markets.
Key Points
- Global economic recovery remains uneven amid geopolitical tensions and trade policy uncertainty, with downside risks requiring vigilance
- Hong Kong's merchandise exports surged over 40 percent in the first eight months of 2026; AI firms drove roughly 70 percent of IPO fundraising
- Geopolitical instability could elevate energy prices, stoke inflation, tighten financial conditions, and constrain fiscal space
- Concentrated AI-related asset investments, especially leveraged positions, risk intensifying market corrections with cross-sector spillovers
- APEC economies should maintain prudent fiscal management, strengthen financial regulation, and deepen information sharing and emergency coordination
- Governments must provide clear, stable, investment-friendly policies while modernizing regulatory frameworks to attract private capital
- Regional economies should keep trade and investment channels open, reduce barriers, and facilitate cross-border financial flows and technology transfer
Why It Matters
Chan's keynote at the APEC forum underscores Hong Kong's strategic role as a bridge between Mainland China and global markets. The Financial Secretary's emphasis on regulatory coordination and cross-border information sharing signals a commitment to strengthening financial resilience across the Asia-Pacific, which directly affects Hong Kong's standing as an international financial centre and its ability to attract investment in emerging sectors such as artificial intelligence and green technology .
Chan's keynote at the APEC forum underscores Hong Kong's strategic role as a bridge between Mainland China and global markets. The Financial Secretary's emphasis on regulatory coordination and cross-border information sharing signals a commitment to strengthening financial resilience across the Asia-Pacific, which directly affects Hong Kong's standing as an international financial centre and its ability to attract investment in emerging sectors such as artificial intelligence and green technology .