GBA Digest series of perspectives Issue 6

The 2022 Central Economic Work Conference once again clarified the role of the private sector by stressing the principle of the “Two Unswerving Rules”. The Conference also emphasized the critical roles of platform companies in leading China’s development, jobs creation and competitiveness in the global economy. As the frontier of reform and opening up, the GBA has a highly dynamic private economy and strong growth resilience. The Government’s confidence in the private economy and the vigorous economic vitality in the GBA will lay the foundation for the region to expand effective investment.

From a long-term perspective, the real economy, technological innovation and high-level opening-up are essential to support China’s high-quality growth. The GBA has a leading advantage in this regard with the comparatively well-developed industrial, technology and financial sectors, which can also empower each other to drive regional growth in the long run. Going forward, development of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone will further the continuous enhancement of synergy innovation ecosystem in the GBA.

At the same time, the high-level opening-up in the GBA, led by the financial connectivity in the region, is likely to see new breakthroughs. Looking into the latest policy trends, the State Administration of Foreign Exchange has emphasized the priority to “innovate and optimize foreign exchange control policies, as well as to support China’s key regional development strategy” at its 2023 annual work meeting. Hong Kong will also play a more pivotal role in supporting the financial reform and opening-up of the Mainland and the internationalization of Renminbi. For instance, financial institutions in Hong Kong can leverage their own advantages in cross-boundary wealth management business in accordance to the regulatory requirements from the Mainland authorities, further develop the offshore RMB market in breadth and depth, drive the growth of cross-boundary financing, expand the RMB business in Southeast Asia, and increase the international flow of RMB.

Led by the general plan for building the Guangdong-Macao In-depth Cooperation Zone in Hengqin, the Hengqin-Macao integrated development mechanism has improved over the past year. Through the concerted efforts of the governments of Guangdong Province and Macao SAR, the development of the Cooperation Zone has achieved important results in all relevant aspects at the current stage. In this issue of "Executive Dialogue", we are delighted to have HN Group President Amber Li shared her views on the opportunities and challenges Macao businesses face in the Cooperation Zone, and suggestions for Hong Kong and Macao companies interested in doing business in Zhuhai.

Lastly, with the continuous development in the GBA, the Hong Kong SAR government is keen to push ahead with expanding and deepening its financial links with mainland China by adding insurance products to an array of cross-border investment platforms for stocks, bonds and wealth management instruments. A vibrant insurance industry is essential for Hong Kong to enhance its leading position as an international financial center.

This issue of GBA Digest also offers readers the highlights of the Insurer of the Future Summit 2022 held in Hong Kong in December 2022. More than 20 speakers from different organizations and expertise have shared their perspectives on the insurer of the future and insights from data analytics, financial and actuarial transformation, to strategic ecosystem play, climate change, and GBA opportunities.