Paul Chan, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government, on July 13 highlighted the growing significance of regional cooperation amid changing global dynamics and affirmed Hong Kong's commitment to foster multi-layered interactions with various economies in the region to solidify the foundation for collaboration.

In a blog post, Chan spoke of his recent trip to the Republic of Korea (ROK) to explore new opportunities for cooperation.

He noted that Hong Kong's financial market and initial public offerings (IPOs) have performed robustly since September 2024, with significant interest from ROK investors in both Hong Kong and the Chinese mainland markets.

In the first five months of this year, the total trading volume of licensed securities firms from the ROK based in Hong Kong surpassed 1.5 trillion HK dollars, marking a 2.8-fold increase compared to the total for 2024, he said.

Chan also underscored the rapid growth of Exchange Traded Funds (ETFs) in Hong Kong, describing them as a convenient mechanism for enhancing market connectivity. More products were being cross-listed between the two markets, whether through ETFs investing in South Korean stocks being listed in Hong Kong or those tracking Hong Kong indices being listed in the ROK, he said, adding that such interconnection boosts market liquidity and expands the investor base.

In fact, Hong Kong serves as a hub for both Chinese mainland and international capital, Chan said. Mechanisms that enhance financial market connectivity can attract more domestic and foreign investments in companies listed in both Hong Kong and South Korea, while also creating new opportunities and asset allocation options for investors, he added.

Chan noted that Hong Kong, as a "super connector" and "super value creator," boasts several world-class universities and excellent research capabilities. Coupled with the thriving innovation and technology ecosystem of the Guangdong-Hong Kong-Macao Greater Bay Area, this can facilitate stronger connections and deeper cooperation between tech enterprises from both Hong Kong and the ROK, allowing innovative ideas and cutting-edge technologies to find broader applications and enhanced commercialization opportunities, he said.