00:00Secretary Paul Chan thank you so much for joining us yeah thank you for the
00:03opportunity there's been so much optimism and euphoria when it comes to
00:06the IPO market in Hong Kong how much momentum is there in 2026 can you build
00:11from 2025 we are optimistic very strong momentum for example in the pipeline
00:17killing up more than 300 companies want to be released we have taken a look of
00:23them good quality and also in in AI in health tech so these are the sectors
00:29people want to invest in you talk about quality there have been concerns about
00:34the quality of the IPO application process I'm just wondering how are you
00:39responding to that well perhaps the investment bank's business is just too
00:44good so we have reminded them that in preparation of the documents submitting
00:51for approval in the IPO process it would be better if they do more
00:57comprehensive due diligence so that in fact if they do their pop their
01:03paperwork properly they will save them time yeah is there reason to tighten the
01:09application process would you consider imposing penalties for those who fall
01:14short from the standard and the quality well I think the professional sector all
01:20the advisors and the investment bank included they all want to be good want to
01:26defend their reputation so at this stage I don't think we do need to we do not
01:31need to put in any punitive measures but just to remind people hey yeah do your
01:38work properly prepare the paper properly then the IPO process can be faster so no
01:44reason to be concerned well at this stage I think we perhaps better look at how to
01:51grow the market to improve further like the liquidity and to support those
01:57companies apart from IPO to follow-on investments as well how are you addressing
02:02that I mean how are you hoping to grow the market what are the measures in the
02:08pipeline well apart from mainland companies we encourage companies from the
02:13other part of the world Southeast Asia Middle East European companies please do take
02:20advantage of our market to be released in Hong Kong tap the funds there and use
02:25those funds to to grow into the mainland and across Asia huge potential we know that
02:33there are rising geopolitical tensions around the world especially in the West yeah
02:38might that work to Hong Kong's favor might you see more you know foreign companies
02:44Western companies coming to Hong Kong to IPO well people are looking safe havens to pack their
02:51funds and at the same time giving them good returns they are looking for policy consistency and
02:58predictability and in that sense Hong Kong offers excellent alternative for them of course you're looking for
03:07for fiscal surplus in 2026 quite ambitious some say but you remain confident why is that well 25 26
03:16meaning year-end 31st March operating account definitely a surplus but you know our account
03:22composed of operating accounting capital accounts land revenue still needs time to go back to previous
03:29level but we do need to expedite the investment in northern metropolis so overall speaking we still need to use
03:37some bonds to finance the investments in northern metropolis but going forward I'm pretty confident
03:44because on the operating account we will still registering services with our physical consolidation policies in the past
03:52two years we control expenditure growth and grow a little bit of our revenue source and for the northern
03:59metropolis we are also experimenting different options say for example inviting investors or
04:08technology companies they come we give just give them a parcel of land of huge size they can do the infrastructure they can
04:15bring the ecosystem over and in this sense expedite the development process and on the other hand cut down the
04:23government's commitment in terms of infrastructure provision you talk about plans for the northern
04:28metropolis because that is a priority for China as well I'm just wondering is there reason to spend big on the
04:37northern metropolis when your financial conditions are still stretched at the stage we see the we see this as
04:45investment so we invest up fund to grow the ecosystem when the companies come they bring their ecosystem over in future years they
04:56will pay me tax so we invest up front and get to return in later years in the meantime the cash flow differences
05:03we use bonds to finance a bit of it when it comes to those returns realistically when do you think those returns welcome and what kind of
05:11investments are you looking to put into the northern well from a government perspective the returns are
05:19multi-dimensional apart from financial return they have us to transform our economic structure to make our economic
05:28structure more resilient create more quality jobs for our people and also you know technology and finance reinforcing each other if we can
05:39make good use of our eyes I see status to grow the technology sector that technology sector development we
05:47attract top talents top companies to Hong Kong that will have our IFC status as well I want to talk about the
05:54property sector which is a key sector in Hong Kong sure despite removing capital as it was measures in your budget for previous years
06:06the increase in prices have not been sustained why is that so you mean the residential market
06:14that's right well actually the residential property market in the past few months have been registering positive growth at this
06:23level stabilizing going up slowly and at the same time when you look at the volume huge over the past few months
06:31since September every month over 5,500 December even over 5,900 so it's back to the normal level with the improved confidence
06:45about the market direction with reduce the interest rates and the result of our previous initiative in attracting talents and companies
06:56I think the talent the incoming companies will also provide support to the residential market that tells you when you look at our
07:05residential market the property price in the past few months although earlier is downward adjustment but rental went up so the demand is there
07:14there might you have to implement more measures to provide greater support for the residential property market
07:21well you know in terms of mortgage provision we have removed all the restrictions is back to normal so let the market force come into play
07:31and interestingly in the residential market you know students fought into Hong Kong also huge demand we used to even encourage some of the office properties in suitable locations
07:43to convert into student hostels and in the next few years we continue to attract students not just from the mainland but also from the other regions to come to Hong Kong to study
07:56this is important for us not as not just as an education hub but also talents for the future we want them to stay and well to grow their family in Hong Kong
08:08Does it then mean that we can't expect any measures in your budget that would support the property market?
08:17Well it's too early to say anything we are still in the process of public consultation we keep open mind and listening to various views but at the moment from what we have been observing the property market is recovering steadily
08:35And of course you are trying to make Hong Kong a gold hub and you are expected to make some announcements can you provide some insights on what the plan really is?
08:47Well number one storage naturally we will quickly expand our capability as a gold storage hub but with those gold storage a lot of financial products can be developed
09:02And our vision is that using this as a starting point in fact Hong Kong can develop ourselves into a commodity trading hub as well as commodity storage hub
09:14Going into the future this will enrich not just the financial ecosystem but it is also good for the trade for the logistic industry
09:21What are the challenges and how soon do you think you can realize that vision?
09:26We are improving the infrastructure not just the storage but if we want to use those as the basis to enable financial instruments risk management products to be offered
09:38We need to improve the infrastructure so the Hong Kong EX and the Hong Kong MA are also working on this
09:45The vision is to position Hong Kong as the hub for gold and commodities trading
09:54And that gold hub can be a reality perhaps in the next five years or sooner than that?
09:59Very quickly step by step
10:01We are expanding the storage around the airport area already
10:04What kind of investments and what kind of headcount are you looking at to support this vision?
10:10Well in terms of investment apart from the government we invite those interested to come in to bring their money as well
10:19We adopt a very flexible approach
10:21We do not need to build them all but we can give them land so that they can develop on that basis
10:29Secretary Chan what is your message in Davos?
10:33Well Hong Kong is going strongly not just the financial market not just stock market but also the technology sector
10:43And Hong Kong would be the best platform for people investing or doing business into the mainland
10:50And Hong Kong in fact is a high value added two way platform
10:54We are in the process of hand holding mainland companies going global
10:58That would be also beneficial to Europe and the other countries
11:02In the process we grow with them together and promote our professional and financial services
11:09And supply chain management as well
11:12There are some foreign investors still concerned about the National Security Act
11:16Is there reason to be concerned? What is your take on that and what is your response?
11:20I don't think it is a cause for concern
11:23Every country has National Security Act
11:26And Hong Kong is of no exception and we follow the best international standards
11:31Secretary Chan thank you so much for your time
11:33Yeah thank you
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