Hong Kong’s finance chief has launched a strategic offensive to forge closer business ties with South Korea, with investors showing interest in the city’s latest cryptocurrency policy and its role as a “superconnector” to international markets amid geopolitical tensions.
Concluding a three-day visit to Seoul on Thursday, Financial Secretary Paul Chan Mo-po proposed a direct cross-listing of exchange-traded funds and highlighted the city’s use of exclusive, high-risk financial products as a new tool to secure Korean capital, according to his weekly blog on Sunday.
“Overall, in recent years, due to the impact of the pandemic and geopolitical factors, they have come to Hong Kong less frequently, which has resulted in certain discrepancy in their understanding of the situation in Hong Kong,” Chan wrote.
He addressed concerns about regional geopolitics by positioning Hong Kong as a stable bridge for Korean enterprises to access opportunities within the Greater Bay Area, leveraging the city’s world-class research capabilities and deep financial markets.
Throughout his meetings with senior officials, including the chairman of South Korea’s Financial Services Commission and the governor of the Bank of Korea, Chan emphasised Hong Kong’s enduring role as a “superconnector” and “super value-adder”.
Chan detailed his discussions with Seoul’s financial leaders, where he also sought to reassure them of Hong Kong’s stability and unique advantages under the “one country, two systems” framework.
A key area of discussion was Hong Kong’s regulatory framework for virtual assets. Chan noted that Korean regulators and industry players were closely observing Hong Kong’s coming stablecoin legislation, leading to in-depth exchanges on regulatory experiences and the future application of stablecoins.
