As the Chinese mainland embarks on its high-quality growth journey, as laid out in its 15th Five-Year Plan (2026–2030), the Hong Kong Special Administrative Region remains an important intermediary platform for European enterprises and investors to interact with the mainland, given the city’s strong foundation as an international finance hub and trade and logistics center, Johannes Hack, chairman of European Chamber of Commerce in Hong Kong, said.
Speaking to China Daily in an interview, Hack said the value of Hong Kong as an intermediary platform is irreplaceable, as Hong Kong has a free flow of capital and information, the city’s legal system is tried and tested, business law is seen as being strong and stable, and English remains the lingua franca.
Europe will continue to be a very important player on the world stage, but the continent needs Hong Kong to facilitate its interactions with the Chinese mainland, the EuroCham chairman said.
“If you take Hong Kong out of the story, the world would be a very different place. The SAR is an easy place for the mainland to connect with the world, to try new things, and to have interface. Hong Kong is the only place that can fulfill that role,” Hack said.
“The value of Hong Kong as part of the Chinese mainland is so fundamental that it is like congratulating part of your body, and it is inseparable,” Hack said, noting that the SAR is approaching the 29th anniversary of its return to the motherland in July. “We congratulate Hong Kong and the Chinese mainland on all achievements that have taken place in the last 29 years,” he added.
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The Chinese mainland is now embarking its 15th Five-Year Plan for high-quality development by focusing on innovation, industrial upgrading, domestic consumption, and social welfare improvements while integrating environmental sustainability, technological self-reliance, and economic security as core priorities.
“Anything that the 15th Five-Year Plan does to encourage using Hong Kong as a springboard for the Chinese mainland market will be beneficial for European companies,” Hack said, adding that the vision laid forth in the plan — of increasing domestic consumption and further advancing the life sciences industry — will be beneficial to Hong Kong as well as to European enterprises.
EuroCham said that Hong Kong needs to maintain its strong foundation as an international finance hub and a trade and logistics hub.
Europe offers many investment opportunities because the region is rich, stable and rules-based, while at the same time, European investors are also looking for opportunities in Asia because of the high growth potential in the region.
Therefore, Hong Kong is the perfect fit for wealth management businesses providing investment advisory services at a time when European investors are placing more emphasis on overall asset allocation.
“Hong Kong is an international finance center facilitating two-way capital flows into and out of the Chinese mainland; as well as capital flows into and out of Europe. As the flows come in and go out, Hong Kong sits exactly in the middle, in both directions,” Hack said.
“The Chinese mainland market is still heavily regulated, therefore the free flow of capital and information is the supreme advantage of Hong Kong,” Hack said. “The connect programs of stock and bond trading and wealth management between Hong Kong and the mainland is a strong attraction for investors.”
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Amid the trend toward trade diversification, another important role Hong Kong plays is as a trade and logistics hub connecting not just the Chinese mainland but also the Association of Southeast Asian Nations region, focusing on high value-added trade-related services.
“Hong Kong has many services professionals who understand the tax systems and labor regulations of overseas markets,” said Hack, adding that these professionals will be able to support mainland companies going global, as well as provide guidance to European enterprises navigating into Asian markets.
Hack agreed that new initiatives such as the Northern Metropolis, the Guangdong-Hong Kong-Macao Greater Bay Area, innovation and technology development and the 15th Five-Year Plan are all important to Hong Kong.
An exchange platform has been set up for European consulates in Hong Kong and EuroCham to partner with Hong Kong Science and Technology Parks Corp to promote opportunities that the Northern Metropolis can bring. “We are looking for specific examples in certain I&T areas, such as life sciences and green technology, to learn how the Northern Metropolis can bring opportunities to European I&T companies,” Hack said.
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The chairman suggested that the Hong Kong SAR do more marketing and education work to promote the Northern Metropolis, as European enterprises are still not very familiar with the concept.
“With more promotion and education, the interest from the European I&T sector toward the Northern Metropolis will become bigger. We need to see the planning for the Northern Metropolis to have more concrete results,” the chairman said.
He also said the proposed Northern Metropolis University Town is a fantastic idea, as European business groups can explore cooperation opportunities.
“European companies (are interested in) the governance and regulatory framework and the operation mode of the proposed university town. European business groups are also (interested in) how the proposed university town can bring additional value in cooperation on scientific research, data exchange and data pooling,” Hack said.
“I think once these questions are answered positively, certainly there will be opportunities there,” he added.
