AGP Executive Report

Digital Finance: HSBC launched its Hong Kong dollar stablecoin RedCoin through PayMe, opening transfers and payments to more than 3.3 million users and over 100,000 merchants. Capital Markets: HKEX introduced AI and semiconductor indexes, with a mainland fund manager set to license the AI index for ETFs; the exchange also launched a green equity designation for listed firms. Logistics and Technology: HKPC’s LogTech Expo will bring more than 50 companies together in Hong Kong on Oct. 29 to showcase smart warehousing, robotics and other supply-chain technologies. Investment: InvestHK helped about 550 companies establish in the city during the first nine months of 2026, bringing in more than HK$70 billion, while the government welcomed 18 strategic enterprises. Trade and Insurance: APEC finance ministers meeting in Hong Kong called for fewer trade barriers and stronger regional cooperation; separately, Hong Kong’s first-half general insurance premiums rose 9.1% to US$8 billion, driven by offshore reinsurance. Retail and Business Events: HKTDC’s autumn electronics fairs attracted 61,000 buyers, while three concurrent exhibitions hosted more than 700 business-matching sessions to help firms expand overseas.

Digital Finance: HSBC launched RedCoin, its HK-dollar stablecoin, through PayMe. More than 3.3 million users will be able to pay one another and participating merchants, with the token licensed by the HKMA. Capital Markets: HKEX introduced AI and semiconductor indexes and licensed its AI index to China Southern Asset Management for mainland ETFs, giving investors new ways to track Hong Kong-listed tech firms. Investment: InvestHK helped about 550 companies establish in the city in the first nine months, bringing in more than HK$70 billion; the government also welcomed 18 strategic enterprises. Electronics: Hong Kong’s autumn electronics fairs drew over 61,000 buyers from 141 markets and more than 3,200 exhibitors, highlighting the city’s role as a global sourcing hub. Insurance: Hong Kong’s general insurance premiums rose 9.1% in the first half to US$8 billion, led by offshore reinsurance. Regional Business: APEC finance ministers met in Hong Kong to discuss trade, sustainable finance and economic resilience.

Corporate Finance: Chinalco has established a Hong Kong treasury centre to manage offshore funds, financing and currency risks, using the city as a base for overseas expansion. Innovation: Hong Kong welcomed 18 strategic enterprises, while ZTE and LSCM agreed to work together on AI and ICT infrastructure. Regional Finance: APEC finance ministers concluded their Hong Kong meeting with commitments to stronger policy coordination and financial inclusion. Business Conditions: Hong Kong’s September inflation rose to 1.9%, while unemployment edged up to 3.9% for July to September. Construction: Balfour Beatty sold its 50% stake in Gammon Construction, marking a major ownership change for the Hong Kong contractor. Markets: A global AI-stock sell-off and rising oil prices weighed on Hong Kong shares, which fell to a four-month low.

Investment & Innovation: Hong Kong welcomed 18 new strategic enterprises spanning advanced manufacturing, new energy, AI, health technology and fintech, as the government seeks to draw investment and create jobs. Solana Company was named the city’s only blockchain infrastructure strategic enterprise in the latest cohort. Regional Finance: APEC finance ministers concluded their first meeting in Hong Kong, pledging closer policy coordination and cooperation to support regional stability and sustainable growth. Technology & Logistics: ZTE and Hong Kong’s LSCM research centre agreed to collaborate on AI, computing, ICT infrastructure and cybersecurity. Separately, Maersk reported easing waits at East China ports as typhoon disruption recedes, while warning that strong demand and lingering congestion still affect cargo flows. Economic Conditions: Hong Kong’s unemployment rate edged up to 3.9% in July–September, while consumer prices rose 1.9% year on year in September, led by transport and holiday costs. Construction: Balfour Beatty agreed to sell its 50% stake in Gammon Construction, a major Hong Kong contractor.

Aviation & Logistics: Hong Kong International Airport handled 4.86 million passengers in September, up 10.2% year on year, while cargo rose 6.3% to 433,000 tonnes. Transfer traffic and shipments from mainland China and Southeast Asia led growth. Finance & Technology: APEC finance ministers concluded their Hong Kong meeting with calls for closer policy coordination and investment in digital infrastructure. Local banks are also expanding AI use in lending and fraud controls. Construction: Balfour Beatty is selling its 50% stake in Gammon Construction, a major change for Hong Kong’s building sector. Eyewear: More than 600 exhibitors will gather at the Hong Kong International Optical Fair from November 4 to 6, showcasing smart glasses, eye-care products and new designs.

APEC Finance: Hong Kong hosted the first APEC finance ministers’ meeting held in the city. Members agreed to strengthen policy coordination and cooperation on digital infrastructure financing, financial inclusion and support for households and SMEs. Business AI: HKT’s 3Business and AWS launched a marketplace offering more than 60 AI solutions, aiming to make adoption easier for Hong Kong companies. Banks are also widening AI use in lending and fraud controls, with more than three-quarters deploying or piloting the technology. Construction: Balfour Beatty will sell its 50% stake in Gammon Construction to Jardine Matheson for US$335 million, giving Jardine full ownership of the Hong Kong contractor. Greater Bay Area: Hong Kong and Guangdong agreed to deepen cooperation on smart cities, cross-border e-commerce, customs clearance, industrial digitalisation and telecommunications. Recycling: Coca-Cola Hong Kong launched an academy to teach students about local recycling, with a focus on making the recycling process more visible and accessible.

Finance and Investment: Hong Kong hosted APEC finance ministers, with officials highlighting digital-infrastructure financing and regional cooperation. Transport and Development: MTR is betting about US$6.3 billion on a major new city project, while the government’s Northern Link Spur Line approval adds to the city’s rail pipeline. Technology and Trade: HKICEC opened its first AsiaWorld-Expo trade show, bringing communications and electronics businesses together with global markets. Business Services: Hong Kong-based IOMed marked its first year with 48 signatories and 18 contracting states, and reported handling multiple mediation cases. Biotech: HUTCHMED closed a licensing deal granting GSK rights outside Greater China to develop its experimental cancer therapy. Consumer Safety: A US recall of nearly 1.6 million pounds of meat includes products shipped to Hong Kong; shoppers should check labels and avoid affected items.

Biotech: Hong Kong-listed METiS TechBio signed a drug-delivery research deal with Eli Lilly, with up to US$1.1 billion in potential milestone payments and royalties. Infrastructure: MTR plans to invest at least HK$38.9 billion in Northern Metropolis rail links, funding construction upfront and relying on future land value. Trade & Shipping: Hong Kong and Shanghai formalized a “brother port” partnership to develop smart ports and coordinate shipping operations. Finance: APEC finance ministers met in Hong Kong, with sustainable finance and digital infrastructure funding on the agenda; a new national guideline also sets out plans to deepen technology finance in the Greater Bay Area. Consumer Safety: About 1.58 million pounds of Kayem meat and poultry products were recalled over unsafe storage temperatures. The products were shipped to Hong Kong; consumers should check the recall list and avoid affected items.

Green Shipping: Guangzhou Port completed Guangdong’s first green-methanol refuelling for a car carrier bound for Europe, a step forward for cleaner shipping in the Greater Bay Area. Finance & Innovation: New Chinese measures aim to channel funding to innovation centres, including the Greater Bay Area; Hong Kong banks are testing AI deepfake detection in an HKMA sandbox. Hong Kong Outlook: The IMF raised its growth forecast for the city to 3.8%, though late payments remain a concern for businesses. Technology & Trade: Hong Kong’s Autumn Electronics Fair and electronicAsia attracted more than 61,000 buyers. China AI firms are also looking at Hong Kong listings, while China Mobile Hong Kong has launched the city’s first U6G network. Construction: Jardine Matheson is set to take full ownership of Gammon Construction after Balfour Beatty sold its 50% stake for £250 million. Food Supply: A US recall of 1.58 million pounds of ready-to-eat meat includes products shipped to Hong Kong.

Economic Outlook: The IMF has raised Hong Kong’s 2026 growth forecast to 3.8%, though a Coface survey says late payments remain a strain for local businesses. Financial Technology: Hong Kong banks are testing AI tools to catch deepfake fraud in the HKMA’s sandbox; Ping An Digital Bank reported detection accuracy above 96% in trials. Capital Markets: HKEX has pushed its target for one-day settlement to the second half of 2028, extending the runway for market participants to prepare. Technology and Trade: ZTE signed a technology-development agreement with Hong Kong’s LSCM research centre, while the Autumn Electronics Fair and electronicAsia drew more than 61,000 buyers, underscoring the city’s role as a sourcing hub.

China’s Export Engine: GDP grew 4.5% in the third quarter, driven by strong exports of chips and electronics as AI demand lifts manufacturing. Weak domestic demand and the property slump remain a drag. Hong Kong Outlook: The IMF raised its 2026 growth forecast for Hong Kong to 3.8%, with Financial Secretary Paul Chan saying the government’s outlook is more optimistic. Sourcing and Electronics: Hong Kong’s Autumn Electronics Fair and electronicAsia drew more than 61,000 buyers, while Global Sources’ latest show opened with over 2,100 suppliers and about 160,000 products on display. Cleaner Freight: An electric container vessel has launched a Guangzhou–Hong Kong route, adding a lower-carbon link to Greater Bay Area trade. Food Safety: A US recall of about 1.5 million pounds of ready-to-eat meat and poultry includes products shipped to Hong Kong; consumers should check product details and avoid affected items.

Economic Outlook: The IMF lifted Hong Kong’s 2026 growth forecast to 3.8%, while Financial Secretary Paul Chan said the government is more optimistic, citing the city’s role in channeling capital to support technology and jobs. Electronics Trade: Hong Kong’s Autumn Electronics Fair and electronicAsia drew more than 61,000 buyers from 141 countries and regions, with strong interest in AI and robotics. Air Cargo: Hactl’s SuperLink China Direct tested a bonded road route carrying Vietnamese cargo through mainland China to Hong Kong airport, opening another channel for electronics, garments and other time-sensitive goods. Capital Markets: Citi expects Chinese AI supply-chain companies to keep pursuing Hong Kong listings, supported by local and mainland investor demand, though a downturn in the global AI cycle could weigh on the market. Greater Bay Area: Guangzhou’s new knowledge-focused bonded zone has begun operating, targeting intelligent computing and precision-equipment maintenance.

Electronics Trade: Hong Kong’s Autumn Electronics Fair and electronicAsia drew more than 61,000 buyers from 141 countries and regions, reinforcing the city’s role as a global sourcing hub. AI Listings: Chinese AI supply-chain companies are expected to keep pursuing Hong Kong listings, supported by mainland investment and international demand, though a downturn in US AI stocks could weigh on valuations. Maritime Links: A new electric container vessel has opened a Guangzhou–Hong Kong route, while Hong Kong’s southbound yacht scheme is attracting its first Guangdong vessels. Market Infrastructure: HKEX has set a roadmap for one-day settlement in the second half of 2028. Food Safety: A US recall of more than 1.5 million pounds of ready-to-eat meat and poultry includes products shipped to Hong Kong; consumers are urged not to eat affected items.

Cross-Border Business: Financial Secretary Paul Chan used his Bangkok visit to promote Hong Kong as a financing bridge for companies investing in Thailand, including through dual listings and links between mainland technology and Thai industry. Eight startups from a Selangor accelerator are also set to meet investors at Hong Kong FinTech Week in November. AI & Innovation: Hong Kong has opened an embodied-AI hub to attract robotics businesses, while HKUST developed a robotic arm with human-like touch sensing. HSBC plans to expand its Hong Kong AI team to 300. Trade & Transport: A new electric container vessel is operating on the Guangzhou–Hong Kong route, adding a lower-emissions option for regional freight. Hong Kong’s airport cargo terminal operator also renewed its franchise for 15 years. Finance & Health: HKEX is preparing for one-day settlement in the second half of 2028. Separately, the Health Secretary discussed regulation, research and AI in traditional medicine at a Beijing conference, sharing Hong Kong’s plans to integrate Chinese medicine into healthcare.

Yachting: Hong Kong welcomed its first five Guangdong yachts under a new southbound scheme, easing access to designated anchorages as the city courts marine-economy growth. Markets: HKEX has set a roadmap for T+1 settlement, with one-day settlement planned for the second half of 2028. AI & Innovation: HSBC plans to expand its Hong Kong AI team to 300, while the city has opened an embodied-AI hub to attract robotics businesses. Hong Kong also proposed tax deductions for intellectual-property spending. Trade & Energy: An electric container service has opened between Guangzhou and Hong Kong, and China’s new hydrogen pilots include the Greater Bay Area. Tourism: The Hong Kong Wine & Dine Festival returns on October 29, followed by a month of dining offers to encourage visitor spending. Customs: Hong Kong Customs seized counterfeit hard disks worth HK$50 million in Tuen Mun and arrested six people.

Yachting: Hong Kong has launched southbound yacht travel from Guangdong, completing two-way cross-border trips. The government is planning four new yacht facilities with more than 1,100 berths. Industrial AI: A new Hong Kong hub aims to bring embodied AI into commercial use, while the electronics industry’s Future Industries Zone is linking technology firms, researchers and international partners. Banking & AI: HSBC plans to double its Hong Kong AI team to 300 over the next two to three years and establish a global AI research institute in the city in 2027. Capital Markets: HKEX is targeting T+1 settlement in the second half of 2028. Hong Kong has also hosted China’s first offshore-wind insurance sidecar, raising US$12 million to share project risks with investors. Innovation Incentives: New legislation proposes tax deductions for intellectual property spending, as the government prepares to implement a title-registration system for new land next year.