The Heat: Global Economy | Asian Financial Forum

Key Concepts

• Asian Financial Forum (AFF): A major annual event in Hong Kong focused on promoting economic cooperation and discussing global financial trends.
• Geopolitical Shifts: The changing global landscape and its impact on economic strategies and cooperation.
• Sustainable Finance: Financial strategies and innovations aimed at supporting sustainable development and inclusive growth.
• Fintech Innovation: The role of technology in driving financial advancements and creating new opportunities.
• Hong Kong as a Financial Hub: Hong Kong’s position as a key international financial center and its role as a bridge between mainland China and the world.
• Gold Market Development: Hong Kong’s ambition to become a leading international gold trading hub.
• Multilateral Cooperation: The importance of international collaboration in addressing global economic challenges.
• RMB Internationalization: The increasing use of the Chinese Yuan (RMB) in international transactions.
• Diversification of Trade & Investment: The strategy of countries to reduce reliance on single markets and partners.
• De-dollarization: The trend of reducing dependence on the US dollar in international finance.

Hong Kong’s 19th Asian Financial Forum: Fostering Cooperation Amidst Global Challenges

The 19th Asian Financial Forum (AFF) held in Hong Kong brought together over 150 speakers and more than 3,600 participants from over 60 countries and regions. The event occurred against a backdrop of increasing global economic challenges, serving as a platform for future-oriented discussions and the promotion of greater economic cooperation.

Hong Kong’s Economic Performance & Future Ambitions

Chief Executive John Lee highlighted Hong Kong’s achievements, particularly the record high of 11,070 foreign and mainland-affiliated companies operating in the city in 2025 – an 11% year-on-year increase. Lee stated, “The encouraging results represents more than a vote of confidence in Hong Kong by these businesses and entrepreneurs. They also mean our solid efforts in facilitating business establishment and operation and in creating an enabling ecosystem for startups are bearing fruits.” Hong Kong is actively pursuing development as a leading international gold trading hub, evidenced by a cooperation agreement signed with the Shanghai Gold Exchange. This agreement focuses on establishing a collaborative governance structure for Hong Kong’s new gold central clearing system and enhancing physical infrastructure synergy and market interconnectivity. Further measures include a signed MOU with Shenzhen and plans to develop gold storage facilities exceeding 2,000 tons within three years.

Gold Market Focus & Expert Perspectives

At a panel discussion on gold exchange, David Tate, CEO of the World Gold Council, expressed optimism regarding rising gold prices. James EMTT, CEO of MKS PAMP, affirmed Hong Kong’s potential as a gold hub. The agreement with the Shanghai Gold Exchange is intended to promote the use of the RMB in gold transactions and expand Hong Kong’s role in the global gold market. MKS PAMP and MG Metals were specifically mentioned as key refiners headquartered in Hong Kong.

Multilateral Cooperation & Global Economic Outlook

A plenary session addressed multilateral cooperation in the context of global changes. The Asian Development Bank (ADB) announced a $10 billion pledge to finance a regionally integrated power grid in Southeast Asia. Discussions on the global economic outlook revealed some optimism for 2026 growth, but also emphasized the need to support less developed economies. One speaker noted, “You can't paint the whole world in one brush stroke. Every single one is different… After COVID, 90% of developed nations has recovered less than 50% of emerging markets actually are recovering and in fact they still haven't met. So I think if you want to be happy together, we have to really pay attention to differences, the rich and the poor, the developed and the less developed.”

Global Business Summit & Hong Kong’s Role as a “Super Connector”

The inaugural Global Business Summit focused on the empowering role of finance for businesses and Hong Kong’s position as a bridge between mainland China and the rest of the world. The current geopolitical climate underscores Hong Kong’s value as a “super connector,” as many countries seek access to the vast Chinese market. The event featured four exhibition zones, including a new “Future Green Showcase” dedicated to green finance and technology, aiming to connect funding with sustainable development. The AFF deal-making session provided further investment and networking opportunities.

Expert Analysis: Perspectives from Yang Leang & John Quelch

Yang Leang, Chair Professor in Economics at Wamet University, emphasized the forum’s importance as a launchpad for business opportunities connecting with China through Hong Kong, particularly in light of China’s 15th Five-Year Plan. She highlighted discussions on sustainable finance, fintech innovation, and the potential of emerging technologies like AI, robotics, and biotech. Leang also noted Asia’s contribution of 60% to global GDP growth in 2025 and the need for regulatory cooperation to navigate geopolitical uncertainties.

John Quelch, Executive Vice Chancellor and American President at Duke Kungan University, underscored Hong Kong’s long-standing reputation as a commercial hub with strong regulatory integrity. He highlighted Hong Kong’s role as a bridge between China and the global south and the opportunity to position itself as a regional commodities trading hub, particularly in precious metals, due to the cooperation with the Shanghai Gold Exchange. He noted that Hong Kong saw more IPOs in 2025 than at any time since 2019, making it the leading IPO market globally.

Further Perspectives: Latin America & Africa in a Changing Global Order

Former Chilean Ambassador to China, Jorge Heine, emphasized the importance of diversification for Latin American countries, particularly strengthening ties with the Asia-Pacific region through initiatives like the Pacific Alliance. He highlighted Chile’s early free trade agreement with China as a successful example.

Susha Naidu, Senior Research Associate at the Institute for Global Dialogue, discussed the increasing trend of de-dollarization and China’s role in providing alternative financial mechanisms. She pointed to the use of systems like CIPS and the increasing price of gold as indicators of this shift. Naidu also criticized the US’s use of tariffs as a foreign policy weapon, arguing that it is a reactive approach that may not achieve its intended goals. She noted the strengthening of the South African Rand against the dollar as a sign of diversifying financial flows.

Conclusion

The 19th Asian Financial Forum underscored Hong Kong’s continued relevance as a vital international financial hub and a key connector between China and the global economy. The event highlighted the growing importance of multilateral cooperation, sustainable finance, and technological innovation in navigating a complex geopolitical landscape. The discussions and agreements reached at the AFF signal a potential shift towards a more diversified and multi-polar global economic order, with China playing an increasingly prominent role. The emphasis on diversification, de-dollarization, and regional integration suggests a growing desire for greater economic stability and resilience in the face of global uncertainties.