As one of the world’s leading financial centers, and boasting a vibrant fintech ecosystem, Hong Kong serves as an excellent platform for mainland companies to expand into the ASEAN (Association of Southeast Asian Nations) market and beyond, and for international firms seeking to enter the mainland market, according to Financial Secretary Paul Chan Mo-po, who was speaking at the Hong Kong-ASEAN AI Collaboration Seminar and KN Group’s global headquarters opening ceremony on Friday.

He said the application of artificial intelligence enables the city to make financial services smarter and more inclusive, which is important for rapidly developing ASEAN economies.

With its strengths in financial services and innovation and technology, Chan said, Hong Kong serves as a springboard, providing an excellent platform for mainland companies to expand into the ASEAN market and beyond, and for international firms seeking to enter the mainland market.

“Hong Kong is home to over 70 of the top 100 global banks, and seven of the world's top 10 insurance companies. We boast a highly sophisticated capital market, top-class financial infrastructure, and deep regulatory expertise. We are home to more than 1,000 fintech firms, and among them, eight virtual banks and four virtual insurance companies, offering innovative services from digital payment to AI-empowered credit risk profiling,” the finance chief said.

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Vietnam-based leading conglomerate KN Group, whose business spans from real estate to hospitality, green energy and mining, has chosen to establish its international headquarters, corporate treasury center, and research and development center in Hong Kong, leasing 743.2 square meters of office space to house its business operations. The conglomerate hosted its global headquarters opening ceremony on Friday.

“ASEAN is brimming with new opportunities with the economic bloc’s gross domestic output reaching around $3.7 trillion in 2022, and the region is expected to become the fourth-largest economy in the world by 2030,” Chan noted.

“Home to more than 670 million people, the region's median age is projected to be just 35 years by 2040. This youthful demographic, coupled with robust economic growth and a burgeoning middle class, presents a vast market with immense potential for consumer goods as well as financial services,” the finance chief said.

Chan also said the government of Hong Kong Special Administrative Region is committed to developing the city as an international innovation and technology hub along with its sister cities in the Guangdong-Hong Kong-Macao Greater Bay Area, with AI and big data analysis being one of its key areas of focus.

“We serve as a convergence point for mainland and international data, and with the Greater Bay Area, the city can provide many different application scenarios for AI solutions. In fact, many AI companies are choosing Hong Kong to develop their large language models and to go global,” Chan said at the ceremony.

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The finance chief added that the administration is investing in the necessary infrastructure, including building a supercomputing center, which is expected to commence operation later this year.