Hong Kong finance chief expects markets to welcome reduced uncertainty after Xi-Trump meeting

Hong Kong Financial Secretary Paul Chan Mo-po has predicted that markets will respond positively to the meeting between Chinese President Xi Jinping and US President Donald Trump. He said reduced geopolitical uncertainty could improve investor confidence and limit volatility in capital flows. Mr.

Chan made the comments on a radio programme on Saturday, a day after Mr. Xi completed a three-day visit to Washington. The meeting produced promises of further talks, although the source described the immediate deliverables as limited.

The finance chief said China’s economy would continue to grow steadily and that domestic companies expanding overseas could benefit Hong Kong, Southeast Asia and the Global South. He also pointed to Hong Kong’s initial public offering market and its role in helping mainland enterprises expand internationally. Mr.

Chan said Hong Kong’s hosting of the Apec Finance Ministers’ Meeting from October 20 to 21 would provide an opportunity to promote the city’s business environment. He said political leaders attending the meeting could gain a deeper understanding of Hong Kong’s arrangements under “one country, two systems”. He also sought to reassure investors that plans to increase the use of the renminbi for government payments and commodities trading would not affect Hong Kong’s linked exchange-rate system.

He said the city would retain a separate currency and that the exchange rate would remain anchored within its established band. The government has issued some bonds in renminbi to benefit from lower interest rates. Mr.

Chan said settling payments for mainland-supplied goods and services directly in renminbi could reduce transaction costs and limit exchange-rate risks. He described offshore renminbi business as a competitive advantage for Hong Kong. He said more entities could hold the currency as countries seek to settle trade in local currencies and diversify some risks away from the US dollar.