As China continues to deepen its economic reforms, the ACCA Greater Bay Area CFO summit 2024 explored how to capitalise on Hong Kong SAR’s strengths as a financial hub while enhancing regional cooperation in the Greater Bay Area (GBA).
Addressing the theme of ‘Bay Area synergy: navigating global trade opportunities and challenges’ at the summit, held in November, industry leaders delivered strategies for boosting sustainable productivity and navigating today’s global trade environment.
Key role
In her opening speech, ACCA China director Ada Leung highlighted the complexities of today’s business landscape. ‘We currently face numerous global challenges, including climate change and geopolitical conflicts. Many countries are experiencing economic downturns and declining investments,’ she said.
‘Accountants will be crucial in driving sustainable growth in the GBA’
Against this backdrop, Hong Kong plays a unique role within the GBA framework, acting as an international financial hub operating within the ‘One Country, Two Systems’ model.
According to a recent joint study by ACCA and the Hong Kong Trade Development Council, Seizing opportunities in China’s sustainable investment, 99% of companies in mainland China are set to pursue sustainable investment strategies within the next three years, and Hong Kong is their preferred destination for professional services.
‘Professional accountants are more than just financial experts – they serve as vital think tanks for strategy, corporate transformation and development,’ Leung added. This expanded role, she suggested, will be crucial in driving sustainable growth and fostering regional collaboration within the GBA.
‘Hong Kong has significant strategic advantages in the global economy’
Financial edge
In a keynote speech, Joseph Chan, Hong Kong’s under secretary for financial services and the treasury, described the SAR as a global financial powerhouse, citing the Global Financial Centres Index, which ranks Hong Kong third worldwide and top in Asia.
‘Hong Kong has significant strategic advantages in the global economy,’ Chan said. He pointed out that the ‘One Country, Two Systems’ framework positions the SAR as an ideal connector between China and international markets, backed up by its robust US$421bn foreign exchange reserves and business-friendly environment.
Chan listed multiple breakthroughs in regional integration. The recent roll-out of the Cross-boundary Wealth Management Connect Scheme 2.0 expands investment opportunities and enhances market access. The establishment of the Shenzhen-Hong Kong Financial Co-operation Committee marks another significant step in boosting financial market integration. Plans are also underway for insurance companies to set up after-sales service centres in Nansha and Qianhai for GBA residents with Hong Kong insurance policies.
Regarding talent development, Chan also outlined a range of initiatives, including the Set Sail for GBA – Scheme for Financial Leaders of Tomorrow, and the GBA Fintech Two-way Internship Scheme. These moves, he said, cement Hong Kong’s multifaceted role as an international financial hub, an offshore renminbi business centre and an emerging force in green finance.
Professional accountants will play four key roles in the sustainability era
Sustainability surge
At the summit, sustainability and climate action emerged as critical themes, with sustainable finance poised for significant growth. ‘The compound annual growth rate is expected to be 20.4% between 2023 and 2032, with Asia Pacific projected to have the highest rate,’ said ACCA president Ayla Majid.
Hong Kong’s pivotal role in this expansion is clear, having facilitated 37% of Asia’s international green and sustainable bonds in 2023. Majid mapped out four key roles for accounting professionals in this sustainability era: transformation drivers who lead change, enterprise analysts who guide business decisions, stakeholder reporters who communicate performance, and assurance providers who verify information.
‘Organisations thrive when they create and use sustainability information,’ Majid said. ‘Sustainability information encourages organisations to think in an integrated way about their finances, stakeholders, society and the environment upon which they are dependent.’
To support this transformation, Majid laid out five steps professional accountants can take to make a real difference in fighting climate change and reducing social inequality: integrating sustainability with risk management, fostering inclusive collaboration, embracing technology, maintaining ethical standards, and committing to lifelong learning.
ACCA, for its part, is backstopping this vision with training courses in sustainability assurance and green finance to equip professionals for changing business demands.
Sustainability, financial innovation and trade cooperation are the top priorities
Global innovation
As the world pivots toward clean energy and sustainability, global companies are betting big on the GBA’s future. ‘Even with global trade challenges, the GBA continues to attract strong interest from multinational companies,’ said HKTDC deputy executive director Patrick Lau in his keynote address.
To tap this sustained interest, HKTDC offers free of charge the GoGBA platform, a one-stop solution for businesses looking to access the GBA market. GoGBA is an aggregator app that offers essential up-to-date business information, including policy updates and subsidy information, alongside practical tools for cross-border finance and utility services.
Policy initiatives, including the recent enhancements in the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), are the primary driver of the region’s growth. ‘Hong Kong is well positioned to generate new economic momentum together with the GBA, particularly in green finance and deal-making activities,’ Lau added.
Overall, the summit identified three core priorities for the region’s financial development: sustainability, financial innovation and trade cooperation.
‘Hong Kong’s position in global trade has profound implications for the GBA’
Unique position
In his closing remarks, ACCA Hong Kong chairman Stanley Ho said: ‘Professional services are vital to the GBA network. Hong Kong’s position in international trade has profound implications for the GBA. We must utilise our unique status to foster trade exchange and financial integration within the region, working towards shared prosperity.’
Accountants can spearhead sustainability initiatives while promoting closer financial ties across the region, according to Ho. ‘In these changing times, we must be clear about what should change and what should stay constant,’ he said. ‘Our commitment to professionalism and ACCA’s core values of integrity, inclusiveness and innovation must remain unwavering. At the same time, we must continually adapt and enhance our capabilities to become agile in this new era.’
More information
To find out more about the event and the speakers who took part, visit ACCA’s dedicated information page.
