While Hong Kong is firmly established as one of the world’s pre-eminent international financial centres, faced with geopolitical shifts and economic uncertainties, the Special Administrative Region (SAR) is seeking new ways to leverage its internationally focused pro-business environment to reach new growth horizons.
Brought together by ACCA Hong Kong, a diverse group of representatives from the accounting, audit, tax, advisory, legal, mediation, healthcare/insurance and engineering sectors, along with Ayla Majid, global president of ACCA, participated in a roundtable discussion in November, which focused on the role of professional services as a catalyst of economic and client growth while enhancing Hong Kong’s status as an international finance centre.
To corral the extensive amount of knowledge and experience Hong Kong’s professional services sector offers – noting how the roundtable discussion aligned with Majid’s vision of ‘a new future for accountancy with a strategic lens and a stakeholder approach’ – and taking a wide-lens view, she suggested placing the focus on developing a collaborative Hong Kong professional excellence ecosystem. ‘Whether it’s working with industry, policymakers or investors, professional services build trust while providing a bridge and connection between various stakeholders,’ she noted.
Strategic advantages
To help tackle the most pressing challenges that have impacted the SAR’s economy in recent years, roundtable participants agreed it is vital to give full play to Hong Kong’s unique geographic location, global connectivity and the services offered by its wide spectrum of professional services. Nicolas Moreau, CEO at HSBC Global Asset Management, noted that, in terms of the availability and quality of professional services Hong Kong is able to offer, the SAR is second to none. ‘The challenge is,’ Moreau said, ‘from this standpoint we must find ways to preserve and grow the advantage.’
Believing that where there is ‘good talent, good things will happen’, Arthur Shek, managing partner at McKinsey Hong Kong, pointed out how professional services practitioners contribute to Hong Kong’s economy through generating high-quality GDP, which differentiates the SAR from becoming ‘just another Chinese city’. With this in mind, Shek said that, for Hong Kong to reach its next horizon, it is important that government policies and regulations support substance and innovation. ‘To maintain our edge,’ he said, ‘the answer lies in promoting our capabilities to the international community of businesses and investors.’
‘If we are to succeed, we have to be creative and innovative, which requires investment’
Sharing a similar view, Dr Philip Zhai, executive vice chairman at the Chinese Financial Association of Hong Kong and president, Ascendent Capital Partners (Asia), noted that, given the SAR’s geographical location, it is natural to focus on the mainland China market. However, as an international financial centre, Hong Kong should aim higher and for wider markets. ‘The collective wisdom and collective connections developed over time and with different markets could be crystallised to add value to the city,’ Zhai suggested.
New growth potential
Citing the development of Hong Kong’s low-altitude economy, defined as economic activities in the air space 1,000m above ground, Ir Alice Chow, senior vice president of the Hong Kong Institute of Engineers and director of strategic development and fellow at Arup, explained that, while engineers are able to design and implement the infrastructure, unlocking the potential a low-altitude economy offers requires collaboration across the professional services sector.
‘If we are to succeed, we have to be creative and innovative, which requires investment and help from different professional services,’ Chow said. ‘To make it work we have to think fast, be smart and efficient; it’s all related.’
Identifying a potential area for export growth, Stanley Lo, vice chairman of Hong Kong Mediation Council and consultant at Deacons, explained how innovative homegrown modular integrated construction methods and building information modelling meet environmental, social and governance and sustainability criteria. ‘They are clean, sustainable and environmentally friendly,’ he said, noting their potential use in the development of the Greater Bay Area and beyond.
Ernest Wong, ACCA Council member and CFO at KVB Holdings, observed that, thanks to Hong Kong’s openness and internationally connected environment, the SAR continues to attract and nurture professional services practitioners who are conversant with Hong Kong, mainland Chinese and Western regulations, business practices and cultures.
With the ability to move across business and cultural frontiers, professional services practitioners, Wong suggested, could utilise their knowledge and expertise to help clients to navigate blockchain and digital asset regulations including tokenised capital market products. ‘As Hong Kong breaks into new areas of finance, professional services can help us to compete with other jurisdictions, by helping clients to understand and comply with regulations faster and more efficiently,’ he said.
Regulatory resilience
Meanwhile, focusing on Hong Kong’s financial services sector, Natalie Chan, ACCA Council member and banking and capital markets leader (Hong Kong) at Deloitte China, noted the crucial role professional accountants play in upholding the regulatory resilience required by financial institutions.
‘In terms of opportunities, the sky is the limit; we just need to embrace more innovation’
‘The essence of independent assessment by professional service providers is paramount. It is an integral component in fostering operational resilience within the financial services sector,’ she said. ‘It serves to affirm to financial services regulators that compliance requirements are stringently adhered to, and that the regulatory framework is robustly implemented and effective. This level of oversight and assurance is not just a necessity but a cornerstone of trust in our financial systems.’
Spotlighting Hong Kong’s regulatory system, Fiona Harris, managing director at Bupa Hong Kong, said that the insurance industry regulator is agile and supportive. Meanwhile, the government has money to invest in healthcare. Within this framework, Harris emphasised, as professional service providers it is important to uphold high standards and evolve using technology such as artificial intelligence, while identifying and incorporating best practices taken from around the world.
‘By innovating locally and incorporating the best ideas from wherever they come, I do think we can continue to develop high-quality, value-for-money healthcare,’ Harris explained.
According to Julia Charlton, partner at Charltons, while Hong Kong’s comprehensive and conservative legal framework is fundamental to maintaining the ethics and structure of its capital markets, a regulatory overhaul is needed to attract small and medium-sized enterprises to raise funds on the Hong Kong stock exchange GEM board, formerly known as the Growth Enterprise Market. ‘In terms of opportunities, the sky is the limit; we just need to embrace more innovation,’ Charlton noted.
Bringing the roundtable discussion to a close, moderator Stanley Ho, ACCA Hong Kong chairman and tax partner at KPMG, said that participants had delivered a united consensus on the need to embrace challenges, collaborate to seize opportunities and be more proactive in driving diversification and innovation to stimulate growth. He elaborated on the pivotal role of ethics as the foundation of all professional services, accentuating the critical importance of collaboration in elevating professional standards to fortify and empower a more resilient Hong Kong.
ACCA president visits China
During a recent visit to China, ACCA president Ayla Majid visited Beijing, Guangzhou, Hong Kong and Shanghai, attending a number of events focused on sustainability, artificial Intelligence and sustainable development, where she connected with leading entrepreneurs, economic experts, ACCA members, and accounting and finance professionals. She also signed a strategic cooperation agreement with the Shanghai Institute of Certified Public Accountants, paving the way for deeper collaboration
Read our articles on the recent ISSB-ACCA joint roundtable on sustainability: Chinese business leaders are driving sustainability and Hong Kong is driving growth in the Greater Bay Area.
