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Hong Kong’s Paul Chan on geopolitics and budget for future: ‘we need to grow’

Hong Kong will press on with Northern Metropolis project and push for development of AI, finance chief Paul Chan pledges at Post budget forum

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Finance Chief Paul Chan speaking at the Redefining Hong Kong Series 2025, held at the JW Marriott Hotel on Monday. Photo: Jonathan Wong
Emily Hung
Hong Kong will not be deterred by geopolitical tensions in its pursuit of economic growth as it will invest in the future, including pressing on with the Northern Metropolis project despite the cost and pushing for the development of artificial intelligence (AI), the finance chief has pledged.
At a forum on Monday about the recent budget, Financial Secretary Paul Chan Mo-po also dismissed a “wrongly based” warning by credit rating agency Fitch about the city’s fiscal health, pointing out that the full facts would show that the borrowing being undertaken was for “investing in the future”.
Seeking to bolster confidence in the city’s economy amid threats of higher tariffs and sanctions from the United States under President Donald Trump, Chan said he was focused more on opportunities than obstacles.

Describing the current US administration as adopting “unilateralism”, with “some messages on Twitter” causing volatility in the capital market from time to time, he said for Hong Kong, the response must be to ensure stability in the system.

“We have to look after our financial stability, make sure despite all the capital inflow or outflow [or] volatility in the capital market, our financial system remains stable and resilient, and the linked exchange rate continues to run smoothly,” he said at a panel discussion at the Redefining Hong Kong Series 2025: Budget Edition, held by the South China Morning Post.

“But we are more than just defending ourselves, we need to grow even under the current geopolitics, we see challenges and opportunities,” he said, as he sought to offer a broader forward-looking perspective on the annual budget he unveiled last Wednesday.

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