FS Paul Chan: Xi-Trump summit buoys economic prospects

Financial Secretary Paul Chan says he's expecting positive market interpretation of the Xi-Trump meeting, which is expected to drive global investment and economic prospects.

He also stresses the administration's plan to settle some government spending in renminbi won't change the linked exchange rate system.

President Xi Jinping's state visit to the United States received a high-level reception by US President Donald Trump.

Xi lauded the summit as successful, while Trump also underscored how significant progress has been made.

Speaking on a radio programme, Financial Secretary Paul Chan anticipates the market will have a positive interpretation of the Xi-Trump summit noting that after all, China and the US are major economic powerhouses.

Previously, geopolitical uncertainty cast a pall over economic prospects, causing capital flow volatility.

If such factors can be mitigated, the finance chief says, investors can feel more at ease when positioning their portfolios.

Chan also expects competition between the two countries will continue, but what matters is Hong Kong gauges well the overall geopolitical situation.

Chan says with the buoyant development of innovation and technology, alongside huge markets in China, Southeast Asia and the Global South, what Hong Kong should do is to focus on boosting our competitiveness while staying alert to risks.

Meanwhile, the city's inaugural five-year blueprint has proposed expanding the use of renminbi in settling some government expenditure.

Paul Chan stresses the move won't impact the linked exchange rate system, which pegs the Hong Kong dollar and US dollar.

He says Hong Kong's core advantage lies within the "One Country, Two Systems" framework alongside an independent, separate currency under the linked rate system.

And that provides certainty and confidence to investors, which is also pivotal to our stature as an international financial centre.