The international geopolitical landscape is continuously evolving, with markets closely monitoring developments following the meeting between the leaders of the US and Russia. At the same time, tariff measures imposed by the US are expected to further constrain global trade performance, while the uncertainties surrounding tariff policies may impact on business confidence, investment and supply chains. Despite the significant challenges and uncertainties on the economic prospect posed by the macro landscape and technological transformations, substantial opportunities also lie ahead. By seizing these opportunities as well as turning the tension between traditional and emerging models in Hong Kong's economic transformation into a driving force for economic upgrading and restructuring, we can unlock new growth areas for Hong Kong.
Take merchandise export as an example. While geopolitical tensions and tariff wars are reshaping global trade patterns and supply chains, Hong Kong, as a transshipment hub, has recorded double-digit year-on-year growth in merchandise trade over the past few months. This growth, on the one hand, reflects that some exporters might have expedited shipments during the temporary easing of the tariff war. On the other hand, it highlights the opportunities arising from the changing international trade landscape, particularly the deepening of regional trade co-operation. For instance, in the first half of this year, Hong Kong's total merchandise exports to Vietnam and Malaysia increased by over 50% and 30% respectively, while imports from these two countries rose by about 70% and 30%. Notably, the Association of Southeast Asian Nations (ASEAN), Hong Kong's second-largest trading partner, accounted for 14.8% of Hong Kong's total merchandise trade in the first half of this year, up from 12.1% in 2021.
The consolidation of supply chains and reshaping of trade patterns will create new development opportunities for Hong Kong’s trade, shipping, financial and professional services sectors. For example, commodities – particularly non-ferrous metals – play a critical role in the global industrial and economic development, accounting for around half of the total global shipping volume. As a leading industrial powerhouse as well as a major consumer and producer of non-ferrous metals, China occupies a key position in the global metals value chain. In the current geopolitical environment, enhancing the stability and resilience of non-ferrous metal supplies for both our country and the region is of strategic significance.
The Chief Executive’s Policy Address last year proposed the creation of a commodity trading ecosystem, and relevant efforts are progressing steadily. Earlier this year, Hong Kong joined the global warehousing and delivery network of the London Metal Exchange (LME), further linking China to the world’s most active metals trading market. This marks a significant milestone.
The establishment of LME-approved warehouses in Hong Kong helps enhance the efficiency of non-ferrous metal allocation, reduce logistics time and costs, and strengthen the stability of key metals supplies in the region. This initiative fully leverages Hong Kong’s advantages under the "one country, two systems" framework, including our status as a free port with zero tariffs, efficient customs clearance and a globally connected logistics network. Furthermore, commodity trading and delivery activities in Hong Kong will not only increase demand for related shipping services but also drive the development of financial services such as trade financing, insurance, risk management, hedging and derivatives trading. In the long run, we are well-positioned to promote more commodity transactions denominated and settled in the Renminbi (RMB). That will inject new momentum into the development of Hong Kong’s offshore RMB business and contribute to the prudent advancement of RMB internationalisation.
Since Hong Kong became an LME-approved delivery point in January this year, all eight approved warehouses have commenced operations within just seven months. By early August, over 8,000 tonnes of LME-registered warehouse warrants had been issued to support LME contract deliveries.
The Government has also established a dedicated working group to review various aspects of gold financial transactions and to promote Hong Kong’s development as an international gold trading centre. This includes facilitating the physical delivery of gold. Relevant initiatives will be announced within the year.
Another area we are actively promoting is multinational supply chain management centre. With the restructuring and consolidation of global trade and supply chains, the upgrading and transformation of industries on the Mainland, and our country’s high-level two-way opening-up strategy, many Mainland enterprises are accelerating their plans to "go global", including establishing industrial and supply chains in the Global South and the Belt and Road regions. For these enterprises, Hong Kong is an attractive platform for establishing offshore corporate treasury and multinational supply chain management centres. In Hong Kong, international capital converges and flows freely, supported by robust and comprehensive financial services, a globally connected airport and port, a trade network featuring global suppliers and buyers, and professional expertise well-versed in international business.
To allow this platform to function more effectively, Invest Hong Kong and the Hong Kong Trade Development Council (HKTDC) have jointly established a high value-added supply chain service mechanism to provide one-stop consulting services for enterprises aiming to "go global" through Hong Kong. Institutions such as the Hong Kong Productivity Council (HKPC) and the Hong Kong Export Credit Insurance Corporation are also actively involved.
For instance, many outstanding Mainland tech enterprises face multiple challenges when they expand overseas. Such challenges include how to align with technical standards, localise their products, and protect intellectual property. In this context, the HKPC launched the "The Cradle – Going Global Service Centre" in April this year. In collaboration with Mainland innovation and technology institutions, the centre provides research and development support, evaluation on technologies and applications, as well as professional consulting services on overseas regulations to Mainland enterprises that have set up offices in Hong Kong and seek to expand globally.
From the reshaping and consolidation of the international trade landscape to our efforts in establishing Hong Kong as a multinational supply chain management centre, we are proactively adapting to the evolving global market. In this process, Hong Kong’s role and advantages as a "super connector" and "super value-adder" are becoming increasingly prominent. By continuously exploring new business areas and growth drivers, leveraging our strengths and serving the country’s needs, we can create a broader path for Hong Kong’s sustained economic development.
August 17, 2025
