Hong Kong finance chief urges supply chain diversification amid AI risks
Financial Secretary Paul Chan says firms are accelerating supply chain diversification and investment dispersal due to global geopolitical uncertainty. He highlights AI risks including document forgery, and outlines three priorities: integrity, becoming 'AI native', and continued investment in peopl
Hong Kong Financial Secretary Paul Chan said on 9 November that amid global geopolitical uncertainty, enterprises are accelerating supply chain diversification and investment dispersal, while regional economic ties are tightening, driving a surge in demand for cross-border trustworthy financial information. Developments in trade, technology and green transition create opportunities but also raise new demands for trust and accountability.
Speaking at the Accounting and Financial Reporting Authority Regional Regulatory Forum, Chan said diversity and openness mean more financing and cross-border investment flows. He noted that in the first ten months of this year, Hong Kong had 121 new listings with total fundraising exceeding HK$400 billion, a 40 per cent increase over the whole of last year. About 60 per cent of new issuers have international business operations, and some explicitly stated in their prospectuses that proceeds would be used for overseas expansion. More international companies from Southeast Asia, the Middle East and Central Asia are choosing to list or issue bonds in Hong Kong.
Chan said artificial intelligence can efficiently handle routine tasks, but its limitations and the validity of its underlying assumptions require rigorous professional scrutiny. He also flagged the risk of AI-generated document forgery. The industry, he said, must find ways to fulfil its duties while upgrading the skills of management and staff.
Chan set out three priorities: first, placing integrity at the core of work and never compromising on quality and integrity. Second, building not just AI skills but becoming 'AI native', as firms will increasingly value people who can use AI to transform or reshape business models. Third, continuing to invest in people; although AI may reduce some routine work, firms must still provide training and experience for young professionals to cultivate talent with technological and commercial understanding, sound judgement, integrity, and the ability to collaborate across markets and cultures.
