A series of financial events hosted in Hong Kong in October and November provided a snapshot of the city’s recovery and the shifting dynamics of doing business in the region. As changes are afoot with Hong Kong redefining its role as an international financial centre, we reflected on the unique communication challenges that arise in the hub and how companies can navigate them.
“When a dignitary goes out, they attract wind and rain,” a saying in Chinese goes.
It was certainly the case in Hong Kong on Tuesday, a rainier and chillier than usual November day following a series of back-to-back typhoons. For the third year, Hong Kong played host to over 350 international and regional CEOs who huddled for the city’s top annual conference organised by the local de facto central bank, the Hong Kong Monetary Authority (HKMA).
The guest-of-honour
In addition to the chairmen and CEOs in attendance, including David Solomon of Goldman Sachs, Ted Pick of Morgan Stanley, and Joseph Bae of KKR, the big Wall Street gathering also saw a surprise guest in Chinese Vice Premier He Lifeng. Vice Premier He, who led a delegation from Beijing, vowed that China will support Hong Kong’s innovation and financial reform and would enhance the city’s “financial competitiveness.” He also reiterated Beijing’s commitment to “explore and implement” measures aimed at building Hong Kong as an “international financial center.” This directive from Beijing was an important reassurance for some of the attendees at the event, and there was a general sense of optimism brewing in the air for what lies ahead.
At the Hong Kong FinTech Week that took place just three weeks prior, a similar sense of excitement could be felt. Joined by over 37,000 attendees from 100+ economies (including us at Cognito – special shout out to our partner FinTech Association of Hong Kong for again having us!), the event saw the convergence of FinTech innovations from TradFis and upstarts, while government officials pledged their commitment to responsible AI to further the city’s leading GenAI adoption rate at 38 per cent. Participants we met from abroad – including Japan and Dubai – all referenced Hong Kong’s solid foundation on what they were keen to learn and replicate in their own economies.
Numbers don’t lie
Does the positive sentiment match up to reality? After several years of speculation that Hong Kong has lost its sheen, we looked into the recent numbers to discover that things are in fact on the way up:
- Nearly 42,000 individuals have become licensed financial professionals following a brain drain;
- 322 companies have either set up or enhanced their businesses in Hong Kong in the first half of 2024, up by 43 percent compared with the same period last year;
- FDI investments hits US$4.9 billion in 2024 led by Chinese and US firms, a 6 percent increase year-on-year;
- More than 90 mega events for the first half of 2025 that are expected to bring in 840,000 tourists to the city, including Hong Kong Sevens 2025, the Milken Institute Global Investors’ Symposium, and Consensus 2025.
Hong Kong’s advantages, including its proximity to other Asia markets, a low tax system, strong rule of law protections, and robust and efficient capital markets, continue to form a solid foundation for the hub’s ongoing success and competitiveness. But make no mistake, there are still plenty of changes for Hong Kong ahead that would add complexity to Hong Kong’s trajectory for recovery.
Communicating the complexities
A key theme at the HKMA summit was how to navigate a world of complexities. In Hong Kong those communications challenges fall into two basic categories: domestic and international.
Domestically, as more Chinese and US firms invest into the city, Hong Kong now truly has to embody the “East meets West” connector role. A recent WSJ article observed that a Hong Kong Stock Exchange (HKEX) event was carried out in Mandarin without English translation for some Western attendees, leaving them in the dark about what the head of the exchange was saying in her speech.
That was just one of the many events the city is hosting that are seeing the need for communicators to be mindful of both its Chinese and Western audiences. Having bilingual external communications materials is no longer just a nice-to-have but a must-have for companies operating in Hong Kong to ensure inclusiveness. Leaving ample room for translation in the preparation phase is equally critical to getting things right and adjusted to cultural nuances.
Now when we look internationally, businesses in Hong Kong and even beyond are looking out for what to expect ahead of President-elect Trump’s second term, especially around international trade. The President-elect has suggested that he may impose a 10 per cent to 20 percent blanket tariff on imports from most countries and has threatened a 60 per cent tariff on imports from China.
Should this materialize, companies must communicate plans clearly and timely with partners, clients, and other stakeholders on what will come next. A crisis communication playbook will be crucial to business continuity while displaying a firm’s steadfast commitment to smooth operations.
What is clear from recent events is that Hong Kong continues to play a catalytic role as a premier financial hub, underscored by the vote of confidence from Beijing and Wall Street giants. The road ahead marked by changing dynamics is complex, and communicating what’s next is more important than ever.
Karen Lee is a Senior Account Manager in Hong Kong
