Cha said not only will China have a strong economy, but Asia’s emerging economies will also be drivers of growth. India, Indonesia, Hong Kong and other Asean countries have been resilient during the pandemic and investor sentiment is coming back, according to Cha.

The Hong Kong stock exchange had a stronger second half of the year as the economy slowly recovered and momentum picked up ahead of 2023. December witnessed improved sentiment, said Cha, in anticipation of China’s reopening.

With mainland China’s border now open, Hong Kong and neighbouring countries in Asia are anticipating a strong flow of Chinese travellers that will simulate local economies.

Cha also spoke about Hong Kong’s role as a major fundraising hub for technology companies and said investment in innovation-driven companies, particularly those in biotech, will be a major theme for 2023.

Hong Kong is already the world’s second-largest fundraising hub for biotechnology and the largest in Asia, according to Bloomberg. Biotechnology listings in the city raised US$12.6 billion last year compared with the United States’ record US$18 billion.

Hong Kong’s financial secretary Paul Chan Mo-po was among political and business leaders joining the Forum this week.

Chan said Hong Kong’s economy will rebound “very strongly” this year as tourism and consumption revives after the border reopened. “The first quarter may be slower, but then will pick up very fast,” he said on Bloomberg TV, adding that there are also “signs of a stabilisation” in the city’s property market after a decline in 2022.

Chan was “optimistic” about the city’s IPO market recovering, and is seeking to lure companies in Southeast Asia and the Middle East to list in the city. “We are casting our net very wide, hopefully to attract more to come,” said Chan.

Chan welcomed enterprises in Thailand to actively use Hong Kong’s efficient fundraising platforms to finance large-scale infrastructure and other projects. He said Hong Kong could help countries in the Middle East to diversify their investments and manage risks.

In a separate panel, HKEX CEO Nicolas Aguzin said Chinese consumers have saved over US$2 trillion during the pandemic, and this disposable income will greatly benefit the consumption and tourism sectors.

Aguzin added that the Exchange had a strong line up of IPOs, particularly Chinese tech companies, and that he was very optimistic for the market this year.

The Forum is a week-long event that brings together business leaders and economists to make predictions for the global economy for the year ahead. It is traditionally held in Dovas, Switzerland, and was the summit’s first winter session in three years following the pandemic.

Credit Suisse chairman Axel Lehmann said the firm forecasts growth of around 4.5 per cent for China this year, adding that he would not be surprised if it comes in higher.

He added that the world needs to focus on the innovation sector and future technologies that will improve economic growth going forward.

Lehmann said cash-heavy investors are looking for the right opportunities to deploy it. Douglas Peterson, CEO of S&P Global, agreed that there is not a lack of capital among investors but said uncertainty remains.

“There’s ample liquidity, but it’s on the sidelines waiting to see where interest rates, growth rates settle and what will happen to sectors like energy,” said Peterson. “It’s not a lack of capital. It’s a lack of certainty.”