US investment in Hong Kong may drop amid looming sanctions, finance chief says
- But Paul Chan says he remains confident in American investment interest in Greater Bay Area and development of rest of China
Hong Kong’s finance minister has conceded that investment from the US could drop under the looming threat of sanctions, but maintained the city remained well-positioned to attract international talent and businesses.
Asked by the Post whether he was worried about the impact of possible fresh US sanctions on Hong Kong, Chan said: “Given this geopolitical tension, the capital market would be more volatile. Certain funds, say for example those from the US, may reduce their allocation to this part of the world.
“But in our engagement with the investment sector in the United States, they are still very keen on the Greater Bay Area and the development of China, as they believe this is the growing future.”
US foreign direct investment in Hong Kong stood at US$89.4 billion in 2022, a 3.3 per cent decrease from 2021.
Chan was taking questions from local and mainland Chinese journalists who joined the “Opportunities in Hong Kong” media tour aimed at promoting the strengths of different cities in the bay area.