OpinionHong Kong must go beyond its intermediary role to become a global anchor

The world is undergoing a transformation of historic proportions. Geopolitical rivalry, economic restructuring and technological acceleration are converging to reshape the global order. These changes transcend the logic of any single nation, industry or moment in time, exerting profound influence on international politics, geoeconomics, industrial structures, capital flows and investment strategies.

For Hong Kong, this “great change unseen in a century” is not an abstraction. It is a pressing reality with far-reaching consequences for the city’s economic and social development. At this juncture, Hong Kong faces both the challenge of remaking its development model and the opportunity to serve national strategy, while also embracing a new phase of globalisation.

Hong Kong’s success in the last wave of globalisation was built on its unique institutional framework and geographic advantage. As a channel for international trade and an intermediary for global finance, the city thrived, laying the foundation for its current competitiveness. Yet today, intensifying great-power competition and the rise of protectionism have exposed the fragility of this model.

The linked exchange rate system, while stabilising, magnifies external shocks. Hong Kong must accelerate economic diversification, strengthen its domestic circulation and reduce vulnerability to external turbulence. The imperative is clear: the city must move beyond its reliance on past advantages and embrace a new paradigm of resilience and innovation.

At the same time, new opportunities beckon. Beijing has designated the Greater Bay Area as a strategic fulcrum for China’s new development paradigm, a plan for high-quality growth and modernisation. Deep integration between Hong Kong and Shenzhen is central to this vision, fostering innovation and institutional synergy.

Within this framework, Hong Kong’s “one country, two systems” advantage is expected to serve as a strategic engine, linking domestic and international circulation, acting as a testing ground for two-way openness, and serving as a key node in the Belt and Road Initiative. This dual role positions Hong Kong to upgrade its functions and expand its international relevance, supporting its transformation into a next-generation financial hub, innovation centre, education nucleus and talent magnet.