Dame Jenny Shipley, former prime minister of New Zealand and current co-chair of the International Finance Forum, speaks during an interview with China Daily on May 5, 2023. (LESLEY LIU / CHINA DAILY)

“Hong Kong is a sweet spot,” said Dame Jenny Shipley, former prime minister of New Zealand, who told China Daily that the city, with its entrenched “deep established institutional capability”, can be a “catalyst” for the ongoing mega-shift that is transforming the landscape of the global economy in the post-pandemic era.

Shipley, on a business trip to Hong Kong for a high-profile International Finance Forum Hong Kong conference, was impressed by the city’s commitment to global cooperation. As a renowned international financial center and regional trading hub, Hong Kong has been a champion of multilateralism for decades. The vitality of the city’s economy, the breathtaking skyline, and the blend of Western and Eastern cultures — all these things serve to make the city a winner in a multilateral system, a testament to multilateralism.

Besides being a connecting point in the global economy, Hong Kong is carving out a niche within the nation to forge strategic links within the Guangdong-Hong Kong-Macao Greater Bay Area, for which Shipley has high expectations

Shipley did not bother to conceal her passion for Hong Kong. “I think Hong Kong is strategically positioned, perfectly!” Her eyes sparkled and her pitch rose as she summarized her recent visit to Hong Kong.

The city, dubbed a “super-connector” between China and the rest of the world, is the only economy that has won the trust of both. The former prime minister believes that the city has tremendous experience combined with a well-established business model, and is trusted and valued by both the “developed North” and the “developing South”. “Hong Kong has Northern world relationships and a Southern orientation,” said Shipley, who believes the city is well-positioned to leverage its potential in China’s Belt and Road Initiative.

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In September last year, Han Zheng, then Vice-Premier, urged Hong Kong utilize its unique advantages to promote trade and economic cooperation, and to be an unrivalled service platform for the BRI. Now the city positions itself as “a one-stop service center” to facilitate BRI projects.

Besides being a connecting point in the global economy, Hong Kong is carving out a niche within the nation to forge strategic links within the Guangdong-Hong Kong-Macao Greater Bay Area, for which Shipley has high expectations.

“In my opinion,” said the stateswomen, wearing a bright-colored blue-and-white outfit, “Hong Kong, with its well-established capacity in the Bay Area, is strategically positioned to be a leader, a dominant player, in the GBA where it will make a bigger difference than Singapore.”

Over the years, the SAR has been compared to Singapore as an entrepot with a common-law legal system, business-friendly regulations, and low taxes. However, Hong Kong’s bilingualism and its geographic location as a gateway to the GBA make the real difference when it comes to doing business with China, the world’s second largest economy. Hong Kong’s bilingual written system has enabled it to outstrip Singapore in terms of its investment and market access to the populous mainland, where over 90 percent of the population are not English speakers.

Shipley, co-chairperson of the China-based International Finance Forum (IFF), has observed the huge amounts of investment flowing between Hong Kong and the other GBA cities, and her personal visits to the area have impressed upon her that the development of GBA is world class. “The connectivity is a very valuable baseline for Hong Kong to adopt a progressive development strategy along with sister GBA cities,” she said.


Dame Jenny Shipley, former prime minister of New Zealand and current co-chair of the International Finance Forum, talks about global financial governance during her whirlwind visit to Hong Kong for the International Finance Forum Hong Kong Conference on May 5, 2023. She believes Hong Kong is uniquely positioned at the financial crossroads of the world.  (ANDY CHONG / CHINA DAILY)

Now the progressive strategies have accelerated the cross-boundary cooperation on all fronts, especially in the service sector, resulting in the majority (60.1 percent) of mainland enterprises relying on Hong Kong-registered companies to sign contracts with international buyers, according to a survey report released by the Hong Kong Trade Development Council on Jan 30. Of the mainland manufacturers that responded for the survey, 83 percent sold products to Hong Kong-based buyers. The city has been, and still is, a bridge between China and the rest of the world. According to Shipley, the SAR, with its massive resources and data capabilities, is now capitalizing on its niche as the interface between China and global business. Hong Kong, the “trusted player”, is positioning itself as an international center for technology and innovation through its advancements in AI and fintech.

“Hong Kong can bring the strength of the nation on top of its flexibility and progress — this is a powerful combination,” said Shipley.

To make the most of its potential, the SAR needs to address multiple challenges with prudence and vigilance. Of these, the brain-drain and capital relocation are the most pressing and thorny issues, which have taken their toll both financially and emotionally. Last week, interbank liquidity hit a low not seen since 2008. The doomsayers have been jumping up and down in an attempt to whip up public panic.

Shipley, however, pointed out that every economy is now in the same boat, suffering from similar challenges as a consequence of the pandemic. “Hong Kong is in a very similar position — competing for international talent, finding its strategic advantages and charting a new course,” the former prime minister pointed out.

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Shipley said, “Hong Kong is at the financial crossroads of the world with its diverse capital, credit and currency markets, putting it at the forefront as the world’s leading asset and wealth management center”. The city under the “one country, two systems” framework is an ideal base for global family offices with its seamless connectivity to both the mainland and global capital markets. The Global Wealth Report estimated in 2021 that Hong Kong will overtake Switzerland as the world’s largest cross-border wealth management center in 2023 with a compound annual growth rate of 9 percent between 2020 and 2025.

“I think Hong Kong is uniquely positioned, where it may be able to avoid the geopolitical disadvantage but facilitate the advantage effectively,” said Shipley.

As the saying goes, “nobody has ever made money betting against Hong Kong.” Shipley’s passion and optimism for Hong Kong reflect her confidence in this truism. The city, with its resilience and resources, usually comes out on the right side of history. It is a city that, through ebbs and flows, creates miracles with its grit and determination. The history-making stateswoman — New Zealand’s first female prime minister — values Hong Kong’s uniqueness as a trusted player and trailblazer, and expects the city to hit the sweet spot and win match point, making the mega-shift a groundbreaking success.