【Iran Situation】Chan Mo-po: The Middle East conflict has little direct impact on Hong Kong; maintain close communication with affected industries

The ongoing military conflicts between the United States and Iran are rapidly spilling over into the entire Middle East region. Financial Secretary Paul Chan expects that there may be market volatility in the short term, but the direct impact on Hong Kong is limited. He will closely monitor the effects on shipping and other sectors and maintain close communication with affected industries.

After attending the HSBC LIV Golf 2026 Hong Kong event, Chan said that the impact of the conflict on freight costs needs to be observed for several months before it becomes clearer. He emphasized that the government has various contingency plans to address key issues. For export companies more heavily affected, he stated that authorities have been providing multiple forms of support, including government-guaranteed loans, funding to help companies explore new markets, and assistance with upgrading and transformation. Support is also provided through the Export Credit Insurance Corporation to explore emerging markets such as the Middle East and North Africa.

Hong Kong can leverage its advantages in international research platforms, professional services, and other areas

Additionally, the National People’s Congress and the Chinese People’s Political Consultative Conference are currently being held in Beijing. Chan mentioned that the “14th Five-Year Plan” provides clear direction for Hong Kong’s future development. Hong Kong should utilize its unique advantages to better integrate into and serve the overall development of the country.

He continued that as the country vigorously develops new productive forces, promoting industries such as artificial intelligence, low-altitude economy, and biomedicine, Hong Kong can make good use of its international research platforms, professional services, and capital markets. This will not only bring global innovation resources to the country but also inject new momentum into the local economy.

Strengthening Hong Kong as an offshore RMB business hub

Chan also said that in the financial sector, the government is committed to consolidating and enhancing Hong Kong’s advantages as an international financial center. Key areas include supporting startups in science and technology for fundraising and patient capital development; strengthening offshore RMB business; developing green finance; and building an ecosystem for gold and commodities trading.

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