For Immediate Release:

3,300+ Finance, Business Leaders Join Asian Financial Forum

On-site Survey Shows Over Half of Respondents Optimistic or Neutral about Economic Prospects in 2019

16 January 2019 – More than 3,300 financial policymakers, financial elites and business leaders attended the two-day 12th Asian Financial Forum (AFF), which concluded yesterday. Co-organised by the Hong Kong Special Administrative Region Government and the Hong Kong Trade Development Council (HKTDC), the theme for this year’s forum was “Creating a Sustainable and Inclusive Future”, examining the current economic environment and gauging the views of participants through on-site real-time polling on issues such as the global economy, investment opportunities, and the risks brought about by technology and innovation. More than 700 one-on-one meetings were arranged during the AFF Deal Flow Matchmaking Session, helping participants to explore business and investment opportunities.

Respondents Most Optimistic about Southeast Asia and Mainland China Markets Real-time polling conducted through HKTDC mobile apps at various sessions during the forum sought to gauge the views of participants on a broad range of subjects. When asked about the outlook for the global economy in 2019, 15% of respondents were optimistic, 38% were neutral, while 47% of respondents expressed pessimism, reflecting cautious optimism in the industry towards the overall economic outlook.

When asked about the countries and regions that will offer the best investment returns in 2019, 39% and 35% of respondents believed it would be Southeast Asia and Mainland China respectively, followed by the United States (16%), Japan (3%) and Western Europe (2%). As for the sector with the greatest growth potential globally in 2019, 38% expected it to be healthcare, while 30% thought it would be TMT (telecommunications, media and technology) and e-commerce, followed by green industries or environmental goods and services (19%), financial services (6%), food and agriculture (4%), and real estate and infrastructure (1%).

US-China Trade Dispute Seen as Biggest Challenge to Financial Security Amid the current global economic uncertainty, polling at the AFF also touched on the issue of the main source of risk for global financial stability. A majority of respondents said that trade tensions between the United States and Mainland China are the main source of risk in 2019 (77%), followed by monetary policy normalisation (10%), cyber breaches and security risks (7%) and Brexit and fiscal discipline in the European Union (6%).

At the keynote luncheon on the first day of the forum, Robert Zoellick, former World Bank President, spoke about the development of Sino-US trade: “Trade negotiations between the US and China need both short-term results and a long-term process to address deeper concerns. Those issues include intellectual property rights, state-owned enterprises and the Belt and Road Initiative,” he said.

In response to the AFF theme this year, “Creating a Sustainable and Inclusive Future”, the poll asked participants about the biggest challenge to achieving a sustainable future globally. A total of 43% of respondents believed it was due to “people’s reluctance to trade higher cost today for better sustainability for future generations”, followed by “reluctance by some governments to adopt policies for sustainable development” (23%), “insufficient attention to environmental, social and governance factors in asset markets” (21%), “lack of financially viable green projects” (10%), and “lack of green funding” (3%).

AI Brings Biggest Disruption to Financial Industry Technology and innovation are beginning to create more disruption in the financial industry. Participants were asked which of the following developments or technologies were expected to lead to the biggest disruption to the financial industry in 2019, with 30% of respondents expecting it to be artificial intelligence (AI), followed by big data analytics (22%), the rise of virtual banks (21%), blockchain (13%), cryptocurrencies and the rise of initial coin offerings (6%) and regulatory technology (5%).

700+ Meetings Organised through AFF Deal Flow Matchmaking Session This year’s forum once again featured the AFF Deal Flow Matchmaking Session to provide one-to-one deal-sourcing and matchmaking meetings for project owners and investors. More than 700 meetings were held, covering projects including production and environment technology, fintech, digital technology, healthcare technology, infrastructure and real estate services, education, environment and energy, and agriculture. The sessions sought to foster more concrete cooperation between participants.

The new FinTech Showcase, launched at this year’s AFF, enabled international financial institutions and technological enterprises to present their innovative applications and solutions to the industry − a well-received session that helped companies to make the best use of new technologies. The InnoVenture Salon, launched last year and back in 2019 with an expanded scale and enriched content, included the Startup Zone, Fireside Chat, Demo Hours and Startup Clinic. More than 200 start-up projects were involved and more than 100 one-to-one meetings were arranged for start-ups to approach investors.

Overview of 2019 Asian Financial Forum participants’ polling results

1. 2019 Global Economic Outlook

2. Countries/regions with the best investment return in 2019

Optimistic 15% Mainland China 35% Neutral 38% Southeast Asia 39% Pessimistic 47% Western Europe 2% USA 16%

Japan 3% Others 4%

3. Sectors with the greatest growth potential globally in 2019

4. Main source of risks for global financial stability

Healthcare 38% Brexit and fiscal discipline in the European Union 6%

TMT (telecommunications, media and technology) and e-commerce 30% US-China trade tensions 77% Real estate and infrastructure 1% Cybersecurity breaches 7%

Green industries/environmental goods and services 19% Monetary policy normalisation 10% Financial services 6% Food & agriculture 4% Others 2%

5. The biggest challenge to a sustainable future globally

6. The biggest disruption to the financial industry in 2019

Reluctance to adopt policies for sustainable development 23% Artificial intelligence (AI) 30% Lack of green funding 3% Blockchain 13% Lack of financially viable green projects 10% Big data analytics 22% Insufficient attention to environment, social and governance factors in asset classes 21% Rise of virtual banks 21%

Reluctance to pay higher prices for more sustainable options 43%

Cryptocurrencies and rise of initial coin offerings (ICOs) 6%

Regulatory technology (regtech) 5%

Others 2%

Speakers webcast interview: Former World Bank President Robert Zoellick: https://youtu.be/aRET0O9KDnc Minister of Finance of Malaysia Lim Guan Eng: https://youtu.be/mzl8h9FuHg8 Event website: www.asianfinancialforum.com International Financial Week Website: http://www.internationalfinancialweek.com Photo download: https://bit.ly/2HfhNlR

The 12th Asian Financial Forum (AFF) closed yesterday, having welcomed more than 3,300 financial policymakers, financial elites and business leaders. The two-day event was organised by the Hong Kong Special Administrative Region Government and the Hong Kong Trade Development Council

At the keynote luncheon on the first day of the AFF, Robert Zoellick, former World Bank President, commented on the development of trade between the United States and Mainland China

The speaker at the keynote luncheon of the second day of the AFF was April Rinne, Founder, Advisor & Investor, April Worldwide, and Head of the Sharing Economy Working Group, World Economic Forum YGL

The Financial Services Development Council, Hong Kong, sponsored the Breakfast Panel “Hong Kong’s Role in the Changing Multilateral Trade Landscape”, exploring how to safeguard Hong Kong’s position as a leading international financial centre

Victor Fung, Group Chairman,

Fung Group Daisuke Iwase, Group Chief

Digital Officer, AIA Group Limited

John Flint, Group Chief Executive, HSBC Holdings plc

Alex Kong, founder and Chairman, TNG FinTech Group

Soul Htite, Chairman and founder of Dianrong

Justin Gong, co-founder and Vice President, XAG

Max Yuen, founder and

Chairman, Shanghai Xiaoi Robot Technology

Tu Guangshao, Vice Chairman and President, China

Investment Corporation

Raja Easa Al Gurg Managing Director, Easa Saleh Al Gurg Group LLC; President,

Dubai Business Women Council

The AFF Deal Flow Matchmaking Session arranged more than 700 meetings for project owners and financial professionals to explore business cooperation, covering projects including production and environment technology, fintech, digital technology, healthcare technology, infrastructure and real estate services, education, environment and energy, and agriculture

The new FinTech Showcase launched at this year’s AFF, enabled international financial institutions and technological enterprises to present their innovative applications and solutions to the industry. The session was well received by participants

The InnoVenture Salon was back with an expanded scale and enriched content

Media Enquiries

Please contact the HKTDC’s Communication and Public Affairs Department:

Sunny Ng Tel: (852) 2584 4357 Email: sunny.sl.ng@hktdc.org Sam Ho Tel: (852) 2584 4569 Email: sam.sy.ho@hktdc.org To view press releases in Chinese, please visit http://mediaroom.hktdc.com/tc

About the HKTDC Established in 1966, the Hong Kong Trade Development Council (HKTDC) is a statutory body dedicated to creating opportunities for Hong Kong’s businesses. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a platform for doing business with the mainland, Asia and the world. With more than 50 years of experience, the HKTDC organises international exhibitions, conferences and business missions to provide companies, particularly SMEs, with business opportunities in the mainland and international markets, while providing business insights and information via trade publications, research reports and digital channels including the media room. For more information, please visit: www.hktdc.com/aboutus. Follow us on

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