Deepening Connectivity of Asian Financial Markets: Three Agreements Secured with Two Countries in Four Days

Last week, I visited Laos and Malaysia. The trip, though short, was jam-packed and fulfilling. While seeking to sustain Hong Kong’s close ties with its Belt and Road partners, the visit focused on three major areas: first, establishing a more specific collaboration mechanism with Malaysia’s financial and accounting regulators; second, promoting exchanges and alignment with Malaysia in the realm of Islamic finance; and third, signing a Memorandum of Understanding (MOU) on gold market co-operation with the Ministry of Finance of Laos. These achievements fully exemplify Hong Kong’s role as both a “super connector” and a “super value-adder”, proactively contributing to the development of a more competitive financial ecosystem in the Asian time zone.

In Vientiane, I signed a MOU on gold market co-operation with the Deputy Prime Minister and Minister of Finance of Laos. It sets out clear directions for collaboration, which include promoting physical gold flows by providing easy and efficient access for qualified Lao gold owners to Hong Kong’s accredited refining network; encouraging the trading and settlement of international-standard refined gold bars in Hong Kong; and strengthening talent development and fintech (including tokenisation solutions) exchanges. On the same day, I also witnessed the signing of a collaboration agreement between Lao Bullion Bank and MKS PAMP, an international trader and refiner of precious metals, and toured a local vault facility and a modern refinery, gaining deeper insight into the infrastructure development of Laos’ precious metals market.

In early July, Hong Kong’s central gold clearing and settlement system commenced its trial operation, and has so far received positive feedback from the market. This mechanism, alongside a suite of supporting measures, aligns closely with the National 15th Five-Year Plan backing the development of a commodities trading ecosystem in Hong Kong. Laos possesses abundant gold resources and is intent on enhancing its industrial value; Hong Kong, in turn, boasts world-class infrastructure, professional services and global connectivity. Through collaboration, the two sides expect to create an efficient, transparent and trusted “gold corridor”. This would convert resources into tradable assets, benefiting the whole value chain from production and refining to trading and investment, and propel Hong Kong’s development into a leading hub for gold trading, clearing and vaulting in the Asian time zone.

The visit shifted to another focus in Kuala Lumpur, Malaysia, which was to foster substantive co-operation at a regulatory level. I led representatives from the Securities and Futures Commission of Hong Kong (SFC) and the Accounting and Financial Reporting Council (AFRC) in signing two important MOUs with a local regulatory authority. The agreement signed between the SFC and the Securities Commission Malaysia (SC Malaysia) laid the foundation for mutual recognition of funds and cross listing of equities. The AFRC and SC Malaysia, meanwhile, agreed to build a strategic partnership in strengthening cross-border co-operation in the areas of audit oversight and financial reporting compliance. In addition, Bursa Malaysia was accepted as a Recognised Stock Exchange of Hong Kong Exchanges and Clearing Limited, enabling companies with a primary listing on its main market to apply for a secondary listing in Hong Kong. These arrangements not only broaden investment channels, but also demonstrate both sides’ shared commitment to rigorous regulation and investor protection.

I engaged in in-depth exchanges on Islamic finance with senior officials from Malaysia’s Ministry of Finance and Central Bank. Malaysia is a global leader in the field, backed by extensive experience across its banking system, bond market, regulatory oversight, and product innovation. Hong Kong, for its part, is an international financial centre, underpinned by the competitive edge of its open market, robust legal system and diverse range of products. There is considerable scope for collaboration between the two places in areas such as Sukuk issuance, investor base expansion, product innovation, commodity trading, and exchange of regulatory experience. Meetings with representatives from banks, Bursa Malaysia, and related sectors also reaffirmed the potential for collaboration. Looking forward, we will continue to deepen mutual alignment and drive the implementation of specific projects.

The visit also featured targeted promotional efforts for our family office sector, gold market, offshore Renminbi (RMB) business, and fintech industry. The number of single family offices in Hong Kong has continued to rise in recent years, with assets under management steadily increasing. Further enhancements to the tax concession measures for a wider range of investment categories will add to Hong Kong’s appeal as a global family office hub. The development of a central gold clearing system and the recent optimisation of our offshore RMB business were also highlighted during the visit to Laos and Malaysia.

Amid heightening global economic uncertainty, it is all the more imperative that Hong Kong leverages its unique strengths to proactively deepen its ties across Asian markets. Through pragmatic co-operation, and by working in concert with various parties, we stand ready to seize opportunities and create value with them. Whether it is building the “gold corridor” with Laos or advancing mutual regulatory recognition and Islamic finance co-operation with Malaysia, our approach to expand the financial sector in “height, breadth and depth” remains definitive – raising professional standards, expanding international networks, and deepening diverse and sustainable opportunities. I am deeply grateful to the governments and industry representatives of both countries for their warm hospitality and constructive exchanges. I look forward to witnessing these collaboration efforts promptly translated into tangible results, thereby injecting new impetus into regional financial development.

28 July 2026