HSBC Global Investment Summit

The first day explored the new networks of influence and the scene was set by HSBC Chairman Sir Mark Tucker, whose opening remarks presented the summit’s overarching topic: "New Networks Connecting the Global Economy", and how these evolving networks bring great opportunities, along with potential risks.

There was a welcome address from top officials of the host city with K. K. Chan, the Acting Chief Executive of Hong Kong SAR, and Dr. Bin Qi, Deputy Minister of the Liaison Office of the Central People's Government in the Hong Kong SAR, discussing Hong Kong’s many strengths – covering its regulatory framework, vibrant capital markets, and financial infrastructure.

Later in the day, another of the city's senior figures further elaborated on this theme, with Financial Secretary Paul Chan highlighting Hong Kong's role as a super-connector that serves as a bridge for an increasingly diversified global economy.

New networks of influence

The key theme for Tuesday was how new networks of influence are transforming the global order, as emerging markets become more prominent, both economically and geopolitically.

Throughout the day, world-leading experts shared practical insights on the evolving landscape. Sanna Marin, the Former Prime Minister of Finland, discussed how Europe is stepping up to boost its defense capabilities as the region's relationship with the US shifts; while former Foreign Minister of Singapore, George Yeo, explored the importance of partnerships against the backdrop of a changing balance of power.

China’s economy

China featured prominently throughout the day. The country’s relationship with the US was the focus of renowned historian, Sir Niall Ferguson, who looked ahead to see how the global balance between the two powers will evolve under President Trump.

We also heard from Alibaba Group Co-founder and Chairman Joe Tsai, who in a conversation with David Liao, Co-Chief Executive, Asia and the Middle East, HSBC, shared how the technology giant is integrating AI into its business.

The health of the world’s second-largest economy was covered across several sessions. A panel of leading economists assessed the strengths and weaknesses of China’s economy, while a separate panel evaluated the importance of investment in the country’s future development.

Another important development that is currently unfolding - the deepening trade and investment links between China and the Middle East - was addressed by a panel of senior financial leaders.

Emerging economies

Beyond China, expert speakers shared insights into the world’s most exciting emerging economies. India’s legacy of innovation was analysed from both a historical and modern perspective by a panel that included an economist, a historian, and an investment professional.

Light was also shone on developments in the Middle East, as we received an update on Saudi Arabia’s progress towards realising its transformative Vision 2030 programme, with a focus on the Kingdom’s growing tourism industry; while the prospects of the energy sector in Dubai was discussed alongside progress in its broader economy.

Presenting actionable business plans amid these rapid changes was an important part of the day’s agenda. One panel delivered just this, as top executives from Grab, Trip.com, and Yum China discussed how best to cater to the Asian consumer.

Central banking outlook

An uncertain monetary policy regime underlies business decisions across the world, and the day’s agenda was topped off with a session focused on central banking. Decision-making at the Federal Reserve influences borrowing rates around the world, and we heard about the Fed’s room for policy manoeuvre from Lael Brainard, Former Director of the US National Economic Council and Vice Chair of the Federal Reserve Board of Governors.

The second day of the HSBC Global Investment Summit explored the new networks of finance and trade that are transforming the global economy.

HSBC’s Group CEO Georges Elhedery started the day’s proceedings by sharing his own observations on these new networks – covering everything from the growth of new trade corridors to accelerating trade in services.

Transforming international trade

The international trading system is undergoing fundamental change, and we heard from a US policy advisor and a former US trade representative on whether new trade policies, such as tariffs and domestic subsidies, will prove to be a tool for rebalancing the global economy or a drag on global growth.

A session on the new complexities of global trade explored how rapid geopolitical change is presenting major implications for businesses across the world. A senior financial professional, an economic journalist, and a world-leading expert on trade shared practical insight on how companies can readjust to a new economic order.

Looking to the future, Associate Editor and Chief Economics Commentator at the Financial Times, Martin Wolf, sat down with HSBC’s Senior Economic Adviser Stephen King to discuss the future of globalisation in a protectionist era, and how the global economy will adapt to new pressures.

The future of Europe

Europe was a key focus for the day. Former Prime Minister of Italy and former President of the European Central Bank, Mario Draghi, provided a unique perspective on the region’s economy, and how it can act to improve competitiveness. Later in the day, the Managing Director of the European Stability Mechanism assessed recent European economic indicators and whether they predict a turnaround for the bloc’s economy.

Europe’s economic challenges naturally lead to another big-picture topic – namely, the balance between the private and the public sector, and whether governments should prioritise public investment or fuel the private sector to drive growth. This was debated by Ed Balls, former Shadow Chancellor of the Exchequer, and the Rt Hon George Osborne, former British Chancellor of the Exchequer. The role of private credit was addressed in a separate panel that explored how this new asset class will exist alongside traditional lenders.

The rise of emerging markets

Large, rapidly growing economies play an increasingly important role in global trade and finance. India, for example, is currently undergoing an extraordinary economic transformation, and we heard from Kumar Mangalam Birla, Chairman, Aditya Birla Group, who examined how the country will integrate into the global economy and its potential to become a manufacturing powerhouse. Artificial intelligence was addressed by Dr. Kai-Fu Lee, who asserted that AI is the most important technology to be invented by humanity.

Trade corridors were put into historical context by Peter Frankopan, Professor of Global History, University of Oxford. He discussed new trade corridors that cover everything from oceans to the Arctic, and even the digital world.

Amid all this change, Hong Kong plays a vital role in the global financial landscape, facilitating flows of capital from both east and west. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority spoke on the city’s track record as a resilient and innovative International Financial Centre.

Sustainability in action

Businesses across the world are working hard to realise the New Economy. At the Summit, there were a series of sessions that discussed the all-important topic of sustainability.

There was a panel of leading tech entrepreneurs, who described their race against time to advance climate mitigation and adaption. We also heard about the rapid development in the electric vehicle market, with a focus on Chinese innovation, in a session that included the Vice Chairman and President of automaker XPENG.

The Summit addressed how the energy transition will be financed, and a panel of major investors discussed the role of private capital in evolving clean technologies in developing economies.

On the third and final day of the HSBC Global Investment Summit, we heard world-class speakers give insights into the New Networks of Innovation that are reshaping global economies.

This theme was the focus of a forward-looking welcome address by Michael Roberts, CEO, HSBC Bank plc and CEO, Corporate and Institutional Banking, HSBC. He talked about the world’s continual flow of capital and ideas and how cutting-edge technologies – such as artificial intelligence, distributed ledger technology, and quantum computing – will quickly lead to compounded benefits from new business models.

The impact of AI

AI is the hottest topic in technology, and the Summit explored the latest developments in Generative AI, and how the world is only just beginning to realise its vast potential.

The leader of a storied global technology firm expanded on this new age of discovery, as Arvind Krishna, Chairman and Chief Executive Officer, IBM, stressed the importance of open-source AI models, as well as a prediction that the cost of training those models will fall dramatically over the next five years.

Data centres are the key infrastructure for AI, and we heard from an expert panel that is actively involved in the growth of this key sector – including Alibaba Cloud Intelligence International and Blackstone.

In addition to the opportunities, there was also a discussion of the risks that AI could pose, and the need to use AI to protect against cybercriminals, who are using this rapidly evolving technology to commit increasingly sophisticated crimes.

The future of finance

Innovation can only flourish if it receives the necessary capital. Over a series of sessions, we heard how capital is being directed towards new sectors.

There was a rare opportunity to hear a panel discussion of CEO-level investors from Ark Invest, Franklin Templeton, and Wellington Management, who shared how they approach investing in the innovative sectors that look set to change the world, covering everything AI to biotech. In a separate session, the President of Apollo Global Management described the important role that private credit will play in financing the industrial renaissance.

Cryptocurrencies and digital assets remain an important topic that captures the imagination of the financial industry, as well as broader society. A panel moderated by John O’Neill, Group Head of Digital Assets & Currencies, assessed recent events affecting the broader digital industry, with a focus on news out of the US and innovative projects in Hong Kong.

Final reflections

The event’s closing comments were delivered by Barry O’Byrne, Chief Executive, International Wealth and Premier Banking, HSBC. He touched on three themes: focus, and the importance of maintaining a long-term perspective; resilience, and the strength to weather change amid uncertainty and capitalise on the next opportunity; and finally innovation, which is not just about technology, but the ability to deliver new products to the market.