On December 12th, local time, the Financial Times reported that the assets of global ETFs have soared to $15 trillion. In this wave of capital inflows, the United States is at the center, attracting more than $1 trillion, because traders bet that Wall Street stocks will rebound strongly. According to the data of research institute ETFGI, this growth is mainly due to the large-scale transfer of investors from mutual funds to ETFs. This year, investors have invested $1.7 trillion in ETFs, making the total assets of the industry increase by 30% compared with 2023. In the past three years, mutual funds have lost about $2 trillion in assets. At present, BlackRock, Vanguard and State Street are three giant ETF providers, managing large ETFs that track the S&P 500 index. In addition to tracking index ETFs, leveraged ETFs have also ushered in a large inflow of funds, because it allows traders to double their bets on Tesla stocks, chip stocks and bitcoin. Daniil Shapiro, director of product development practice of consulting firm Cerulli Associates, said that ETF has the characteristics of low cost, strong innovation and excellent fit in various portfolios: However, American mutual funds are still much larger than ETFs, with total assets under management of $21.6 trillion-after all, mutual funds are widely used in retirement accounts. "They give the final choice to investors and let them decide which (mutual fund or ETF) is more attractive to them and which is more in line with their needs." "The industry is extremely optimistic that these products will be relaxed in the coming year." The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.

Although the decline of CPI inflation in the United States stagnated in November, this may not prevent the Federal Reserve from cutting interest rates next week. On Thursday, it is widely expected that the Fed will announce a rate cut at the FOMC meeting next week. At present, the federal funds futures market shows that almost 100% of Fed officials will choose to cut interest rates by 25 basis points again at the FOMC meeting on December 17-18. It is worth mentioning that this expectation is not based on the latest inflation, but on the trend of the overall economic situation. From July 2023 to September 2024, the Federal Reserve raised interest rates and maintained them at 5.25% to 5.50%. At that time, the economic environment was very different from now. Although inflation has not yet reached the Fed's target of 2%, it has dropped significantly from the peak and the employment situation has stabilized. Fed officials also tend to cut interest rates further to normalize policies and avoid restricting economic growth or worsening employment. At the same time, media analysis reminds us not to be surprised by the forward-looking guidance issued by the Federal Reserve after next week's interest rate cut. The Federal Reserve may carefully consider the pace of subsequent interest rate cuts. They may hint that it will suspend interest rate cuts at the beginning of the year and reduce the number of interest rate cuts in 2025. The Fed will not deviate from the interest rate cut route in December and should be optimistic about the downward trend of inflation. Overnight, data released by the Bureau of Labor Statistics showed that the CPI of the United States increased by 0.3% in November, up from 0.2% in October, the highest level since April this year. However, it increased by 2.7% year-on-year, which was in line with expectations. More importantly, core inflation excluding food and energy remained stable. In November, the core CPI rose by 0.3% month-on-month, which was the same as the increase since August. Tuan Nguyen, an economist at RSM US, said: The Fed will not deviate from the route of cutting interest rates in December, which is generally expected by the market. Considering that the seasonal factors in the inflation report may fade in the coming months, this is a reasonable short-term decision. The analysis believes that there is reason to be optimistic about the resumption of the downward track of inflation. In November, the price of used cars and hotels increased significantly, but industry data did not show that this increase would continue. In addition, there has been a positive change in housing inflation, and the rental price and the owner's equivalent rent only rose by 0.2% in November, hitting a cyclical low. Neil Dutta, head of economic research at RenMac, pointed out: The normalization of housing rent inflation will help the overall inflation return to the target of 2%, which is the biggest gap compared with the Fed's target. In November, the overall housing inflation rose by 0.3% month-on-month. Recently, many Fed officials pointed out that the United States has made great progress in reducing the overall inflation rate, and the labor market has also returned to normal levels. Marie í Dali, president of the San Francisco Fed, explained last week that monetary policy should not be as tight as it was in the past two years, because inflation is no longer far from the 2% target as in the past, and the labor market tends to be balanced. Federal Reserve Governor Waller also said last week that he was inclined to cut interest rates further at the FOMC meeting in December. Although the recent rebound in inflation has raised concerns that price growth may stagnate above the Fed's 2% target, he said he did not want to overreact. Risk warning and exemption clause The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.

How to adjust the Nasdaq 100 index has not been announced yet. The stock prices of a bunch of companies are already on edge, and it's the turn of the supercomputer. On Tuesday, December 10th, as of the close, AMD fell more than 8%. Analysts believe that this may be because the market is worried that AMD will be kicked out of the Nasdaq 100 Index. The Nasdaq 100 Index is an index composed of the 100 largest companies listed on the Nasdaq Stock Exchange. It will be rearranged at the end of the year and is expected to be released on December 13th. Previously, in August, due to the failure to submit financial reports on time, Ultramicro Computer faced the risk of being delisted by Nasdaq. In November, AMD said that it had hired BDO as its independent auditor and submitted a plan that met the listing requirements to Nasdaq. On December 2, Ultramicro Computer said in a statement that the investigation of the Special Committee initially found that the Audit Committee acted independently and there was no evidence that the management or the board of directors had fraud or misconduct. Yesterday, Charles Liang, CEO of AMD, told Reuters that he was confident that the company's stock would not be delisted by Nasdaq, and that the company would submit its outstanding financial report on time before February 25th next year. However, despite this, the current share price of AMD is still far below the high of $109 set in March this year, indicating that investors still have insufficient confidence in the company. According to JPMorgan Chase's report, the target price of ultramicro computers is $23 per share, which is about 45% lower than the current share price. However, JPMorgan Chase analysts also said that despite the recent controversy, the orders for servers of Ultramicro Computer are still strong. Moreover, Ultramicro Computer plans to release new products in 2025, and the production of its factory in Malaysia is progressing smoothly, and it is expected to start mass production in the first half of next year. In addition, AMD said that the company has sufficient liquidity, and it is expected that with the launch of the next generation Blackwell processor in NVIDIA, AI-related business will bring benefits to AMD. Risk warning and exemption clause The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.

Does the U.S. government need a strategic reserve dedicated to storing bitcoin? In the opinion of Bloomberg editorial board, this idea looks more like the biggest cryptocurrency scam to date. Since Trump won the election, Bitcoin has risen by more than 50% and the price has exceeded $100,000, partly because cryptocurrency supporters-who donated about $135 million to Trump and members of Congress-hope to persuade Trump to establish a bitcoin reserve. Trump himself has a positive attitude. According to the information disclosed at present, Trump's bitcoin reserve plan currently only involves bitcoins that have been confiscated by the government (about 200,000 pieces, with a total value of about 20 billion US dollars), but some members of Congress hope to go further. According to the bill proposed by Republican Senator Cynthia Loomis, the US government will buy another 1 million bitcoins within five years and hold these reserves for at least 20 years. In Bloomberg's view, it is completely unnecessary to set up a strategic reserve of Bitcoin. Yes, the U.S. government has several strategic reserves (such as oil reserves) to ensure the supply of commodities that are vital to economic or national security. But bitcoin has no industrial use, no actual cash flow and no connection with the real economy. It is just a purely speculative tool. Its price depends entirely on how much a more stupid person is willing to pay. In addition to wasting taxpayers' money, creating bitcoin reserves will only enrich existing bitcoin owners. Considering that only a small number of bitcoins are currently circulating in the market, the purchase of 1 million bitcoins will quickly increase the price of bitcoins (the total number of bitcoins is only 20 million), and drive investors to buy crazily and grab the position before the US government. The US government will become the "more stupid person" in the market. Considering that the purchase cost may be as high as hundreds of billions of dollars, financing seems inevitable. But no matter which way, the cost is bound to be high: if you borrow through the Ministry of Finance, it will further increase the national debt and interest costs; If money is printed through the Federal Reserve, it will lead to inflation and weaken people's confidence in the dollar. In return, the U.S. government will get a bunch of tokens that don't generate any interest or dividends. In Bloomberg's view, the argument advocated by cryptocurrency supporters that the US government can sell profits to repay debts when Bitcoin appreciates is also untenable. Bitcoin is highly volatile and lacks basic value, so the risk of loss is high. The purchase of bitcoin reserves itself is mandatory, which will lead to the final worthless bitcoin reserves in the hands of the US government. To make matters worse, with the rising price of Bitcoin and the endorsement of the government, Bitcoin may have great attraction to banks and other financial institutions. If the regulator allows, banks can lend dollars with digital tokens as collateral, so that holders can convert encrypted wealth into real money. If these collateral lose significant value, the next financial crisis is not impossible. Ironically, Bitcoin is essentially an anarchist project that allows people to trade without relying on a central intermediary or government. In reality, centralized intermediaries that have dominated transactions, such as Coinbase, a cryptocurrency exchange, are lobbying the government to provide support similar to large-scale subsidies. Risk warning and exemption clause The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.

According to media reports on Monday, looking back on 2009, BlackRock acquired Barclays Global Investment for about $15 billion, including ETF provider iShares. The transaction became a turning point in BlackRock's development, and the ETF business expanded rapidly, which helped BlackRock grow into the world's largest asset management company with assets of $11.5 trillion. Then, will the acquisition of these private equity markets also become another "once-in-a-lifetime" opportunity for BlackRock? Martin Small, chief financial officer of BlackRock, said: More importantly, BlackRock hopes to change the investment mode of the private equity market-to "index" private equity. When Larry Fink announced the acquisition of Preqin in July, he said: Risk warning and exemption clause

After a night of chaos in South Korea, investors were "worried" and financial stocks were "falling endlessly", but JPMorgan Chase thought that "this is an opportunity". Recently, analysts in JPMorgan Chase said that the recent correction of Korean financial stocks due to political turmoil provided investors with a buying opportunity, because they expected that Korean banks would continue to strive to improve shareholder returns. Recently, because the market is worried about the future of the "Enterprise Value Enhancement Plan" launched by the Korean government, bank stocks are "the first to bear the brunt" in the market selling. This move was originally part of the current government's key policy to deal with the long-term decline in stock market valuation, and speculators regarded financial stocks as representatives of betting on improving returns. In the past two trading days, the stock index of Korean banks fell by more than 9%, among which the share price of KB Financial Group, the parent company of Korea's largest bank, fell by more than 10% today, and the share prices of Shinhan Financial Group and Asiana Financial Group also fell by more than 4%. However, Jihyun Cho, an analyst in JPMorgan Chase, believes that although the legislative process required for a more effective enterprise value enhancement plan may have lost momentum at present, the efforts made by individual companies may hopefully continue to achieve the operational and shareholder return goals. They said: "We think the short-term callback is a new entry point." Therefore, considering the valuation advantages and shareholder returns of these financial groups, JPMorgan Chase maintained its overweight rating on Hana Finance, KB Finance and Shinhan Finance. Since the beginning of this year, Korean banking stocks have been favored by the market because of their relatively low P/B ratio. It is widely expected that this industry will become the main beneficiary driven by government reform. It is worth noting that before the martial law announced by the President of South Korea, the sub-index of Korean banking stocks hit a new high in more than six years on December 3. JPMorgan Chase analysts stressed: "We will not focus on the political situation, but pay more attention to the profitability of banks and adequate capital buffers, especially in large banking groups, to support the dividend increase." Risk warning and exemption clause The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.

All In AI has become the consensus of science and technology enterprises. As the representative of the last wave of AI in China, Shang Tang should also fully turn to the generative AI track. On December 3rd, Li Xu, Chairman and CEO of Shangtang Technology, issued a letter to all employees, announcing the establishment of a new "1+X" architecture, in which "1" stands for core business, and Shang Tang wants to build an industry-leading AI cloud and realize seamless integration of large devices, basic models and AI applications. In the field of CV (Computer Vision), a general visual model is built to deepen various application scenarios. "X" stands for the reorganized and split eco-enterprise matrix, including smart car "Ghost", home robot "Yuan Radish", smart medical care, smart retail and so on. At the same time, each eco-enterprise will set up an independent CEO and be responsible for business development. This adjustment is based on the repositioning of the company's strategic direction and core areas. With the completion of the strategic reorganization, Shang Tang can better cope with the opportunities and challenges brought by the AI 2.0 era and fully embrace the generative AI. In the last wave of AI, Shang Tang became one of the "Four Little Dragons of AI" by virtue of its technical advantages in face and visual recognition, and was successfully listed on the Hong Kong Stock Exchange in 2021. At the end of 2022, with the sweeping wave of generative AI triggered by ChatGPT, Shang Tang began to increase the AI big model technology and application. Since the end of 2022, Shang Tang's ever-increasing big model has invested more than 10,000 GPU computing resources. In April 2023, Shang Tang launched the ever-increasing version 1.0, which is one of the first big language models released in Shang Tang. In July, 2024, Ririxin further upgraded to version 5.5, which realized the comprehensive performance and real-time interactive experience of the benchmark GPT-4o and became the first multi-modal real-time interactive large model in China. Until this strategic reorganization, Shang Tang built an organizational structure with generative AI as the core. In October, on the occasion of the 10th anniversary of Shangtang Technology, Li Xu said that the company believed and expected the arrival of the era of general artificial intelligence. "Practically speaking, we have taken two steps: the traditional AI 1.0 and the generative big model AI 2.0." In Li Xu's view, an important difference between AI 1.0 and AI 2.0 lies in the change of AI cost structure. In the traditional AI 1.0 era, the main cost of model production lies in the investment of R&D personnel. In the era of AI 2.0, the cost of model production mainly lies in the input of computing resources. In short, the popularization and commercialization of the generative large model AI need to reduce the production and use costs of the large model, which is bound to combine the large model to iterate and optimize the computing power, and also to iterate the design and application of the large model according to the characteristics of the computing power resources. Therefore, in the field of generative large model AI, Shang Tang's core strategy is to realize the seamless integration of large computing device (SCO), large model and application (CNI), with application driving the model and model driving the optimization of computing power. Therefore, Shang Tang has adjusted its organizational structure around its strategy and core resources. Li Xu emphasized that the strategic significance of the new architecture is to strengthen the core business represented by generative AI, accelerate the realization of profitability and stabilize cash flow; Second, based on the synergy effect of the group's infrastructure advantages, it is more conducive to ecological enterprises to quickly seize the market opportunities of vertical industries; Third, the establishment of an independent CEO mechanism for ecological enterprises is more suitable for market-oriented development. Facing the generative AI known as the "fourth industrial revolution", Shang Tang's advantages lie in years of technology accumulation, AI infrastructure and application ecology. According to the financial report, in the first half of 2024, the revenue of Shang Tang's generative AI business reached 1.051 billion yuan, a substantial increase of 255.7% year-on-year, and the proportion of revenue increased to 60.4%, making it a new pillar business of the company. However, Shang Tang's future challenges should not be underestimated. AI is in a technical competition, which is an unprecedented global competition. At the same time, the huge gap between AI's huge investment and commercial income will still exist in the short term, which represents uncertainty for participating players. After 10 years of deep cultivation in the AI field, Shang Tang has finally waited for the generative AI wave, and it will start again and go all out towards this opportunity. Risk warning and exemption clause The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.

After two consecutive years of exceeding expectations, it may be difficult for the global economy and market to have more surprises. Deutsche Bank believes that Deutsche Bank believes that strong economic growth expectations, interest rate cuts by European and American central banks, and inflation stabilization have been priced by the market. Coupled with the high asset valuation, it will become more difficult to achieve extraordinary performance in 2025. The market needs new and powerful positive factors to promote growth, and these factors are not obvious at present. Henry Allen, macro strategist at Deutsche Bank, released a research report on Monday, saying: From a macro perspective, 2023 and 2024 both exceeded expectations-the economy avoided a hard landing. The growth of the United States and the euro zone exceeded the consensus expectations at the beginning of each year. Therefore, the market performance is very strong, stocks rise, credit spreads tighten, and overall volatility decreases. But an important consequence is that it raises the threshold for another extraordinary performance in 2025. After all, fears of a hard landing have subsided, and the consensus growth expectations of the United States and the euro zone are stronger than this time in 2023 or 2024. In addition, the market has priced some fairly moderate results, including further interest rate cuts by the Federal Reserve and the European Central Bank, and the suppression of inflation. More importantly, the Deutsche Bank report pointed out that compared with 2023 and 2024, the economic growth in 2025 is expected to be stronger. According to the Bloomberg Consensus forecast, it is estimated that the US economy will grow by 2.1% in 2025, and the euro zone will grow by 1.2%, which is significantly higher than expected one year ago. It can also be seen from the consensus prediction of recession probability: This increase in expectations means that just avoiding economic recession is not enough to constitute a positive surprise for the market. The market needs more positive stimulation to achieve extraordinary performance. Considering that more interest rate cuts by the Federal Reserve and the European Central Bank have been priced by the market, monetary policy is now approaching neutrality. The report wrote: Judging from market pricing, investors expect more interest rate cuts in the coming months. They predict that by June 2025, the Federal Reserve will cut interest rates by 55 basis points and the European Central Bank will cut interest rates by 141 basis points. So in itself, this is unlikely to be a positive catalyst for the market, because it is already priced. In addition, as many central banks have started to cut interest rates, we are approaching the point where the central bank considers the policy "neutral". This means that in the benign scenario of slowing inflation, there is less room to lower interest rates to neutral. After all, lowering them below neutral and entering loose areas is usually a response to insufficient demand or some kind of growth shock. Of course, the market may cut interest rates faster, but when this happens, it is usually for bad reasons. In fact, at the peak of the summer market turmoil, the futures market priced the possibility of the Fed cutting interest rates by 50 basis points twice in a row. However, given concerns about the growth prospects, this is accompanied by a significant decline in risky assets, rather than a rebound. Meanwhile, long-term inflation expectations, including market-based measures, have stabilized near the target level. The report pointed out that the interest rate of 5y5y forward inflation swap in the United States was 2.44%, which was lower than 2.57% a year ago. The euro zone was 1.99%, down from 2.37% in the previous year. The market generally expects that inflation will remain at the target level in the next few years, so the stability of inflation is no longer a major positive surprise. In addition, it should be noted that the continuous rise in the past two years has made the valuations of many asset classes higher. The S&P 500 index has risen by 20% for two consecutive years, and the CAPE ratio is now at a level that was only reached before major adjustments, including the Internet bubble and 2021. Credit spreads have also reached the closest level since the global financial crisis. All these factors limit the room for further increase in asset prices in the future. Risk warning and exemption clause The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.

In the era of Trump 2.0, how will the Fed cut interest rates next year? Goldman Sachs and the market have different views. On December 1st, the report released by Goldman Sachs showed that analyst Jan Hatzius and his team surveyed more than 500 market participants, and compared the expectations of Goldman Sachs with those of investors (markets) to better understand the policy expectations reflected in market pricing. According to the report, Goldman Sachs and the market have a consensus on the impact of Trump policy on US immigration and fiscal policy, but there are differences on the path of the Fed's interest rate cut next year. Goldman Sachs expects the Fed to cut interest rates continuously in the first quarter of 2025, and then gradually slow down, and cut interest rates for the last two times in June and September. Respondents' expectations are more hawkish. Goldman Sachs does not agree with the market's hawkish expectations. On the one hand, Goldman Sachs believes that Trump policy is unlikely to cause huge inflation enough to prevent interest rate cuts; On the other hand, Goldman Sachs believes that the market underestimates the risk of a major impact on the financial market caused by a large policy change, which may trigger a reaction similar to the "insurance interest rate cut" in 2019. Disagreement: Goldman Sachs believes that the market is too hawkish about the Fed's interest rate cut expectations. Goldman Sachs and respondents have similar views on the fiscal policy that the new Trump administration may adopt, but they have different views on the prospects of monetary policy brought about by policy changes. Goldman Sachs predicts that the Federal Open Market Committee (FOMC) of the Federal Reserve will cut interest rates continuously in the first quarter of 2025, and then gradually slow down, and cut interest rates for the last two times in June and September. Respondents' expectations are more hawkish, and Goldman Sachs disagrees for two reasons: First, Goldman Sachs believes that the policies of the new Trump administration are unlikely to cause huge inflation enough to prevent interest rate cuts. Goldman Sachs believes that although the decrease in immigration may exert upward pressure on wages and prices in industries that employ a large number of immigrants, the impact on overall wages and prices is moderate, because immigrants increase demand and supply at the same time. In addition, Goldman Sachs expects that the new government's fiscal stimulus will be moderate and have little impact on inflation. Moreover, in the baseline situation, tariffs will only have a moderate and one-off impact. Second, Goldman Sachs believes that the market underestimates the risk of a major impact on the financial market caused by a large policy change, which may trigger a reaction similar to the "insurance interest rate cut" in 2019. For example, the impact of a 10% general tariff on monetary policy may be two-way: inflation rises temporarily but economic growth slows down. In the last round of trade friction, the Federal Reserve finally gave priority to the growth risk and lowered the federal funds rate by 75 basis points. Consensus: the net migration decreased slightly, the tax reduction policy continued, and the tax relief increased. Goldman Sachs predicts that the new Trump administration will tighten the immigration policy-before the epidemic, the average net immigration in the United States was about 1 million per year, and Goldman Sachs predicts that by 2025, this number will drop to 750,000 per year, only slightly lower than before the epidemic, because administrative measures have certain legal and logistical restrictions. According to a survey conducted by Goldman Sachs, about half of the respondents expect that the net migration will remain at the level of 500,000 to 1 million per year, which is consistent with Goldman Sachs' forecast. It is worth noting that, although there have been endless news reports about the possible mass expulsion of immigrants recently, only 6% of the respondents expect the net immigration to become negative. In addition, Goldman Sachs expects that the 2017 tax reduction policy will be fully extended when it expires at the end of 2025, including the restoration of some expired corporate investment incentives. Goldman Sachs also expects that the new Trump administration's federal spending will increase and personal tax breaks accounting for about 0.2% of GDP will be increased. Respondents also expect the tax reduction policy to continue, of which about two-thirds expect the tax reduction policy to be fully extended and one-third expect it to be partially extended. For personal tax relief, about two-thirds of the respondents expect it to increase, but most investors expect that the amount of tax relief will be less than 100 billion US dollars, or less than 0.3% of GDP every year. Respondents' expectations of the government efficiency department to cut spending are quite different. 42% of investors expect the reduction to be insignificant or extremely limited, 19% expect the reduction to be between 25 billion and 100 billion dollars, and 32% expect the reduction to exceed 100 billion dollars, equivalent to 0.3% of GDP every year. Risk warning and exemption clause The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.

As the third established financial center in the world, according to the report of Global Financial Center Index jointly released by Z/Yen and China Comprehensive Development Research Institute, Hong Kong has ranked among the top ten (ranked ninth) in the field of financial technology. At present, there are more than 1,100 financial technology enterprises in Hong Kong, covering many fields, including digital assets and blockchain applications; Wealth technology; And payment and remittance. Among them, the fastest growing sub-sectors in 2023-2024 are digital assets and blockchain applications, green financial technology, and financial technology network security. Thanks to its unique urban positioning and ecosystem, Hong Kong's role as a "super-connected person" and a "super-value-added person" can provide high value-added functions for enterprises in the Mainland and the world, and Invest Hong Kong (hereinafter referred to as Invest Hong Kong) is an important force in this link, providing a good development environment for financial technology enterprises and innovations coming to Hong Kong, enabling the industry to continue to develop, raise funds and train talents. A few days ago, Wall Street interviewed Liang Hanjing, Global President of Financial Services, Technology and Sustainable Development of InvestHK, and had an in-depth dialogue and discussion on the strategy and process of building a diversified international financial technology center in Hong Kong. As a veteran of the financial technology industry, Mr. Liang previously engaged in strategic management consulting in the United States and the United Kingdom. He once devoted himself to the venture capital industry and founded a financial technology company. In May 2019, he joined the Hong Kong Investment Promotion Agency to promote the development of the financial technology circle in Hong Kong. Urban orientation of international financial technology center Thanks to the efforts of several generations, Hong Kong ranks third in the world as a global financial center city and ranks first in the Asia-Pacific region. The report "Global Financial Center Index" also clearly affirmed Hong Kong's position and strength as one of the top ten financial technology centers in the world. Liang Hanjing said that in addition to local financial technology enterprises and the introduction of overseas financial technology, in the past few years, many outstanding enterprises in the Mainland have used Hong Kong as their international headquarters. It has gathered innovative forces from the East and the West, which is one of the reasons why Hong Kong has continuously improved its ranking as a financial technology city in the past few years. On the other hand, there is support from the government, including the Hong Kong Financial Services and the Treasury Bureau, the Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC), the Insurance Regulatory Bureau (IA) and other government departments, including InvestHK, Cyberport and Science Park. These supports are not only at the policy level, but also include subsidy plans and talent plans to promote the introduction of financial technology enterprises such as large-scale institutions. An increasingly diversified ecosystem In 2024, financial technology companies in Hong Kong come from different industries, including wealth technology, digital assets and blockchain applications, payment and remittance, financial technology enterprise solutions, green financial technology, insurance technology, private investment in financial technology, compliance and supervision technology and others. Liang Wei said that in the past two years, the Hong Kong government has embraced the development of blockchain. At present, the financial technology related to blockchain has surpassed the largest segments in the past few years, such as wealth technology and payment. The Hong Kong Financial Technology Week in October this year attracted more than 37,000 participants from more than 100 economies around the world, including more different categories than before, including artificial intelligence, blockchain, digital assets, compliance technology and so on. Today, Hong Kong's financial technology ecosystem is richer and more diverse. Empowering financial technology companies to land For enterprises, Invest Hong Kong still plays the role of linking and empowering. As a department of the Hong Kong Special Administrative Region Government, InvestHK is dedicated to promoting foreign direct investment in Hong Kong. The financial technology team, led by Liang Hanjing, aims to attract top innovative financial technology enterprises, start-ups, investors and other stakeholders from all over the world to set up business in Hong Kong, or expand their business to mainland China, Asia and other regions through Hong Kong. Liang Hanjing said that many outstanding mainland enterprises have explored the potential of the international market from Hong Kong. For example, this year, InvestHK went on business trips to the Middle East, Switzerland, Southeast Asia and other regions to promote outstanding financial technology enterprises in the Mainland. For the landing of these enterprises, the Hong Kong government will also provide support including resource docking, customer referral and talent referral. Emerging financial science and technology innovation In August 2024, the HKMA launched the Ensemble project sandbox, focusing on four themes to promote the application of tokenization: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance. This milestone marks an important step in the practical application of token technology in the financial industry. During the 2024 Hong Kong Financial Technology Week, the HKMA announced that it has established new cross-border partnerships with the Central Bank of Brazil and the Central Bank of Thailand, and will explore cross-border token use cases under the Ensemble project. For example, token innovation in supply chain finance can help small and medium-sized suppliers solve the financing problem. Liang Wei emphasized that the innovation of financial technology in Hong Kong is not to speculate on bubbles, but ultimately to empower and help the real economy. Risk warning and exemption clause The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.