It’s been a tough few years for the finance sector, with a global pandemic being followed by geo-political tensions and several conflicts that directly or indirectly affect major players on the global stage.
What was discussed?
A recent joint conference held jointly by the International Finance Forum (IFF) and Hong Kong Monetary Authority (HKMA) sought to tackle some of these issues and plot a path forward. Key political figures, financial authorities, executives and academics discussed some of the most pertinent issues facing the sector now and in the immediate future.
While the conference was a coming together of some of the most senior individuals with the ability to implement legislation and set global financial strategy, it should be of interest to investors, savers, and anybody with an interest in the global economy.
What difference do these conferences make?
The outcomes of the conference have the potential to drive the future of the global economy. But its relevance is also immediate. Items discussed on the agenda affect market confidence simply by virtue of being discussed at a major global conference such as this.
This is why it’s important to always keep up to date with financial news – particularly when considering investments. Events such as this can always be found in the economic calendar this week. An economic calendar details events and occurrences that are likely to affect the markets such as major financial events and monetary policy decisions that can impact market confidence.
Market confidence is the keystone on which the global economy depends. Investment companies, traders and those who simply dabble in the markets all do so with the aim of making a profit. And without confidence, they will choose to keep their assets where they are most protected.
Conferences such as this are vital as they bring states, corporations and other key players together to ensure the individual goals of each share an overarching aim that delivers mutual benefits. Collaboration keeps economic ties strong and enables the world to navigate tough times like those we’ve just experienced.
Threats to the global economy
But other geo-political factors now threaten that collaborative approach. The looming threat of fragmentation was a key talking point, with all parties keen to see the world work together to tackle global issues such as high-interest rates and global inflation.
Opening the conference, Hong Kong Financial Secretary Paul Chan said, “the world needs more inclusive and resilient development” and stated that Hong Kong is “committed to free trade, to reducing trade barriers and ensuring the free flow of goods, capital and people”.
Discussion about strengthening the global economy was considered against the backdrop of the green agenda that, for many governments, holds equal importance to financial policy. Driven by the threat of climate change and increased public awareness of greener alternatives in many of their life choices, governments and financial markets are seeking environmentally friendly solutions to many of the issues they must deal with.
Hong Kong used the conference to position itself as a key player in promoting multilateralism and mutual financial markets. It pointed to its ties with both China and the West as proof of its importance on the global stage. Lai Zhihong, Vice Mayor of the Chinese province of Guangzhou attended the conference and spoke about the prospects and roles of Asia, Hong Kong and the Greater Bay Area, and their impact on the strength of the global economy.