- Professor Hongbin CAI, Dean and Chair of Economics, Director of the Institute of China Economy (ICE) of HKU Business School, delivers the welcoming remarks.
The 7th HKU Quarterly Forum on Chinese Economy, hosted by HKU Business School's Institute of China Economy (ICE), in collaboration with the Hong Kong Alumni Liaison Office of School of Economics of Fudan University, was held on 4 July. The Forum brought together renowned experts and industry leaders to share valuable insights on the stablecoins finance, Asia's economic landscape and the challenges and opportunities facing China's economy, as well as the related growth engines of China's economy and policy directions. Held at HKU Yuet Ming Auditorium, the Forum brought together a diverse audience of industry leaders, academic experts, alumni and students, with more than 300 people in attendance.
"In today's fast-changing global landscape with constant technological innovation, China's economy faces new opportunities and challenges. HKU Business School remains open and committed to cutting-edge economic research, fostering industry dialogue and ideas," said Professor Hongbin CAI, Dean of HKU Business School, in his welcome speech. "The Forum of this quarter, in collaboration with the Fudan Alumni Association, will focus on the latest trends in China's development, explore hot topics like digital currencies, and analyze economic shifts from diverse perspectives to help participants seize opportunities and address challenges."
"Fudan and HKU share a century-long academic tradition, and have consistently witnessed and driven China's economic modernization. Today, as the world undergoes shifts in growth drivers and profound restructuring of supply chains, China's economy is navigating uncharted waters—requiring both strong macro-level guidance and bold innovation from individual players. By joining forces to create a platform for intellectual exchange, the two institutions vividly embody their founding mission to serve society and advance the nation's prosperity," remarked Ms. Qi DONG, Director of the Hong Kong Alumni Liaison Office of School of Economics of Fudan University and Executive Director of JP Morgan, during her welcome speech.
Professor Zhenhua MAO, Professor of Practice in Economics of HKU Business School and Member of Chief Executive's Policy Unit Expert Group, presented the keynote report titled "China's Economic Transformation: Beyond Deflation, Toward Global Integration." He shared that global funds continue to flow into Hong Kong, supported by two sessions' policies, DeepSeek stimulation, and rising risk-off sentiment amid global tariffs disputes. China's manufacturing sector remains strong, with high-tech industries like shipbuilding and computers seeing above-average value-added growth. To achieve its economic growth target and curb inflation, China needs sustained policy support to stimulate domestic demand and stabilize prices, moving away from reliance on land-based development and investment-driven growth. It must also drive both Chinese products and companies to expand into the global market, leveraging Hong Kong's status as an international trade and financial hub.
The Forum was followed by inspiring keynote speeches by three distinguished speakers. Professor Chen LIN, Vice-President and Pro-Vice-Chancellor of HKU, Chair of Finance, Stelux Professor in Finance, and Director of Centre for Financial Innovation and Development, shared on the topic of "Stablecoins and Inclusive Finance" and highlighted that stablecoins offer clear advantages over traditional cross-border payment systems. It is the cheapest way to send a dollar – in less than 1 second for less than 1 cent. Initially focused on transferring on-chain profits, stablecoins have evolved into a key infrastructure for financial inclusion. However, it faces challenges such as the reliability of underlying assets, currency peg issues, and money laundering risks. As regulatory frameworks become clearer and more robust, the security and trustworthiness of stablecoins are expected to improve, expanding their role in the international financial system.
Professor Heiwai TANG, Associate Dean of HKU Business School, Victor and William Fung Professor in Economics, and Director of Asia Global Institute, focused on the theme of "The Emerging Economic Pattern of Asia Under Geopolitics" and pointed out that globalization is not ending, but evolving toward service-oriented, digital, and regional development. Many trades now occur via digital services, maintaining rapid growth in globalized services unlike traditional port- and product-focused trade. Regarding corporate expansion, Prof. Tang highlighted China's "Flying Geese Paradigm 2.0," led by leading companies driving others to go abroad. Both Hong Kong and Mainland China are seeking regional cooperation less affected by geopolitics, such as in the Middle East. On Hong Kong's development, Prof. Tang said, "Hong Kong should the engage with the Greater Bay Area's tech and productivity upgrades, leverage its dual-role as a trade and financial hub to transform into a center for trade services and trade finance. In today's complex geopolitical environment, Hong Kong also needs to utilize its open economy to navigate risks and seize opportunities."
Dr. Jianguang SHEN, Vice President and Chief Economist of JD.com, Inc. and Visiting Professor of School of Economics of Fudan University, presented on the topic of "Global and Chinese Economic Outlook Under Trump 2.0" and pointed out, "the most significant structural change in the global economy over the past decade has been China's rise—leveraging the digital economy wave—to become the world's largest emerging hub for manufacturing, exports, and innovation. This has enabled China to withstand the threat of US tariff wars. Looking ahead, boosting domestic consumption will further strengthen China's economy, while offshore renminbi stablecoins could promote the internationalization of the renminbi and reinforce Hong Kong's status as an international financial center."
A roundtable discussion focusing on hot topics in the current Chinese economy was moderated by Professor Hongbin CAI. Panellists include Dr. Shi CHENG, Chief Economist of ICBC International; Dr. Weijun HU, Chief China Economist of Macquarie Group Limited; Dr. Yifan HU, Managing Director of Global Wealth Management and Regional Chief Investment Officer and Head Macroeconomics APAC, UBS; and Mr. Bin SHI, China Equity Head and Managing Director of UBS Asset Management. Speakers discussed various topics, including China's current macroeconomy, economic targets and policy outlook for the second half of the year, as well as issues related to US-China trade negotiations and the RMB-to-USD exchange rate.
