Financial Secretary Paul Chan Mo-po has expressed optimism that financial markets will respond positively to the recent summit between Chinese President Xi Jinping and U.S. President Donald Trump, citing a potential reduction in geopolitical uncertainty as a key factor in bolstering investor confidence.

Speaking on a radio program following Xi’s three-day visit to Washington, Chan noted that markets had previously reacted nervously due to concerns over economic prospects linked to strained U.S.-China relations. He suggested that easing tensions could provide investors with greater security in managing their portfolios.

President Xi, accompanied by senior Chinese officials including First Lady Peng Liyuan, Chief of Staff Cai Qi, Foreign Minister Wang Yi, and Vice Premier He Lifeng, departed for Washington on Wednesday and returned to Beijing on Friday afternoon. The summit marked the second meeting of the year between the two leaders, but resulted in relatively few new agreements.

Among the key outcomes was a mutual agreement to apply more favorable tariff treatment to approximately US$30 billion worth of non-sensitive goods on each side, according to a White House fact sheet. The two countries also extended their existing trade truce by two months, moving the deadline to January 10. Additionally, a new “US-China super intelligence dialogue,” focusing on artificial intelligence cooperation, was launched.

For Hong Kong, a global financial hub deeply affected by U.S.-China relations, the potential for greater bilateral stability was viewed as the most significant development. Jonathan Lamport, a lawmaker representing the business sector, described ongoing dialogue as encouraging despite the limited scope of the summit’s announcements. He emphasized that steady relations could support trade, investment, and Hong Kong’s role as an intermediary between markets, while cautioning that businesses would remain attentive to how unresolved trade and technology issues evolve.

Similarly, Wingco Lam Kam-wing, president of the Chinese Manufacturers’ Association of Hong Kong, welcomed the tariff reduction as a possible means to lower costs for exporters and secure overseas orders but noted that trade and technology restrictions persist, underscoring the need for market and supply chain diversification.

Economist Gary Ng Cheuk-yan of Natixis Corporate and Investment Bank commented that Hong Kong’s prosperity has long been linked to the state of relations between major powers, suggesting that a more stable Sino-U.S. relationship with restrained competition could help the city attract and retain investment.

Lau Siu-kai, a consultant to the Chinese Association of Hong Kong and Macau Studies, interpreted the summit as signaling both nations’ desire to maintain stability over coming years, including avoiding conflict over Taiwan. He predicted that a more stable bilateral environment would reduce the likelihood of hostile U.S. actions against Hong Kong, such as sanctions, thereby providing a more favorable international climate for the city’s ongoing development initiatives.

Political commentator Sonny Lo Shui-hing noted potential indirect benefits for Hong Kong as a trading hub, including increased bilateral connectivity and China’s proposed invitation for 100,000 young Americans to visit. However, he questioned whether local industries like airlines and universities would participate. Lo also highlighted uncertainties surrounding the post-January 10 period, viewing the trade truce extension as a tactical pause to facilitate negotiations on sensitive sectors including semiconductors.

Separately, Chan highlighted Hong Kong’s upcoming hosting of the APEC Finance Ministers’ Meeting on October 20-21 as an opportunity to showcase the city’s business appeal. He stressed that the event’s international political attendance would help deepen understanding of Hong Kong’s “one country, two systems” framework and its business environment, potentially encouraging foreign enterprises to enhance engagement with the city.

Regarding the government’s plan to expand renminbi usage for settling payments and commodity trades, Chan reassured investors that Hong Kong’s linked exchange rate system would remain intact. He emphasized the city’s unique position under “one country, two systems” and affirmed that the exchange rate would continue to be maintained within its established band, ensuring stability and preserving investor confidence critical to Hong Kong’s role as an international financial center.