AI Boom Fuels Hong Kong Exports, GDP Set to Beat Forecasts

The city’s export surge is being driven by strong worldwide demand for AI-related products, and economists say the trend is far from over. Billy Mak Sui-choi, an associate professor at Baptist University, told the South China Morning Post that demand for AI is not yet saturated and that no single country has been able to fully meet it, suggesting the market still has room to expand [206392]. This upbeat outlook means Hong Kong’s GDP may rise faster than previously expected, as AI-related exports remain a key driver of economic growth [206392].

Meanwhile, HSBC is doubling down on its commitment to Asia by relocating its group chief people and governance officer, Aileen Taylor, from London to Hong Kong later this year. The move is part of a broader effort to strengthen the presence of senior executives in Hong Kong, which is HSBC’s largest market and a key focus for growth [206386]. The bank has already made an internal decision to transfer Taylor, signaling its commitment to expanding operations in the region [206386].

In a separate transaction, German insurer Allianz has agreed to acquire HSBC’s insurance business in Singapore for $2.09 billion. The deal includes HSBC’s life and general insurance operations in the city-state, and Allianz will take over the unit’s existing policies and distribution network [203310]. The transaction is expected to close in the first half of 2025, pending regulatory approval. HSBC said the sale is part of its strategy to simplify its business and focus on core banking operations, while Allianz strengthens its presence in Asia’s fast-growing insurance market [203310].