Tycoon Victor Fung proposes Hong Kong as new multinational supply chain hub to President Xi

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Victor Fung (left) and President Xi (right).

26th May 2024 – (Jinan) Hong Kong tycoon Victor Fung Kwok-king outlined his vision to President Xi Jinping for transforming Hong Kong into a leading multinational supply chain centre for Mainland Chinese companies. This discussion took place last Thursday in Jinan, Shandong province, where Fung, the chairman of the Fung Group, joined a select group of business leaders and experts.

According to sources, Fung highlighted the evolving global dynamics in the supply chain sector and presented a compelling case for Hong Kong’s pivotal role. He suggested that the city could serve as the central hub for medium-sized, export-oriented businesses from the mainland, as well as international corporations.

The meeting, which was part of Xi’s visit to Shandong, also addressed broader integration of Hong Kong into China’s national development strategies. Insights from the session are expected to influence the agenda of the upcoming key Communist Party meeting in July, known as the third plenum.

President Xi emphasized the necessity of addressing deep-rooted institutional and structural challenges to bolster the nation’s economic framework. His remarks were interpreted as a robust endorsement of pro-business reforms ahead of significant policy discussions at the third plenum.

The proposals discussed are aligned with ongoing research at Hong Kong University of Science and Technology and the newly launched Li & Fung Supply Chain Research Institute. This institute aims to merge academic research with industry insights to foster innovation across the Greater Bay Area and beyond, positioning Hong Kong as a global nexus for supply chain management.