Yue calls for patient capital to fund China's innovation-led growth
Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, called for financing suited to China's long-term industrial upgrading. He spoke in Hong Kong on October 12, 2026, at the 16th Annual International Conference on the Chinese Economy.
Technology needs scale to deliver
Yue identified technological innovation, industrial upgrading and domestic demand as drivers of sustained growth, replacing reliance on infrastructure and real estate.
He cited four decades of investment and United Nations data identifying China as having the largest researcher pool and most complete industrial system.
Its digital economy grew from a quarter of GDP a decade ago to over 40 percent.
More than 600 million people have used generative artificial intelligence, while Chinese factories account for over half of new industrial robot installations worldwide.
Yue said electric vehicles, lithium-ion batteries and solar panels support the green transition.
He linked resilience to adaptive supply chains, including the Greater Bay Area, and financial stability.
Two plans deepen financial links
Yue said China's 15th National Five-Year Plan, launched in 2026, promotes domestic demand, childcare, education, pensions, innovation diffusion and secure supply chains.
Hong Kong's first Five-Year Plan, released in September, expands mainland connectivity, offshore renminbi business and risk management.
Renminbi settlements doubled their share of China's cross-border transactions over a decade to more than half.
Yue presented Hong Kong as a channel for institutional capital, Chinese firms expanding abroad and global investors entering China.
Long horizons need matching finance
Yue's financing argument rests on the years required for research and industrial upgrading to generate returns.
He said collateralised bank loans and policy lending alone may no longer suffice.
His proposed mix combines patient capital, specialised banking and deep capital markets with effective supervision.
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