Yue backs patient capital for China's innovation-led growth
Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue urged finance to support China's long-term innovation at the 16th Annual International Conference on the Chinese Economy in October 2026.
Technology moves into production
Yue identified technology, industrial upgrading and domestic demand as China's long-term growth drivers, replacing reliance on infrastructure and real estate.
After four decades of investment, China has the largest researcher pool and most complete industrial system, he said.
Its digital economy grew from a quarter of GDP a decade ago to over 40 percent.
More than 600 million people have used generative AI, and China accounts for over half of new industrial robot installations worldwide.
Electric vehicles, lithium-ion batteries and solar panels support the green transition.
Yue credited adaptable supply chains and financial regulation with resilience; RMB settlements doubled over a decade to more than half of China's cross-border transactions.
Long horizons need broader finance
The 15th National Five-Year Plan launched this year supports domestic demand, childcare, education, pensions, industrial modernisation and secure supply chains.
Yue said collateralised bank loans and policy lending alone are insufficient for long-term research and upgrading.
He called for patient capital, specialised banking, deep capital markets and rigorous supervision.
Hong Kong's first Five-Year Plan, released last month, expands Mainland connectivity, offshore RMB business and risk management, supporting Chinese firms abroad and global investors entering China.
Diffusion is the test
Yue's argument rests on turning technological capacity into household income and domestic demand, not merely expanding production.
Financing duration is therefore a central constraint in his growth blueprint.
The speech sets out that dependency but does not quantify the funding gap.