As revealed at the 2024 Global Financial Leaders’ Investment Summit that was held in Hong Kong recently, more and more international investors are setting their sights on Asia, especially China. This growing trend bodes well for Hong Kong’s effort to consolidate its position as a global financial center.
Leaders from the international financial community, including Goldman Sachs Chairman and CEO David Solomon, Standard Chartered Group CEO Bill Winters and Morgan Stanley CEO Ted Pick, attended the summit.
They talked favorably about the Chinese mainland’s economic prospects as well as the huge opportunities available to Hong Kong: The series of policies recently introduced to boost domestic consumption will help significantly restore global investors’ confidence in the Chinese economy; the country is well-positioned to establish resilient supply chains among booming economies like the Association of Southeast Asian Nations (ASEAN) and the African continent, thereby contributing to global trade; ASEAN and Gulf countries, which are experiencing rapid growth, are seeking to establish closer economic ties with Hong Kong.
These new developments reflect a rebound in investors’ confidence in China and Asia. As a global economic powerhouse, Asia is expected to contribute 60 percent of worldwide economic growth this year. Strong trade ties between China and other Asian economies have brought prosperity to the region. Hong Kong’s financial industry also benefits from the opportunities brought by these new developments.
Hong Kong’s return to the top three global financial centers has invalidated some of the vicious calumnies against the city, including the ridiculous notions that “Hong Kong is over” and Hong Kong has become a “relic” of an international financial center.
These three suggestions can be condensed into three words: “innovation”, “opening-up” and “connectivity”. “Innovation” suggests looking to the future; “opening-up” entails cooperation with the rest of the world; and “connectivity” means closer integration with the mainland. These are the major directions for the development of Hong Kong’s financial industry, which will definitely grow stronger and bigger if the city does well in all of these fields
While New York and London have persistently kept the top two spots in global financial center rankings, Hong Kong and Singapore have taken turns to sit in third place. The facts speak for themselves. Currently, 73 out of the top 100 banks in the world have established their presence in Hong Kong, and seven out of the top 10 international insurance firms operate in the city, which is a testament to the robustness of Hong Kong’s financial sector.
Doomsayers who peddled the notion that “Hong Kong is over” often cited the economic integration between Hong Kong and the mainland, which does not withstand scrutiny. The fact is, the mainland is the pillar of Hong Kong’s financial industry, as evidenced by the statistic on the key businesses in Hong Kong’s financial sector. First, the total assets of Chinese banks and insurance institutions operating in Hong Kong account for half of overseas Chinese assets; the total assets of Hong Kong banks operating on the Chinese mainland account for nearly half of the total assets of “foreign” banks operating on the mainland. Second, about 80 percent of the world’s offshore renminbi businesses are settled in Hong Kong. Third, more than 70 percent of the investments made by international investors in the mainland securities market are channeled through Hong Kong, and 80 percent of mainland enterprises’ offshore initial public offerings are achieved in Hong Kong.
Several central government officials in charge of national financial affairs attended the 2024 Global Financial Leaders’ Investment Summit; their attendance and remarks suggested that the central government attaches great importance to and strongly supports Hong Kong in consolidating its status as an international financial center. With the strong support of the central authorities, the prospect of Hong Kong’s status as an international financial center remains bright.
Li Yunze, minister of the National Financial Regulatory Administration, said that the agency is firmly committed to supporting Hong Kong in consolidating and enhancing its status as an international financial center in six aspects: to continuously open up the mainland financial sector to Hong Kong and Macao players; to actively support the development of a headquarters economy in Hong Kong; to assist Hong Kong to develop into an international risk management center; to deepen financial cooperation between the two places in respect of elderly care; to support Hong Kong in developing new quality productivity; and to cope with risks and challenges together.
Wu Qing, chairman of the China Securities Regulatory Commission, said that the agency will fully implement the five major measures announced in April to deepen connection between the two regions and support Hong Kong in consolidating its status as an international financial center.
Zhu Hexin, director of the State Administration of Foreign Exchange (SAFT), said that the People’s Bank of China and SAFT will continue to deepen financial market connectivity between Hong Kong and the mainland, enhance financial support for the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, and consolidate and enhance Hong Kong’s status as an offshore RMB business hub and an international financial center.
At the summit, Vice-Premier He Lifeng, who is in charge of national financial affairs, put forward three suggestions for Hong Kong’s financial industry: first, to continuously deepen financial reform and innovation, and enhance the inclusiveness and attractiveness of the capital market; second, to expand financial opening-up and cooperation, and continuously invigorate Hong Kong’s financial development; and third, to align with national development strategies, and solidify the foundation for Hong Kong’s financial development.
These three suggestions can be condensed into three words: “innovation”, “opening-up” and “connectivity”. “Innovation” suggests looking to the future; “opening-up” entails cooperation with the rest of the world; and “connectivity” means closer integration with the mainland. These are the major directions for the development of Hong Kong’s financial industry, which will definitely grow stronger and bigger if the city does well in all of these fields.
The author is vice-chairman of the Committee on Liaison with Hong Kong, Macao, Taiwan and Overseas Chinese of the National Committee of the Chinese People’s Political Consultative Conference and chairman of the Hong Kong New Era Development Thinktank.
The views do not necessarily reflect those of China Daily.
