Hong Kong seeks to beef up status as financial hub

The central government now has a vision for Hong Kong amid an evolving global political and economic landscape. — China Daily

HONG KONG: Business leaders, lawmakers and academics in Hong Kong have thrown their weight behind the city’s bid to seize opportunities arising from offshore yuan financing, Belt and Road fund-raising, financial technology applications and the “finance-plus-technology” development model to strengthen its status as a world financial hub.

The key strategies were mentioned in a resolution adopted at the third plenary session of the 20th Central Committee of the Communist Party of China in July.

The resolution pledged to comprehensively deepen reforms to advance Chinese modernisation, while highlighting the need to elevate the Hong Kong Special Administrative Region’s (SAR) position as an international financial, shipping and trading centre.

Agnes Chan Sui-kuen, chairwoman of the Hong Kong General Chamber of Commerce, the oldest and largest business organisation representing multinational companies in the city, said the central government now has a vision for Hong Kong amid an evolving global political and economic landscape underpinned by geopolitical conflicts, trade protectionism and supply chain disruptions.

Chan noted that Hong Kong, as an international city, is a vital hub that connects and integrates with the world, including not only traditional Western markets, such as the United States, but also emerging markets like member states of Asean and countries in the Middle East.

Chan said the special administrative region must leverage its niche strengths in key areas to consolidate itself as a global financial centre. “Hong Kong stands as the world’s largest offshore yuan hub, processing about 75% of all transactions, and will play a crucial role in facilitating yuan’s internationalisation,” she added.

Besides traditional yuan financing business, Hong Kong should be leading other financial centres by offering innovative financial services and support green and sustainable finance, she said.

“We should consider implementing pilot policies in the Guangdong-Hong Kong-Macao Greater Bay Area to facilitate capital flow and explore cross-border collaboration between the Chinese mainland and Hong Kong in emerging sectors such as green financing, carbon markets and digital currencies.”

Chan Chun-ying, who represents the finance constituency in the Legislative Council, said Hong Kong must build up its links and trade with countries involved in the Belt and Road Initiative (BRI), allowing the city to retain its place as a regional hub for asset management, green finance and risk management.

In his view, the SAR’s banking industry can give full play to the advantages of internal and external connections and actively support the financial service needs of governments and related enterprises in the countries involved in the BRI.

“Hong Kong can use the resources, financing channels and financial infrastructure experience of being an international financial centre to provide diversified financing solutions and support for local large-scale infrastructure and specific projects, thus facilitating the funding needs of BRI projects by promoting financial circulation,” said Chan Chunying, who is also a deputy to the National People’s Congress, China’s top legislature.

To bolster its competitiveness, Hong Kong must expedite fintech development by enforcing more policies and tax measures to encourage financial institutions to achieve all-round digitalisation, he said. — China Daily/ANN