Skip to content
onedrivebusiness

onedrivebusiness

Lightening the Business

Primary Menu
  • Business Management
  • Advertise Here
  • Contact Us
  • Privacy Policy
  • Sitemap
  • Home
  • Hong Kong’s top finance executives bank on city to thrive as gateway to China
  • finance

Hong Kong’s top finance executives bank on city to thrive as gateway to China

By Latonia Kimberly 1 month ago

[ad_1]

By Selena Li, Kane Wu and Julie Zhu

HONG KONG, June 27 (Reuters) – In 1997, the world watched as Britain returned Hong Kong to Chinese rule, with some pessimistic or wary about the outlook for the city and its role in the global financial system.

Twenty-five years later, Hong Kong has so far retained its status as a financial hub, and some of the city’s top executives are banking on a bright future as the territory remains a crucial springboard for investment into mainland China.

Charles Li, former chief executive of bourse operator Hong Kong Exchanges and Clearing (HKEX) 0388.HK and founder of microfinance platform Micro Connect, said that although he believes the next 25 years will be “very different”, he’s optimistic.

“I’m convinced that the overall prosperity of Hong Kong will remain as strong as before because Hong Kong retains its value to both sides,” Li told Reuters, referring to China and the West.

When he celebrated the handover with friends more than two decades ago in the city’s bustling nightlife district of Lan Kwai Fong, Li said many people saw it as the “beginning of a very long ride, and the best is yet to come.”

On Friday, Hong Kong reaches the halfway mark of a 50-year experiment designed to give the city a high degree of autonomy under Chinese rule.

Critics of the government say political and civil liberties have been hugely curtailed, especially since the introduction of a national security law in 2020.

The finance sector has thrived since the handover. The value of Hong Kong’s stock market has surged to HK$27.65 trillion ($3.52 trillion) as of end-June, up from HK$3.2 trillion in 1997 and global investors have become increasingly reliant on Hong Kong to trade mainland stocks.

Turnover on the Hong Kong-Shanghai stock connect pipeline – which provides access to closely controlled mainland capital – jumped to 46.5 billion yuan on June 22, up from 12.8 billion yuan when it launched in 2014, according to data from HKEX.

On the Hong Kong-Shenzhen stock connect channel, turnover stands at about 58 billion yuan, up from 2.7 billion yuan at its launch in 2016.

‘INDISPENSABLE’

Although uncertainty clouds the outlook for political and civil liberties under electoral changes and the sweeping national security law, other business executives say Hong Kong’s standing as a financial hub will stay intact.

Some business lobby groups and diplomats have expressed concern over the outlook for Hong Kong, given an exodus of talent and worries over the rule of law and judicial independence.

“Hong Kong will remain indispensable, (and) also the most competitive gateway between China and the rest of the world,” Fred Hu, founder and chairman of private equity group Primavera, told Reuters. “I don’t believe any mainland city, including some cities I love, will bypass Hong Kong.”

The city has contended for some of the world’s hottest initial public offerings in recent years, including Alibaba, the New York-listed e-commerce titan, which journeyed to Hong Kong to raise $13 billion in a secondary listing in November 2019.

Hong Kong has been the world’s top stock exchange by IPO value seven times since the handover, most recently in 2019, when 146 companies raised a total of $40 billion on the main board, according to Dealogic data.

In a move that authorities say underscores the importance China attaches to Hong Kong, President Xi Jinping will attend the swearing in of the city’s new leader, John Lee, on Friday as well as celebrations to mark the handover.

“I believe the central government’s intention toward Hong Kong is benign. They don’t want to mess up Hong Kong,” Hu said.

A former security chief who is sanctioned by the United States, Lee will be closely watched by a financial industry eager to get back on track after crippling COVID-19 restrictions that have triggered an exodus of people and seen the border with mainland China largely closed for two years.

David Chin, UBS’ UBSG.S head of investment banking for Asia-Pacific, is optimistic on Hong Kong’s outlook, although he says China’s role on the global stage is key.

“Hong Kong is also the international gateway for China,” he said. “So the foreign relationship, how China interacts with the rest of the world, is also very important for Hong Kong.”

($1 = 7.8490 Hong Kong dollars)

(Reporting By Selena Li, Kane Wu and Julie Zhu; Writing by Anne Marie Roantree; Editing by Gerry Doyle)

(([email protected]; +852 97387151; Reuters Messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

[ad_2]

Source link

Tags: "Taking Care Of Business, Amazon Business Credit Card, American Airlines Business Class, Att Business Login, Austin Business Journal, Best Bank For Small Business, Best Business Bank Accounts, Best Business Schools In Us, Best Business To Start, British Airways Business Class, Business Attire Men, Business Card Ideas, Business Casual Shoes For Women, Business Continuity Planning, Business Entity Search, Business Letter Template, Business Management Degree, Business Manager Facebook, Business Plan Outline, Business School Rankings, Colorado Business Search, Delaware Business Entity Search, Drop Shipping Business, Family Business Bet, Fox Business Live, Georgia Sos Business Search, Google Business Account, Harvest Small Business Finance, How To Build Business Credit, Is Saturday A Business Day, Is Sears Still In Business, Microsoft 365 Business, My Business Google, Name Generator Business, None Of Your Business, Ny Sos Business Search, Open A Business Bank Account, Pa Business Search", Plus Size Business Casual, Pnc Business Banking, Sos Business Search Ca, Sunbiz Business Search, The Business Of Being Born, Turbotax Home And Business 2020, Tx Sos Business Search, Venmo For Business, Verizon Business Plans, Virtual Address For Business, What Are Business Days, Women Business Casual

Continue Reading

Previous Do You Use Bad Language At Work? • Derek Cheshire
Next What does financial and rate benchmarking mean at TrinityP3?

Recent Posts

  • What to consider when redesigning a website
  • SEO webinar on getting quality backlinks
  • Cross-Chain Decentralized Finance technology: where the future of tech is headed
  • Side hustle to selling vintage designer purses full time
  • Introverts Can Be Great Speakers. Engagement Is a Must, Not Loud.

Archives

  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • March 2021
  • December 2020
  • November 2020
  • November 2018
  • December 2016

Categories

  • Advertise Here
  • business
  • business
  • Business Management
  • business& finance
  • finance
  • general


visit now

home improvement license
Intellifluence Trusted Blogger

backlinks

textlinks

onedrivebusiness.xyz | Magazine 7 by AF themes.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT