Over the same period, the number of Chinese companies listed in Hong Kong has jumped from 101 to 1,370. Is Hong Kong still a financial hub after 25 years of Chinese rule On Monday Japan's Prime Minister Yoshihide Suga told financial news outlet Nikkei that his government will consider lowering tax rates and promoting diversity in boardrooms to attract foreign talent in an effort to reinvent Tokyo as a global financial hub. That pace is almost equal to pre-pandemic levels, according to Immigration Department data. Hong Kong may lose some of its relevance as a global financial center if the region is transformed into just another Chinese city. On top of the traditional routes, theres also Top Talent Pass a new visa program to attract skilled workers. By Camomile Shumba. Macau SAR, China is a special administrative region of China that has limited autonomy in its government and economic activities. "Hong Kong Developer Drops $1.4 Billion Bid on 'Instability'.". For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. Subsequent Chinese articles said NDI had links to the Central Intelligence Agency. Hong Kong, led . The future of Hong Kong as an international financial centre Some have suggested that Singapore, a country with similar tax rates and a business-friendly environment, is the natural successor to Hong Kong. The city suffered its biggest workforce decline on record last year, causing major labour shortages. Vidler said his office merely provided a local address for official correspondence. Last year, the citys exchange saw a 70 per cent plunge in fundraising from 2021. But the sheer ability to raise money outweighs many other factors, according to Drew Bernstein, co-chairman of Marcum, Bernstein and Pinchuk, an accountancy firm. Race-based affirmative action at colleges is over. The ongoing tensions between Hong Kong's people and mainland China raise questions about the former's future as a global financial center. (Source photo by Reuters), Hong Kong is transformed from Asia's financial hub to Xi's 'wallet', The free city of Hong Kong is vanishing at an alarming pace, China's rewrite of Hong Kong's history 50 years in the making, Hong Kong's narrow path going forward in the next 25 years, China's Xi says Hong Kong 'cannot afford chaos' after 2019 protests, Hong Kong's identity in crisis after 25 years of Beijing rule, Hong Kong's new leader is already doomed to fail, Britain 'delusional' over Chinese democracy: ex-Gov. 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Hong Kong and the mainland strengthen financial and economic ties This compensation may impact how and where listings appear. Hong Kong, the semi-autonomous territory of China and former British colony, is behind only New York, London, and Shanghai London in terms of its ranking as a global financial center, according to The Global Financial Centres Index (GFCI 29), published by the think tank Z/Yen Partners in collaboration with theChina Development Institute. English is one of the official languages of this centrally-located city-state, which acts as a gateway to the vast mainland China and other Asian markets and is particularly competitive when it comes to human capital and infrastructure. Last but not least, the various financial liberalisation measures carried out in the region will foster closer exchange among different stakeholders, including regulators and market participants, provide an appropriate market dynamic, and are in line with the longer-term national objectives of financial liberalisation and internationalisation. Tension between China and the US has dented the citys allure and the recent banking crisis, including the collapse of Credit Suisse Group AG, has further heaped pressure on the financial industry. While Hong Kong's legal system is based on English common law due to its colonial history, China's legal system is opaque and not trusted by foreign executives. 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The financial sector had a workforce of over 277,000, or 7.6% of working population in Hong Kong in 2021, and contributed to some 21.3% of Hong Kong's Gross Domestic Product. Hong Kong vows to regulate stablecoins, explore rules for virtual asset "China says Trump is on edge of precipice as Hong Kong rights bill hits his desk. Read this subscriber-only article for free! Inbound travelers are still required to be in hotel quarantine for seven days, which has been reduced from the previous 21 or 14 days, but is still far longer than other financial hubs that are removing COVID restrictions. Experts also point to Hong Kong's role as a financial hub in the Greater Bay area - a project that is connecting 11 cities in southern China with Hong Kong at the centre. USD. Hong Kong wants to be a Web3 hub , Financial Secretary Paul Chan said. You can learn more about the standards we follow in producing accurate, unbiased content in our. MCI (P) 076/10/2022, MCI (P) 077/10/2022. 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Logo of Bond Connect at Hong Kong Exchanges in Hong Kong, China, July 3, 2017. Hong Kong can only grow in its importance as a preferred destination for a secondary listing and this condition could eventually turn positively into a primary listing choice. Hong Kong is transformed from Asia's financial hub to Xi's 'wallet' In 1990, Chinas de factor leader, Deng Xiaoping, met with Hong Kong tycoon Li Ka-shing and promised him that life in the territory would not change after the handover. He was not sad to see British rule end. With analysis you won't find anywhere else, we break down the biggest stories of the day and speak to top guests who have skin in the game. articles a month for anyone to read, even non-subscribers! Hong Kong was rocked by protests for 14 weeks after the introduction of the bill, with millions of its citizens decrying the plan proposed by its Beijing-approved government that would allow the extradition of suspects to mainland China. Then, Beijing pushed through a national security law in mid-2020 that targeted dissenters in Hong Kong. The FSDC has made efforts in facilitating Hong Kongs financial services industry to capture market opportunities in the GBA. Nov 1, 2021,12:59pm EDT Share to Facebook Share to Twitter Share to Linkedin Hong Kong is not only an international financial centre, it is the most important gateway to Mainland China - and. Europe's seeing inflation fade. HK's role as major global financial hub is on firmer footing, 25 years after its return to the motherland 25 years of integration with Chinese mainland makes city nearly crisis-proof By Li. Premier Business Hub in Asia. Because of its colonial history, Hong Kong's legal system is based on English common law due. Published by SPH Media Limited, Co. Regn. Hong Kong, led by former policeman and now Chief Executive John Lee, has been pushing hard to revive the city's reputation with high-level events She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies for financial brands. Alibaba with that move decided not only to invest on Hong Kong opening a new funding channel but also to send a very powerful political message of faith in Hong Kong and of trust in the motherland. Hong Kong should also be a main contributor to the collaboration in green finance, development of Fintech and digital assets in the GBA in the future. ", Associated Press. HONG KONG Six months after Hong Kong reopened to the world, the city still has a steep climb to reclaim its place as Asias premier finance and tourism hub. Can China's Golden Week still shine brightly? Moodys Investors Service expects residential prices to be largely flat in the second half of the year as a result of more higher rates, capital market volatility and higher home completion. Financial-services worker visa approvals are picking up, IPO market just had its worst first half in two decades. As one of the Mainland's principal trading partners, Hong Kong not only provides a channel for goods and services to go global, but also catalyses the international usage of renminbi along to the process. With complementary advantages of respective markets and systems in the GBA, the financial services industry in Hong Kong has much expectation on the coordinated development of the region, said Laurence Li, chairman of the Financial Services Development Council (FSDC), a high-level cross-sectoral advisory body set up by HKSAR Government in 2013 to promote Hong Kong's financial services industry. Join ST's Telegram channel and get the latest breaking news delivered to you. The papers used the fact that Vidlers firm was listed as the company secretary for the U.S. National Democratic Institute to suggest he was backed by Americans. But the Hong Kong of old self-proclaimed as Asias World City will be hard to resurrect. Hong Kong, the semi-autonomous territory of China and former British colony, is behind only New York, London, and Shanghai London in terms of its ranking as a global financial center. It is a business-friendly city with a multitude of advantages to ensure businesses can flourish. Since Hong Kong follows British common law, he was able to practice criminal law there without retraining. The outflow of bankers and other professionals is showing signs of starting to reverse. Numbers like this make Hong Kong irresistible for many investors, according to Tara Joseph from the American Chamber of Commerce Hong Kong. The chart shows the amount of money raised in Hong Kong's IPO markets from Jan. 1 to July 26 for the years . A Supportive Government Premier Business Hub in Asia Low, Simple and Competitive Tax System Hong Kong in first recession for a decade. "We strongly believe that the proposed arrangements will reduce the appeal of Hong Kong to international companies considering Hong Kong as a base for regional operations. Despite that, Kaul says "Hong Kong will remain a key hub for relationships between China and the developed world in the West and in Asia." Hong Kong, led by former policeman and now Chief Executive John Lee, has been pushing hard to revive the citys reputation with high-level events, new visas programs to lure top talent, tax concessions for the wealthy, and free airline tickets for visitors. He doesnt want his name published for fear that his firm could lose mainland Chinese clients. Jul 3, 2023 at 11:10 a.m. UTC. 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"Pelosi Statement on Hong Kong Protests and Extradition Bill. ", The New York Times. Updated Jul 3, 2023 at 8:31 p.m. UTC The Hong . Hong Kong is a forward-looking hub for businesses to capture new opportunities, such as those arising from the Belt & Road Initiative, Guangdong-Hong Kong-Macao Bay Area, fintech, infrastructure investments and financing and green finance. China is fighting its largest COVID outbreak since the summer as cases again erupt across the country, triggering concerns that Beijing's heavy-handed response to outbreaks is exacting a growing toll on the world's second-largest economy. Meanwhile, the new southbound leg of Chinas Bond Connect programme will stimulate demand from Mainland Chinese investors for Hong Kong and US dollar-denominated bonds, boosting liquidity and, thus, facilitate a more efficient price discovery process. Check out www.fsdc.org.hk to stay in touch with their thought leadership. Read about our approach to external linking. For more than 40 years, Hong Kong has been helping enterprises and investors in mainland China to "go global". Tens of thousands of high-skilled workers left to escape the citys Covid regime and a crackdown on freedoms after Beijing imposed a national security law in 2020. Why business is still optimistic about Hong Kong - BBC News The Chinese financial technology group could raise more than $30bn (23bn), more than any other stock market debut this year. For the financial services sector, central and Hong Kong authorities are seeking to further promote cross-boundary RMB investment and financing activities, encourage competitive Mainland Chinese enterprises are also issuing green and sustainability related products in Hong Kong, aiming it to become a hub for green finance within the GBA. One, it's the international finance, here's where Hong Kong continues to be an amazing place," said Curtis Chin, a former US Ambassador to the Asian Development Bank. Marketplace 0% played A quarter-century after the handover, is Hong Kong still attractive as a business hub? The region, which is its own customs territory, has also signed trade agreements with foreign states. PDF Hong Kong: The Facts - Financial Services - Hong Kong, led by former policeman and now Chief Executive John Lee, has been pushing hard to revive the citys reputation with high-level events, new visas programs to lure top talent, tax concessions for the wealthy, and free airline tickets for visitors. Stung by a lack of workers, the city has had problems even handling the small amount of visitors coming in with reports of mainland tour groups having to eat noodles while standing on the sidewalk. Hong Kong will win out over Singapore as an international financial centre in the long term, as the city will attract capital and talent while playing a key role bankrolling innovation in the. Patten, Hong Kong judicial independence fears threaten city's business case, Foreign cash flees China as investors shun autocracies, Japan's economic clout wanes in Southeast Asia, The acute care dilemma at Japan's hospitals, Boon or bane? Lee said that Hong Kong was working to attract top talent to offset a major brain drain in the past three years due to pandemic rules. The city has a prudent and robust financial regulatory regime . "But then there's the daily life of Hong Kong people and some of the issues Hong Kong people face have predated these protests, issues, such as inequality issues, such as that divide between rich and poor. Indian refiners have begun paying for some oil imports from Russia in Chinese yuan, sources with direct knowledge of the matter said, as Western sanctions force Moscow and its customers to find alternatives to the dollar for settling payments. And looking at the guest list for a summit that kicked off Tuesday to tout its comeback, they could be right. 30-06-23 06:53 BJT. Is Hong Kong's unrest scaring businesses away? articles a month for anyone to read, even non-subscribers! ", Reuters. Theres a lot happening in the world. The companies are the e-retailer JD.com, the search engine Baidu, the online travel company Ctrip and the online services company NetEase. [1/4]Hong Kong Chief Executive John Lee speaks during the Global Financial Leaders Investment Summit in Hong Kong, China November 2, 2022. After Chinas flag was raised, Schwall said his lighting business spanning Taiwan, mainland China and the U.S. continued as usual. Hong Kong is transformed from Asia's financial hub to Xi's 'wallet' - Nikkei Asia Hong Kong's importance as a conduit for capital flowing into and out of China has increased, but its. Hong Kong is a financial and business center in China, known as a special administrative region (SAR). What makes a global financial centre? - The Economist BYD Stock Gain Lags Behind Teslas 127% Jump Amid China EV Race, Thailands Parliament Sets July 13 Vote to Select Prime Minister, South Africa Is Tackling Its Second-Biggest Growth Problem, Fed Minutes to Offer Hints on Awkward Pause-and-Hike Message, Ukraine Inches Toward Lifting Wartime FX Limits to Spur Economy, German Commercial Property Deals Tumble 50% to Five-Year Low, Chinas BYD Joins Latin AmericaLithium Rush to Feed Electric-Car Switch, HSBC Tests Quantum Tech in London to Guard Against Future Hacks, Biden Administration Ordered to Limit Social Media Contacts, US to Curb China Access to Cloud Services Like Amazon, WSJ Says, Will AI Take My Job? The UK still has it bad. Since 2017, Lam has served as the Chief Executive of Hong Kong. Why Hong Kong is still a strategic financial hub for Chinese - CGTN I wouldnt advise any young professional from anywhere in the world with ambition to consider working in Hong Kong, he said. According to a recent KPMG client note, Wealth Management Connect represents another significant development in the liberalisation of Mainland Chinas capital account following the launch of QFII/QDII, the Mainland-Hong Kong Mutual Recognition of Funds scheme and the Stock Connect and Bond Connect schemes. Hong Kong is a leading banking, asset and wealth management hub, where leading hedge funds and private equity firms have established presence along with nearly 80 of the world's 100 largest banks and 70 of top 100 global money managers respectively. BLOOMBERG. Beijing made it clear to the representatives ahead of the vote that Lam was their favored candidate. Hong Kongs bid to lure back tourists has been disappointing. Key Takeaways Hong Kong, the semi-autonomous territory of China and former British colony, is behind only New York, London, and Shanghai London in terms of its ranking as a global financial. The U.S. still remains an attractive destination for Chinese companies due to the efficiency and sophistication of its markets but Chinese companies have already started to change their mindset in terms of preferred choice for a listing and, with a less welcoming U.S. market, they are moving their attention to other destinations such as Hong Kong that offers the opportunity to raise capital from global investors close to home avoiding the political risk currently present in the U.S. capital markets. New visas issued to foreign workers in the financial sector plummeted by 49 per cent between 2018. Just as the Wealth Management Connect is on the horizon, Hong Kong is marching steadily towards its vision of becoming the worlds premier wealth and asset management centre. /Reuters Photo. She also explains how she went on to create her own design courses while collaborating with brands like Reebok and Vans. The. On top of the traditional routes, there's also Top Talent Pass - a new visa programme to attract skilled workers. In Japan, inflation is actually good news. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. See here for a complete list of exchanges and delays. These include white papers, government data, original reporting, and interviews with industry experts. An index of economic freedom is a method of scoring and ranking jurisdictions based on the degree of economic freedom their residents enjoy. In 1979, formerpresident of the Hong Kong Economic Association and author Y.C. Tung added that Hong Kong is the only market in China that allows investment vehicles such as special purpose acquisition companies, or SPACs, which can raise money in the public markets and buy or merge with another company. Beijing ICP prepared NO.16065310-3, Why Hong Kong is still a strategic financial hub for Chinese companies. The decision of JD.com, Baidu, Ctrip and NetEase and Yum China for a secondary listing in Hong Kong is certainly incentivized by the successful move of Alibaba that with such a high-profile IPO opened gave an indirect message to other Chinese companies. Hong Kong owes its status as a flourishing financial hub to a number of factors, like the region's rule of law, independent judiciary, relatively low taxes and lack of capital . Local pop star Anita Mui was referred to as the Madonna of the East. However, it lacks Hong Kong's proximity to the Chinese market and its stock exchange is far smaller. Monitor your investments 24 hours a day, around the clock from around the globe. All quotes delayed a minimum of 15 minutes. On the equities side, we launched the Hong Kong-Mainland Exchange Traded Funds (ETF) Cross-Listing Scheme in May 2022. So far, the national security law has mainly targeted activists, Hong Kong politicians like Martin Lee and local media mogul Jimmy Lai. The deal represents just a first step in fixing the trade disputes between China and the U.S. and it cannot be denied that there are still ongoing tensions between the two countries that need to be addressed in phase two and phase three deals that are expected to follow. Hong Kong, in this context, will continue to play its unique role as Chinas only international financial centre. Once the worlds largest market for initial public offerings, Hong Kongs dealmaking machine remains in the doldrums. Investopedia requires writers to use primary sources to support their work. PHOTO: AFP, skilled workers left to escape the citys Covid regime. ", Any instances of violence between Hong Kongers and the government create an unstable political environment that makes the region less likely to attract foreign investors and businesses. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Open. Source: Bloomberg-compiled data. "Hong Kong's international reputation for the rule of law is its priceless treasure," said the American Chamber of Commerce in Hong Kong in a statement about the extradition bill. Since the middle of last century, Hong Kong has been the gateway between businesses in China and the West, including giving companies . Hotlines of Banks & Stored Value Facility Licensees, Half-Yearly Monetary & Financial Stability Report, Guide to Hong Kong Monetary, Banking and Financial Terms, Hong Kong Institute for Monetary and Financial Research, HKMA's Open Application Programming Interface (API), Authorization, Licensing, Designation and Approval, Exchange Fund's Statutory Purposes and Investment Objectives, Exchange Fund Statistics and Publications, Banking Regulatory and Supervisory Regime, Banking Legislation, Policies and Standards Implementation, Anti-Money Laundering and Counter-Financing of Terrorism, Hong Kong as an International Financial Centre, Stored Value Facilities and Retail Payment Systems, International & Regional Financial Co-operation, HKMA Infrastructure Financing Facilitation Office, Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area, Global Financial Leaders' Investment Summit, Opportunities for Students and Graduates to Join the HKMA, Eddie Yue on Exploring new market opportunities, Eddie Yue on Again, Let the Facts Speak for Themselves, Eddie Yue on Hong Kong as an International Financial Centre Facts over Myths, Keynote Speech at the Asia Pacific Loan Market Association (APLMA) Global Loan Market Summit. The amendment was seen as a threat to the region's independent judicial system and as a part of a larger movement to erode its democracy. Hosted by Anna Edwards, Tom Mackenzie and Mark Cudmore. It offers a highly transparent and robust regulatory regime for financial services industries such as banking, securities and futures, insurance and retirement schemes. The launch of the southbound link could broaden the investor base for both Hong Kong dollar and offshore RMB bonds, whereas the support for the US dollar bond market could be strengthened even further. Hong Kong's reopening brings scant gains for financial hub despite push Between June 2020 and June 2021, nearly 90,000 of the 7 million residents left Hong Kong, according to official statistics. Hong Kong is also a preferred location for corporate treasury centres. EIN: 41-0953924. Hong Kong's stock market rose the most in a year in response., At the heart of the decades of resentment in the pro-democracy camp in Hong Kong is the fact that its leader is not chosen by universal suffrage. This privileged status constantly attracts a large volume of investments from global investors who want to enter the Chinese market and are guaranteed with safe legal and financial environment. The Perfect Business Base.
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