Mainland China is HK's primary market, says EY
Some professionals are concerned about the implementation of Hong Kong's national security law will affect HK's business environment and status as an international financial center.
In an interview with HK's Wen Wei Po last week, managing partner of EY financial services in Greater China, Jack Chan said that HK's primary market is mainland China, and international investors come to HK because of the enormous potential of the Chinese mainland market.
HK has the advantage of having the motherland at its back and being the world's leading financial regulator. National security legislation can better protect "one country, two systems" and enhance HK's status as an international commercial center.
According to Chan, national security law will have an immediate effect on maintaining social stability and harmonious economic development.
In Chan's view, the government needs to communicate further through the media and dialogues with different social strata. The government should use social groups and various forms of publicity to listen to people's views.
Chan pointed out that the strengths of HK's long-term success depended on the "two systems" under "One country, two systems”. The priority market of HK lies in mainland China, which is valued by international investors. HK acts as an essential buffer point, connecting the mainland and the west with international standards and practices so that foreign investors can understand the policies and control investment risks.
"HK has two major advantages: first, the mainland is the largest market, and the Greater Bay Area is home to a large high-end population. For example, the introduction of Wealth Management Connect will bring dividends and new growth points to HK's banking industry in the short term." Chan said.
"Another advantage is that HK's financial regulation is second to none in the world. HK, which has weathered many financial crises, has been able to survive with its very sound regulatory system." Chan added.
Chan believed that the future Greater Bay Area is not a single "9+2" city, but a city cluster. HK will become an essential prop for the development of the Greater Bay Area into an international financial hub.