At the Asian Financial Forum today (Jan. 27), Jerry Zhang, Executive Vice Chairman and CEO, Standard Chartered China, and China & Japan Cluster CEO, Standard Chartered Bank, stated that markets are highly focused on geopolitics, regional conflicts, and supply chain realignment. Investors are pursuing frameworks that are safe, predictable, offer returns, and feature stable exchange rates. As a result, mainland and Hong Kong, with their comprehensive financing, investment, and infrastructure development, have become attractive investment destinations. She noted that in her meetings with clients worldwide, discussions often revolve around mainland China and Hong Kong, with attention also given to the RMB issue. The "15th Five-Year Plan" explicitly highlights the importance of RMB internationalization.
Zhang forecasted mainland China's economic growth to reach 5% this year and 4.6% next year. For Hong Kong, she projected growth rates of 3.3% this year and 2.5% next year, significantly outperforming most mature markets. She believes this will bolster market confidence.
Regarding investment, she pointed out that the Hong Kong Monetary Authority's (HKMA) doubling of the total RMB business funding quota to RMB 200 billion helps expand the RMB from a settlement currency to a financing currency. This facilitates the development of financial businesses outside Hong Kong and solidifies Hong Kong's role as a key hub. She added that over 300 companies are currently awaiting listing in Hong Kong, indicating abundant investment opportunities. Furthermore, the number of family offices in Hong Kong has reached 2,700 and is estimated to exceed 3,000 soon, positioning Hong Kong to potentially become the world's largest wealth management center by next year.
On the financing front, she noted that last year, offshore RMB bond issuance exceeded RMB 100 billion, a 16% year-on-year increase, with Hong Kong accounting for the majority share. The RMB's share in global trade financing reached 8% for the first time, second only to the US dollar, reflecting increased corporate use of RMB financing.
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