************************************************************
Following is the speech by the Financial Secretary, Mr John C Tsang, at the opening ceremony of the Standard Chartered Wealth Management Centre at Exchange Square in Central this afternoon (November 12):
Peter (Sands), Ben (Hung), distinguished guests, ladies and gentlemen,
Good afternoon.
I am indeed really pleased to join you all today at the opening ceremony for the Standard Chartered Wealth Management Centre, a glittering new addition to Exchange Square and the Hong Kong skyline. Some people told me that this five-storey complex reminds them of I.M. Pei's striking glass pyramid, which rises in the courtyard of the Louvre in Paris. Others, and I include myself in this group, see a modernistic take on gemstones.
And I am reminded of Hong Kong, rather than Paris. Hong Kong: dazzling, precious, versatile, blessed with countless shapes, colours and planes. Of course, as the Chinese proverb goes, "A gem cannot be polished without rubbing, without some friction."
Shining Prospect
----------------
We are all well aware of that. On this day, however, let us focus on the brilliant promise we can all see. On how Standard Chartered's bold Forum revitalisation symbolises Hong Kong's prospects in the spiralling global wealth-management business.
The wealth of high-net-worth individuals – and I am talking globally – enjoyed robust, double-digit growth last year, reaching US$53 trillion – more than HK$400 trillion. Just imagine that.
And where is that growth strongest? In the Asia-Pacific, of course. Last year, Asia-Pacific wealth was up 18 per cent, to US$14 trillion – over HK$109 trillion. And that, my friends, is only the beginning. The takeaway here is clear: wealth accumulation in the Asia-Pacific is driving demand for private wealth-management services.
So the re-imagining of the Forum by Standard Chartered is timely and is far-reaching – in business as well as in design. The combined fund-management business in Hong Kong last year hit a record high of US$2 trillion (HK$16 trillion).
So far, a total of 47 banks offers private wealth-management services in Hong Kong. Thanks to Hong Kong's enviable geographical location, we enjoy unparallelled access to four million high-net-worth individuals in the Mainland as well as the rest of the Asia-Pacific. That accounts for almost one-third of the world's high-net-worth individuals.
The Hong Kong Government, let me emphasise here, is determined to capitalise on the opportunities afforded by the booming wealth-management business.
Last year, for example, we modernised the trust law to attract settlors to set up trusts, including perpetual trusts, in Hong Kong. Private banks and trust companies have started to look into family trust service as part of their wealth-management solutions. And this has created additional growth potential for the private wealth-management business.
To expand product choices, we are now introducing an open-ended fund companies' regime. We are also extending the profits tax exemption to offshore private equity funds.
As the gateway to Mainland markets and an international financial hub, Hong Kong is rich in investment options. The offshore renminbi (RMB) business has flourished since its launch in 2004. We host the largest pool of renminbi liquidity outside the Mainland, providing the fullest range of renminbi offerings. The RQFII has stretched the range of renminbi products in Hong Kong. And I am pleased to note the growing vibrancy of the renminbi-denominated bond market.
I am glad, and I think we are all glad to know that the Shanghai-Hong Kong Stock Connect will come into operation on November 17, next Monday. This marks an important milestone in the liberalisation of the Mainland's capital account, allowing overseas investors to invest in the Mainland A-share market through Hong Kong, and Mainland investors to trade Hong Kong shares through Shanghai.
I am sure we are all glad as well to note Norman Chan's announcement earlier this afternoon that the 20,000 yuan daily conversion limit for Hong Kong residents will be lifted next Monday. Supported by Hong Kong's RMB liquidity pool of more than one trillion yuan, RMB conversions by Hong Kong residents will then be done in the offshore market. The restrictions relating to the onshore market will no longer be applicable. This will help facilitate the development of even more RMB investment and wealth management products.
The linking of the Hong Kong and Shanghai stock markets as well as the removal of the daily conversion limit will add further to our unparallelled edges as the world's premium offshore RMB hub. These measures will also help propel the development of our offshore RMB business in Hong Kong to new heights. I would like to take this opportunity to thank the Central People's Government for its unfailing support over the years. Hong Kong will continue to contribute to our nation's economic and financial reform, by serving as both the laboratory for new reform measures as well as the firewall for shielding the Mainland financial market from volatility in the international arena.
You'll agree that we cannot gain from all these invaluable opportunities without people. In particular, talented professionals are at the heart of superior wealth-management services. I know that our banking sector is committed to enhancing training for the wealth and asset management sector. To that end, the Private Wealth Management Association has been established. It will boost standards of business competence and promote professional conduct for private bankers and wealth managers.
In this regard, I am delighted to see that the new centre has been equipped with advanced technological features. They include the first Virtual Teller Machines in Hong Kong. This reflects the Government's drive to enhance market sustainability and potential through technological innovation.
The Hong Kong Monetary Authority last year introduced an e-bill scheme. Next year, it will launch e-cheques. Both are designed to improve transaction efficiency.
Ladies and gentlemen, this brilliantly realised Wealth Management Centre will certainly do that. And much more.
"Much more" is what we can all look forward to in this rewarding business – the global promise – of wealth management.
Thank you very much and have a good day.
Ends/Wednesday, November 12, 2014
Issued at HKT 18:41
NNNN
Windows Media format
Flash format