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The Director of the Hong Kong Economic and Trade Office in Toronto (HKETO), Miss Kathy Chan, told members of the Canadian business sector in Montreal, Canada, today (November 24, Montreal time) that with the advantages under the "one country, two systems" principle, Hong Kong will reinforce its competitiveness and status as an international financial centre.
Speaking to business professionals at a Montreal business forum organised by a Canadian not-for-profit corporation, the M&A Club, Miss Chan told the participants that Hong Kong is an international and cosmopolitan city, well known for its rule of law, clean and efficient government, simple tax system with low tax rates, well-established financial networks and world-class infrastructure.
"Hong Kong has not only been ranked the world's freest economy for the 21st consecutive year by the US-based Heritage Foundation in 2015. Our city also ranks as the third financial centre on the Global Financial Centres Index," Miss Chan said.
In describing the strong presence of the international financial community in Hong Kong, Miss Chan told the forum that, as at October this year, 74 of the world's top 100 banks had operations in the city. Currently, Hong Kong has 157 licensed banks.
Highlighting Hong Kong's status as one of the world's largest stock markets, she said that the total market capitalisation in Hong Kong stood at US$3.06 trillion as at August 2015, making it the third largest stock market in Asia. She also told the forum that the Shanghai-Hong Kong Stock Connect, which was launched in November 2014, has reinforced Hong Kongˇ¦s position as an international financial centre and a premier offshore Renminbi (RMB) hub.
As at August this year, Hong Kong ranked first globally in terms of initial public offering funds raised, amounting to about US$20 billion.
In telling the forum that Hong Kong is Asia's leading asset management centre, Miss Chan noted that stamp duty has been waived for the transfer of shares or units of all exchange traded funds since February this year while the Mutual Recognition of Funds initiative between Mainland China and Hong Kong came into operation in July.
The total combined fund management business in Hong Kong was US$2.3 trillion last year, having increased more than 10 per cent from the 2013 figure.
The forum also heard that Hong Kong is one of the most open insurance centres in the world. At the end of October, there were 157 authorised insurers in Hong Kong.
Turning to the economic links with Mainland China, Miss Chan said that Hong Kong and the Mainland enjoy close trade relations. The Mainland has continued to be Hong Kong's largest trading partner, and Hong Kong was the Mainland's second largest trading partner in 2014. About 90 per cent of Hong Kong's re-export trade is linked to the Mainland. At the same time, Hong Kong is the largest source of external direct investment in the Mainland, while the Mainland is a major investor in Hong Kong's economy.
Miss Chan also stressed that with the advantages of "one country, two systems", Hong Kong is not only an international financial centre but also China's global financial centre.
Specifically, she briefed the participants on the growth and development of Hong Kong as the world's largest offshore RMB trade settlement, financing and asset management centre.
"RMB is now the world's fourth largest most-used currency for global payments. And Hong Kong manages about 70 per cent of that global RMB payment.
"A wide-range of RMB products ranging from 'dim sum' bonds, investment funds and insurance products are available in the market," she said.
"In Hong Kong, investors can raise RMB funds through a cost-effective platform in conformity with the international practices and manage the funds more flexibly," Miss Chan told the forum in explaining the benefits of making use of the RMB bond market in Hong Kong to meet project financing needs. About RMB200 billion of bonds were issued in Hong Kong in 2014, a 70 per cent increase from 2013.
At the end of the forum, Miss Chan reiterated that Hong Kong is an ideal platform and can act as a "super-connector" for companies to seek collaboration and investment opportunities with Mainland companies, with the benefit of Hong Kong's close ties with Mainland China, its role as the premier RMB offshore market and the strong support from its excellent professional services. She welcomed Canadian companies and investors to approach the HKETO or Invest Hong Kong for advice and assistance.
The Director (Canada) of the Hong Kong Trade Development Council, Mr Andrew Yui, also spoke at the seminar.
Ends/Wednesday, November 25, 2015
Issued at HKT 05:37
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