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Comment: Hong Kong, the leading global financial centre
Mar 15 2011
By Kathy Tompkins
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Hong Kong is a key market for growth in the future and as a gateway between China and the rest of the world the most recent moves logged by Sheffield Haworth indicate that 86% of Asia Pacific external hires transferred to Hong Kong from London and the US in 2010.

Hong Kong will remain the epicentre of commerce in China due to its high level of sophistication and transparent systems. As China is quickly developing a middle class, its government is investing heavily to boost economic demand.  China is also preparing to internationalize the use of the renminbi. As a result, the growth trajectory of Hong Kong is going to be enormous.

Simon Galpin, Director-General of Investment Promotion at Invest Hong Kong said, "We are seeing a growing number of financial services businesses move to Hong Kong.  Companies from the US, mainland China and the UK have topped the list and we have seen a particular increase in the number of asset managers moving to the region.”

Julia Leung, Under Secretary for Financial Services and the Treasury, says "Hong Kong remains the single biggest source of foreign direct investment but for the whole of China, accounting for more than half of such inflows."

Hong Kong is a key market for growth in the future.  The credit crisis made Chinese officials recognize the need to do something about their economic dependency on exporting manufactured goods to the west.  As China is quickly developing a middle class, its government is investing heavily to boost economic demand.  China is also preparing to internationalize the use of the renminbi. As a result, the growth trajectory of Hong Kong is going to be enormous. Hong Kong will remain the epicentre of commerce in China due to their high level of sophistication and transparent systems.

Key Statistics

  • Hong Kong is now the global leader in IPO equity funding.  In 2009 total equity funds raised through IPOs in Hong Kong amounted to US$31.8 billion.
  • In 2009, the net international investment position of Hong Kong as a percentage of gross domestic product was 353%. It is projected that by 2024, China will rank number one in the global economy and will be a component of the global reserve currency basket.
  • In 2004 Hong Kong became the first offshore renminbi center.  Under the renminbi trade settlement pilot scheme, Hong Kong handles 75% of mainland China’s yuan trade.
  • Hong Kong is fast becoming the leading financing market for world mineral and exploration companies.

Skill sets in demand by financial institutions:

As a result of the RMB standardization process economists believe 30,000 new jobs will be created in the financial services sector in Hong Kong.  A full menu of Asset Management professionals will be in demand; these will include product development roles, investment managers, sales and distribution professionals, risk, compliance and infrastructure professionals.

The increased number of multinational firms taking their companies public in Hong Kong and the continued growth of mining and exploration companies will give rise to an increased need for investment bankers and capital markets professionals.

Read the recent speeches from the Invest in Hong Kong, New York Conference 1 March 2011