Hong Kong’s financial system remains resilient despite challenges: CEO

Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Guangdong Province (South China) Photo: VCG

Director-General of the Hong Kong Special Administrative Region (SAR) John Lee said on Wednesday that the SAR’s financial system remains resilient, expressing full confidence in the regional development of the Guangdong Greater Bay Area (GBA). -Hong Kong-Macao despite global challenges. geopolitical and economic landscape.

Speaking at the 2022 Phoenix Financial Forum for the Greater Bay Area, Lee said building the GBA is a major development strategy as part of the reform and opening up of the country in the new era, which offers also more growth opportunities to the region.

Hong Kong SAR, as a “resilient global financial and business hub”, will continue to drive the region’s future development, he said.

Hong Kong is continuously strengthening its connectivity with mainland China through capital market links, such as Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, the cross-border investment channel that connects Shanghai stock exchanges and from Shenzhen to Hong Kong. Kong Stock Exchange.

Assets under management in Hong Kong reached HK$35.5 trillion last year, 65 percent of which came from overseas countries and regions, Lee said, indicating that Hong Kong has resilient strength to become the center of management. of preferred assets and heritage in the GBA, and in Asia.

A series of measures supported by the central government have helped to strengthen the GBA’s leading role in which Hong Kong’s position as an international trade and financial hub will be further consolidated.

In early September, a concentrated deployment of development and opening plans for GBA was launched to deepen the opening of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, a development zone located in Shenzhen which is known for its openness. pilot policy.

Among the plans is the establishment of a modern service industry development mechanism of international standards that links Hong Kong and Macao. The plans reflect the government’s efforts to boost cooperation between regions in the GBA as the current level of economic interaction is not sufficient, experts have said.

Moreover, the rapid development of Hong Kong’s offshore yuan business has given further impetus to Hong Kong’s growth as an international financial center, Dai Xianglong, former governor of the People’s Bank of China, the central bank, said on Wednesday. , during the forum.

Hong Kong has the largest offshore yuan capital pool in the world, handling around 75% of the world’s offshore yuan settlements.

In July, the People’s Bank of China and the Hong Kong Monetary Authority announced the optimization of the currency swap agreement as a permanent arrangement, the SAR chief said, saying that at the In the future, the Hong Kong Monetary Authority will optimize the RMB liquidity arrangement to support the sustainable development of the offshore RMB market in Hong Kong.

Consolidating and improving Hong Kong’s status as an international financial center is of great importance for the economic and social development of the GBA and Asia, Dai said.

At the same time, the economic growth of the Chinese mainland and the GBA has also continuously supported the consolidation of Hong Kong’s status as an international financial center, Dai said.

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Don F. Davis