Liechtenstein opens Hong Kong consulate

Wants to boost presence in Asia.

The Principality of Liechtenstein opened a consular office last week to boost business ties with Hong Kong and the mainland.

"The opening of the Liechtenstein Honorary Consulate in Hong Kong is a very special event for Liechtenstein. In the past there was no representation in Asia," said Liechtenstein foreign minister Aurelia Frick.

She noted that the development of a number of Asian economies including Hong Kong and China has been impressive during the last decades, and the region is becoming more important for Liechtenstein.

The Hong Kong Consulate will enhance both economic and cultural co-operation between Hong Kong, China, and Liechtenstein. Hong Kong and Chinese clients are of great importance to the Liechtenstein Financial Centre, Frick pointed out.

The two biggest Liechtenstein banks, LGT Bank and VPBank, have operations in Asia, Frick noted. LGT has offices in Hong Kong and Singapore, and focuses on private banking and asset management.

The tiny European state wedged between Switzerland and Austria owes much of its wealth and status as an international financial center to its long history as a tax haven. Net inflows of new money into Liechtenstein last year came to US$13.9 billion.