Hong Kong boosts UK business growth in China

HK's robust financial regulatory regime enhances its attractiveness as an international financial centre, especially as an offshore renminbi centre.

Hong Kong has a unique role in helping UK-based financial-services businesses grow in China and the rest of Asia, Secretary for Financial Services & the Treasury Prof KC Chan says, in a report.

Speaking at the opening of the London Conference on Tuesday, Prof Chan said Hong Kong has a high standard of regulation, a free and open economy, and the infrastructure and professional talent to support the city’s financial services.

“Add to that our relationship with China and proximity to the rest of Asia and you can see why I believe so strongly in Hong Kong's potential as an international financial centre.”

Sharing his views on the future prospects of Hong Kong's role for China, Prof Chan said as the largest foreign direct investment provider to China, Hong Kong is a testing ground for new ideas in the opening of China's financial market.

“A new phase of market reform in China is the internationalisation of the renminbi and the gradual opening-up of the capital account. There is no better place than Hong Kong to become the offshore renminbi centre.”
Securities & Futures Commission Chief Executive Officer Martin Wheatley outlined how the continued development of Hong Kong's regulatory regime has shielded it from the global financial crisis.

“Hong Kong's robust financial regulatory regime augments our attraction as an international financial centre. The strength of our market was patently evident in the way it overcame the global financial crisis with remarkable resilience and sensible regulatory responses. We are committed to continuing a balanced regulatory approach, maintaining transparency, strengthening investor protection, and keeping abreast of international standards.”
Monetary Authority Deputy Chief Executive Eddie Yue said more and more asset managers are looking to set up their regional headquarters in Hong Kong to capture the investment and business opportunities in Asia, particularly in Hong Kong and Mainland China.

Invest Hong Kong's Director-General of Investment Promotion Simon Galpin said 2010 has seen a growing number of financial services business 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.”