Hong Kong Offers Unrivalled Opportunities in the Financial Sector
Hong Kong is the ideal gateway for foreign firms seeking access to the Mainland, and for Mainland enterprises going global. Renowned for its free flow of information and capital, advanced financial infrastructure and effective regulatory regime, Hong Kong has attracted a rich pool of professional talent and financial expertise. In addition, Hong Kong’s position as a major asset management, capital formation, banking and insurance hub is supported by a business-friendly environment, low taxation and a trusted legal system.
In fact, Hong Kong overtakes the United States and the United Kingdom to top the World Economic Forum’s annual Financial Development Report released in October 2012. This is the second consecutive year Hong Kong ranked in first and Hong Kong’s position was bolstered by strong scores in non-banking financial services such as IPO activity and insurance.
The financial service industry is one of Hong Kong’s four pillar industries, which employed 230,000 people, and accounted for over 16% of the city’s GDP in 2013. In the banking sector, Hong Kong is one of the largest banking centres in the world with 71 of the world’s top 100 banks being established a presence here.
Hong Kong’s Role as an Offshore RMB Centre
The burgeoning renminbi (RMB) business is another bright spot in Hong Kong’s financial services industry. Hong Kong has developed into the most comprehensive and competitive platform for offshore RMB business. In 2015, renminbi trade settlement handled by banks in Hong Kong exceeded RMB6.8 trillion. This reflects Hong Kong’s role as the global hub for renminbi trade settlement, serving both local and overseas banks and companies. Apart from providing a full range of RMB banking services including trade settlement and financing, Hong Kong has the largest pool of offshore RMB liquidity. As at end March 2015, RMB deposits and outstanding RMB certificates of deposits totalled RMB1,061.2 billion.
Sustained Growth in the Fund Management Sector
Hong Kong’s fund management business is not only highly internationalised. According to the latest survey issued by Securities and Futures Commission (SFC), the number of hedge fund managed by SFC-licensed hedge fund managers in Hong Kong increased from 676 in 2012 to 778 as of Q32014.
At the same time, Hong Kong’s hedge fund industry remained robust. As the latest survey from SFC indicated that the total hedge fund assets under management (AUM) in Hong Kong increased from US$9.1 billion in 2004 to US$120.9 billion in Q32014.
InvestHK’s Financial Services team can offer practical support to companies wishing to set up in Hong Kong. Contact us for more information.
- Hong Kong ranked third in the Global Financial Centres Index (GFCI) by the City of London released in September 2015
- Global hub of offshore RMB financing with offshore renminbi deposits and outstanding RMB certificates of deposits totalled more than RMB1,061.2 billion as at end March 2015
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