At a panel meeting held at the Global Financial Leaders’ Investment Summit in Central, State Street chairman and chief executive Ronald O’Hanley noted that trade patterns had changed in recent years due to uncertainties brought by the pandemic and global conflicts.
More borrowers and people looking to raise capital, he said, are looking for safer options when building supply chains and structuring financing – switching from “just in time to just in case”.
“Where we’re seeing the most change is around the role of China, and Hong Kong is the gateway to that,” O’Hanley said.
“It’s the kind of movement of money north and south and movement of capital north and south, and Hong Kong is playing that role.”
Barclays group chief executive C S Venkatakrishnan said firms had been reducing their dependency on strategic imports over the past decade and that the city which is positioned as both an international financial centre as well as a domestic one is the one that can help countries manage the dependencies.
“I think in order for international finance not to get caught up in the strategic breakdown of dependence, it’s important for the international financial centres like Hong Kong to do what you’re doing – which is to have fair and transparent regulation to promote growth and to make it easy for people to operate,” he said.
BNP Paribas chairman Jean Lemierre noted that more mainland firms were operating in Europe.
With Hong Kong being a renminbi hub, it acts as a bridge between China and Europe that helps these companies gain access to the euro, he said, adding that mainland firms can have better understanding of the European market through the SAR.
