Hong Kong a ‘ super- connector’ between mainland, global markets: CMG
Editor’s Note:
July 1 will mark the 20th anniversary of Hong Kong’s return to the motherland. As people on the island and the Chinese mainland prepare to celebrate the successes Hong Kong has achieved, the Global Times conducted a written interview with China Merchants Group ( CMG) about Hong Kong’s role in bridging investment in the mainland and other countries and regions.
CMG: Hong Kong serves as a superconnector, a role that Hong Kong has always stressed, in linking the motherland with the international market.
With favorable conditions and capabilities, Hong Kong is willing to serve mainland companies’ investment overseas. The city’s advantages include developed financial services, free trade and talent.
Specifically, Hong Kong possesses a world- class financial market and internationally recognized thirdparty legal platform. As the largest offshore yuan center and crucial wealth management and private equity center, Hong Kong has attracted many international financial institutions that can provide cross- border financial services and overseas funding for mainland companies.
In terms of trade and logistics, Hong Kong is a transshipment center and free port with a transparent business environment and laws, which helps mainland companies contact the international market in a fairer, more effective and reliable way.
International professionals in finance, logistics, infrastructure and other sectors in Hong Kong help mainland companies in many ways including developing overseas markets, capital management and risk control.
GT: What about Hong Kong’s investment overseas? In which sectors does the city have more cooperation with other countries and regions?
GT: What role does Hong Kong play in mainland investment overseas?
Hong Kong’s role of super-connector has been highlighted, with outbound direct investment (ODI) ranking No. 6 in the world in 2016 according to the World Investment Report. early 7,600 companies from r countries and the mainland conducted mergers and actions as well as investment in g Kong. According to statistics the Hong Kong government, ity’s ODI reached HK$ 11.87 on ($ 1.52 trillion) in 2015, up 5.5 ent year- on- year. part from offshore financial ers like the British Virgin ds, the mainland, the UK and ralia are major ODI destina, representing 39.6 percent, 2.1 ent and 1.1 percent of the total, ectively. Major investment sector include real estate, professional business services and trade.
GT: What’s the status quo of investment between the mainland and Hong Kong?
CMG: Thanks to geographic and cultural advantages, economic cooperation between the mainland and Hong Kong is increasingly close, with bilateral investment being continuously strengthened.
After the British Virgin Islands, the mainland is the second- largest source of investment into Hong Kong, with the amount reaching HK$ 3.27 trillion in 2015. The investment mainly focuses on capital investment, real estate, and the professional and business services sectors, representing 80 percent of the total in 2015. However, the mainland’s investment in Hong Kong decreased because more investors – especially in real estate sector – have favored Australia, Canada and Singapore in recent years.