This photo shows the third Global Financial Leaders' Investment Summit in Hong Kong, south China, Nov. 19, 2024. The third Global Financial Leaders' Investment Summit was held in Hong Kong on Tuesday. (Xinhua/Zhu Wei)
by Xinhua writer Liu Yinglun
HONG KONG, Nov. 19 (Xinhua) -- Hong Kong will dazzle as an international financial center as investors worldwide renew confidence in the markets of the Chinese mainland and Hong Kong, said financial industry heavyweights at the third Global Financial Leaders' Investment Summit on Tuesday.
The continued opening-up of the financial sector of the Chinese mainland, as well as likely improvements in consumption buoyed by recent stimulus measures, will be very important for winning back confidence of the broad international investment community, said David Solomon, chief executive officer of Goldman Sachs.
To spur investment and consumption, the People's Bank of China has lowered the reserve requirement ratio and the seven-day reverse repo interest rate. Other benchmark rates like the interest rate of the medium-term lending facility and the loan prime rate dropped as a result.
Property viewings and sales were both seeing upturns on the back of such moves to shore up the sector as reducing the interest rates for existing mortgage loans as well as the minimum down payment ratio for individuals' commercial housing mortgages.
"Reigniting consumer confidence takes a while to take hold, but we're seeing some green shoots," said Ted Pick, chief executive officer of Morgan Stanley, adding that the company has a 2,500-strong workforce on the ground in Hong Kong. "Once the confidence starts to build, the capital moves."
Burgeoning trade and investment in Asia also play into Hong Kong's strengths.
Companies from the Association of Southeast Asian Nations (ASEAN) and Gulf countries were looking to raise capital and expand. They were keen to build stronger connections with Hong Kong, particularly with a view to tapping into vast opportunities in this part of the world, said Paul Chan, financial secretary of the Hong Kong Special Administrative Region government.
The ASEAN and the African Continental Free Trade Area are both underdeveloped trading regions where China can build sustainable supply chains, said Bill Winters, group CEO of Standard Chartered Bank.
Domenico 'Mimi' Ferrini, co-chief investment officer of London-headquartered asset management firm Ninety-One, told Xinhua that Hong Kong will become a more prominent international financial center as global investors diversify their portfolios to include more Asian assets.
The central government has pledged fresh support for strengthening Hong Kong's role as an international financial center.
Li Yunze, head of the National Financial Regulatory Administration, said at Tuesday's event that the administration will facilitate the implementation of the Closer Economic Partnership Arrangement, encourage more mainland insurance companies to issue catastrophe bonds in Hong Kong and help Hong Kong nurture new quality productive forces. ■
Li Yunze (2nd L), head of the National Financial Regulatory Administration, Wu Qing (2nd R), chairman of the China Securities Regulatory Commission and Zhu Hexin (1st R), deputy governor of the People's Bank of China and head of the State Administration of Foreign Exchange, attend the third Global Financial Leaders' Investment Summit in Hong Kong, south China, Nov. 19, 2024. The third Global Financial Leaders' Investment Summit was held in Hong Kong on Tuesday. (Xinhua/Zhu Wei)
