Fund Manager Consensus: Hong Kong Needs China More Than Vice Versa (AsianInvestor)
As the Occupy Central protest movement in Hong Kong continues, AsianInvestor has pointed out that the consensus thinking in the asset management industry is that Hong Kong needs China more than vice-versa – especially in light of Shanghai’s own politically-backed emergence and increasing international access to China’s onshore securities markets. And while Hong Kong bills itself as an international gateway to China, the so-called mainland itself is now very welcoming to international business.
One fund management executive who spoke with AsianInvestor on condition of anonymity talked about how international fund houses continue to explore opportunities to set up wholly foreign owned enterprises on the mainland and to take advantage of RMB-denominated licenses and increasing quotas for offshore investors, saying:
“To a degree that does marginalise Hong Kong as a centre. Fund houses are making plans for China that are independent of Hong Kong. Would we prefer access to China as opposed to Hong Kong if it came to it? Yes, we probably would.”
Another fund manager also pointed to the economic reality for Hong Kong: The cancellation of vast numbers of mainland tourists to Hong Kong to celebrate Golden Week, China’s traditional week-long holiday that begins with National Day on Wednesday (October 1). The Hong Kong government has already announced that the annual National Day fireworks in Victoria Harbour is cancelled in regard to public transport arrangements and safety considerations.
To read the whole article, Fear of protracted protests grips Hong Kong, go to the website of AsianInvestor. In addition, check out the following articles: Occupy Central Protests Will Hurt These Hong Kong Stocks (SCMP) and Investors Could Short Hong Kong to Hedge Long Shanghai Positions (BOCOM International).
- Investors Could Short Hong Kong to Hedge Long Shanghai Positions (BOCOM International)
- Occupy Central Protests Will Hurt These Hong Kong Stocks (SCMP)
- What Hong Kong Dollar Bond Exposure Means to Investors (The Asset)
- Two Systems, Zero Trust? Hong Kong’s Extradition Row Risks Business Exodus (Nikkei Asian Review)
- Hong Kong Tycoons Start Moving Assets Offshore as Fears Rise Over New Extradition Law (Reuters)
- Korea & Taiwan Use Renminbi for Majority of Payments with China & Hong Kong (The Asset)
- Moody’s Downgrades Hong Kong’s Rating to Aa2 From Aa1; Raises Outlook to Stable from Negative (Moody’s)
- Lessons From a Decade of Chinese Stock Trading (WSJ)
- Asian Banks Are Nibbling the Lunches of Global Banks (CCTV)
- Some Key Points: The Renminbi & China Commercial Paper Market (KraneShares)