Amid global uncertainty, top bankers back Hong Kong’s role as mainland China’s gateway

Banking executives have expressed strong support for Hong Kong's pivotal role as a gateway between mainland China and the global financial market amid growing geopolitical uncertainties. At the city's annual Global Financial Leaders' Investment Summit on Tuesday, top banking leaders discussed how financial institutions are adapting their strategies to the ever-changing landscape.

Jean Lemierre, BNP Paribas' chairman, highlighted the increasing demand for local funding and currency-hedging capabilities among European companies operating in Asia to manage the volatility in regional markets. He emphasized that Hong Kong's position is becoming increasingly important for yuan funding and as a crucial bridge connecting China and Europe.

Ronald O'Hanley, State Street's chairman and CEO, pointed out that global trade is undergoing a form of "reglobalisation" as businesses adjust their supply chains and financing arrangements to enhance their resilience. He emphasized that Hong Kong serves as the primary gateway to China, enabling seamless capital flows between mainland and international markets.

The summit, themed "Rethinking the Playbook," brought together about 280 financial leaders from around the world, including 120 group chairmen and CEOs from some of the world's largest banks, asset managers, and investment firms. C.S. Venkatakrishnan, HSBC CEO, underscored the significance of Hong Kong's close ties with mainland China for its status as an international financial center, connecting domestic and international finance.

He advocated for fair and transparent regulation to promote growth and ease of operation in a politically divided world.

Georges Elhedery, HSBC's CEO, advocated for "Asia buys Asia," highlighting the growing financial and investment flows within the region. Zhang Hui, Bank of China's vice-chairman and president, emphasized Hong Kong's advantages as a global offshore yuan business hub and a "superconnector" linking China with international markets. The city's robust financial infrastructure and deep offshore yuan liquidity make it a vital platform for international investors seeking exposure to Chinese assets.