In the same industry, different people have different views, mainly depending on which industry you want to know and whether the investment is within your own scope.
Hong Kong is a highly economically free city and is a very important financial center in China and the world. What direction the financial trend will develop is also affecting the eyes of the world. Therefore, both the government and individuals are very concerned about the development of Hong Kong Finance. So, what will be the trend of Hong Kong finance? Where are its opportunities?
The world’s largest offshore RMB fund pool
As the overseas financial center closest to the mainland, Hong Kong’s financial development is closely related to the development of the mainland. As early as 2009, the Hong Kong financial market began experimenting with RMB as a payment currency in foreign economic and trade activities. After more than ten years of development, RMB as a payment currency has been accepted by more and more companies, and it gradually has the world ’s largest offshore RMB fund pool. The daily settlement amount is a lot of money, indicating that Most of the RMB payments in the world are made in Hong Kong.
Unlimited business opportunities in the Hong Kong market
In recent years, although the rapid development of mainland finance has realized the free conversion of regular projects, the capital project has not been completely liberalized. Therefore, as a financial center of economic freedom, Hong Kong can achieve free convertibility for both regular projects and capital projects. Hong Kong is backed by the motherland and facing the world, and it can attract the largest participation of foreign capital.
With the development of the mainland economy, more and more mainland companies are cooperating with Hong Kong, and the need for financial accommodation in the mainland also requires the participation of the Hong Kong economy. Many mainland companies interact with overseas investments through Hong Kong. Foreign capital flows into the Mainland through Hong Kong, while mainland companies invest abroad through the “Pearl of the East”.
Adequate capital in the banking system
The development of Hong Kong’s finance is inseparable from the support of major banking institutions. They have injected considerable financial capital into the financial market. Hong Kong ’s banking industry has sufficient capital, which is higher than the level required by the Basel Agreement, and the non-performing loan ratio is relatively low, which is far below international standards.
The total deposit size of the Hong Kong banking industry is steadily increasing, and the phenomenon of capital outflows hardly exists. This allows banking institutions to more inclusively support the development of Hong Kong’s SMEs, especially the development of the service industry, in order to promote economic development. Hong Kong has also launched a SME loan guarantee plan to increase the guarantee ratio, making it easier for SME loans.
To sum up
Hong Kong ’s financial trends are positive. As long as Hong Kong can work closely with the mainland and enjoy the policies and economic dividends brought by the mainland ’s economic development, it can make a difference in financial development. The Hong Kong government also needs to continue to introduce a series of policies to encourage finance to ensure the healthy development of the financial market.