106142154-1569058586503gettyimages-1169400586.jpeg
GENERAL

‘Catastrophe’ for Hong Kong if it loses standing as monetary heart: China Citic Capital – Information by Automobilnews.eu

Bild

‘Catastrophe’ for Hong Kong if it loses standing as monetary heart: China Citic Capital


If Hong Kong loses its standing as certainly one of Asia’s high monetary facilities, it could be disastrous for the Asian monetary hub, mentioned the founder and chief govt officer of Citic Capital.

There’s “no lack of competitors for monetary facilities,” mentioned Zhang Yichen, who can be chairman on the funding agency — a Hong Kong-based various funding arm of the Chinese language monetary conglomerate Citic Group.

Buyers can flip to different cities like Singapore, Tokyo and Shanghai to entry international capital markets, he informed CNBC’s Amanda Drury on the Singapore Summit on Saturday.

“I believe if Hong Kong does not form up, you should not have a way of entitlement (that) it needs to be the monetary heart,” he mentioned. If the territory ought to lose that standing, it “spells catastrophe as a result of that is the one trade nowadays that is aggressive.”

Protests in Hong Kong erupted greater than three months in the past over a now-withdrawn extradition invoice, which might have paved the way in which for suspects in Hong Kong to be despatched to mainland China for trial. Whereas the pro-democracy protests began out as comparatively peaceable in June, they’ve since turned more and more violent.

Hong Kong protestors on Sunday trampled on a Chinese language flag, vandalized a subway station and set fireplace throughout a large road, the Related Press reported.

I do not consider Shanghai and different Chinese language cities can truly substitute Hong Kong … If (Hong Kong) squanders that by itself, it will be a disgrace.

Zhang Yichen

Citic Capital

Previously a British colony, Hong Kong returned to Chinese language rule in 1997. It’s certainly one of China’s particular administrative areas and is ruled below the “one nation, two methods” precept, which provides its residents sure financial and authorized freedoms not given in mainland China.

Zhang mentioned town has its benefits over different Chinese language cities like Shanghai due to the “one nation, two methods” coverage.

Hong Kong’s authorized system is analogous to what’s adopted in a whole lot of international locations all over the world, which provides buyers a sure degree of consolation, he mentioned. Along with that, its proximity to the Chinese language mainland is one other plus level for buyers, he added.

“From that perspective, I do not consider Shanghai and different Chinese language cities can truly substitute Hong Kong,” he mentioned. “If (Hong Kong) squanders that by itself, it will be a disgrace.”

Nevertheless, the violence and chaos have crippled town and disrupted every day life, and in flip, damage companies and dented investor sentiment.

Zhang mentioned the protests haven’t affected Citic Capital’s enterprise because it invests principally both in China or all over the world. “Hong Kong is only a base for us the place a whole lot of our senior colleagues reside and work,” he added.

Citic Capital says on its web site it manages greater than $26 billion of capital. Final month, the agency mentioned it raised $2.eight billion in its fourth China buyout fund and would take a look at China-focused funding alternatives in sectors akin to client, well being care and know-how.

Reuters and CNBC’s Grace Shao contributed to this report.

‘Catastrophe’ for Hong Kong if it loses standing as monetary heart: China Citic Capital – Information by Automobilnews.eu
Comments

TOP STORIES

Bild
To Top
SELECT LANGUAGE »