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Bye to the West? Hong Kong Monetary Authority eyes Middle East bonds and investment, banks on Gulf states’ need to diversify risk amid tensions
- Deputy CEO of city’s de facto central bank cites exchanges on recent trip to region, says there is keen interest in financial hub
- He touts Hong Kong’s fertile, mature ground for bonds, and standing as best location for foreign businesses eyeing mainland China investment
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The Hong Kong Monetary Authority (HKMA) is ramping up efforts to lure businesses from the Middle East to issue local bonds and invest in mainland China through the city, with its deputy head saying Gulf state operators have a need to diversify from the West amid geopolitical tensions.
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“We have all kinds of investment vehicles here. What we need to do now is to catch their eyes. They can come to Hong Kong, not necessarily Europe or the US,” Darryl Chan Wai-man, deputy chief executive of Hong Kong’s de facto central bank, told the Post in Dubai as he took part in a city delegation’s trip to the Middle East.
Chief Executive John Lee Ka-chiu said in an Op-Ed article for the Post after his return from the week-long visit that he was confident the tour “heralded better times ahead for the economy, and the people of Hong Kong”.
“My takeaway message was clear and compelling: Hong Kong is their one-stop Belt and Road centre for capital formation and for all the professional services they need to plan, build and manage their Belt and Road future,” he wrote.
The city leader explained that several Middle East companies and funds were looking for investment opportunities in the Greater Bay Area, adding: “Hong Kong can make that happen.”
He suggested that Saudi Arabia and United Arab Emirates (UAE) businesses were eager to learn more about the Greater Bay Area, saying they could connect the wealth funds with the right partners.
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