Standard Chartered Bank (Hong Kong) Ltd. is looking to the equity and bond financing markets to give a lift to its corporate banking businesses as local markets double in value over the next decade, the Hong Kong Economic Journal reported Monday, citing new chief executive May Siew-boi Tan.
Tan said the Hong Kong and mainland stock markets are expected to double in total value from US$7 trillion in the next five to 10 years, giving StanChart the chance to supplement its existing corporate banking operations through equity bond capital financing in both the primary and secondary markets.
She said the growth in the stock markets’ value will benefit both net interest income and non-interest income. But the bank’s core business strategy will not change.
Tan also said that despite progress on the Shanghai free trade zone, mainland income growth and offshore yuan hubs, Hong Kong’s maturity and market-driven advantages ensure that it will still be the top pick of market for multinationals as a foothold.
Tan expects the renminbi will soon become the fourth most used currency for trade settlement and clearing in the wold.
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