Hong Kong must step up its efforts in strengthening its advantages in the renminbi business to avoid being marginalized, Hongkong and Shanghai Banking Corp. Ltd. deputy chairman and chief executive Peter Wong said.
The territory has to seek all opportunities in renminbi-related businesses and adopt policies to enhance its competitive advantage in this field, Wong told the Hong Kong Economic Journal in an interview.
Hong Kong could also profit from the China-led Asian Infrastructure Investment Bank and the country’s “One Belt, One Road” initiatives by leveraging the city’s internationally recognized legal system and talent pool to attract new renminbi businesses.
Wong expects the Chinese currency to be fully convertible by 2020 despite market concerns over Beijing’s recent intervention in the stock market to arrest a massive sell-off.
China will continue to steadily open up is capital account, and Hong Kong should work harder because its first mover advantage in the offshore renminbi market is fading, Wong said.
For example, the territory can enhance its status and advantages in the market by seeking opportunities in renminbi asset management and insurance, he added.
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