The world should recognize China’s efforts in pushing for economic reforms and handling its slowing economy, Standard Chartered Bank (Hong Kong) Ltd. chief executive Benjamin Hung Pi-cheng said.
In an article published in the Hong Kong Economic Journal on Tuesday, Hung noted that “the farther a country is from China, the worse its expectation on the Chinese economy”.
But China has been decisive in its efforts to push for market reforms, which will further open up the country to the world, he said.
“The government will continue to press the reform accelerator to the floor unless jobs data shows signs of stress,” Hung said, citing a senior Chinese official.
The banking veteran also defended the central bank’s move to devalue the renminbi, which he said was needed to close the gap between the daily fix and the onshore spot rate, although many interpreted it as a competitive devaluation to boost the country’s exports.
“The renminbi fixing reform on Aug. 11 was intended to meet the International Monetary Fund’s call for a more market-driven foreign exchange regime,” Hung said, adding that the move was meant to increase the renminbi’s eligibility to be included in the IMF Special Drawing Rights basket.
Hung noted that China’s manufacturers are becoming less significant as the economy shifts towards services and innovation, with the tertiary sector now accounting for roughly half of the country’s gross domestic product.
Hung also voiced confidence that China’s One Belt, One Road initiative will boost trade and investment, despite the challenge posed by the Trans-Pacific Partnership trade agreement that 12 countries led by the United States concluded recently.
– Contact us at [email protected]