Hong Kong is a more attractive destination for foreign capital with the launch of cross-border stock trading. Photo: Bloomberg
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Economist Group expert: Hong Kong role assured in China push
Hong Kong will continue to play an important role in the Chinese economy as a center for research and innovation.
Ross O’Brien, chief economist for Hong Kong of the Economist Group, said China is still trying to figure out how to behave as an advanced economy.
For that reason, Hong Kong “will not be marginalized, not politically” because China will rely on it as a research and development laboratory, he told a group of chief financial officers at the ACCA Hong Kong CFO Summit.
O’Brien said Hong Kong’s value as a capital market has outpaced that of Shanghai in the past few years.
With the Shanghai-Hong Kong through train linking both capital markets more closely, Hong Kong is an even more useful place to attract world capital, he said.
“China also still relies on Hong Kong as a major control point for its ongoing internationalization of the renminbi.”
O’Brien dismissed concerns about worsening cross-strait politics and Hong Kong’s relatively small input in the mainland economy, saying it is “too important to be ignored” in China’s globlalization efforts.
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