Hong Kong Financial Secretary Visits Los Angeles
H
ong Kong Financial Secretary, Mr. John Tsang visited Los Angeles on November 7 and 8 before heading to Honolulu, Hawaii for the Asia-Pacific Economic Cooperation Finance Ministers’ Meeting.
While in Los Angeles, Mr. Tsang had a meeting with the Chief Executive Officer and Co-Chief Investment officer of Pacific Investment Management Company, Dr. Mohamed El-Erian. They exchanged views on the U.S. and global financial markets.
This was followed by a luncheon at which Mr. Tsang shared with some 200 business leaders and government officials Hong Kong’s role as a global financial hub and an offshore Renminbi center.
Mr. Tsang said that opportunities brought about by Renminbi business are too important for Hong Kong and for businesses, investors, bankers and others around the world to miss out on.
Offshore Renminbi banking was launched in Hong Kong in 2004. By 2009, total Renminbi deposits amounted to 60 billion Renminbi. In the following two years, this figure has soared 10 times. Today, Renminbi deposits in Hong Kong exceed 600 billion Renminbi. Banks in Hong Kong offer a broad range of Renminbi services to local and overseas customers. These include checking accounts, remittances, credit cards, savings accounts and time deposits. “Building on this experience, in 2007 Hong Kong became the first and only place outside the Mainland to have a Renminbi bond market. This represented a new funding channel for foreign firms to finance their China operations. Up to the end of September (2011), there had been 95 Renminbi bond issuances with a total value of 159 billion Renminbi,” said Mr. Tsang.
When talking about new opportunities for the business community, he touched on the Renminbi trade settlement. Companies around the globe can now settle their Mainland trade with partners throughout China using Renminbi. “Many foreign firms seek out the most efficient, reliable and experienced platform to settle their Mainland trade in Renminbi,” he continued.
“By settling Mainland trade using Renminbi, U.S. firms can enjoy greater efficiency in the business cycle. They can also link up more easily with customers or supplies in the Mainland who prefer the convenience of Renminbi trade settlement,” he concluded at the luncheon.
In the afternoon, Mr. Tsang called on the Mayor of Los Angeles, Mr. Antonio Villaraigosa, and held a meeting with senior executives of the Walt Disney Company.
In the evening of November 7, Mr. Tsang addressed a reception on the theme entitled “Unlimited Appeal – Asia’s World City: Hong Kong”. Mr. Tsang updated the industry leaders on the latest developments of Hong Kong’s tourism industry.
He said that the city’s cultural vibrancy and unlimited appeal attracts tens of millions of visitors to Hong Kong each year. “Last year, we welcomed over 36 million visitors, which is over five times our population,” he said.
On new tourism and transport infrastructure, he said that the two flagship theme parks, Ocean Park and Hong Kong Disneyland are undergoing expansion and redevelopment to bring on new facilities. “We are also building a new cruise terminal not far from the city center. When its first berth starts operation in 2013, it will be able to accommodate the world’s largest cruise liners,” he said.
In addition, Mr. Tsang also gave a talk at the Marshall School of Business at the University of Southern California and met with members of Committee of 100 as well as Pacific Council on International Policy and visited Warner Bros Studios before winding up his visit to Los Angeles.