Foreign capital rushing into Hong Kong, mainland amid US tariff war: Paul Chan International investors are accelerating their efforts to channel capital to the Hong Kong and mainland Chinese markets amid the US tariff war, the finance chief has said, pledging to promote the city’s status as a safe haven for global funds and as a free port. Financial Secretary Paul Chan Mo-po noted on Sunday that in his recent exchanges with business leaders from various countries, they had unanimously criticised the US tariffs, saying they would not only hurt the American economy but also push the country into isolation. US President Donald Trump has imposed cumulative tariffs of 145 per cent on all Chinese goods over several escalatory rounds, with the White House also revealing the figure to be as high as 245 per cent on some goods. Chan, in a post on his official blog, said it had been observed in financial circles that in recent months, international capital was being allocated to the Hong Kong and mainland markets at an accelerated pace. The proportion of foreign investment in some recently listed mainland companies had increased significantly, Chan added. Some overseas financial institutions had expanded their operations and hiring in Hong Kong, Chan said, noted that some had dispatched senior management to the city. “International investors have a fear of missing out on good timing to invest in mainland China, given the resilience of the national economy, breakthroughs in innovation and technology and the continued deepening of the high-level opening-up policy,” he said. “The unilateralism and policy uncertainty of the US authorities have also prompted international investors to accelerate risk diversification and increase their allocation in the mainland and Hong Kong markets.” Chan pledged to maintain the city’s safe and stable environment amid the so-called reciprocal tariffs imposed by the US on its trading partners, which had disrupted the global trade order and brought uncertainties to the international trading and investment environment. “We must demonstrate to the international community that Hong Kong is a safe haven for global capital,” Chan said. He said the government’s efforts to showcase Hong Kong’s unique position and strengths would continue, particularly its tariff-free policy, common law system and international financial centre status, under the “one country, two systems” governing principle. Chan added that the administration would continue to improve Hong Kong’s business environment, while the city would perform its “superconnector” role to offer opportunities for global companies and international capital to develop in the mainland market. Chan noted that a number of companies were shifting from connecting the mainland with European and US markets to emerging markets in Asia. He said they were particularly interested in countries in the Association of Southeast Asian Nations, deeming it a large market with rapid growth in the young population and the middle class. Chan said Hong Kong, as a free port, could help such companies venture into new markets and serve as a professional consultant on supply chain management, trade financing and ESG, or environmental, social and governance, matters. Earlier this month, Hong Kong’s currency rose to its strongest level in four years against the US dollar, with bankers attributing it to the inflow of overseas capital in search of bargains in the local stock market. They said the inflow included so-called southbound capital from the mainland, where investors would exchange the yuan for the Hong Kong dollar to buy stocks listed in the city. Professor Terence Chong Tai-leung, executive director of the Lau Chor Tak Institute of Global Economics and Finance at the Chinese University of Hong Kong, said the city did not need to do much except maintain its free-port status and allow money to come and go. Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank, said foreign capital inflow could support the city’s valuation and initial public offering activities and bring a positive spillover to other professional services. But he warned that the recent inflow was driven by a combination of factors, such as a possible US recession and the unpredictability of corporate earnings. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3307215/foreign-capital-rushing-hong-kong-mainland-amid-us-tariff-war-paul-chan (ICE HONG KONG)

Fonte notizia: South China Morning Post