Southern Finance 南方财经全媒体’s Post

EY Greater China region releases the 11th issue of China Go Abroad – Cross the millennia-old trade route New perspectives on Arab investment Against the backdrop of a rapidly evolving international landscape, China-Arab relations have ushered in a new era. Both sides are emphasizing economic development based on mutual benefit and innovation, creating vast opportunities for collaboration. In the future, China and the League of Arab States (LAS) will continue to leverage platforms such as the China-Arab States Cooperation Forum and the China-Arab States Summit to strengthen their strategic partnership, accelerate cooperation in sectors such as finance, energy, infrastructure development and consumer goods, and work together to advance a more inclusive and equitable multilateral framework on a global scale. Read more: https://lnkd.in/gYXtk8nP   安永大中华区发布第十一期《中国走出去》系列报告﹕《跨越千年商道：阿拉伯投资新视角》。在国际格局日益复杂的背景下，中国和阿拉伯国家联盟关系迈向新纪元，双方聚焦经济发展，以互惠互利为核心，以创新驱动为动力，拓展了前所未有的合作空间。未来，中阿将继续依托“中阿合作论坛”及“中国—阿拉伯国家峰会”等平台，进一步提升战略伙伴关系，加快金融、能源、基础设施建设和消费品等领域合作，共同推进平等有序、普惠包容的多边新格局。阅读更多：https://lnkd.in/gP3sfv3f

On October 7, C.Y. Leung, Vice Chairman of the Chinese People's Political Consultative Conference (CPPCC), and Hing Chao, Executive Chairman of Wah Kwong Maritime Transport Holdings Limited, Founding Member and Chairman of the Hong Kong Chamber of Shipping, addressed media questions during the launching reception of the Hong Kong Chamber of Shipping (HKSOA). They discussed whether Hong Kong's development as an international shipping centre would benchmark against or replace London. C Y Leung emphasised that Hong Kong will not become another London but must further enhance its status as an international shipping center. The establishment of the HKSOA is intended to leverage Hong Kong's unique advantages, contribute to China's goals of becoming a maritime and transportation power, and elevate Hong Kong's status as an international financial, shipping, and trade centre. Similarly, Hing Chao believed that under the "One Country, Two Systems" framework, Hong Kong has a very well-developed ecosystem and financial system, which provide it with distinct advantages in supporting China's construction of a maritime and transportation power. On one hand, the international development of Chinese ports and shipping enterprises requires the support of Hong Kong's high-level maritime services. On the other hand, China is rapidly advancing in the fields of clean energy and clean fuel technology, particularly with solar panels and wind power manufacturing, which today stand between 67% and 70% of the global supply, and these numbers are probably prime to increase. "We are right at the start of this new, what we call the third industrial revolution, and Hong Kong is sitting on the doorstep of this. So if we do our job well, Hong Kong still has a very long way to go," Hing Chao said. Read:https://lnkd.in/g5AyhTVu

"At present, the trade relations between China and the EU have a lot of ‘hard bones’. For example, the trade imbalance between the EU and China is very difficult for Europe. It’s been an explosion of Chinese exports into Europe, which has given consumers a good opportunity, but it’s been a challenge for European industry.” Adam Dunnett, the Secretary General at the European Union Chamber of Commerce in China, told us during the Global Trade and Investment Promotion Summit 2024 on May 13. Adam Dunnett has been closely monitoring China's efforts to further open up. He noted that China has made tangible progress in expanding and opening up by continuously revising the negative lists for foreign investment and eliminating or easing restrictions on foreign equity ownership. "So we are clear that the Chinese market is still attractive, but it is important that companies that make an investment here are able to see a return on their investment and get the clarity that they need to assure their stakeholders back home that this is the right place to be," added Adam Dunnet. Read:https://lnkd.in/eGBs9MdQ

“There are high levels of complementarity between the Australian and the Chinese economy. But there is no question that the Australian prosperity relies on the prosperity and the growth of the Chinese economy. The traditional areas remain important, now that's the export of things like iron or and agricultural products. But new areas of cooperation, new areas of investment development include green energy, the digital economy and climate related developments. In these areas, China is a leader.” Daryl Guppy, Former Member of the Australia China Business Council (ACBC), Australian Representative of the Silk Road Chamber of International Commerce (SRCIC), told us in an exclusive interview. China and Australia have particularly close economic and trade ties and have gradually developed a mutually beneficial and win-win economic and trade relationship. Currently, the Regional Comprehensive Economic Partnership (RCEP) has entered its third year of implementation, and under the RCEP mechanism and framework, China-Australia bilateral trade is playing an increasingly important role. “Now recently, there have been some what we would call behind the border barriers that go against the spirit of chapter. That includes some changes to Australia’s Foreign Investment Review Board, and the way that is treating investment proposals from China differently from the way the proposals from the United Kingdom, the United States are treated. So there is room for some revisioning, the terms of chapter and some improvement of that. RCEP provides many opportunities for China and Australia regulation and cooperation.” Guppy added. Read: https://lnkd.in/gd2763f2

At the launch of Deloitte’s recommendations for the upcoming 2024 Hong Kong Special Administrative Region (HKSAR) Policy Address last week, I shared my views on how the HKSAR Government can promote cross-boundary investment, advance the family office sector, and explore new growth markets such as ASEAN and the Middle East. Deloitte China recommends that to capitalise on the potential of Hong Kong’s family office sector – with more than 2,700 single family offices already in the city – the HKSAR Government implement a new “Family Office Connect” channel with a ‘three-step strategy’ to facilitate Mainland high-net-worth individuals to make cross-border investments through establishing local family offices. To target new growth markets, Deloitte China further recommends that Hong Kong offer a 5% profits tax concession for regional fund management headquarters established in Hong Kong by Gulf Cooperation Council (GCC) sovereign wealth funds, reinforcing Hong Kong’s role as a ‘super-connector’ between GCC sovereign funds, mainland markets, and other major Asia-Pacific economies. Last but certainly not least, we recommend that the HKSAR Government enhance the potential of the New Capital Investment Entrant Scheme – which has already attracted more than 500 applications poised to inject over HKD15 billion into the local economy. This could be achieved by accepting jointly held assets, streamlining the asset verification process and clarifying investment portfolio details. Thanks to Hong Kong Economic Journal for covering our ideas. Read their article here: https://lnkd.in/gTNUKeRw Or read our full recommendations at https://lnkd.in/gg6haG_s #HongKongPolicyAddress2024 #HongKongPolicyAddress #FinancialMarkets #FamilyOffices #HongKongTax #WealthManagement #INspireHK Edward Au Polly Wan Alvis Kong Deloitte

Doug Bandow, Senior Fellow at the Cato Institute, highlighted at the 10th China and Globalization Forum that the obstacles encountered by globalization include protectionism and economic nationalism. Economic priorities are taking a back seat to security considerations, resulting in shifts in supply chains driven by fears of foreign dominance in various industries. This has escalated the push for decoupling and supply chain disruptions. Additionally, economic sanctions targeting the regulation of industries and technologies are exerting an influence on the market.   Saroja Sirisena, Former Sri Lankan High Commissioner to the UK, said that “We must have a common understanding of rules and learn how to better manage this multipolar world. A new international order is necessary for effective governance; otherwise, we cannot maintain high productivity. Additionally, we must consider that all countries should be equal under a rules-based international order.” Center for China and Globalization Read: https://lnkd.in/gzbyGGFi

“With the rebound of China capital markets, international investors are starting to invest back into China, marking the return of the 'animal spirit'(the instinct that guide human economic behavior),” Brian Roberts, Head of Equities Product Development, Hong Kong Exchanges and Clearing Limited (HKEX), said at at the Greenwich Economic Forum (Hong Kong). Meanwhile, net northbound capital inflows into mainland market through Stock Connect Schemes exceeded 80 billion yuan in May, up around 100% year-on-year.   On April 20, the China Securities Regulatory Commission (CSRC) announced five measures to further enhance the Stock Connect Schemes. The measures include expanding the scope of eligible products for the ETF Connect and incorporating of REITs into the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect.   “These five measures will promote two-way capital flow between capital markets in the Chinese mainland and Hong Kong. Specifically, the expansion of eligible products for stock ETFs under the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect will enable ETF issuers to innovate, thereby bringing out lots of positive market energy. And the inclusion of REITs in the Stock Connect will be able to provide international investors with the access into China’s property market, which is important for the stability of China’s property market.” Brian expressed. Read: https://lnkd.in/g3tXJker

At the Caijing Sanya Financial Forum, Jerry Li Discussed Cross-Border Investment and the Future of QDLP Policy On December 1st, Jerry Li, Founder & Managing Partner of ewpartners, took center stage at the influential Caijing Sanya Financial Forum(@Caijing Magazine), one of Hainan’s most high-profile international forums. The forum brings together global leaders to shape the future of wealth management and cross-border investment. Key Insights from Jerry Li’s Talk: #CrossBorderInvestment: ewpartners has been pioneering two-way investments between China and the Middle East, unlocking new opportunities in emerging markets. #QDLP Policy: Jerry emphasized the transformative potential of China’s QDLP program for international investors, urging further facilitation of this initiative in #freetradezones like #Hainan to drive global economic growth. As China continues to open its capital markets, Jerry believes the QDLP framework will be key to fostering stronger, more sustainable investment flows across borders. Read Jerry Li's full speech on Caijing below. #CrossBorderInvestment #QDLP #GlobalOpenness #ewpartners #SanyaForum #FinancialInnovation #InvestInChina #MiddleEastInvestment

“While foreign investors are still adjusting their views, there is growing interest in mainland China and Hong Kong stocks. They pay close attention to recent market performance, changes in investor sentiment, and the appropriate timing to enter the market.” In a recent interview with Hong Kong Economic Times, Ninety One shared its insights into market trends of mainland China and Hong Kong equity market. #China Market# https://lnkd.in/gqCG2PBH

Standard Chartered CEO Bill Winters notes that younger entrepreneurs in China are accumulating wealth. As they transition from investing in their businesses to exploring wealth management products, it’s a positive shift for Hong Kong, a hub for sophisticated wealth management products. Read the full article by visiting https://lnkd.in/gqqPGBFC #StandardChartered #StanChart #HongKong #WealthManagement