CEPA & Hong Kong’s New Opportunities in the Pearl River Delta HKCPEC CEPA & Hong Kong’s New Opportunities in the Pearl River Delta Financial Services Mr Vincent Kwan Chief Economist Hang Seng Bank 12 December 2003
The Rise of Financial Services Hong Kong’s Financial and Business Services (2002) Employment 474,700 14.7% Establishment 51,930 17.5% Value Added 292 23.1% (HKD Billion) Exports of Financial Services 59 17.4% % of Total
Banking is a Cross-Border Service International Financial Centre’s Activities (1) Domestic Banking Domestic Depositors Domestic Borrowers (2) International Banking Domestic Foreign Foreign Depositors Foreign Borrowers (3) Off-shore Market
Hong Kong No Stranger to Cross-Border Banking (HKD Bn) Banking Sector 1997 2002 External Assets - FIs 2,543 2,398 - Non-FIs 2,110 678 External Liabilities - FIs 4,023 1,432 - Non-FIs 604 476 Total Assets/Liabilities 8,397 5,999
Changes Brought By CEPA Easier Access to Mainland Market CEPA Greater Convergence RMB Financial Services in Hong Kong
Benefitting Mid-Size Banks Dec 2002 May 2003 Total Assets Mainland (USD Bn) Branches 匯豐銀行 763.6 9 恒生銀行 60.8 4 東亞銀行 23.1 10 星展銀行 (道亨銀行、DBS廣安銀行、海外信託銀行)* 20.7 1 南洋商業銀行 11.2 6 上海商業銀行 9.4 --- 中信嘉華銀行 9.3 --- 中國工商銀行 (亞洲) 8.0 --- 永隆銀行 7.9 --- 大新金融集團 (大新+豐明銀行) 7.8 --- 永亨銀行 7.3 1 廖創興銀行 5.0 1 港基銀行 4.1 --- 集友銀行 3.6 2 浙江第一銀行** 3.6 --- 亞洲商業銀行 1.7 1 註：* 從2003年7月21日起，三行合併為星展銀行 (香港) ** 2002年2月數字 資料來源：各銀行年報
Green Light for RMB Business WTO Pledge 13 cities in 2 years 16 cities in 3 years 20 cities in 4 years All cities in 5 years To local firms in 2 years To local individuals in 5 years CEPA Relaxes Other Requirement From 3 years operation history to 2 years From 2 years profit history for individual branch to all branches together
Convergence Brings Stronger Demand Real Estate Manufacturing Retailing Accounting Legal Telecom Financial Services (Banking, Insurance, Capital Market) Mainland H-Shares Relaxing Capital Outflow RMB Transactions in Hong Kong
RMB Financial Transactions In Hong Kong China Exchange Deposit RMB Credit Card Remittance One Small, But Important Step
Changes Ahead Foreign Buying of HK FIs Establishment of Mainland Fls in HK Listings of SOEs in HK Integration of Mainland / HK Operations