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International Money Accelerated Flow Into Hong Kong
By: Mike Davis
After the outbreak of the international financial crisis, the U.S. launched two rounds of quantitative easing monetary policy led to the proliferation of global liquidity, funds flowing into Hong Kong also increased capital inflows increased degree of financial market activity and the positive wealth effect residents,[link widoczny dla zalogowanych], and strengthen Hong Kong as enterprises, especially in
Fund-raising platform for enterprises in the financial markets and the Mainland, the role of the firewall, but will also increase the volatility of financial markets and the development of inflation and the risk of asset bubbles,[link widoczny dla zalogowanych], should grasp this opportunity to pay attention to risk prevention.
As one of the world's leading international financial center, Hong Kong, because of its high degree of free and open financial markets, capital flows freely, there is no capital controls and exchange controls, Asia-Pacific region has always been a major base for international capital flows. Quantitative easing policy in the United States caused by the proliferation of global liquidity against the backdrop of Hong Kong's capital flows increased significantly. According to Hong Kong Monetary Authority's statistics, by the end of October 2010 compared with the end of June deposits increased 541.4 billion HK dollar, which concluded that the Federal Reserve hinted in the quantitative easing policy introduced after the second round of funds into Hong Kong has indeed increased. At the same time, driven by the internationalization of the RMB yuan capital inflows makes the first 10 months of 2010, RMB deposits in foreign currency deposits increased by increments of the main 152 900 000 000 Hong Kong dollars, the first 10 months of 2010, Hong Kong dollar deposits and foreign currency deposits in total deposits dollar amount to 7.0465 trillion, an increase of 10.4%. In addition, the performance of capital inflows to Hong Kong asset management industry has increased assets under management.
Four factors driving the acceleration of international capital flowing into Hong Kong. One of Hong Kong's tax system and regulatory stability. Especially the international financial crisis, Britain,[link widoczny dla zalogowanych], France and Germany began to levy tax on banks to compensate for the financial crisis save the cost of the banking industry, and by the financial crisis, Hong Kong and other countries and regions, the impact of lesser charge such a tax without more shows the low-tax Hong Kong's strengths and appeal. Second,[link widoczny dla zalogowanych], the international financial crisis the focus of the economic and wealth management appear eastward trend. As the financial tsunami continued economic downturn in Europe and America, while the Chinese mainland and Hong Kong's economy is strong growth, with Europe to strengthen financial regulation, and the quantitative easing policy of the United States and the European sovereign debt crisis broke out, Foreign currency long-term to make the yuan is expected to further strengthen the strong, the world gathered in Hong Kong in search of better financial returns are inevitable. Some international banks not only their business base to Hong Kong to seize the light by the Asian financial crisis, the opportunities the booming economy, some funds, particularly hedge funds, but also to strengthen the development in Hong Kong, Hong Kong hedge fund assets under management March 2009 from 553 billion (431.3 billion Hong Kong dollars) increased from about 5,000 million. Third, as an international financial center of Hong Kong more attractive. Hong Kong investment market a complete range of products are relatively abundant, especially the