Hong Kong Lenders Expand Footprint in Qianhai’s Flourishing Economic Zone
In a significant move that underscores the growing importance of the Greater Bay Area, major Hong Kong banks are strategically positioning themselves within Qianhai’s special economic zone. This area, established in 2009 and located adjacent to Shenzhen, is rapidly becoming a nexus for financial innovation and integration, with policies aimed at closely aligning it with Hong Kong’s capital market by 2025 and elevating its financial system to international standards by 2035.
HSBC, known as Hong Kong’s largest note-issuing bank, is poised to inaugurate a new 25-floor office tower within the year, as revealed by Daniel Chan, the head of Greater Bay Area at HSBC. The firm’s proactive involvement in the financial pilot schemes of Qianhai, such as yuan cross-border lending and the Wealth Management Connect scheme, highlights its commitment to the region. The Wealth Management Connect scheme, tailored for the bay area, permits residents to purchase investment products throughout the region. HSBC’s dedication is further reflected in its increased stake in HSBC Qianhai Securities and the complete acquisition of HSBC Life China, signaling a strong commitment to the advancement of China’s capital markets.
Qianhai’s appeal to Hong Kong companies is clear, with incentives such as a reduced corporate tax rate of 15 percent. This has resulted in a robust Hong Kong presence in the zone, with investment reaching US$4.9 billion as of July last year, accounting for 95 percent of the zone’s total foreign investment. The zone also serves as a base for some 10,000 Hong Kong companies and has become home to more than 75,000 Hong Kong citizens.
The Bank of East Asia (BEA), a storied family-owned institution in Hong Kong, has also made a significant investment in Qianhai. In January, it opened an 18-story building that marks a major step in BEA’s regional business development. BEA Tower, with a development cost of 1.4 billion yuan, now serves as the bank’s headquarters in South China and is indicative of its focus on wealth management and fintech in the Bay Area. The opening of BEA Tower was hailed as a landmark event by Adrian Li Man-kiu, the bank’s co-CEO, during the ceremony. The bank’s expansion into Qianhai is part of a broader strategy to broaden its services and support the transformation of the Greater Bay Area into a leading financial hub.
HSBC and BEA’s strategic expansion into the Qianhai Special Economic Zone underscores the region’s burgeoning role as a financial center. Backed by favorable policies and a blueprint for a highly integrated financial system, these institutions are gearing up to play a pivotal role in the region’s economic growth. Their new office towers and increased activity in the region are evidence of their determination to contribute to the development of the Greater Bay Area. As these events continue to unfold, Qianhai’s economic landscape is constantly evolving and actively shaping the future of financial services in the region.
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