HSBC's (0005) co-chief executive of Asia and the Middle East David Liao Yi-chien said on Thursday that Hong Kong has the ability to address the uncertainties of external markets, and the group will continue to invest in the city, with confidence in the city's prospects.
Despite the rising downward risks amid geopolitical tensions, Hong Kong has gone through multiple economic cycles in the past, and its robust financial infrastructure and refined regulations, coupled with rigorous risk management of banks, provide the resilience to counter external challenges, he said.
The geopolitical tensions have not reflected on Hong Kong's economy for now, while the bank will monitor the situation carefully, he added.
Currently, Hong Kong's stock market value is close to HK$50 trillion, while its bond market ranks the third-largest in Asia, Liao noted, adding that Hong Kong is also expected to become the world's top cross-border wealth management centre in 2029.
With its deep and vast capital market, Hong Kong can support Chinese companies to expand globally and raise funds, he said.
Besides, Liao noted that the bank's commitment to investing in the Middle East remains unchanged, while the safety of the staff there will be placed as the first consideration to continue to serve its clients and cater to demands.
HSBC's balance sheet in the Middle East remained robust, and the bank believed that there is a large room for development in the region after the turmoil ends, he said.
Regarding the stablecoin issuance, the lender said it will issue the Hong Kong dollar-pegged stablecoin within this year, and expects that it can explore other digital assets and tokenised deposits areas with the Hong Kong Monetary Authority and the government.
