IDEAS home Printed from https://ideas.repec.org/a/taf/rjapxx/v16y2011i3p361-371.html
   My bibliography  Save this article

Hong Kong as an international banking center: present and future

Author

Listed:
  • Alicia García-Herrero

Abstract

The banking industry is key for Hong Kong's economy, but Hong Kong is not a big international banking center, at least not when compared with other centers belonging to large economic areas, such as New York and, to a lesser extent, Tokyo. Within Asia, Hong Kong has a larger banking sector as a whole, but the position is similar if we focus on the offshore side of it, where Singapore is growing faster than Hong Kong. Furthermore, Singapore is being more active as a banking platform for international corporates while Hong Kong remains larger in terms of banking relations. In fact, Hong Kong continues to have one of the highest concentrations of large banking institutions in the world. Such an international banking platform, together with the increasing local presence of Chinese banks, offers Hong Kong a unique opportunity to become a major banking center, probably the largest offshore center in Asia. Whether Hong Kong reaps this opportunity will very much depend on how it navigates among the opportunities that China offers in its current situation of capital controls without losing its international clout. In fact, the Hong Kong banking system should benefit from the business from China coming offshore due to capital controls (including not only renminbi [RMB] settlements but also issuance of RMB-denominated bonds). However, it should also look for non-Chinese-related banking business so as to ensure that it remains distinguishable from China's domestic banking system in the years to come.

Suggested Citation

  • Alicia García-Herrero, 2011. "Hong Kong as an international banking center: present and future," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 16(3), pages 361-371.
  • Handle: RePEc:taf:rjapxx:v:16:y:2011:i:3:p:361-371
    DOI: 10.1080/13547860.2011.589627
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13547860.2011.589627
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/13547860.2011.589627?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lillian Cheung & Vincent Yeung, 2007. "Hong Kong as An International Financial Centre: Measuring its Position and Determinants," Working Papers 0714, Hong Kong Monetary Authority.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sang Rim Choi & Daekeun Park & Adrian E. Tschoegl, 2016. "Banks and the World’s Major Banking Centers, 2010," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 16(2), pages 275-291, June.
    2. David R. Meyer, 2016. "Shenzhen in China's Financial Center Networks," Growth and Change, Wiley Blackwell, vol. 47(4), pages 572-595, December.
    3. Tsui, Wai Hong Kan & Fung, Michael Ka Yiu, 2016. "Causality between business travel and trade volumes: Empirical evidence from Hong Kong," Tourism Management, Elsevier, vol. 52(C), pages 395-404.
    4. Angel De la Fuente, 2011. "Human capital and productivity," Working Papers 1103, BBVA Bank, Economic Research Department.
    5. Tsui, Wai Hong Kan & Fung, Michael Ka Yiu, 2016. "Analysing passenger network changes: The case of Hong Kong," Journal of Air Transport Management, Elsevier, vol. 50(C), pages 1-11.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Imad Moosa & Larry Li & Riley Jiang, 2016. "Determinants of the Status of an International Financial Centre," The World Economy, Wiley Blackwell, vol. 39(12), pages 2074-2096, December.
    2. International Monetary Fund, 2008. "People’s Republic of China: Hong Kong Special Administrative Region: Selected Issues," IMF Staff Country Reports 2008/042, International Monetary Fund.
    3. Chak Hung J. Cheng & Michael K. Salemi, 2009. "Feast and Famine: Explaining Big Swings in the Hong Kong Economy between 1981 and 2007," Working Papers 372009, Hong Kong Institute for Monetary Research.
    4. Rabin Hattari & Ramkishen S. Rajan, 2009. "Cross-border Mergers and Acquisitions (M&As) in Developing Asia: The Role of Financial Variables," Working Papers 362009, Hong Kong Institute for Monetary Research.
    5. Li, Kui-Wai, 2011. "Identifying the Signs of Currency Speculation in Hong Kong's Linked exchange Rate," MPRA Paper 35279, University Library of Munich, Germany.
    6. Robert N. McCauley & Eric Chan, 2009. "Hong Kong and Shanghai: Yesterday, Today and Tomorrow," NBER Chapters, in: Financial Sector Development in the Pacific Rim, pages 13-37, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:16:y:2011:i:3:p:361-371. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.