View Full Version : Hong Kong poised to become world's largest financial hub by 2017
Hong Kong poised to become world's largest financial hub by 2017
By Wong Siew Ying | Posted: 03 December 2012 2031 hrs
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File photo: Hong Kong skyline. (AFP/Philippe Lopez)
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SINGAPORE: Asia's main financial centres will surpass their western counterparts as employers this decade.
And Hong Kong is poised to become the world's largest financial hub by 2017, according to a report published by the Institute of Chartered Accountants in England and Wales (ICAEW).
Centres like New York and London used to offer twice as many finance sector jobs than their Asian peers like Singapore and Hong Kong.
But Asian players are fast catching up, driven by a less onerous regulatory environment and growing critical mass.
The report showed there were 175,000 finance service sector jobs in Hong Kong before the financial crisis in 2007. This is expected to increase to 275,000 by 2017, surpassing New York and London.
It is estimated that New York will provide 250,000 jobs in the finance sector, down from 275,000 in 2007, while the corresponding figure for London will drop from 350,000 in 2007 to just under 250,000.
Meanwhile, finance sector jobs in Singapore are expected to double from more than 100,000 in 2007 to 200,000 by 2017.
The report showed the internationalisation of the Chinese Yuan will continue to support growth in Hong Kong, while Singapore will tap on its strength in the wealth management industry.
But this growth could pose challenges for policy-makers.
Douglas McWilliams, Chief Executive of The Centre for Economics and Business Research, said: "When you have rapid growth, you tend to get large inflows, and large inflows of currencies can be destabilising. The authorities have to change their exchange rate targets. In effect up until now, Singapore in particular has operated through an exchange rate target. It becomes less easy to do that in a period of rapid monetary inflows."
On the macroeconomic front, Mr McWilliams said the world economy is likely to record subdued growth in 2013.
And the two key risks on the horizon include political uncertainty in the Middle East and the fate of the Eurozone amid the lingering debt crisis.
However, in the event of a global recession, Mr McWilliams said Southeast Asian economies are in a position to boost growth through government expenditure.
Meanwhile, he adds that commodity prices could pose a risk to ASEAN economies, and a sharp slowdown in investment in the commodity sector could affect growth.
- CNA/de
Now you know why marina bay properties are so hot and getting hotter. :D
Hong Kong poised to become world's largest financial hub by 2017
By Wong Siew Ying | Posted: 03 December 2012 2031 hrs
Click to enlarge Photos 1 of 1
File photo: Hong Kong skyline. (AFP/Philippe Lopez)
Tweet
inShare
10
3
SINGAPORE: Asia's main financial centres will surpass their western counterparts as employers this decade.
And Hong Kong is poised to become the world's largest financial hub by 2017, according to a report published by the Institute of Chartered Accountants in England and Wales (ICAEW).
Centres like New York and London used to offer twice as many finance sector jobs than their Asian peers like Singapore and Hong Kong.
But Asian players are fast catching up, driven by a less onerous regulatory environment and growing critical mass.
The report showed there were 175,000 finance service sector jobs in Hong Kong before the financial crisis in 2007. This is expected to increase to 275,000 by 2017, surpassing New York and London.
It is estimated that New York will provide 250,000 jobs in the finance sector, down from 275,000 in 2007, while the corresponding figure for London will drop from 350,000 in 2007 to just under 250,000.
Meanwhile, finance sector jobs in Singapore are expected to double from more than 100,000 in 2007 to 200,000 by 2017.
The report showed the internationalisation of the Chinese Yuan will continue to support growth in Hong Kong, while Singapore will tap on its strength in the wealth management industry.
But this growth could pose challenges for policy-makers.
Douglas McWilliams, Chief Executive of The Centre for Economics and Business Research, said: "When you have rapid growth, you tend to get large inflows, and large inflows of currencies can be destabilising. The authorities have to change their exchange rate targets. In effect up until now, Singapore in particular has operated through an exchange rate target. It becomes less easy to do that in a period of rapid monetary inflows."
On the macroeconomic front, Mr McWilliams said the world economy is likely to record subdued growth in 2013.
And the two key risks on the horizon include political uncertainty in the Middle East and the fate of the Eurozone amid the lingering debt crisis.
However, in the event of a global recession, Mr McWilliams said Southeast Asian economies are in a position to boost growth through government expenditure.
Meanwhile, he adds that commodity prices could pose a risk to ASEAN economies, and a sharp slowdown in investment in the commodity sector could affect growth.
- CNA/de
To develop SG as the London of the east is LHL's dream. I really hope we can make it.
... sad to say, as of today, we are not moving anywhere closer. :( banks are willing to incur more cost to have office in HK rather than SG.
buttercarp
04-12-12, 19:58
To develop SG as the London of the east is LHL's dream. I really hope we can make it.
... sad to say, as of today, we are not moving anywhere closer. :( banks are willing to incur more cost to have office in HK rather than SG.
Why is that so?
Is it because Singapore is too small or is it because HK is part of China?
proud owner
04-12-12, 20:16
Why is that so?
Is it because Singapore is too small or is it because HK is part of China?
becos ... HK is the true gateway to china ...
also HK is a true cosmopolitan ...
singapore ...still not there yet ...
buttercarp
04-12-12, 20:48
becos ... HK is the true gateway to china ...
also HK is a true cosmopolitan ...
singapore ...still not there yet ...
HK a gateway to China - that cannot be changed.
HK cosmopolitan - that one Singapore can strive to be like HK.
Btw, why is HK more cosmo than SG?
I thought we are about the same?
proud owner
04-12-12, 21:47
HK a gateway to China - that cannot be changed.
HK cosmopolitan - that one Singapore can strive to be like HK.
Btw, why is HK more cosmo than SG?
I thought we are about the same?
yes singapore can strive to be a cosmo ... but will take a while ..
a few things:
no freedom of speech (unless vet by police first) ..
no movie stars ( Zoe tay and fann wong ...cannot make it)
no culture ...HK still maintain alot of chinese traditions that spore long lost ..
if u look at the major cosmo in the world ..paris london NY Tokyo ..
then u will know what spore is lacking
pls dont say Singapore is crime free hor .. or Garden city
mind you ..even outskirt NY is 100 times cleaner than spore
there was a write out in NY times last year ..on What makes a city a true cosmopolitan ..
spore is not in it ...
HK air quality is getting worse by the day.
SG is one of the top expat destination.
proud owner
04-12-12, 22:15
HK air quality is getting worse by the day.
SG is one of the top expat destination.
the report actually says SIngapore but shows a chinese flag
buttercarp
04-12-12, 22:24
the report actually says SIngapore but shows a chinese flag
OMG, really?!
Ok mabbe that's what they think of us?!
When I visited the Blue Mountains during my Sydney trip, and I got on the explorer bus, the friendly bus driver asked us where we were from and when he was driving the bus, he would greet the tourists in their respective languages over the mike.
So Korean - anyong haseyo, Japanese - konnichiwa, etc.
Then when it came to greeting Singaporeans, he spoke in Mandarin!
OMG, I can't believe it when he even asked us 你们吃饱了吗？although I was pleasantly surprised that he would go all out to make us feel at home.
think u guys got it wrong...
HK can become London of the East, i think thats a given
but there can definitely be more than one financial centre in Asia.
Even of now, HK is more of investment and corporate banking (London)
SG is more commodity-trading, wealth management hub (Swiss style)
In fact, that is really LKY's dream.
In terms of cultural, historical, geographical and statistical background, SG is also much more similiar to Switzerland.
I think SG has been very smart in choosing her battles and developing niche areas that it can be number one in.
phantom_opera
05-12-12, 08:19
Swiss has negative rate now, next is Singapore? Lol
Swiss has negative rate now, next is Singapore? Lol
what negative rate?
buttercarp
05-12-12, 08:56
what negative rate?
The interest rate in the bank with swiss currency has negative interest rate.
phantom_opera
05-12-12, 09:20
ok lah layman explanation, u pay the bank when u open an account ... they dun want your money :p
German bond yield also sometimes negative lol
The interest rate in the bank with swiss currency has negative interest rate.
wa..
this is a good news ,right?
wa..
this is a good news ,right?
this is a little bit like the gold and silver savings acct we keep with UOB.
you put $$ there, they deduct annual fees. after some time, you find that your deposit become smaller and smaller. ok, gold and silver still got capital upside. what abt the swiss franc?
eventually, all will close acct since the $$$ no use sitting in the bank. might as well do other things.
what will happen to our banks?
buttercarp
05-12-12, 12:31
So that's why the hot money flow into Asian countries.
LOL.... I imagine the "lava" flow from the Swiss Alps into our little red dot.
Negative interest rate - does this apply to their loans as well :D ?
How does it work for loans, eg if you take a housing loan in Switzerland?
http://en.wikipedia.org/wiki/Languages_of_Switzerland
"The four national languages of Switzerland are German, French, Italian, and Romansh.[2] Only three of these languages, however, maintain equal status as official languages at the national level within the Federal Administration of the Swiss Confederation: German, French, and Italian.[3]"
Singaporeans are really like the Swiss, a small country wedged between big and influential ones (China, India, Indonesia) .. dont have her own language and culture :)
She has to play neutral and diplomatic at all times, maintain stability and lay low, to provide a tax haven for ultra high networth individuals in the region.
OMG, really?!
Ok mabbe that's what they think of us?!
When I visited the Blue Mountains during my Sydney trip, and I got on the explorer bus, the friendly bus driver asked us where we were from and when he was driving the bus, he would greet the tourists in their respective languages over the mike.
So Korean - anyong haseyo, Japanese - konnichiwa, etc.
Then when it came to greeting Singaporeans, he spoke in Mandarin!
OMG, I can't believe it when he even asked us 你们吃饱了吗？although I was pleasantly surprised that he would go all out to make us feel at home.
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