Hong Kong Playing Pivotal Role in China’s Growth, says Lindsay Gordon

Hong Kong has many strengths that will ensure it continues to play a pivotal role in China’s growth, said Lindsay Gordon, President and Chief Executive Officer of HSBC Bank Canada. 

Mr. Gordon was speaking at a gathering of the Hong Kong-Canada Business Association in Vancouver in March. He noted that China’s ascendancy has prompted many to question whether Hong Kong is still the smart link to China.

Hong Kong’s role in China’s growth is evidenced by the fact that, today, there are some 60,000 Hong Kong invested manufacturers in the Pearl River Delta employing some 11 million workers. “That’s almost one third of the population of Canada and about half of the population of Hong Kong,” Mr. Gordon said.

In considering whether Hong Kong will continue to play this pivotal role, Mr. Gordon pointed out that while Hong Kong is no longer the exclusive gateway to the Mainland, business people there “are busy taking advantage of all the doors that are opening up in China.” And, Hong Kong, once again, was just ranked as the freest economy in the world. 

“Hong Kong would not be able to continue maintain its position atop the standings if it was not constantly changing, constantly enhancing its business environment,” said Mr. Gordon. “It is this amazing ability to adapt that is one of Hong Kong’s greatest strengths.”

While on the issue on whether Hong Kong is about to be eclipsed by Shanghai, he pointed out that while Shanghai is making enormous strides, it is still out-paced by Hong Kong’s underlying legal system, free flow of information that is vital to financial decision-making and in terms of having a convertible currency.

He noted that while some suggest that Shanghai is destined to be more like the ‘Tokyo of China’, Hong Kong, on the other hand, will be more akin to London. 

Mr. Gordon challenged the misconception that Hong Kong is just a financial centre. He assured that to numerous companies from China, Hong Kong will always be - first and foremost - a place to raise capital. But, to many other Mainland firms, Hong Kong is also a source of talented managers with international experience, and a place where Chinese companies can access market intelligence and other markets. 

To conclude, Mr. Gordon said, “Skeptics will be proven wrong and that Hong Kong will remain the Smart Link to China”. “This optimistic and positive view of Hong Kong’ future is a firmly held belief both of HSBC as an organization and of me personally. When I look into the future, I firmly believe that Hong Kong will continue to play a pivotal role in both China’s and HSBC’s growth.” 

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