Latest news with #NatixisCorporateandInvestmentBank
RTHK
01-07-2025
- Business
- RTHK
'Attract funds from more countries around the world'
'Attract funds from more countries around the world' Experts say while relying on the mainland, the SAR also needs to reach out to different markets in its role as a global financial hub. File photo: RTHK Hong Kong should learn to navigate its relationships with the rest of the world and do more to attract outside capital as it continues to integrate with the mainland, according to observers, with external factors presenting an opportunity for the city to diversify its reach. Experts also believe closer links with the mainland have helped consolidate the SAR's position as a global financial hub. "In the long run, Hong Kong will continue to attract capital from the mainland. But there're also some uncertainties about whether Hong Kong would still be able to attract foreign capital in the same way," Gary Ng, a senior economist at Natixis Corporate and Investment Bank, told the RTHK podcast China Perspectives in an episode marking the 28th anniversary of the SAR. "I think in an ideal situation, Hong Kong should be able to do both. But because of the changing geopolitical environment, how Hong Kong can actually balance the two and make the most, to me, it could be quite challenging in the future." Economics professor Ho Lok-sang, formerly in charge of Lingnan University's economic policy research institute, said challenges remained in the city's bid in attracting capital with some Western countries viewing Hong Kong and the country through "coloured lenses". "We need to do a bit more to show that we are not too restrictive," Ho said. "We are still open culturally, and we are tolerant of different opinions... That would produce a better impression on some investors who may have coloured lenses." Ho praised efforts by the SAR to lure investments and highly-skilled professionals, and agrees with projections that Hong Kong will overtake Switzerland as the world's top cross-border wealth management centre by 2027. "Switzerland did suffer somewhat, because there was pressure for Switzerland to reveal some information about their clients. There was this concern about tax evasion and other problems," Ho said. "Hong Kong is pretty safe in the eyes of the world, and the mainland is also very politically stable. I think people are aware of the fact that we are an open economy." Ng added that Hong Kong could act as a "buffer zone" between warring powers amid current geopolitical tensions. "Let's say, China and the US may be competing at a much higher level on different issues, I think Hong Kong still has a role in a more neutral way to be a buffer zone between all these big powers," the Natixis senior economist said.
RTHK
02-05-2025
- Business
- RTHK
Q1 GDP posts better-than-expected growth
Q1 GDP posts better-than-expected growth The Hong Kong economy grew by 3.1 percent in the first three months of the year, higher than a 2.5 percent increase in the October-to-December period. Photo: RTHK The Hong Kong economy grew by 3.1 percent in the first quarter – its best performance in five quarters – as surging exports helped boost growth. That compared with a 2.5 percent year-on-year increase in the final three months of 2024. On a quarter-to-quarter basis, the economy grew by 2 percent in the first quarter. The 3.1 percent growth was partly driven by higher exports, which climbed 8.7 percent from a year ago, up from a 1.3 percent increase in the fourth quarter, as exporters rushed to send shipments out after US President Donald Trump announced higher tariffs. Imports also saw strong growth, posting a 7.4 percent jump, compared with a 0.4 percent increase in the previous three months. Exports of services rose further, while imports saw a smaller increase. Commenting on the latest data, Gary Ng, senior economist at Natixis Corporate and Investment Bank, struck a cautious note, saying the city's economy may be at "a more challenging position than it looks on the surface". "There is the wider trade surplus as companies rushed to send their orders to the US before all the tariffs are implemented," he told RTHK. "But when you really look at the core part of the economy, which is household spending, there is a wider year-over-year decline. So I think this is why Hong Kong's economy will likely face continuing pressure, simply because domestic consumption is not showing any significant signs of a rebound for now." The government has projected a full-year GDP growth of 2 percent to 3 percent. Meanwhile, latest government figures showed the city's retail sales fell by 3.5 percent in March year on year to HK$30.1 billion. That's the 13th consecutive month retail sales have dropped. But it was a smaller decline compared with a 7.8 percent decrease in January and February. A government spokesman said the sustained steady growth of the mainland economy and efforts by the SAR to promote tourism will boost the retail sector. But he also cited challenges posed by uncertainty in the global economic outlook and the impact of changing consumption patterns.
South China Morning Post
09-04-2025
- Business
- South China Morning Post
US inflation? China is more worried the trade war will make goods too cheap
While US President Donald Trump's tariff hikes stoke fears of inflation in America, China is likely to face the opposite problem: deepening deflation that compounds a long-running economic headache for Beijing. Advertisement But China's push to boost domestic demand amid an escalating global trade war could help cushion the downward pressure on prices, analysts said. Now, Washington's tariff hikes threaten to exacerbate those issues, with another 50 per cent increase in US duties on Chinese goods taking effect at noon on Wednesday. 'China's problem is … more related to demand, as it has overcapacity,' said Gary Ng, senior economist at Natixis Corporate and Investment Bank. 'Losing overseas markets can pressure China's corporate profit margins and fuel competition domestically.' Advertisement
South China Morning Post
09-04-2025
- Business
- South China Morning Post
Gold slumps as Trump tariffs roil markets, but it remains a safe-haven choice: analysts
The price of gold has tumbled amid shock waves from the tariff war between the United States and China, but the precious metal remains the safe-haven asset of choice in times of volatility, analysts said. Advertisement The spot price of gold climbed 40 per cent in a year to hit an all-time high of US$3,167.77 an ounce on April 3, but US President Donald Trump's announcement of his long-promised 'reciprocal tariffs' then saw the price fall by about 5.1 per cent to US$3004.57 as of 11am on Wednesday. Analysts attributed the drop to short-term sell-offs by traders needing to cover losses from other asset classes. Alex Chiu, senior exchange-traded fund (ETF) strategist at asset management firm Value Partners, said gold could be used to mitigate losses when the wider market was experiencing 'abnormal volatility'. 'During market downturns … brokers may initiate a margin call that sells off gold to cover losses in other positions,' he said, adding that gold was an easily liquidated asset. Advertisement Trump's tariff onslaught has triggered a steep downturn in the world's financial markets. Hong Kong's benchmark Hang Seng Index slumped 13.2 per cent on Monday, wiping out HK$194 billion (US$25 billion) in value in its biggest decline since October 1997. Gary Ng, a senior economist at Natixis Corporate and Investment Bank, said the sell-off in gold was likely to be a short-term phenomenon.
South China Morning Post
05-03-2025
- Business
- South China Morning Post
Beijing's counter-tariffs on US goods to have ‘limited impact' on Hong Kong prices
Beijing's new counter-tariffs on certain US goods are expected to have a limited impact on the prices of American products in Hong Kong, economists have said, but one industry head has warned that local business could still suffer from weaker investment sentiment as the trade war erupted between the superpowers. Advertisement The latest round of Beijing's retaliatory measures against the United States included imposing additional import tariffs of 15 per cent on poultry and agricultural products, and 10 per cent on soybean, pork, beef, fruit, vegetables and dairy, sparking questions about a potential spillover on Hong Kong. Economists highlighted the city's status as a free port and separate customs territory from mainland China, meaning the special administrative region does not automatically implement Beijing's tariffs on US products. 'The trade Hong Kong intermediates between the US and China is mainly electronics. [The tariffs] can still affect some food-related shipments, but the scale is relatively small and other sources may fill the gap in China's imports,' Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank, said on Tuesday. 'Compared to the US tariffs on 'de minimis' imports, China's retaliation will have a limited impact on Hong Kong.' Advertisement The 'de minimis value' is a threshold that exempts imports from duty.
