China\u2019s crackdown on cross-border securities trading could strengthen \u2013 rather than diminish \u2013 Hong Kong\u2019s financial role, according to economists, as Beijing steers more capital through official channels and reinforces the city\u2019s status as an offshore yuan hub.<\/p>\n
\u201cI would argue that these moves make the importance of Hong Kong even bigger,\u201d Diana Choyleva, founder and chief economist at Enodo Economics, said on Tuesday at the World Economic Forum\u2019s annual \u201cSummer Davos\u201d meeting.<\/p>\n
Referring to Beijing\u2019s recent crackdown<\/a>, Choyleva said authorities were seeking to curb illegal capital outflows while pursuing \u201can increase in opening up the flow of capital, through Hong Kong via the connect schemes<\/a>\u201d \u2013 cross-border investment channels linking the financial markets of mainland China and Hong Kong.Her comments followed moves by the China Securities Regulatory Commission (CSRC) last month to penalise three brokerages<\/a> \u2013 Futu Securities, Tiger Brokers and Long Bridge \u2013 for illegally granting domestic investors access to overseas securities trading. The action has fuelled concerns regarding capital controls and the future of Hong Kong\u2019s role as a wealth hub.<\/p>\n Speaking during a panel discussion on the opening day of the three-day gathering, Choyleva said that the recent move was part of an ongoing multi-year effort to tighten illegal capital outflows from China.<\/p>\n Authorities are \u201creally making the point clear here, but simultaneously widening the connect schemes, allowing more capital to flow through Hong Kong\u201d, she said.<\/p>\n Choyleva noted that the city\u2019s role was shifting from a conduit for foreign investment into mainland China to a hub where China\u2019s domestic wealth is \u201cintermediated on China\u2019s own terms\u201d with the rest of the world.<\/p>\n","protected":false},"excerpt":{"rendered":"China\u2019s crackdown on cross-border securities trading could strengthen \u2013 rather than diminish \u2013 Hong Kong\u2019s financial role, according…\n","protected":false},"author":2,"featured_media":654583,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[5713,84,891,48268,115845,219982,1294,219987,6875,45539,219983,219984,87390,219985,209198,219986,56,54,55,26726],"class_list":["post-654582","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-beijing","tag-business","tag-china","tag-china-securities-regulatory-commission","tag-citic-securities","tag-diana-choyleva","tag-economy","tag-enodo-economics","tag-hong-kong","tag-hong-kong-monetary-authority","tag-long-bridge","tag-shanghai-advanced-institute-of-finance","tag-shanghai-jiao-tong-university","tag-shenwan-hongyuan-group","tag-stock-connect","tag-tiger-brokers","tag-uk","tag-united-kingdom","tag-unitedkingdom","tag-world-economic-forum"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/654582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=654582"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/654582\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/654583"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=654582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=654582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=654582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}