Special interview
Author: Zhai Ziqian
2021-01-28 07:45
The last update date: 2021-01-28 07:45
The new U.S. President Biden came to power. Even though the U.S. attitude towards China is milder than that of the Trump era, the main theme is still anti-China.
As China's international financial center, Hong Kong will inevitably become one of the battlefields between China and the United States.
The former Secretary of the Financial Services and the Treasury Bureau, Chen Jiaqiang, believes that the United States is not friendly to China and will naturally not be very good to Hong Kong. However, he still does not believe that the United States will shake Hong Kong’s status as an international financial center because the market has its own set law.
He believes that after 4 years of Trump, Hong Kong must now recognize its financial strength and continue to be China's international financial center is the sustainable and feasible development direction.
Chen Jiaqiang served as Director of the Bureau of Financial Affairs and the Treasury for 10 years. He has witnessed the changes in Sino-US relations and has personally experienced the subtle impact of the game between the two countries on Hong Kong.
He recalled that during his tenure as director-general, he had observed that the United States had gradually developed from being "polite" towards Hong Kong in the early days to "not being indifferent."
This change is mainly due to changes in Sino-US relations. The United States is more concerned about China's affairs. The overall situation is that Hong Kong is only part of the struggle between China and the United States.
However, during Trump’s last year in office, the policy toward China has become more radical. The tariff policy has evolved to require that "Made in Hong Kong" be changed to "Made in China", and Americans are also prohibited from investing in Chinese companies. It’s as simple as not watching.
These measures have caused widespread ripples in the market. In the small case, the stock price of the affected company fluctuates, and in the large case, the "investment ban" has caused many US-funded dealers to delist hundreds of CBBCs early. The administrator even announced that it would stop buying the sanctioned HSI constituent stocks.
The "Foreign Companies Accountability Act" passed by the US Congress has targeted many Chinese concept stocks.
(Associated Press)
Forcing China's concept stocks to delist ``meaningless and witless''
The prohibition of Americans from investing in Chinese companies. Chen Jiaqiang said frankly that this was something that no one had experienced or imagined before. However, for the US's gradual delisting of China's concept stocks, Chen Jiaqiang bluntly said that it is "meaningless, unintelligent, and only profitable." "Hong Kong", China concept stocks will only choose to abandon the United States and return to Hong Kong for listing.
He believes that Biden will not use these tactics to deal with China and Hong Kong again after he takes office, but whether such decisions will be completely withdrawn. Chen Jiaqiang analyzed that Biden will not rush to withdraw. As a result, the incident is not pressing for the United States. Second, it can be used as a bargaining chip in future negotiations.
Chen Jiaqiang believes that although Hong Kong is sandwiched between China and the United States, he does not think that the United States will take measures to affect the status of Hong Kong's financial center because it will not bring any benefit to the United States, let alone any move that can hurt Hong Kong. At the same time, it does not have a negative impact on the United States.
"Financial markets have their own laws. You can't just do it in one country."
In addition to the "investment ban," it was reported last year that the United States intentionally banned Hong Kong's US dollar settlement and restricted certain companies and banks from using US dollars.
Chen Jiaqiang said that this can happen, but a large-scale ban on the use of the U.S. dollar is a "seven wounds." The damage series is like nuclear weapons, which will seriously affect the status of the U.S. dollar. "Trump can't do it, Biden can't do it, it's good for the United States." Hurt...the confrontation between China and the U.S. in finance is more extreme. I think it should happen!"
Regarding the US's gradual delisting of China's concept stocks, Chen Jiaqiang said bluntly that it is "meaningless, unwise, and will only benefit Hong Kong."
(Photo by Gao Zhongming)
It is hard to stop the long-arm governance of the United States, but we must guard against Rule Setting
In the past few years, the United States has been subject to interference from other countries or companies through long-arm governance. Examples in the capital market are as clouded, from the early ban on trading of Rusal (0486) shares listed in Hong Kong to the previous Tracker Fund﹙2800 ﹚The manager and State Street Global Investment Management once stopped buying more shares of China Mobile (0941) and CNOOC (0688) sanctioned by the US due to the US "investment ban".
State Street later reverted, saying that since State Street Global Investment Management Asia is an Asian limited company and Tracker Fund is also an Asian fund, it does not meet the definition of an American person.
The incident makes people think about whether Hong Kong can prevent long-arm interference by the United States by defining "financial sovereignty"?
Chen Jiaqiang emphasized that the incident is not Hong Kong's own problem, but it is difficult to have the so-called "financial sovereignty" concept. The reason is that the financial world is internationalized and no government can completely control the rules of the market game. "Do other countries definitely accept it?" And the financial market The behavior of the United States is a market behavior that you like and want. "The United States does it. It is not seen in the world. It is not based on international law. Everyone was law-abiding." He wondered why US-funded companies were willing to obey orders and no one did it to the government. Judicial challenge.
Chen Jiaqiang emphasized that the financial market is international, and the most important thing is the mutual recognition of supervision. Only when countries accept supervision, can investors buy the stocks of other countries.
Since it is not possible to prevent political risks through "financial sovereignty", Chen Jiaqiang believes that Hong Kong must guard against the rule setting of the world, because Hong Kong will be handled more rigorously by other countries, such as financial matters, including anti-money laundering and taxation. aspect.
Chen Jiaqiang believes that if the United States wants to deal with Hong Kong, it may accuse Hong Kong of not complying with the "Anti-Money Laundering" ordinance, or that Hong Kong's tax concessions are not doing well, thereby affecting Hong Kong.
International financial center redefines where Hong Kong's strength is recognized
Since Hong Kong is facing numerous challenges under the struggle between China and the United States, how can it position itself and give full play to its strength?
Chen Jiaqiang pointed out that Hong Kong has always advertised itself as an international financial center, but what is an international financial center?
For a long time, there have been voices from time to time that Hong Kong is not internationalized enough and that it relies too much on the mainland. Chen Jiaqiang asked, "Positioning China, there is a problem?"
He continued that when he was working in the government, he had tried inviting overseas companies to return to Hong Kong for listing. "The final results were not satisfactory."
In fact, unless foreign companies want to be favored by Asian investors, they do not need to be listed in Hong Kong.
He said frankly that "internationalization" is not an empty talk, and he shared that when the government proposed how Hong Kong should be positioned ten years ago, he pointed out that Hong Kong is China's "Global Financial Center". International positioning is based on strength, and our strength is precisely that Hong Kong belongs to China's international financial center. Why not Shanghai? Because it is not a global entity, it is still not an entity!"
Many Chinese companies want to list in Hong Kong because they have to go through Hong Kong to be able to reach foreign investors.
Chen Jiaqiang believes that the Chinese market should be opened up, and interconnection connects China and the world through the Hong Kong window. This is why Hong Kong will have to promote it and develop more products in the future.
He also mentioned that nowadays international political issues are complex, China is surrounded and contended by the world, and Hong Kong as a part of China is "nowhere to go." Therefore, it is even more necessary to make the market positioning clearer. "Chinese capital may not have the confidence to go elsewhere. For fear of "depressing" your stocks at any time, there are political risks. Of course, China has its diplomatic considerations, but if you ask, of course, Hong Kong will stabilize the battle." Chen Jiaqiang said that the current political environment is more realistic, and the route taken in the past time , Is to prove that the method is feasible, it should continue.
"Hong Kong is part of China's "nothing to go", so it must be strengthened. Otherwise, internationalization will be nihilistic. Are there any Selling people?"
Chen Jiaqiang believes that interconnection connects China and the world through the Hong Kong window. This is Hong Kong's future need to promote it.
(Data Picture/Photographed by Lin Zhendong)
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