Through Hong Kong, they can enter Chinese markets on a platform that is proven and familiar, using English-language documentation and applying international norms and practices. 30. The opening-up of various channels into China’s domestic markets gives options to international investors. They can choose to have an onshore presence and trade directly in the local market. Or they can continue to use Hong Kong as their base if it makes sense for their strategy and resources. 31. The fact that the majority of foreign investors access the Mainland capital markets using the two Connect schemes speaks volumes about the unique value proposition of the Hong Kong platform. In recent years, that financial connectivity has been boosted by increasing ‘southbound’ traffic from the Mainland to Hong Kong. 32. It is well known that Hong Kong is the leading hub for Mainland enterprises looking to issue equity or debt in the international market. That activity continued to thrive in 2020, thanks to the secondary listings by home-coming Mainland corporates and IPOs by new economy companies. 33. But Hong Kong is much more than a capital-raising gateway for Chinese firms. Today, Mainland institutions and individuals use Hong Kong to put their capital to work. Southbound flows from the Mainland to Hong Kong through the Stock Connect schemes rose by 128 per cent last year. 34. The volume of capital flowing from the Mainland into Hong Kong is set to grow further. Very soon, we will be launching a Wealth Management Connect scheme.
When you put them all together and it runs like clockwork, you have a powerful ecosystem that would be very hard to replace. This kind of infrastructure is so sticky that it’s “hard to move” – to quote a senior executive at a leading global asset manager, who just reaffirmed that Hong Kong will remain their one and only Asian hub. 21. Because our system functions so smoothly, even under stress, it’s easy for people to take it for granted. At the HKMA, we can never do that. As a market facilitator, we are always looking for new opportunities for our financial sector. And, as a supervisor, we are constantly working to create policy headroom so that market players can seize those opportunities. Opportunity — China 22. As we speak of opportunity, the future of finance – from Hong Kong’s perspective – can be summed up in three words: China, green and technology. 2/5  BIS central bankers' speeches  23. By China, I mean connecting the Mainland and international financial markets via Hong Kong. Hong Kong is the only gateway of its kind to the Mainland’s capital markets. Only Hong Kong can play this role – because of a combination of advantages that only Hong Kong has. 24. We are part of China, supporting the country’s economic development for more than four decades. That’s why the financial infrastructure connecting Hong Kong with the Mainland has continued to grow. And we provide global investors with a familiar, trusted point of access to Mainland markets.