Hong Kong chief executive CY Leung on Wednesday invited Indian companies to raise funds from the international financial centre through the issue of Renminbi bonds and offered to “help finance India’s future, in infrastructure and much more”.
“Indian companies are particularly welcome to make use of our Renminbi bonds. To date, seven banks and corporations from India have issued Renminbi bonds in Hong Kong. Our Renminbi status will soon become even more visible, thanks to the International Monetary Fund’s recent decision to include the Renminbi in its Special Drawing Rights basket, beginning in October,” Leung said in Mumbai.
The HK Chief Executive stated that it has the expertise and capacity to arrange a diverse range of fund-raising options, including syndicated loans. “I know that India’s plans for infrastructure investment are huge, with $ 1 trillion earmarked as part of the country’s 2012-2017 Five-Year Plan. What does Hong Kong have to offer Indian companies? To start with, investment capital,” he said.
“Few economies attract more foreign direct investment or make more FDI available than Hong Kong. Indeed, in 2014, Hong Kong ranked second, internationally, in the FDI it drew; we also placed second in FDI outflow,” he said. Last year, too, Hong Kong ranked first globally, in initial public offerings raised. “Other than financial services, I know that infrastructure development such as railways, roads and transport are also among India’s priorities,” Leung said.
Leung said, “the Indian Chamber of Commerce in Hong Kong opened for business in 1952, and that’s a bit older than I am. Today, it counts some 600 members. And many of India’s leading companies maintain offices in Hong Kong.” Overall, there are around 1,500 Indian companies in Hong Kong in fields such as investment finance, banking, industries, information technology.
“Between 2010 and 2014, the average annual growth in our bilateral trade came in at 7 per cent. In 2014, our trade grew by nearly 12 per cent. In merchandise trade, India was Hong Kong’s seventh largest trading partner, while Hong Kong was India’s eighth largest in 2014,” he said. “I’m confident these good results will become better results down the road.”