Mainland Chinese financial firms seeking strategic Hong Kong headquarters on the rise: Citigroup
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A rising variety of mainland Chinese language monetary establishments and worldwide corporations have proven curiosity in establishing regional headquarters in Hong Kong to faucet into rising enterprise alternatives throughout the area, based on the pinnacle of Citigroup‘s native unit.
Aveline San Pau-len, Citi Hong Kong CEO and head of banking, stated many mainland banks and worldwide monetary establishments would really like Citigroup to assist arrange their headquarters within the metropolis to serve shoppers who wished to develop globally.
“Mainland lenders and Citigroup Hong Kong should not opponents; [rather] we’re companions,” San stated in a current unique interview with the Put up. “We’re the bankers of those mainland banks and monetary establishments, supporting their enterprise enlargement plans into Hong Kong and abroad markets.”
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She stated Citigroup “has a bodily presence in 94 markets” and that a lot of its “banking and company shoppers would really like us to assist them go world, as we now have the networks and expertise to serve them”.
Many worldwide corporations from the US and different areas favour Hong Kong as a gateway to entry mainland China and the broader Asian market, based on Citi Hong Kong CEO Aveline San. Picture: Solar Yeung alt=Many worldwide corporations from the US and different areas favour Hong Kong as a gateway to entry mainland China and the broader Asian market, based on Citi Hong Kong CEO Aveline San. Picture: Solar Yeung>
As a world monetary centre, Hong Kong was a great springboard for a lot of mainland monetary establishments, fintechstart-ups and varied corporations to develop into different markets, based on San.
Attracting extra mainland and worldwide monetary establishments to arrange regional headquarters in Hong Kong was one of many key measures unveiled by Chief Govt John Lee Ka-chiu in his coverage tackle final month.
Presently, 15 of the 29 globally vital banks have regional headquarters within the metropolis, based on the Hong Kong Monetary Authority.
The Hong Kong authorities had launched many measures, like tax advantages, to assist mainland companies in organising company treasury centres within the metropolis. Energetic capital markets within the metropolis additionally allowed these corporations to boost funds by shares or bonds, San stated.
Geopolitical stress lately has led many worldwide companies to diversify their provide chains, manufacturing strains and markets, based on Tom Chan Pak-lam, the everlasting honorary president of the Institute of Securities Dealers, an business physique. “Hong Kong is a secure haven for these corporations to develop into mainland China or different Asian markets,” Chan stated.
Towards that backdrop, Citigroup’s Hong Kong company shoppers in search of to develop into Latin America or different Asian markets may leverage the group’s models in these areas, as they possessed the native information and networks wanted to assist their development, San stated.
Many worldwide corporations from the US and different areas additionally favoured Hong Kong as a gateway to entry the mainland and the broader Asian market, she added.
Aveline San, Citi Hong Kong CEO and head of banking. Picture: Edmond So alt=Aveline San, Citi Hong Kong CEO and head of banking. Picture: Edmond So>
After these corporations arrange their regional headquarters in Hong Kong, San identified that the following step could be for his or her house owners to capitalise on the town’s wealth management experience.
“As an alternative of investing in a single asset class or market, our shoppers are more and more searching for worldwide diversification,” she stated.
Revenue earned from the Hong Kong models of mainland companies may very well be invested internationally by capital market platforms in Hong Kong, she stated, noting that the town had a variety of shares, bonds and international alternate merchandise.
“The numerous measures launched by the Hong Kong authorities lately to draw family offices to arrange right here, alongside the numerous measures to advertise new listings and wealth administration providers, [have made] the town extra enticing to those rich worldwide and mainland shoppers,” she stated.
Household places of work are entities established by prosperous households to handle their succession plans, investments and charitable endeavours. Since 2023, the federal government has launched tax advantages, in addition to an funding migration scheme, to draw rich households to arrange their places of work within the metropolis.
The energetic inventory and bond markets have additionally attracted rich shoppers to speculate right here, San stated. The typical day by day buying and selling quantity of the inventory market jumped 132 per cent yr on yr to HK$248.3 billion (US$31.9 billion) within the first eight months of 2025.
Some 66 corporations had raised US$23.27 billion by new listings on the alternate’s essential board within the first 9 months of this yr, based on information from the London Inventory Alternate Group. The Hong Kong inventory alternate is heading in the right direction to regain the initial public offering crown this yr, a title it final held in 2019 earlier than social unrest and the pandemic took a toll in the marketplace.
The problem forward could be in creating and recruiting expertise, based on San.
“The federal government has executed loads on training, however there may be all the time extra to do to coach native expertise – in areas reminiscent of green finance, fintech, digital property and artificial intelligence – to serve these corporations and banks,” she stated. “We see alternatives for Hong Kong to paved the way in fostering an AI-ready workforce.”
