Hong Kong urged to be genuine fund management hub
BlackRock's regional chairman says city needs to accelerate reforms in order to keep capital and turn saving culture into investment culture
BlackRock, the world's biggest money manager, says Hong Kong needs to speed up its development as a fund management hub for Asia so that global capital can be retained and contribute to the region's economic growth.
"Policymakers should develop Hong Kong as a genuine fund management hub rather than an asset management centre per se," Mark McCombe, BlackRock's Asia-Pacific chairman, said at the annual conference of the Hong Kong Management Association yesterday.
"There is an absolute hole in Asia, in which you can create a cradle where capital feels very comfortable."
The former HSBC Hong Kong chief executive said efforts should be made to turn a saving culture into an investment culture. Most Asian residents' capital was being held in deposits that did not generate any interest, causing a stagnation of capital, the flow of which was so necessary for economic growth.
McCombe, who joined New York-headquartered BlackRock last year, said: "It is not only about managing money. In markets like London and New York, their industries are broad, deep and wide in their custodianship, legal framework, different types of vehicles and structures, which allow investment managers to become established.
"Make sure that Hong Kong is watching what's going on in the world. Don't be afraid to copy in a competitive environment, [where you need to be] aggressive."