RCEP deal, China’s dual circulation strategy to strengthen Hong Kong’s status as international trade, finance hub, Victor Fung says

Name: RCEP: 15 Asia-Pacific countries sign world’s largest free-trade deal
Uploaded: 2020-12-22T00:30:07.000Z
Duration: 3 min 29 s
Description: RCEP: 15 Asia-Pacific countries sign world’s largest free-trade deal

Hong Kong can make good use of its international network and knowledge of global markets to boost role as a leading trade and commerce centre, Fung Group chairman says

RCEP is a huge opportunity for Hong Kong as it signals the beginning of a new era in global trade and will help expand and strengthen supply chains in Asia

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Victor Fung Kwok-king, chairman of Li & Fung, is bullish on Hong Kong’s outlook. Photo: Xiaomei Chen

Peggy Sito

Published: 8:30am, 22 Dec 2020Updated: 8:48am, 22 Dec 2020

Hong Kong has a vital role in international trade and global supply chains as the world’s biggest free-trade deal reinforces Asia’s status as a global trade and consumption force, according to prominent businessman Victor Fung Kwok-king.

The city, which has played key roles in facilitating trade and growth of both China and Asia, can make good use of its international network and knowledge of global markets to strengthen its role as a leading international finance, trade and commerce centre, the chairman of family-owned Fung Group said in an interview with the South China Morning Post. He said the city can also benefit from China’s dual circulation economic strategy.

His vote of confidence comes as Hong Kong’s competitive edge was questioned when Chinese President Xi Jinping in October unveiled a blueprint for building Shenzhen into a trade, finance, and technology hub on the 40th anniversary of Shenzhen’s designation as a special economic zone.

Hong Kong’s financial chief Paul Chan Mo-po warned on Sunday that next year’s budget “would inevitably be in the red” as the government faces an unprecedented budget deficit of HK$300 billion (US$38.7 billion) this year because of the coronavirus pandemic.

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RCEP: 15 Asia-Pacific countries sign world’s largest free-trade deal

“I have been studying Hong Kong’s competitiveness for more than 30 years, I am quite confident in the city’s outlook,” said Fung of the century-old supply chain manager and logistics group. The Fung Group employs 30,000 people globally via its subsidiaries such as Li & Fung, which was taken private and delisted from the Hong Kong stock exchange in May.

Hong Kong has been playing a long-standing role as the orchestrator of regional trade and financial flows, said Fung, adding that this role will be highlighted in the changing economic environment in China and Asia.