Hong Kong ideal to host infrastructure bank, says JP Morgan chief
JP Morgan's Fang Fang says the city is perfect for the head office of an Asian infrastructure bank the Chinese president is keen to launch
The Hong Kong government should grab the opportunity to make the city the home for the new Asian infrastructure investment bank proposed by President Xi Jinping during his trip to Southeast Asia last week, says a top banker and influential political adviser to Beijing.
Xi made the surprise proposal at his meeting with Indonesian President Dr Susilo Bambang Yudhoyono on October 2, saying Asia should have an infrastructure-dedicated bank to "promote interconnectivity and economic integration in the region".
He also said Beijing would be happy to take the lead in offering financial support to establish such a new regional bank.
China has more than US$3 trillion in foreign exchange reserves, the world's largest, and it is the No 1 holder of United States government debt, although Beijing is keen to reduce the size of its foreign reserves by diversifying its investments worldwide.
Xi did not say where he thought the new bank should be headquartered. However, political and economic analysts were quick to name Singapore, Kuala Lumpur in Malaysia, Beijing and Shanghai as possible candidates.
Fang Fang, chief executive of investment banking for JP Morgan in China, told the South China Morning Post Hong Kong would be the best location.