China’s innovation, from technology to pharmaceuticals and new consumer sectors, is set to unlock opportunities in Hong Kong’s capital markets, according to David Liao, HSBC Holdings’ co-chief executive for Asia and the Middle East.
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Investors were more confident about financial markets on the mainland and in Hong Kong thanks to rapid progress across a growing range of industries, Liao said at the bank’s flagship China Conference in Shenzhen on Monday. But they remained “underappreciated” in the global investment landscape, he added.
“China has proven that it is investible and most importantly, indispensable,” he said at the two-day, closed-door conference that attracted 1,000 attendees. Chinese companies account for nearly 28 per cent of global emerging-market funds’ portfolios, up from 22.5 per cent a year earlier, according to an HSBC survey of nearly 300 such funds.
China’s artificial intelligence research has shown the power of private-sector innovation, which surprised many people around the world, he added.
“It testified to both international investors and even domestic policymakers that the private sector can deliver on strategic goals quickly and efficiently,” he said.
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In Alibaba Group Holding’s fiscal first quarter that ended in June, robust AI demand helped revenue to rise 26 per cent from a year earlier to 33.4 billion yuan (US$4.7 billion) at the company’s cloud computing unit. Shares of Alibaba, owner of the Post, closed 18.5 per cent higher at HK$137.10 on Monday.
“Step outside, and you can see an electric-vehicle future today,” Liao said. “Above you, drones are delivering packages; in hotels, robots deliver room service.”
