The Hong Kong capital channel
CHINA ADVISORY
- Report
11 Jul 2019
by Andrew Collier
Hong Kong is an important center for China’s financial expansion, globalization of the RMB, and trade relations. It is also a center for illegal capital flows and management of the strength of the currency through state proxies. Here we look at Hong Kong’s banking to understand its global lending patterns along with its role in the CNY. We suspect that China is using Hong Kong as a conduit for its external RMB and US dollar business. The data here indicates the potential pools of capital for such uses. The retreat by the Hong Kong government for support for an extradition treaty reflected the opposition among business interests concerned about their capital.
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