Global banks have reportedly expressed little concerns about geopolitical uncertainties in China, reiterating confidence in the long-term business prospects in the region.
HSBC, Standard Chartered, Citi and Credit Suisse all expressed confidence in China's long-term outlook despite ongoing headwinds.
Foreign businesses in Hong Kong remain cautious over the national security law while Beijing is cracking down on Chinese companies seeking foreign listings.
Long-Term Unchanged
According to Credit Suisse chief executive Thomas Gottstein, recent events create «a less predictable short-term situation» but the bank expects «very strong and robust economic development not only in China, but in Asia, that we consider to be very attractive for our business models».
Citigroup chief financial officer Mark Mason echoed confidence in Asia, adding that China’s crackdown on companies is unlikely to harm the regional business.
APAC pre-tax income for Credit Suisse grew 28 percent to 250 million Swiss francs ($275 million) while Citi’s net revenue in the region stayed flat at $1.57 billion.
Hong Kong Hub
In addition to China, Asia-focused British lenders HSBC and Standard Chartered also expressed confidence in Hong Kong’s hub status.
«We're investing heavily in the market and investing heavily in China and the rest of the region,» said HSBC CFO Ewen Stevenson in a «Bloomberg» interview. «We're very confident about the long-term macro trends in Hong Kong and the rest of Asia.»
"We don't see a structural or fundamental change in terms of the business opportunities for Standard Chartered,” said Standard Chartered CEO Bill Winters during a call with reporters yesterday. «Hong Kong is the place to be if you want to participate in the Chinese capital markets. This is the hub of the Chinese capital markets and I don't think there's going to be any change anytime soon.»
HSBC and Standard Chartered posted pre-tax profits of $6.9 billion (6 percent decrease) and $2.25 billion (41 percent increase), respectively.
