China CITIC Bank International has launched the quarterly CNCBI Cross-border Banking Demand Index – Hong Kong’s first quarterly leading index that unveils the changes in Hong Kong’s banking service demand from companies and individuals from mainland China.
The 1Q2014 index stands at 63.6, which is well above the threshold of 50 and indicates that mainland demand for Hong Kong’s cross-border banking service sores significantly.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Mr. Zhang Xiaowei, President and Chief Executive Officer, CNCBI, says that the Bank has always been at the forefront of cross-border business development and that it has been successful in pioneering new corporate banking, personal banking as well as treasury products and services.
The launch of the Index stands testimony to the Bank’s determination and capability in cross-border business development. It also aims at providing the Hong Kong public a reference and fostering the prosperity of Hong Kong’s cross-border banking business.
The 1Q2014 CNCBI Cross-border Banking Demand Index stands at 63.6, while the Corporate Demand Index and Individuals Demand Index are 62.6 and 69.4.
Dr. Liao Qun, Chief Economist and General Manager of Research Department, CNCBI, points out, all these indices were above the 50-mark threshold. This suggests that 1Q2014 demand for Hong Kong’s banking service from mainland companies and individuals from across the border is noticeably stronger than the previous quarter.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDr. Liao said: "The companies polled revealed stronger interest in settlement & cash management services, currency transactions, asset management & financial consultancy and loans, with the respective sub-indices hitting 65 or above. The stronger momentum of RMB internationalisation and resultantly faster development of RMB business in Hong Kong, an accelerating growth in mainland companies’ outbound investments, and tighter liquidity in the mainland banking market from time to time as a result of a change in the PBOC’s liquidity management strategy, are believed to underpin the strengthening corporate demand."
The findings reveal there are two common factors for the cross-border demand upsurge with the first being confidence in Hong Kong’s banking service, and the second confidence in the prospects of business or of Hong Kong.
