New | John Tsang says HK ideal for infrastructure fund raising hub; highlights city’s ability to cope with deepening financial risks

Global markets are at a critical juncture as the uncertainties linked to Brexit and other economic problems threaten a “perfect storm”, according to Hong Kong Financial Secretary John Tsang Chun-wah, who sought to reassure that Hong Kong could cope with the challenges and remain a viable hub for infrastructure fund raising.

In a keynote speech at the Boao Forum on Tuesday, Tsang recounted the mounting risks to financial markets in the wake of Britain’s referendum vote to leave the European Union.

“The Brexit and the worries over the US interest rate hikes and the pace of economic recovery of Japan and Euro zone, the ingredients for a global economic perfect storm are there,” he said.

He warned the uncertainties would last for the next few years when Britain would negotiate with the EU on leaving terms.

Tsang noted that Asia has maintained economic growth momentum despite the 2008 financial crisis, adding that the region remains on track to achieve 6.3 per cent GDP growth per year due to the rising middle class, advanced technology development in Japan and South Korea and abundant low-cost labour markets in Cambodia and Bangladesh.

“Hong Kong, located at the heart of Asia, is well positioned to capture the business opportunities from the Asian growth,” Tsang said.