Bankers Pitch Hong Kong as Capital Haven Amid Geopolitical Shifts and 'Asia Buys Asia' Trend

Bank of China President Highlights Hong Kong’s ‘Superconnector’ Role

Hong Kong is positioned to expand its function in helping global investors diversify portfolios as geopolitical uncertainties reshape capital flows and increase demand for alternative markets, according to Bank of China president Zhang Hui. Zhang made these remarks on Tuesday during a panel discussion at the 2026 Global Financial Leaders’ Investment Summit. Zhang described Hong Kong as a “superconnector” that facilitates cross-border asset allocation for financial institutions. He stated that the city serves as the primary choice for Chinese companies expanding overseas and acts as the first stop for foreign businesses investing in China. The city’s status as an international financial center, its connections between mainland China and global markets, and its offshore yuan market contribute to its role as a gateway for cross-border investment. Zhang reported that Hong Kong accounted for more than 75 percent of offshore yuan payment transactions globally. He highlighted the city’s developing commodity trading capabilities and financial innovation as key sources of investor choice.

Yuan Assets Gain Appeal Amid Volatility

Zhang stated that yuan-denominated assets, particularly Chinese government bonds, were becoming increasingly attractive for diversification amid market volatility. He noted their relatively low correlation with European assets and different return profiles compared to US and European markets. According to Zhang, growing liquidity and the relative stability of the yuan exchange rate were building global investor confidence in Chinese assets. He added that Hong Kong’s dim sum bond market offered access to yuan-denominated products at relatively low financing costs.

HSBC CEO Notes Shift Toward ‘Asia Buys Asia’

The remarks were made during the three-day 2026 Global Financial Leaders’ Investment Summit, organized by the Hong Kong Monetary Authority, which brought together more than 280 global financial leaders, including about 120 group chairpersons and CEOs. HSBC CEO Georges Elhedery said trade and investment flows were increasingly shifting toward opportunities within Asia and the Middle East rather than traditionally favored Western markets. Elhedery characterized geographic diversification as “Asia buys Asia,” noting that ASEAN had overtaken the US and Europe to become China’s largest trading partner. Elhedery highlighted gold as a diversification tool and hedge against long-term inflation, stating that HSBC was expanding its gold business in Hong Kong with plans for vault storage capacity of up to 150 tonnes.