'Hong Kong can be yuan's largest offshore trading center'
Updated: 2008-01-02 07:17
(HK Edition)
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Standing at the traditional entry point for investors across the world onto the Chinese mainland and the first step out for mainland businesses, Hong Kong is in a prime position to become the largest offshore trading center of the yuan, just as London is to the euro.
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Benjamin Hung, CEO of Standard Chartered Bank Hong Kong Edmond Tang |
That will perfectly fit the city's role as a hub of multi-lateral investment and trade in the Asia region, says Benjamin Hung, the new chief of Standard Chartered Bank Hong Kong.
The mainland has huge wealth and liquidity to invest overseas, while regions like the Middle East and Africa look to tap into the mainland's lucrative market. "We can either reach out to facilitate a connection between these trade flows and serve as a platform, or we can close the door and miss out on the opportunities altogether," Hung says.
Becoming the second Chinese CEO for the bank, Hung is optimistic that enormous business opportunities exist for Hong Kong, if the territory successfully utilizes its geographical advantage in being at the crossroads of booming economies like the Chinese mainland, India, Middle East and Africa.
"This is the sweet spot right here," says a confident Hung, who took over from Peter Suillivan, the recently retired CEO after 13 years of service with the bank.
Huang says despite negative real interest rates, climbing asset prices and rising inflation, the development of the territory's banking sector remains positive.
"The bank hired 600 employees in 2007 and is planning to open five to 10 branches more to capture the overall dynamic," he says.
Hung believes it is easy to sit in the ivory tower and be oblivious to what is happening on the ground, while conversely it is also easy to focus too much on the ground and lose sight of the big picture. "That is why it is crucial to manage both the macro and micro picture in mind," he says.
On introspection, the new CEO said the SARS outbreak was one of the most challenging moments in his career. The epidemic made him realize there are no set formulas in the world of business, and everyday can present different challenges.
"As a banker you see economic cycles. However, when a pandemic breaks out, there is nothing a banker can do to control it," he said recalling the decision to close down the bank's Amoy Garden branch following the news that the residential estate was quarantined due to the SARS outbreak.
"You need to take care of your customers and your staff," Hung says. "We lost revenue and profits. But we should make profits with principle. How you make money is as important as how much you make."
As a strong advocate of corporate social responsibility (CSR), Hung believes fostering a good working environment is the key to success. "It is a vicious cycle," Hung says. "If the business environment is good, business will be good." Besides the CSR, the concept of life-work balance is also something that Hung seeks to instill in his staff.
Spearheading the "1900" campaign to encourage employees to leave the office by 7 pm, Hung believes Hong Kong has much to learn from other big cities to strike the fine balance between career and quality of life.
"Don't get me wrong, the work ethic in Hong Kong is perfect," adds the banker promptly. "What I tell my staff is if you need to use your head, it needs rest, too."
As the business head of one of the three currency-issuing banks in Hong Kong, Hung says maintaining a high EQ is the key to successful leadership.
What does the business honcho do to combat work stress?
"Golf, books and family short trips..." he says.
However, the new responsibility will not stand in the way of his search for self-improvement. "My constant self-dissatisfaction will prompt me to look for ways to contribute more," Hung says.
(HK Edition 01/02/2008 page1)