The many ways companies in Hong Kong and the mainland can collaborate to capture opportunities created by globalisation, innovation and entrepreneurship were the main topics of discussion during a prestigious panel discussion at the second China Europe International Business School (CEIBS) Hong Kong Forum 2017.
Organised by the CEIBS Alumni Association Hong Kong and Macao Chapter, more than 400 participants heard insights from academics, financial experts and industrial elites how "mass entrepreneurship and innovation" and "Internet plus" concepts are contributing to the mainland's emerging industries and new economic developments. Forum delegates also heard about the broader challenges faced by a country still in transition and how Hong Kong's well-established capital market, open trade and investment climate and international business networks can play a collaborating role between Hong Kong and the mainland's rapidly expanding innovation-led companies.
In his keynote presentation, former Industrial and Commercial Bank of China (ICBC) chairman and current CEIBS professor Jiang Jianqing cautioned that political and economic uncertainties related to trade protectionism, political disputes in Europe over economic strategies and a push back against globalisation in certain countries pose a risk to global trade and economics.
"We should be aware of the risks, which are likely to be a long-term trend, and be fully prepared for difficult events over the next few years," said Jiang, who added that China's banking industry, like the global banking sector, has not yet fully recovered from the impact of the 2008 global financial crisis. Jiang also outlined how the mainland's banking sector needs to respond to changing consumer behaviour and competition from third-party online payment enterprises, new business models and disruptive technologies, which are challenging the roles traditionally dominated by banks.
Citing the example of third-party mobile payments, Jiang said in 2016, mobile payment transactions reached 3.8 trillion renminbi (RMB). To remain competitive, Jiang said banks will need to continue enhancing their three core areas of competitiveness: a mature credit system and strong reputation for credibility, high-quality financial data, along with expertise in asset transformation and risk management. "Some banks still operate with a traditional mindset, but this needs to change," said the adjunct CEIBS professor of finance and director of CEIBS Lujiazui Institute of International Finance, a highly regarded think tank.
In his welcome address, Dr Snow Zhou, CEIBS assistant president and member of the management committee said amid a shifting global political, economic and technological landscape, the mainland and Hong Kong should be open to change and transformation.
"Transformation doesn't mean there's a need for panic, it can also pave the way for opportunities and raise the potential to rethink ways of doing things," he said. CEIBS embraces the concept of internationalisation and new thinking through its "China Depth and Global Breadth" teaching strategy which enables students to understand China in the context of a global economy.
