Apart from being the quintessential world marketplace, Hong Kong is a gateway to the markets of China and the Asia-Pacific region says a senior executive of the New York-based Sterling National Bank, which recently set up a base in Hong Kong.

Michael Scheller, who is senior vice-president (international trade finance division) of Sterling National Bank and president of Sterling National Asia Limited, said Hong Kong was an obvious choice for Sterling as it assessed the value of locating a business office in a foreign market and more specifically in Asia.

“Consideration was given to the favourable treatment of foreign business entities in Hong Kong, its proximity to other areas of business concentrations, highly-skilled labour force and overall reputation as a centre of world trade.”

Aside from the synergies that Hong Kong’s banking and financial sectors generate, Sterling’s desire to set up a base in Hong Kong was prompted by the fact that the cost of transaction processing is significantly less in Hong Kong than it is in New York, allowing the bank to offer its services at more competitive prices. “This enables us to reduce expenses while continuing to provide personal service to our customers,” added Mr Scheller.

With Hong Kong being a special administrative region of China, which was recently admitted as a member of the World Trade Organisation (WTO), Mr Scheller sees great business opportunities unfolding in the future. “More and more we see one country with two economies moving steadfastly in the direction of the open economy of Hong Kong.”