HSBC Group Chairman Sir John Bond says he is confident about Hong Kong's future

Speaking at a dinner hosted by the Hong Kong Association of Banks, Sir John said, "I cannot see anywhere else in the world better equipped to address an exciting future as Asia, and China in particular, flex their economic muscles with Hong Kong at their heart."

Sir John said Hong Kong's ability to adapt and change had given it a competitive edge in Asia and that recent developments supported a successful future.

"I am very confident about Hong Kong's future," he said, adding that lower labour costs, robust business services exports, new provisions on renminbi deposits and fewer restrictions on visitors from the mainland, had all boosted Hong Kong's competitiveness.

However, Sir John cautioned against expecting boom years in Hong Kong, saying that Hong Kong had reached a new stage of development. "We need to understand that it would be wholly unrealistic to expect the future to be like the past," said Sir John.

"Now that Hong Kong is one of the world's most affluent communities, it is clear that this type of growth cannot be repeated. It is natural for economic growth, in what is now a mature economy, to be lower than in a developing economy," he said.

Hong Kong well positioned to focus on high-end financial services

Sir John said the next phase of Hong Kong's development should include "attracting wealth from around the world in the form of funds management, private banking, all forms of investment savings."

"I believe that it was an excellent move for Hong Kong to allow residency based on an individual's investible funds; the economic benefits of attracting wealthy, talented people are overwhelming."

Sir John compared Hong Kong to Switzerland. "When I think about the future of Hong Kong, my mind doesn't do the conventional analysis with Singapore or Shanghai; it tends to stray to Switzerland."

He said both places service a major hinterland and enjoy a standard of living that exceeds that of their hinterland. "Of course you have to give Hong Kong the edge here as a sovereign part of the world's fastest-growing economy," he added.

Full text of speech here.