William Rhodes believes there are many opportunities for strengthening HK - US business relations

Hong Kong can excel as a centre for financial services, tourism, entertainment and education, and these are areas with important strengths and commercial ties to the US, according to senior vice chairman of Citigroup, William Rhodes. Mr Rhodes is also chairman of the US section of the HK – US Business Council.

Speaking at an American Chamber of Commerce breakfast meeting in Hong Kong, Mr Rhodes said that Hong Kong’s comparative advantages have created an environment particularly well suited for the expansion of the service sector.

“Citigroup enjoys a robust and expanding business in Hong Kong, and is committed to maintaining a prosperous and competitive Hong Kong,” said Mr Rhodes. 

“Hong Kong stands to benefit from the mainland’s huge demand for international financial services. We have the region’s strongest bond market but there is still a lot of room to grow,” said Mr Rhodes. “To develop further, Hong Kong needs to sharply increase the volume of bond issues and attract more investors. The Hong Kong Government’s plan for Hong Kong’s bond market development is a small step in the right direction <more about the Government bond market plan>”

Mr Rhodes added that Hong Kong has a strong financial services underpinning, it is also an attractive centre for culture and recreation for tourists from the region and beyond.

“Hong Kong has great potential in various kinds of tourism eg. business tourism linked with exhibitions and conferences and family, ecological and cultural tourism. With Disneyland opening in 2004 and the new attractions at Ocean Park, this potential is set to increase even more,” said Mr Rhodes.

Mr Rhodes said that education services are another important resource of Hong Kong.  “Strengthening financial and management education will help grow Hong Kong’s market share in regional financial services potential as an education hub. These points are all areas of overlapping interest between the US and Hong Kong.

“For many US companies, Hong Kong will continue to be a place where they can profitably invest in the expanding service sector and leverage these investments for regional operations,” said Mr Rhodes. He added that Cepa had greatly enhanced Hong Kong’s appeal.

“Cepa provides Hong Kong services firms with an important head start over foreign competitors, and reinforces Hong Kong’s desired position as the value added services centre for the Greater Pearl River Delta,” said Mr Rhodes.