Ian Russell of Canada's Investment Industry Association is very impressed by Hong Kong

Canadian investors can leverage Hong Kong as "a conduit for capital" to Greater China and Asia, according to Ian Russell, President and CEO of the Investment Industry Association of Canada.

Visiting Hong Kong recently to attend the World SME Expo, Mr Russell announced plans to mount a high level mission to Hong Kong soon, aiming to take advantage of the city's role as a financial entrepot.

He said the growth of China and the Far East provides some very attractive investment opportunities for Canadians, which they can best tap by utilising Hong Kong's expertise.

Outlining the synergies, Mr Russell said many Canadian firms offer institutional expertise to help companies find capital and structure their financing, particularly on the equity side, and experience in dealing with SMEs (small and medium-sized enterprises)

"To really capitalise on that, you have to do it through Hong Kong," he said.

Understanding the market

In the past, Mr Russell said, Canadian firms had "awareness issues" and scepticism about investing in China, a market they didn't understand. That's why it's so important to operate through Hong Kong, partnering with a local partner who can provide reliable, on the ground research.

On the integrity issue, he said companies that have listed on the Hong Kong stock exchange have gone through disclosure standards and quality control. Investing in H-listed shares comes with "a good housekeeping seal of approval", which is another reason to go through Hong Kong.

Mr Russell also forecast a greater relationship between Hong Kong and the Chinese mainland, with an arbitrage between the Hong Kong, Shenzhen and Shanghai bourses as "a logical financial transaction to engage in." One of the key objectives of his trip was to set the stage for developing a relationship between Canadian investors and Hong Kong stock brokers, both for access to research and the execution of stocks.

World SME Expo truly global

On World SME Expo, Mr Russell said he was "very impressed" by the number of participating companies, noting that the expo was "truly global", with large delegations from Europe, the Middle East and Chinese mainland.

The wide array of businesses represented, not just in the traditional knowledge-based high tech or computer-based industries, but in areas such as logistics and the environment, "gives a lot of hope for the future of small business."

HK's "conduit for capital" to assist Canadian investors