In SAFE hands: China’s secret plan for a US$1 trillion reserves fund in Hong Kong
Cheng Hao, the man involved in the rescue of China’s 2015 market crash, runs what is the world’s third largest wealth fund in Hong Kong
Halfway up a 37-storey tower overlooking Hong Kong’s Victoria Harbour, within walking distance from the People’s Liberation Army barracks and the classy Hong Kong Club, sits an unassuming office of a fund manager with an outsize role in the global financial markets.
That statement provoked more questions than answers, with analysts, academics and lawmakers quizzing officials on the amount, rationale, strategy and timing behind that financial support.
Xia Chun, the chief economist at SSC Research Institute in Hong Kong, estimates that about 16 per cent of China’s foreign exchange reserves are kept in Hong Kong. A “substantial increase”, as hinted by PBOC, could mean almost tripling that allocation over the long run, he said.
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