In the first instalment of a six-part series about financiers who act as mainland China’s Capital Connectors with the world, UBS Securities’ chairwoman Janice Hu talks about the opportunities and challenges for Hong Kong in its evolution as an international financial hub.
As Beijing recalibrates trade and investment away from the US, Hong Kong is being cast once again as the launch pad for China’s global ambitions.
A surge in cross-border flows between the city and the mainland this year has underscored Hong Kong’s enduring role as China’s financial springboard, according to UBS Securities’ chairwoman Janice Hu.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
“China is showing the world it is open for business as it sets conducive, clear and structured policy standards while upholding control protocols,” Hu said in an interview with the Post. “We need to be a bridge, an agent to make sure the good intentions are understood, and Hong Kong is the ground to realise some of China’s ideas.”
UBS’ China country head said Hong Kong’s advantage was in its ability to act as a proving ground for financial innovation.
Janice Hu, chairwoman of UBS Securities, at the International Commerce Centre in West Kowloon on September 10, 2025. Photo: Sam Tsang alt=Janice Hu, chairwoman of UBS Securities, at the International Commerce Centre in West Kowloon on September 10, 2025. Photo: Sam Tsang>
One example is Jiaxin International Resources’ dual listing in Hong Kong and Astana in August, the first yuan-denominated deal of its kind on the Kazakh exchange.
The Hong Kong leg was enabled by Chapter 18 of the bourse’s listing rules, which permit mineral and petroleum companies to bypass certain financial tests required to raise equity, provided they meet criteria related to resource indication and management experience.
A screen shows Hang Seng Index data at bourse operator Hong Kong Exchanges and Clearing’s Connect Hall in Central on May 20, 2025. Photo: Sun Yeung alt=A screen shows Hang Seng Index data at bourse operator Hong Kong Exchanges and Clearing’s Connect Hall in Central on May 20, 2025. Photo: Sun Yeung>
The transaction also underlined Hong Kong’s role in the Belt and Road Initiative, providing a direct equity bridge between China and Central Asia that is not available through Shanghai or Shenzhen.
The city has also rolled out frameworks for digital assets, from licensing stablecoin issuers to exploring the tokenisation of real-world assets – initiatives closely watched across the border even as Beijing treads cautiously.
Another recent innovation has been Hong Kong’s dual-currency counters, which allow investors to trade the same shares in both Hong Kong dollars and yuan. Unlike onshore China’s ill-starred A and B shares, these counters are fully fungible, giving investors greater flexibility.
A so-called roll-on/roll-off (roro) vessel for carrying automobiles, the Anji, at Yantai port in eastern China’s Shandong province on September 21, 2025. Photo: Costfoto/NurPhoto via Getty Images alt=A so-called roll-on/roll-off (roro) vessel for carrying automobiles, the Anji, at Yantai port in eastern China’s Shandong province on September 21, 2025. Photo: Costfoto/NurPhoto via Getty Images>
Together, these mechanisms show how Hong Kong is being positioned not just as a conduit for mainland capital, but as a test bed for financial experiments that may not be feasible onshore.
These fundamental shifts come as China actively diversifies its trade links away from the US and towards Southeast Asia and other emerging markets along the Belt and Road Initiative.
Exports to Asean countries accounted for 17.7 per cent of total foreign trade in August, up 14.6 per cent on the previous year, while exports to the US slid 15.5 per cent to an 11.5 per cent share, official Chinese data showed.
Apple’s booth during the third China International Supply Chain Expo (CISCE) in Beijing on July 18, 2025. Photo: Xinhua alt=Apple’s booth during the third China International Supply Chain Expo (CISCE) in Beijing on July 18, 2025. Photo: Xinhua>
China’s supply-chain restructuring was also strengthening intraregional connectivity, Hu said, with China providing capital goods, India offering low-cost labour and Australia supplying commodities.
“They need a common ground in Asia – and Hong Kong is a natural financial hub for these activities,” she said.
With capital controls limiting flows on the mainland, Hu described Hong Kong as a “natural outlet” for belt and road-related transactions.
A view of the Grand Ethiopian Renaissance Dam (GERD) during its official inauguration ceremony in Guba on September 9, 2025. Photo: AFP alt=A view of the Grand Ethiopian Renaissance Dam (GERD) during its official inauguration ceremony in Guba on September 9, 2025. Photo: AFP>
For the Swiss banking giant, the recent record-breaking market rally of mainland and Hong Kong stocks – which followed US-China trade and tariff tensions that peaked in April – has shown the benefits of maintaining a long and steadfast presence in China.
Hu, who is based in Beijing, became UBS’s China head last year after its takeover of Credit Suisse, where she had spent more than two decades.
“Cross-border connectivity is in our DNA and has been one of our key differentiators,” she said. “We’ve been in mainland China for over 35 years and in Hong Kong for more than 60 years, building up our experience, expertise and trusted relationships with clients, partners and regulators.”
Deepseek v3.1 on a smartphone screen in Chania, Greece, on August 24, 2025. Photo: NurPhoto via Getty Images alt=Deepseek v3.1 on a smartphone screen in Chania, Greece, on August 24, 2025. Photo: NurPhoto via Getty Images>
Chinese assets have regained appeal, meanwhile, on the back of Beijing’s stimulus measures, the DeepSeek moment of China’s AI breakthroughs and growing sentiment around de-dollarisation.
Trading activity under the Stock Connect programme has surged, with northbound turnover tripling and southbound turnover rising more than fivefold in August from a year earlier, according to exchange data.
UBS Securities, the bank’s mainland brokerage, reported record volumes last month, more than doubling from a year ago in a rally that has been running hot since June.
The listing ceremony for the first Saudi government sukuk exchange-traded fund (ETF) in Hong Kong on May 29, 2025 at the Connect Hall of the Hong Kong Stock Exchange. Photo: Enoch Yiu alt=The listing ceremony for the first Saudi government sukuk exchange-traded fund (ETF) in Hong Kong on May 29, 2025 at the Connect Hall of the Hong Kong Stock Exchange. Photo: Enoch Yiu>
Foreign investors have also been drawn to China’s exchange-traded funds (ETFs), driven by diversification strategies and Beijing’s continued policy support. UBS said client allocations to Chinese ETFs rose 20 per cent in the first half compared with a year earlier.
Hong Kong’s primary and secondary stock markets are reviving as Chinese companies return en masse. Of the almost 60 IPOs in Hong Kong this year, the majority were mainland firms, with around 200 more awaiting approval.
In April 2024, Beijing moved to cement Hong Kong’s role as an international finance centre when the China Securities Regulatory Commission unveiled five measures designed to deepen connectivity and broaden the city’s product base.
Wu Qing, chairman of the China Securities Regulatory Commission. Photo: SCIO alt=Wu Qing, chairman of the China Securities Regulatory Commission. Photo: SCIO>
The new measures underscored Beijing’s commitment to entrenching Hong Kong’s unique role: a marketplace that can absorb new products, support renminbi internationalisation and provide mainland champions with an international stage.
“Hong Kong is like a home base away from the mainland for many entrepreneurs,” Hu said. Beyond the big cities, however, China’s economic vitality was still rooted in its grass roots, with its top 60 counties alone contributing 7.6 per cent of GDP, Hu said.
“The Chinese government and the Hong Kong SAR government will implement conducive policies to foster success and enhance intra- and inter-regional connectivity and growth.”
Looking ahead, Hu highlighted wealth management as a focus, particularly in the Greater Bay Area.
“Our goal is to be the go-to bank in the Greater Bay Area for wealth, leveraging our Hong Kong hub,” she said. “The city is well positioned in finance, technology and innovation – from blockchain to AI – as well as in talent, to deepen connectivity.”
ContentsHigh stakes, low expectationsEurope must commit CNBC’s Jim Cramer on Friday guided investors through next week’s market action, specifically the…
ContentsHigh stakes, low expectationsEurope must commit Elliott Investment Management has acquired a substantial stake in Barrick Mining, reported Reuters, citing…
