A growing number of mainland Chinese financial institutions and international companies have shown interest in establishing regional headquarters in Hong Kong to tap into increasing business opportunities across the region, according to the head of Citigroup‘s local unit.
Aveline San Pau-len, Citi Hong Kong CEO and head of banking, said many mainland banks and international financial institutions would like Citigroup to help set up their headquarters in the city to serve clients who wanted to expand globally.
“Mainland lenders and Citigroup Hong Kong are not competitors; [rather] we are partners,” San said in a recent exclusive interview with the Post. “We are the bankers of these mainland banks and financial institutions, supporting their business expansion plans into Hong Kong and overseas markets.”
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She said Citigroup “has a physical presence in 94 markets” and that many of its “banking and corporate clients would like us to help them go global, as we have the networks and talent to serve them”.
Many international companies from the US and other regions favour Hong Kong as a gateway to access mainland China and the broader Asian market, according to Citi Hong Kong CEO Aveline San. Photo: Sun Yeung alt=Many international companies from the US and other regions favour Hong Kong as a gateway to access mainland China and the broader Asian market, according to Citi Hong Kong CEO Aveline San. Photo: Sun Yeung>
As an international financial centre, Hong Kong was an ideal springboard for many mainland financial institutions, fintechstart-ups and various companies to expand into other markets, according to San.
Attracting more mainland and international financial institutions to set up regional headquarters in Hong Kong was one of the key measures unveiled by Chief Executive John Lee Ka-chiu in his policy address last month.
Currently, 15 of the 29 globally important banks have regional headquarters in the city, according to the Hong Kong Monetary Authority.
The Hong Kong government had introduced many measures, like tax benefits, to support mainland firms in setting up corporate treasury centres in the city. Active capital markets in the city also allowed these companies to raise funds through shares or bonds, San said.
Geopolitical tension in recent years has led many international firms to diversify their supply chains, production lines and markets, according to Tom Chan Pak-lam, the permanent honorary president of the Institute of Securities Dealers, an industry body. “Hong Kong is a safe haven for these companies to expand into mainland China or other Asian markets,” Chan said.
Against that backdrop, Citigroup’s Hong Kong corporate clients seeking to expand into Latin America or other Asian markets could leverage the group’s units in those regions, as they possessed the local knowledge and networks needed to support their growth, San said.
Many international companies from the US and other regions also favoured Hong Kong as a gateway to access the mainland and the broader Asian market, she added.
Aveline San, Citi Hong Kong CEO and head of banking. Photo: Edmond So alt=Aveline San, Citi Hong Kong CEO and head of banking. Photo: Edmond So>
After these companies set up their regional headquarters in Hong Kong, San pointed out that the next step would be for their owners to capitalise on the city’s wealth management expertise.
“Instead of investing in a single asset class or market, our clients are increasingly looking for international diversification,” she said.
Income earned from the Hong Kong units of mainland firms could be invested internationally through capital market platforms in Hong Kong, she said, noting that the city had a wide range of stocks, bonds and foreign exchange products.
“The many measures introduced by the Hong Kong government in recent years to attract family offices to set up here, alongside the many measures to promote new listings and wealth management services, [have made] the city more attractive to these wealthy international and mainland clients,” she said.
Family offices are entities established by affluent families to manage their succession plans, investments and charitable endeavours. Since 2023, the government has introduced tax benefits, as well as an investment migration scheme, to attract wealthy families to set up their offices in the city.
The active stock and bond markets have also attracted wealthy clients to invest here, San said. The average daily trading volume of the stock market jumped 132 per cent year on year to HK$248.3 billion (US$31.9 billion) in the first eight months of 2025.
Some 66 companies had raised US$23.27 billion through new listings on the exchange’s main board in the first nine months of this year, according to data from the London Stock Exchange Group. The Hong Kong stock exchange is on course to regain the initial public offering crown this year, a title it last held in 2019 before social unrest and the pandemic took a toll on the market.
The challenge ahead would be in developing and recruiting talent, according to San.
“The government has done a lot on education, but there is always more to do to train local talent – in areas such as green finance, fintech, digital assets and artificial intelligence – to serve these companies and banks,” she said. “We see opportunities for Hong Kong to lead the way in fostering an AI-ready workforce.”
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