Mainland Banks Branch out to Hong Kong
Research from real estate services firm JLL has found that as some of the larger Western banks downsize their Hong Kong operations by relocating from their Central offices, space in the prime office market is quickly being filled by the growth of Chinese mainland financial institutions. “With the steady growth of mainland institutions, we believe that the industry could potentially add a further 55,000 headcount over the next 10 years, which could translate into as much as five million square feet of office floor space demand,” according to the JLL report. The financial services sector, including insurance, is the second-largest contributor to Hong Kong’s GDP, accounting for 17.6 per cent in 2015. But in recent years, revenue at the world’s largest banks has been affected by stagnant economic growth and ultra-low interest rates.