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French banking giant Credit Agricole CIB is committed to using Hong Kong as a base to expand its business in Asia, and those plans will not be affected by Donald Trump's plan to wage a trade war with China, according to its CEO.
"Internationalisation of the yuan, green finance and infrastructure development are the three major themes of development in Hong Kong, which can offer huge opportunities for Credit Agricole CIB as we have strong capability in these areas," Xavier Musca said in an exclusive interview with the Post during a recent visit to the city.
"Asia has a gigantic pool of savings, which is very interesting for Credit Agricole Group as a bank and as an asset management company."
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He said Credit Agricole's expansion plan in Hong Kong and Asia will not be affected by the challenges brought by the re-election of Trump, who has vowed to impose additional tariffs on Chinese goods.
"China, the second most important economy in the world, will continue to grow and will continue to be an open economy," Musca said. "We will not scale down our activities in China or in Asia because of the threat of a trade war."
What appeals to the lender are the many infrastructure projects in the city that need funding, an area the French lender specialises in. The Hong Kong government is currently selling HK$20 billion (US$2.6 billion) in infrastructure retail bonds until December 6 to finance many key infrastructure projects. In mid-October the government raised HK$55 billion from Silver Bonds for the same purpose.
One of the projects is the Northern Metropolis. The Hong Kong government aims to turn 30,000 hectares (74,132 acres) of land near the border with the mainland into an economic engine comprising housing developments and associated infrastructure.
"We have been involved in a number of road and other infrastructure project financing [deals] in Hong Kong and other parts of the world," he said. "We can be of help and share our experience in financing these projects in Hong Kong."
Credit Agricole Group can trace its roots in Hong Kong to 1894, when Banque de l'Indochine opened its first branch in the city, which later became Banque Indosuez after several mergers, and was acquired by Credit Agricole in 1996.
Musca was in Hong Kong in mid-November to attend the summit hosted by the Hong Kong Monetary Authority. On November 20, the group hosted a celebration to mark its 130th anniversary in the city.