Crédit Agricole Group in Hong Kong
One hundred and thirty years ago, by a decree dated 30 March 1894, the French authorities gave Banque de l’Indochine permission to open a branch in Hong Kong, which was then a British territory. This location would become a significant source of growth for the bank. In 1974, Crédit Lyonnais established its presence with its asset management subsidiary. Currently, the Group is present in Hong Kong through Crédit Agricole CIB for corporate and investment banking (CIB), Amundi in asset management and a CA Indosuez (Switzerland) SA branch office handling Wealth Management.
A major financial centre and a rapprochement with mainland China
The Hong Kong economy continues to be impacted by the Covid-19 crisis and growing integration with mainland China.
Growth is expected to be around 2.5% in 2024, a performance below expectations due to difficulties in the real estate sector (commercial and office in particular). Consumption (hotels, tourism, shopping centres), which had largely supported Hong Kong's growth before Covid, is also penalised by the decline in tourist flows, particularly from China. However, the region remains a highly competitive global financial centre (3rd in the Global Financial Centres Index, 30% of international bond issues from Asia, 2nd in the Asian foreign exchange market, and 4th in the world). Hong Kong has become a major financial centre on the continent (75% of the world’s 100 largest banks and 70% of the top 100 asset managers are represented), and the financial sector accounts for 22% of its GDP.
This success was largely based on the special status that the Special Administrative Region (SAR) had obtained for 50 years after its rapprochement with the People's Republic of China in 1997. This status implied two peculiarities: the Common Law, a legal system derived from English law, and an exchange rate system guaranteeing the Hong Kong dollar a quasi-fixed parity with the US dollar. However, this status has been undermined by the gradual absorption of Hong Kong by mainland China, manifested by the adoption of the National Security Law and the rollback of individual freedoms in the territory.
Benchmarks 2024
Population: 7.5 million
GDP: : $50,700/head
Growth forecast: 2.5% in 2024
2% inflation in 2024
Crédit Agricole Group in Hong Kong
Crédit Agricole was one of the first European banks to operate in the Asia-Pacific region and Hong Kong in 1894. This location plays a specific role for the Group’s entities and the 900 employees present on site, thanks in particular to its opening to China and more generally the Asia-Pacific region. For CACIB and Amundi in particular, in addition to activities dedicated to local clients, Hong Kong is the main hub for the Asia-Pacific region.
| Setup | Business activity | Outlook |
|---|---|---|
| Crédit Agricole CIB 645 employees | A decision centre and a platform covering the Asia-Pacific region where CACIB is physically present in nine markets (Hong Kong, China, Taiwan, Japan, Korea, Australia, India, Singapore and Indonesia): • A centre of expertise where regional teams of specialist are based : ESG, TMT (Technology, Media and Telecommunications) coverage team, Real Asset Financing , • A trading and liquidity centre. • An operational service platform supporting CACIB’s entities in the region. A diversified portfolio of clients coveraged in Hong Kong: | Strengthen the product offering, particularly for major international groups with a presence in Hong Kong. Develop and diversify the product offering dedicated to Private Equity and Infrastructure funds. Expand the customer base of financial institutions as well as the range of products and services. |
| Indosuez Wealth Management 120 employees | Wealth management activity focused on clients residing in Hong Kong, Taiwan and mainland China. A broad and efficient offering. Recognised international expertise, particularly in ESG matters. | Continue to position itself in these highly competitive markets. Continue to grow by attracting new customers and continuing to improve the customer experience. |
| Amundi Hong Kong Ltd 52 employees | Founded in 1982, Amundi Hong Kong implements a commercial strategy aimed at providing the best investment solutions to investors in Asia. Offering a wide range of public and private products to local retail and high net worth clients through distribution partners. Customise investment strategies and solutions to meet the needs of institutional and corporate clients. | Meet the strong development ambition in Asia.
Expand the offering, particularly in terms of ESG and Technology |