“From the outside looking in, you’re worried that various things like Covid, geopolitics and economic challenges would have taken some of the dynamism away from Hong Kong,” James von Moltke told the Post in an interview. “However, my impression has been that’s just not the case, and that impression has been reinforced at the meetings I have had while here. It’s certainly been more positive than my original expectations.”
Hong Kong is “very much back in motion”, according to von Moltke, who earlier visited Beijing to meet the team there in his first mainland visit in six years, before arriving in Hong Kong. The Chinese capital also exhibited a “sense of reopening”, he added.
While a lot of coverage focuses on geopolitical worries slowing down investment, this has not been the case for the Deutsche Bank’s German clientele looking to invest in China, von Moltke said.
Hong Kong has enormous opportunities, potential returns for money managers
Hong Kong has enormous opportunities, potential returns for money managers
“Among our German clientele, we see continued diversification efforts, but there’s no sense of a separation of the links between the German economy and the Chinese economy,” he said.
When it comes to China, there are still many opportunities, and the bank’s clients are looking for a lender to support their business growth in the country, he added.
One example is German carmakers. To the auto sector, the Chinese market is not just a sales destination but also a locale for manufacturing, supply chain facilities, research and development, and innovation, von Moltke said.
Beijing sets out Hong Kong’s vital role in economy as ‘experimental’ test bed
Beijing sets out Hong Kong’s vital role in economy as ‘experimental’ test bed
“R&D around electric vehicles and autonomous driving is taking place in China,” he said. “The old kind of mentality that China is simply a sales market is a complete misunderstanding.”
The two companies plan to roll out two Volkswagen-badged midsize EVs in 2026 in China, according to the agreement.
Deutsche Bank eyes tie-ups with Chinese peers on green finance deals
Deutsche Bank eyes tie-ups with Chinese peers on green finance deals
Von Moltke said corporate finance deals, including new issuances and merger and acquisition activity, should pick up in 2024. The bank does not foresee another year of decline unless an unprecedented geopolitical conflict takes place, further destabilising investor confidence.
“I can’t conceive of 2024 being a down year,” von Moltke said. “New issuance conditions should recover relative to 2023. There’s a lot of refinancing that needs to take place, which is just by virtue of maturing debt or financing needs. There’s also a lot of dry powder in the private equity and alternative [finance] world that wants to go to work.”
Deutsche Bank bulks up Asia investment team with hires from rivals
Deutsche Bank bulks up Asia investment team with hires from rivals
Globally, among the 104 markets Refinitiv tracks, the number of deals during the first nine months fell 9.5 per cent to 957, while funds raised dropped 28 per cent to US$92.9 billion.
“When you invest in the downturn, it enables you to participate more in the upturn,” von Moltke said.