In the February instalment of our “Dialogue with the General Committee Series,” Benjamin Hung, President of International at Standard Chartered, shared insights from his long journey with the bank since 1992. He fondly recalled opening his first account for his cherished Donald Duck piggy bank as a child, underscoring his long connection to the institution.

Having worked in North America and the United Kingdom for several years, Hung returned to Hong Kong in the early 1990s. “During the lead-up to 1997, there was a brain drain in the city. It was then that I thought I might live to regret not seizing the opportunity to work in the place where I was born and educated,” he reminisced.

His experiences abroad gave him an appreciation for the hard work and dedication of the people of Hong Kong, as well as the city’s efficient transport system and overall effectiveness, which is often taken for granted.

Hung also emphasised the vital role of the financial and banking sector in supporting the economy. “Any economy must be underpinned by the banking sector to facilitate the transfer of funds from depositors to borrowers, from savers to investors. Ultimately, banking reflects the underlying health of the community. A healthy community fosters economic activity, creating a robust banking sector,” he explained.

For Hong Kong to be a pivotal financial hub, he believes it is crucial to utilize banking to facilitate trade, investment and wealth flows. While finance is key in supporting the economy, banks essentially act as lubricants for the world’s financial systems.

Expanding to the broader context, the world is undergoing a once-in-a-century transformation, moving from a post-war unipolar order dominated by the United States to a multipolar landscape. As Hung noted, many global orders will need to be rewritten. In this context, individuals, sectors and countries must adapt to the shifting dynamics by strategically positioning themselves, diversifying risks effectively and ensuring resilience.

With the rise of bilateralism, the global supply chain is being reconfigured. Goods that once flowed directly from China to the U.S. and Europe are now being rerouted through the Global South to avoid tariffs.

Using BYD as an example, he said the company has established plants in Thailand and Hungary – a strategic manoeuvre that allows them to circumvent tariffs imposed on Chinese exports by shipping from these countries instead. This demonstrates how businesses adapt to the changing global trade landscape by leveraging manufacturing bases in regions with more favourable trade conditions.

However, this reconfiguration is inflationary. “No one can match the cost, quantity, and quality that China offers,” Hung pointed out, adding that if the Trump administration exerts too much pressure, the outcome could be higher inflation in the U.S., likely leading to structural and persistent inflation as well as high interest rates.

Historically, Hong Kong has served as a bridge between East and West. In light of recent global shifts, there is a pressing need to rethink its strategic positioning by orienting more towards the Global South. Hung used the hourglass metaphor to describe the changing dynamics. “On one side, China represents a significant bloc, while the rest of Asia, including Southeast Asia and India, forms another. Hong Kong can function as a financial centre connecting these two blocs,” he stated.

With the Mainland accumulating a substantial pool of wealth and many Asian economies transitioning from low to middle-income status, there is a demand for diverse investment vehicles. Hung emphasized Hong Kong’s role as a strategic gateway, offering access to global financial instruments for investors seeking to diversify their portfolios.