Hong Kong is one of the wealthiest places in the world, providing attractive fundamentals similar to those in Switzerland, Qatar and other Middle Eastern countries for bond investments over the long term, according to London-based fixed income specialist, Stratton Street.
The city was also one of the world’s largest net creditors, benefitting from the fact that it had amassed substantial assets abroad, and implying that it could draw down on its overseas investments, Andy Seaman, partner and chief investment officer at Stratton Street said.
It is ranked second place in net foreign assets as a proportion of GDP out of 43 countries, according to Stratton Street, which screened countries based on their ability to repay debt. China is ranked 13th place.
“If you have amassed a lot of wealth over the years, then you can continue to expand production through investments,” Seaman said.
“That’s not the case if you are an indebted country that needs to offset a population that is shrinking.”