TT: China is boasting a 7 percent GDP growth rate this year, which some believe to be a fake number. But recently some economists also expressed views that China's GDP growth may actually hit 10 percent or 11 percent this year or next. What do you think?
Yang: I don't have the exact figure, but I am personally confident that China's economy is performing not too badly. Moreover, China is sure to have a strong underground economy.
Take my daughter for example. She is enrolled in the American school here [Shanghai] this year after having been on the waiting list last year. She's enrolled this year because there are three extra classes for nearly 100 more new applicants, which means that there were more than 100 foreign-investor families that moved into Shanghai recently. The tuition will cost me US$20,000 per year. Plus, the supply of local foreign-language schools is unable to meet the local demand.
How can you say China's economy is not doing well?
TT: One of your core businesses is to serve for Taiwanese businesspeople's financial needs. What difficulties do you think exist for them to raise enough capital in China or here in Taiwan?
Yang: To enjoy the favorable treatment of foreign investors, they have to bring in their own capital from elsewhere including Taiwan to start up businesses here. However, restrictions imposed by Taiwan's government on outflows of China-bound capital keep them from remitting enough capital. In terms of getting loans, local Chinese banks have a preference for Taiwanese businesses, which perform the best among all investors.
As a global bank, HSBC has branches worldwide to provide value-added financial services to Taiwanese businesses with international operations under its global platform.
TT: What do you think of the government's recent policy initiative to allow China-based Taiwanese businesses to list on the TAIEX?
Yang: I think the policy will do more good than harm to Taiwan's economy. It is sure to bring back many bluechip China-based Tai-wanese businesses on the TAIEX to advantage local stock investors who can then indirectly profit from gains of Chinese concept industries bolstered by its economic boom. The TAIEX will also be boosted.
Really, it doesn't concern Tai-wanese businesses at all where they can raise capital since money knows no nationality. Taiwan is not the only destination they can go since there are plenty of other places including China, Hong Kong and the US where they can get money.
TT: Given the importance of Chinese markets, what investment plans does the HSBC have in the pipeline?
Yang: We have now seven to eight account officers and plan to recruit a few more to serve more Taiwanese businesses. We also have a long-term commitment to Chinese markets by seizing every good investment opportunity and do not rule out any possibility to acquire small rivals here after buying an 8-percent stake in the Bank of Shang-hai and a 10-percent stake in China Ping An Insurance Co (平安保險).
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