Oct 25, 2012|
Boston Herald's Ira Kantor
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
They our guest is Ira -- from the Boston Herald he's covering -- story about Hong Kong officials visiting the bay state good morning -- Are you so -- with the with the Hong Kong officials visiting Massachusetts specifically Boston -- here. Well I think they're looking to potentially tap into the various economic resource that we have and that can be span. Across our academic sector our financial services sector. Particularly our Biotech sector I think they're quite pleased with what we've been able to churn out here in the base stayed so I think they're trying to make a pitch to. Massachusetts this year we might bring some of our operations over to Hong Kong. -- -- why would a Massachusetts company of trying to think you know I I have a business in Massachusetts what would lead a Massachusetts company. To open an office in Hong Kong and and in it and move their operations over there. Well two that some speed to. Pitch is that Hong Kong officials are making in the -- in the center around. Financial matters one would be. Is that if a company could switch to the renminbi. Bank account renminbi is the official currency China and they switch in those kind of bank accounts in Hong Kong Hong Kong apparently has what they claim the largest liquidity and renminbi. In the world that can help offset depreciation costs against the US dollar believe the Hong Kong -- the -- commissioner for US economic and -- principle that American businessman -- they'd be paying something in the -- of I think 8% more. If they didn't switch this matter but the main thing would be is that it company were set up. Manufacturing operations. Or they wanna produce their goods in Hong Kong because Hong Kong serves as what they call a -- way a way to mainland China. They wouldn't have to of the company the masters can be wouldn't have to pay export costs. Because of free trade pact between Hong Kong and men and China so does seem to be. To the main areas -- which stayed would want to entice -- here coupled with the fact that they've. Emphasized that we had several Massachusetts companies who have at a regional offices or you know include Hong Kong in their realm. Visibility. And that would and those companies like liberty -- Sure why it was Liberty Mutual be over there are they issuing insurance policies over there. Well -- I believe that's probably because Hong Kong is they've emphasized based said that financial services -- services. Overall accounts for about 90%. Of there gross domestic product itself. He could be it. Whether they're touting -- between our congress couldn't say for sure but I do not a financial services that account would offer a wide array of the growth. In Hong Kong yet they've also emphasized that. Despite that and their domestic after being what they called relatively resilient they've lowered their GDP forecast for the year to one to 2%. -- he's been experiencing what they called tepid growth due to dampen global demand that personal at this reference -- -- Hong -- commission the US economic -- that. He was in Boston last week emphasizing that. I believe at Harvard club so. But he had specifically told me. That. This would not be Hong Kong's first is that the Boston that we don't anticipate that there would be many more -- in the -- -- they like what. We're doing what you said. You said Fidelity's over their two right. Yes company like fidelity State Street court and -- -- Boston Scientific. It's largely based I think around financial services and possibly in the buyout except that it -- Utilized a little bit more but we have the -- -- Biotech. Now fidelity I can understand why they would have research people over there with maybe opening accounts to. It to be is Hong Kong citizens like if you say I was living in Hong Kong -- now a citizen of Hong Kong and Taiwan opened up the fidelity investment account. Is that a possibility. Contrary -- probably wouldn't be. You know it would be crazy not to you know to think that. You know I think I think. But the company wants to set up shop our nation utilizes many of their resources as possible and fidelity. I know as a wide global presence so I've. It would be somewhere in their pitch that they would want to. You know allow for residents upon congress seven million residents of Hong Kong pretty much the same as what Massachusetts at -- afford them the same opportunities that we might have here. About TJ Maxx and they have stores over there. Apparently teacher expose does have a presence there what -- don't have the poll numbers on how many -- they might they might have actually in Hong Kong but again the system. You know beat the Hong Kong officials might just be throwing a variety of companies out there to be like here in the here and masters you have the large companies. You know large financial sector retail scientific companies and they they looked at Hong Kong has you know viable market to set up operations there so it. If they can do it why should another -- jump on the bandwagon. Aggregate Weyrich great job in the story thanks for joining us -- Eric Cantor Boston Herald joining us today on the financial exchange glad to have his. Participation in the show and get through this and it just it's some research while you're doing and on line comparison of ranting and I US and Hong Kong per month. A one bedroom apartment. You know that would be maybe 900 here in the US for months would be 17100 a month. In Hong Kong and so forth and so on but everything else looked the same food. Leisure activities clothing things like that but the ranked. Was double and sometimes tripled in most cases and distillate and uncle and you -- -- -- to become -- I think hectic -- over not having had never been on -- confessed. All right -- joined by Michael Ross and from Morningstar -- -- -- -- some mutual -- -- with us Michael -- and Morningstar up next on the financial exchange.