James von Moltke, the CFO of Deutsche Bank (ETR:DBKGn), expressed optimism about Hong Kong's economic recovery and a potential rebound in corporate finance deals during the Global Financial Leaders' Summit and a board meeting held in Hong Kong on Wednesday. He emphasized that despite a global decline in deal numbers by 9.5%, and funds raised by 28% during the first nine months of 2023, Deutsche Bank is actively expanding its investment advisory team in Hong Kong to prepare for an anticipated upturn in Asian deal-making in 2024.
The CFO's comments came as a response to HKMA CEO Eddie Yue Wai-man's call earlier this week for global bankers to witness Hong Kong's resurgence firsthand. Von Moltke urged his global counterparts to visit the city, noting signs of it reopening despite challenges such as Covid-19 and geopolitical tensions.
Von Moltke also revealed that Deutsche Bank's German clients continue to invest in China despite geopolitical concerns. He underscored that the old perception of China as merely a sales market is outdated, with German carmakers now viewing it as a manufacturing hub and locale for supply chain facilities, research and development, and innovation.
Highlighting this ongoing commitment, von Moltke pointed to the Volkswagen-Xpeng partnership and Volkswagen’s US$700 million investment as examples. He shared plans to introduce two Volkswagen-branded midsize EVs in China by 2026.
While acknowledging the smallest pile of funds raised from share listings in Hong Kong in 20 years, von Moltke remained confident about the city's economic recovery and predicted an increase in corporate finance deals unless an unprecedented geopolitical conflict occurs.
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