Hong Kong venue, we can begin. The Beijing venue is also ready. Well, good afternoon, everyone. Welcome to the BOC Hong Kong (Holdings) Limited 2021 AGM. Because we have still the COVID-19 situation, in order to protect the health of our shareholders and also for our relevant arrangements in Hong Kong, we therefore propose that we recommend to the shareholders that they appoint the Chairman as proxy in this meeting. Also for social distancing and to safeguard the health of our shareholders, those shareholders who are present at the venue are limited in number. Also they are recommended to wear their surgical mask at all times. The company pays great attention to the shareholders, the board members, and also to the managers' communication.
Therefore, we have issued a notification to all shareholders on the 29th of April for the questions from shareholders to be sent to the AGM before this date by email or mail. Also, those participating online can also input your questions into the platform so that they can be addressed at the AGM. Also, in order to persevere with our corporate social responsibility, given the epidemic situation, all funds that were allocated for gifts to the shareholders at the AGM have been diverted to donations to The Community Chest of Hong Kong and also to the Anti-epidemic Fund of the Hong Kong SAR government. This meeting will be conducted in Putonghua. There will be English simultaneous interpretation. Would shareholders who need an earphone, please raise your hand and you will be able to switch it on with the silver button.
For smooth progress of the meeting, shareholders who are at the venue will be given the opportunity to raise your hands to ask questions. For the other venue in Hong Kong or the other venues for this AGM proceedings, would you please indicate to the staff, and there will be arrangements for your questions to be answered at the Q&A session. To avoid any interference, would you please switch your mobile phones to vibration mode? There will be video connection with the shareholders. If shareholders want to ask any questions, please be patient in waiting for your turn. Thank you. The Chairman, please. Mr. Liu.
Greetings, everyone. Welcome to the AGM. First of all, I would like to know whether we have a quorum for the 2021 AGM.
Yes, Chairman. We already have a quorum for the meeting.
Thank you. I now announce that the company's 2021 AGM commences. In the Beijing venue, present at this AGM is myself and Director Mr. Lin Jingzhen. In the Hong Kong venue, we have Vice Chairman and President, Mr. Sun Yu, Ms. Cheng Eva , Director, and also Mr. Law Yee Kwan , Director. We have the management, the auditors' representatives, our lawyers' representatives, and the registrar's representatives. Directors Choi Koon Shum , Koh Beng Seng , and Tung Wai-Hok are respectively in the mainland, Singapore, and the U.S., connected via phone. Next, I would like to go through the voting arrangements for this meeting. All the resolutions proposed at this meeting will be decided on by poll vote. Now, I would want to appoint our company's registrar, that is, Hong Kong Computershare Company Limited, to be the scrutineer for this meeting. They will be overseeing the voting process and counting the votes.
When all the items of business have been discussed, after the meeting, there will be a voting process, and the voting process will be explained to shareholders. The company had on the 14th of April 2021—
You can continue, Chairman. Please continue, Chairman.
Yes. The company, on the 14th of April 2021, had sent to all shareholders the annual report and the shareholder circular, and the notice for this meeting is also contained therein. Also, the proposed resolutions are also in that mailed package.
You can continue, Mr. Chairman.
Next, we will have the first proposed resolution, which is to accept the 2020 financial statements. Also, the board of directors report as well as the auditors report. The relevant content and information are all in the 2020 annual report of the company. Now, would shareholders please propose and second the first resolution?
I, Wu Yuan, propose the first resolution.
I, Chang Siu Tsun , seconds the adoption of the first resolution.
Thank you. We now proceed to the next resolution of the meeting. The second resolution is the announcement of the final dividend for the year 2020. The board of directors proposes a final dividend to be HKD 0.795 per share. This together with the interim dividends announced in August of 2020, which was HKD 0.447 per share. Together for 2020, the dividends per share is HKD 1.242 per share. For the final dividend, those shareholders' names appearing on the company's register on May 27th will be entitled to the final dividend. The final dividend notice will be issued to shareholders on the 3rd of June . Please propose and second the resolution.
I, Lee Chun Wai , proposes the adoption of HKD 0.795 as final dividend for 2020.
I, Wong Ching Shan , seconds this resolution.
Thank you. Next, we will go to the next resolution. The third resolution is the re-appointment of the directors. According to the articles of the company, at the AGM, the directors will take turns to retire, but they can stand for re-election. On the 14th of April 2021, we have sent to shareholders a circular, and we have already listed the retiring directors, and they include Mr. Lin Jingzhen, Mr. Choi Koon Shum , and Mr. Law Yee Kwan . The three directors' CVs and also their work reports for the year 2020 had already been sent to shareholders in the annual report and shareholders circular. Next, I would want to deliberate, for this meeting, the re-election of Mr. Lin Jingzhen.
Mr. Lin Jingzhen is the company's non-executive director and is a member of our Strategy and Budget Committee. Now, would shareholders please propose and second this resolution?
I, Yu Jeliang, proposes the re-election of Mr. Lin Jingzhen as director.
I, Wu Yuan, seconds this resolution.
Thank you. Next, we will deliberate the re-election of Dr. Choi Koon Shum as director of the company. Dr. Choi Koon Shum is an independent non-executive director of this company and is the chair of the Nomination and Remuneration Committee, and also member of the Strategy and Budget and Sustainability Committee. Would shareholders please propose and second this resolution?
I, Chang Siu Tsun , proposes the re-election of Dr. Choi Koon Shum as director.
I, Lee Chun Wai , seconds this resolution.
Thank you. We will now deliberate the re-election of Mr. Law Yee Kwan as director. Mr. Law Yee Kwan is an Independent Non-executive Director of the company and also member of the Audit Committee, Risk and Sustainability Committees. I would like to have shareholders propose and second the re-election of Mr. Law Yee Kwan as director.
I, Wong Ching Shan , proposes the re-election of Law Yee Kwan as director.
I, Yee Kit Leung , seconds this resolution.
Thank you. We now go on to the next resolution. The fourth resolution is to appoint PricewaterhouseCoopers auditing firm as the company's auditor and also authorize the board of directors or its authorized committee to determine the remuneration. Would shareholders please propose and second the fourth resolution, please?
I, Wu Yuan, proposes the adoption of the fourth resolution.
I, Chang Siu Tsun , seconds the adoption of this resolution.
Thank you. We will now go on to the next resolution. The fifth resolution is to authorize the board of directors to issue new shares for the company. The company strives to achieve a high standard of corporate governance and take into consideration that new shares issuance would dilute shareholders' values. Therefore, it is proposed that for issuance of new shares, that is strictly for capitalization and not related to any acquisitions, that the new shares volume would not exceed 5% of the issued share capital of the company.
Under other circumstances, these new shares would not exceed 20% of the issued share capital of the company. This is in the interest of protection of shareholders' interests. The details are contained in the circular that had been sent to shareholders on the 14th of April of this year.
I, Lee Chun Wai , proposes the adoption of the fifth resolution.
I, Wong Ching Shan , second the resolution.
Thank you. We will consider the next resolution. The next resolution is to grant a general mandate to the board of directors to buy back shares in the company not exceeding 10% of the total number of shares in issue as of the date of passing this resolution. According to the listing rules in the shareholders' circular, we had already provided the related explanatory information. Please refer to the shareholder circular dated 14th of April for details. Can shareholder propose and second the sixth resolution?
I, Yee Kit Leung , propose the sixth resolution.
I, Wu Yuan, second the resolution.
Thank you. We will consider the next resolution. The seventh resolution is to extend the general mandate about issuance of new shares, so that the total number of shares bought back by the company will be added under the general mandate granted pursuant to resolution six. Can shareholder please propose and second the seventh resolution?
I, Chang Siu Tsun , propose the seventh resolution.
I, Lee Chun Wai , second the resolution.
Thank you. We will consider the last resolution. Resolution number eight is a special resolution, and it is to approve and adopt the new articles of association of the company to replace the existing articles of association. An articles of association marked A has been tabled to this meeting, and I, as Chairman, has already signed on it for identification purpose. Can shareholders propose and second the eighth resolution?
I, Wong Ching Shan , propose the eighth resolution.
I, Yee Kit Leung , second the resolution.
Thank you. Do shareholders have any comments on the above eight resolutions?
Chairman, there is no question from shareholders in attendance. We can move on to the poll arrangement. Thank you.
I declare that we have finished discussing and considering all the resolutions for this AGM. Now, we will take a vote on resolutions number one to eight. All resolutions will be voted on by poll. Now, I will ask our Share Registrar, Hong Kong Computershare Investor Services Limited Managing Director, Ms. Lee Yim Lan, to explain to shareholders the poll procedures and also points to note.
Thank you, Mr. Chairman. From now on, can all shareholders please stay at the venue until the close of poll? You should have a white voting paper with you. If you do not have a voting paper, but if you wish to vote, please proceed to the registration counter outside to register and obtain voting form. The voting form shows your name as well as the number of shares you hold. If you want to vote in favor or against with all your shares, please put a tick in the box next to the resolution. If you are a proxy and if you hold different voting instructions, then please fill in the number of shares in the box next to voting for or against. For each resolution, if the number of shares indicated exceeds the number of shares held, then that vote will be considered invalid.
Please complete the voting form and sign, and then we will collect your voting forms. According to Article 82 of BOC Hong Kong articles of association, if shareholders attend in person and cast the votes, then the proxy form already submitted to BOC Hong Kong will be considered invalid. If you have any questions, please raise your hands. Our helpers will offer assistance. Ladies and gentlemen, is it true that those of you who wish to vote have already completed and returned the voting form? If you still have not completed the form, please raise your hands so that our helpers can follow up. All shareholders have completed the vote, so the poll is closed now. We will now pass the floor back to the Chairman. Chairman, please continue to chair the meeting. Thank you.
The Share Registrar will collect all the voting forms and count the votes. After the close of the poll procedures, we will publish the vote results on Hong Kong Exchange and our company's website as soon as possible. Ladies and gentlemen, all the matters that need to be considered by this meeting have been discussed and considered. Now, I declare that our 2021 Annual General Meeting is concluded here. Once again, thank you, shareholders, for your understanding of the special arrangements for this AGM. And thank you very much for your long-term support and attention on BOC Hong Kong. Thank you. Goodbye.
Now, we will move on to the discussion session between the management and shareholders. So can all non-executive directors please feel free to leave? The board and also the—
In the extraordinary year of 2020, BOC Hong Kong reinforced risk management to respond to the changes and strengthen strategy implementation to capture growth opportunities. Our core businesses outperformed the market, while key operating indicators remained solid. Customer loans grew by 7.3% to HKD 1.5 trillion, and customer deposits by 8.7% to HKD 2.2 trillion, with market shares further increased. Our NPL ratio was 0.27% and total capital ratio was 22.1%, both at sound levels. Profit after tax was HKD 28.5 billion. The board has proposed a full-year DPS of HKD 1.242 with a payout ratio of 49.6%. We proactively supported Hong Kong's economy and the people's livelihood as market leader. We maintained double-digit growth in our mid to high-end customer base and remained 16-year champion in the Hong Kong and Macau syndicated loan business.
We maintain market leadership in new residential mortgages, RMB life insurance, IPO receiving bank business, and cash pooling business. We align with the nation's opening up strategy by proactively seeking for regional expansion. Our regional business footprint and management capabilities are enhanced, and our market influence in Southeast Asia is notably increased. In the last three years, our Southeast Asian entities saw compound annual growth rate of 16.7% and 9.4% in customer loans and deposits, respectively. Their contributions to the group have been steadily increasing. We actively cope with the financial policies for the Greater Bay Area, enhance key products and services such as GBA account opening service and cross-border mortgage service, and supported innovative tech companies to grow with tailor-made financial services.
We leveraged our RMB franchise to promote RMB usage and recorded an offshore RMB clearing transaction value of CNY 282 trillion, accounting for 75% of the global total. To deepen FinTech application and accelerate digital transformation, we constructed ecosystems based on utility services, transportation, consumption, charity, and education scenarios. Payment business realized rapid growth. We use mobile banking and iGTB platforms to drive smart channel development. We constantly employ new technologies to enhance operation efficiency and risk management capability. After a successful opening, Livi Bank, our virtual banking arm, is offering a brand-new banking experience that closely meets customers' daily needs. Responding to the local government's call, we devoted unremitting efforts to fight the pandemic alongside the communities. Always making the safety and health of staff and customers our priority, we earnestly carried out community antivirus tasks.
We took the lead in launching five financial support initiatives, and proactively supported the government's Special 100% Loan Guarantee Scheme and Pre-approved Principal Payment Holiday Scheme. We also offered various financial services to support government relief measures, and aided employment and training for local youth. In 2020, we proudly received the Top Donor of the Year and Benefactor of the Year awards from The Community Chest of Hong Kong. We practiced sustainable development and published a sustainable policy. We acted as a green advisor, launched the first phase Green Deposit scheme, steadily grew green loans, and helped customers issue ESG bonds and green funds. Our efforts to help build Hong Kong into a green finance hub were highly recognized by the market.
Facing uncertainties in 2021, we will align with BOC's strategy to build a first-class global banking group, commit to bridging China and the world for the common good. We will continue to focus on three major markets of Hong Kong, the Greater Bay Area, and Southeast Asia, and enhance our core development capability of regional management, digital empowerment.
Thank you, shareholders, for your patience. The management and shareholders exchange session will begin soon. Before the session, before the meeting, we have already received questions from some shareholders. If you are participating on the webcast, you may input your questions on the platform. If the questions are similar, we will answer them together. If you are on-site, if you would like to ask questions, please raise your hands. We will give you a microphone. In order to answer shareholders' questions in a fairer way, can you limit the number of questions each time to two? If you speak in Cantonese, it will be translated into Mandarin. In order to save time, unless there is strong request from shareholders, the management's Mandarin answer will not be translated back to Cantonese. If you would like to listen to English interpretation, we have already arranged headsets.
Please indicate to our helpers. You only need to switch on the silver button on the receiver to listen to English interpretation. Thank you. Before we start Q&A, we will invite Mr. Sun to address shareholders.
Good afternoon. Before we begin Q&A session, I would like to take this opportunity to express my gratitude to shareholders. In 2021, the COVID-19 situation is still affecting global economy. International environment is getting more complicated. BOC Hong Kong, together with other members of the finance sector, have been working hard to face up to the challenge. Under the board of directors' decision and strategy, we are actively seizing opportunities and strengthen our implementation and execution. Given all the difficulties, we would like to thank your attention and support all along for BOC Hong Kong. We will continue to work hard to deliver better returns to shareholders. We will also try our best to help the development of the Hong Kong economy and people's livelihood. We attach much importance to interaction and exchange with shareholders.
If you have any questions on our strategic development and business operation, please take the opportunity to ask questions. Thank you.
Thank you, Mr. Sun. We will begin Q&A now. MC, can you select some shareholders to ask questions on-site?
Right. On the left-hand side, facing the stage, the third row, the gentleman in the checkered shirt. Thank you very much.
Mr. Sun, I think this is your first AGM interacting with the shareholders since you have come to the position. I would like to know what are some of the new thoughts from you for the bank, and how would you want to bring the bank to new strengths going forward?
Thank you very much for this question. Let me start with the strategy of BOC Hong Kong in answering this question. Because just now, the board of directors had approved the five-year strategic plan for BOC Hong Kong, and this five-year plan will direct the future development for BOC Hong Kong. Now, with this development strategy, we have fully considered the parent company, that is BOC Group's development. We have to be aligned to that.
Also for BOC Hong Kong, the past development of the bank. Thirdly, we have to consider the market situation. Since we have listed, since 2002, there have been huge developments. As of last year, our total capitalization had increased 3.5%, and profit after tax had increased 3.2 x. The total returns of shareholders had increased 698%. So overall speaking, the strategy in the past had worked very well. So our five-year plan also is in line with this, and that is a continuity of our development and stability. This strategy is about one mission, focus on three markets, and also to strengthen our four strengths. Now, because of time, I will just simply talk about each of these. First of all, the strategy of ESG. Our high-quality growth is not just about compliance, but it is also about our self-development and also meeting shareholders' expectations.
So for ESG, we want to be able to put it into all strategic decisions and also all our businesses and also in the execution of our strategies. So in our management, in our work goals, and also our measures, they are already very clear planning along these lines. We want to deepen ESG development to help our customers and also help the bank to become a more environmentally friendly bank. Also, we want to raise our governance so that in the long term, we will have quality and high growth. As for the other prong, which is the focus on the three markets, that is very clear. That is the local Hong Kong market. We have over 100 years of business development in Hong Kong. It is the core of our cities, and it is a very mature and highly competitive market in Hong Kong.
For the future development, in terms of our structure for customers, products, and also our revenue, there will be room for improvement. We will continue to put deep roots into Hong Kong. The second area is the Greater Bay Area, and we will continue to develop greatly in this area. You have already seen in the media that there have been the connects, Wealth Management Connect, and also in other areas. We will see great possibilities of growth. From our customer base, our service and products, and also our capital size, and also our brand name, are also advantages for the company in the Greater Bay Area. So we will continue to develop and grasp opportunities there. The third area is the Southeast Asian market. There are huge development opportunities.
We are building the fundamentals, and also we will be improving our regulatory and also management structure for Southeast Asia. We will look at the local situation for each of the countries so that we will have more clear and also diversified developments for each of the Southeast Asian countries. So we will have one policy per area. So this is the three areas that we will be focused in. At the same time, we will be raising our capabilities in three areas. First of all, we have transformed from a cities bank into a regional bank, whether it is the headquarters in Hong Kong or the branches in Southeast Asia. We will continue to adjust to the new operating situation. In the past, we have raised our capabilities greatly, and we will continue with these efforts. Next is the deepening of digitalization.
We want to transform through digitalization to empower our products, our service, risk management, and operation, to raise the customers' experience and our operation efficiency. Through technology, we will be able to empower the growth of our future development. Fourthly, there is the corporate culture and team development and smart operation and risk management. In the future, we want to be able to raise the standards of all these areas so as to provide a solution provider for our clients and to serve them better. Those are the three capabilities. In order to do so, we will need to have the supports. The supports, as I've mentioned, will be to develop our corporate culture, to develop our talents, and also to have digitalized and smart operation as well as risk management.
I will not go into the details, but this is actually a way of life and also our value system. We have talked about the future five-year strategic plan for the company. I hope I have answered your question to your satisfaction. Next, we will have another shareholder to raise a question.
The one on the second row on the right-hand side. This gentleman in blue, please.
As minority shareholders, of course, we would like to receive more dividend. Last year, because of COVID-19, dividend payment was in smaller amounts. This year, if the situation improve, will you increase dividend?
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Thank you for your question. I do understand your question. Ms. Sui Yang, CFO, will take your question.
Thank you for your question. I would like to report to you on some fundamental financials. As of the end of December last year, shareholders, please rest assured that our capital ratios, no matter whether you look at the core or Tier 1 capital ratio or the total capital ratio, they are all in line with regulators. We actually perform well among our counterparts. With a very reasonable CapEx, we will also enhance our capital requirement. Just now, Mr. Sun already talked about our coming five-year plan and strategies. On one hand, we hope that we can have good business development, and at the same time, we will also strike a balance between shareholders' interests and our long-term development of the bank.
And of course, we will consider all the requirements concerning dividend indication for 2021 or dividend guidance in the market in relation to regulators and also policy requirement. I think the situation will become warmer and we have to look at external economic environment, risk change, shareholders' aspiration, and the bank's profitability. We will also listen to regulators' overall recommendation, and then we will make a good capital plan and formulate dividend payments plan as well. Thank you.
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Would you please the next shareholder to raise a question in the Hong Kong venue, please?
Facing the stage, second row, the lady in white.
Greetings. I have a question. Last year, the profitability of many banks in Hong Kong had been worse off, but our bank had been doing okay. But people are saying that the economy will rebound this year. Will we be increasing our profits?
Well, last year, indeed, for a number of banks, the profits had come down.
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What are the expectations for this year?
Thank you for this question. We will have our CFO, Ms. Sui Yang, to answer this question.
Thank you very much. Overall speaking, for 2021 first quarter, for one month, LIBOR and HIBOR, it is only 14 basis points and 12 basis points. So I would say this is a very low level. And for the bank, it is pressure. There is pressure for operation. As you have mentioned, because of the economy rebound, there are expectations that there will be rate rises. The most optimistic is that in the second half of the year, there will be rates rises next year. We believe that for 2023, there may be certain interest rates rises policies.
In this period, we will be benefiting as a bank. For non-interest income for the first quarter, we have already disclosed our numbers. The growth is encouraging. Basically, we benefit from the economy rebound and also the great customer base that we have. For investment-related income, we have had very good increase. Also for traditional income, there is also recovery. So as the COVID-19 subsides and also cross-border activities can resume, then our traditional income, including credit card, Forex trading income, will improve.
As for investment-related income, that depends on the market situation. The capital markets, whether it performs well or not for our non-interest income, especially for investment-related income and our fees income, that will be related. But because of our customer foundation, which is huge, and also our excellent service, we will continue to enhance our products and to serve our customers even better. At the same time, we will be growing our income. As for cost control, whether it is operating cost control or loan cost control, we continue to be stable and prudent.
For BOC Hong Kong, in this kind of a market situation, we want to be very strong in our planning, including the five strategic plans, the three major markets to grasp opportunities for growth, and also to increase our returns so that we will be able to exceed the performance of the industry and market as a whole.
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MC, can you pick the next shareholder to ask questions?
Any questions from the floor? Facing the stage on the right, the fourth row, the gentleman in white, please.
Management, ladies and gentlemen, greetings. Hong Kong MA just announced that Wealth Management Connect will be launched in the second half of this year. What preparation work has BOC done, and what are the business opportunities? Thank you.
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Thank you for your question. As you said, Wealth Management Connect is now a hot topic. BOC Hong Kong and BOC Group are doing serious preparation. Regarding the details, I will ask our Vice President Kung Yeung to take the questions.
Thank you for your question. On the 6th of May, the authority had already announced the details of the pilot scheme on Wealth Management Connect for Greater Bay, and this means that the pace of this policy is accelerating. So far, there is not a definite date yet. We hope that the date will be coming soon. Hong Kong asset and wealth management business has a scale of HKD 28 trillion, and for non-Hong Kong investor asset share more than 60%. So after the launch of Wealth Management Connect, there will be more attraction for investors to increase their share of assets in the Hong Kong market. And concerning wealth management business in Greater Bay, there will be new momentum.
For cross-border Wealth Management Connect, this is going to be more convenient for individual investors in the Greater Bay. For Hong Kong investors, they can benefit from more diversified choice of wealth management. And with RMB asset allocation, there will be more options to choose from. Just now, I said, concerning cross-border business and services, we have rich experience and very good teams. We are working hard for customers both northbound and southbound. In the investment service and product area, we hope more options of good choice can be offered. Right now, we are working very hard. Once the scheme is launched, we hope to be able to deliver the best service to customers. Thank you.
Now would the MC choose another shareholder to ask the next question, please?
Yes. Facing the stage on the right fifth row, the lady with the dark-colored shawl, please.
Thank you. I have a question about FinTech. The past two years, a number of banks have been developing their FinTech, in particular to attract young customers. In this regard, what are the measures of BOC Hong Kong in developing our FinTech competitiveness? Can you share with us some of your strategies, please?
Thank you for your question. For this question, I would like to ask our Zhong Xiangqun to answer this question. Mr. Zhong, please.
Thank you. As Mr. Sun had mentioned, for FinTech and digital transformation, it is a very important part of our strategic planning and it is critical for our future development. Since 2020, we have already been executing greatly within our bank in a number of areas, including our smart operation and digitalization. All staff of the bank are participating in this work. And the basic objective is to increase our flexibility and to increase our operation efficiency and also provide smart solutions for our customers. For our e-channel, there had been huge developments, and for our customers and also transaction numbers have increased greatly, and it has increased some 50% or over 50% compared to last year.
For securities transaction, it has increased 150%, and individual online banking activities has increased 60%, and our monthly increase had also increased by 54%. At the same time, we are using big data and also AI to continue to promote marketing and risk management as well as smart operation. At the same time, we are using cloud technology to forge our new application and also our system and IT capabilities. Through all these efforts, we continue to deepen our digitalization and to strengthen our digital bank capability. We want to provide even better service for our customers and to provide new products and services for them. Thank you.
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Thank you very much. Now can you take a look at whether there are questions online?
Yes, there is an online question. And that is, this year concerning loan growth, what do you think will be the growth rate?
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Thank you. I will defer to Wang Bing to take this question.
Thank you for this online question. This year, the impact of the pandemic still continues, so the banking sector still faces some challenge. In Q1 this year, our loan growth is in line with expectation. It performs well, and we have achieved a growth rate of more than the market average. We are at 3.9% growth. The market grew 2.4%, so we are faster by 1.5%. Our market share continues to rise, and actually it is in line with our expectation at the beginning of the year. Overall speaking, our loan business, especially in Hong Kong, grew well. There are sectors less related or less affected by the pandemic. For example, real estate and IT, shares and securities. The growth in these loan areas is better. For personal loans, especially mortgage loans, we are faster by 0.8% than market average growth, so we are still in leading position.
From the above, you can see that because of the market structure or sector structure, basically the industries that are less affected by the pandemic can grow better. They are our long-term working partners. Asset quality in the first half this year is still satisfactory, and our performance is in line with expectation. In Q1 this year, in mainland China and Hong Kong, economic recovery has been good. China GDP growth was 18.3%. Hong Kong Q1 GDP growth was 7.1%. When pandemic control is being normalized and also faster vaccination rate, I think we have quite good expectation about global economic recovery. People are of the view that global economy can achieve a growth rate of 6% this year. For the whole year, for our loan business performance, we are confident.
We'll continue to seize the opportunities in Hong Kong, cross-border Greater Bay, Southeast Asia, and overseas main markets. We will strike a balance between loan growth, asset quality, and also the growth rate. At the beginning of the year, we set a mid- to- high single- digit loan growth target. We will try our best to achieve that.
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This will be the last question. Any questions online, please?
Yes. The next question online is the RMB exchange rate. It had been strong. Is this good for RMB business? What does the management think? How do you see the trend of RMB going forward? Also for RMB business for Bank of China Hong Kong, what are some of the opportunities, please?
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Thank you for the question. For RMB business, it is true that it is a major point in our future development. In our past, we have had very good results from RMB operations. Now with the strengthening trend of RMB and the related businesses around them, I will ask Mr. Yuan to answer this question.
Thank you very much for this question. You can all see that in recent times, the RMB exchange rate had been firming up. We believe that the revaluation compared to the past few years' rate had been high. For us, given this RMB strengthening trend as a regional bank, firstly, for ourselves, in terms of investment related to RMB, in the first quarter, we have already greatly increased our RMB bond investment. Our second point is that as a regional bank in Southeast Asia, we have also put RMB business as a major development business and product for us. For this year, overall, the exchange business for RMB and bond investment business in the Southeast Asian region had been growing greatly. A third point is that we have mentioned the Wealth Management Connect, and that includes in June there will be a Southbound Wealth Management as well.
RMB internationalization is hinged on this as well as a product. Even though the date of introduction of the product is not determined, however, the relevant parties, in particular in Hong Kong, BOC Hong Kong, we are fully prepared for it. Whether it is in system, in staffing, in also bond reserves, we have done a lot of work in these regards. Therefore, in the next period of time, we would want to further develop our capabilities and influence in the RMB business going forward. Thank you.
The AGM has come to a conclusion. Thank you for your participation. If you have other questions, would you please contact the staff in the venue or to call us. Thank you again for your participation. We will see you in the 2022 AGM. Thank you.