Redefining Hong Kong: city remains key beneficiary of China’s continued opening up efforts Hong Kong’s strength as an asset and wealth management hub stems from its role as the gateway to mainland China, according to panellists at a forum on Friday, citing the city’s deep connection to a vast pool of Chinese resources, capital flows and entrepreneurial innovation. “Most of the world’s wealth will originate from mainland China in this century, and Hong Kong will be a key beneficiary, thanks to its unique position as part of the Greater Bay Area and an offshore centre close to the heart of global wealth creation,” said Zhao Yang, managing director at investment bank China International Capital Corp. China’s continued opening up efforts are expected to drive more affluent families and individuals to set up family offices in Hong Kong, Zhao added. He spoke at the forum on Next Generation Wealth, part of the South China Morning Post’s Redefining Hong Kong series, which was sponsored by insurance giant Prudential. Beijing’s opening up policy brings “more innovative hi-tech companies to Hong Kong”, Zhang said. “More capital influx would lower funding and financial opportunities in Hong Kong, providing a very good macro environment for business.” That assessment reflected Hong Kong’s initiatives to expand its role as a value‑added “superconnector” for the mainland and international markets. “Hong Kong stands out as a stable and strategic hub under the ‘one country, two systems’ framework,” said Secretary for Financial Services and the Treasury Bureau, Christopher Hui Ching-yu, in his keynote speech at the forum. The city, Hui said, “benefits from the strong support of the Chinese mainland, while maintaining global connectivity – making it ideal for enterprises to establish or expand their presence.” Assets under management in Hong Kong reached more than HK$35 trillion (US$4.5 trillion) at the end of last year, with an 81 per cent year-on-year increase in funding flows that amounted to more than HK$700 billion. “The global family office landscape is undergoing rapid transformation, driven by next-gen leadership transitions, growing interest in philanthropy and impact investing, emerging investment themes such as digital assets, and leveraging insurance as a tool for strategic capital management,” Hui said. He said the Hong Kong government will continue to enhance and establish a regulatory framework to ensure that family offices benefit from the developments of digital assets and sustainable investments. The government has proposed to include carbon credits and digital assets as qualifying assets eligible for tax concessions for funds and single family offices, with plans to introduce the bill to the Legislative Council in the first half of next year. Hui said Hong Kong now had more than 2,700 single-family offices, an achievement he described as “remarkable”. “Hong Kong is already a centre for family offices,” said Ariel Shtarkman, founder and principal of Orca Capital. “Family offices in Hong Kong could be a major driving force in the venture capital and private equity space.” Following a three-year downturn since its peak in 2021, China’s equity market has recently rallied, but still remains 30 per cent below its previous highs in terms of valuation, which suggests room for growth and investment opportunities, according to Jocelyn Wu, portfolio manager of Greater China equities at Eastspring Investments. “Chinese household savings are still plentiful, while some have entered the stock market, but retail investors are not notably active in China’s equity market, suggesting market dynamics remain relatively healthy,” Wu said. Chinese household savings were at a record high of 160 trillion yuan (US$22.5 trillion) by the end of August. “While keeping tradition and heritage within the family and passing down the family’s values, we should collaborate with the younger generation to adapt to the future and the evolving environment,” said Priscilla Ng, group chief customer and wealth officer at Prudential. Wealth legacy means “a shared value system that brings a positive impact on the people and territories where we work,” said Giulio Pesenti, head of strategic business development and a board member at the Italian investment firm Clessidra Group. https://www.scmp.com/business/banking-finance/article/3327817/redefining-hong-kong-city-remains-key-beneficiary-chinas-continued-opening-efforts (ICE HONG KONG)

Fonte notizia: South China Morning Post