Overview: Strong Resilience and Multiple Opportunities - Foreign Investment Continuously Optimizes the Hong Kong Market
2024-07-10
Asset management giants are expanding their presence in Hong Kong, and international brands are opening more stores... With the stabilization and improvement of the Hong Kong economy, the business environment continues to improve, and the effectiveness of the central government's favorable policies for Hong Kong continues to emerge, global investors are seizing opportunities in Hong Kong and increasing their investment. The Investment Promotion Department of the Hong Kong Special Administrative Region Government recently released its semi annual report on introducing enterprises. The department assisted 322 mainland and overseas enterprises in opening or expanding businesses in Hong Kong in the first half of this year, a year-on-year increase of 43%. Among them, there are 150 mainland enterprises, and the other main sources are the United States, the United Kingdom, Singapore, and France. The Director of the Investment Promotion Department, Liu Kaixuan, stated that Hong Kong is the most favored international financial and commercial hub for investors in Asia in many aspects. In June of this year, Swiss private equity investment company Hezhong Group officially opened its office in Central, Hong Kong, with multiple industries and increased foreign investment layout. Xu Jiajie, head of the Asia Pacific private wealth department and head of the Hong Kong office of United Group, stated that Hong Kong is close to the mainland market, and setting up an office in Hong Kong facilitates the group's access to distribution business and investment opportunities in the Greater China region. In addition, Hong Kong is the second largest wealth management center in the world with a huge talent reserve, which can help the group further expand its business in Asia. Moving from Hong Kong to Asia and the world is not just the goal of the United Group, but also an important stronghold for many internationally renowned brands. Scottish whisky brand McCarran opened its first flagship store on Stanley Street in Central, Hong Kong in early June, becoming the starting point for McCarran to expand its retail business globally. "McCarran will gradually open 22 retail stores around the world this year, and the first store to settle in Hong Kong is a long-term investment made by the brand based on Hong Kong as the hub of Asian luxury brands." According to Heime Martin Jocano, Managing Director of the North Asia region of McCarran's parent company, Eddington Group. Zheng Jiaju, Director of the Greater Bay Area of Taikoo (China) Limited, stated that based on confidence in Hong Kong's long-term development, Taikoo is committed to expanding its investment in Hong Kong, which is consistent. "Our investment is focused on long-term returns." Zheng Jiaju is optimistic about the future of Hong Kong's aviation and retail industries. He believes that benefiting from policies such as the expansion of individual travel cities from mainland China to Hong Kong and Macao, and the endorsement of "nationwide travel" by mainland residents for group travel to Hong Kong and Macao, the tourism industry has also ushered in opportunities. The position of an international financial center is firmly established in the 2024 World Competitiveness Annual Report released by the Lausanne Institute for International Management and Development in Switzerland, where Hong Kong rose two places to fifth place globally. In the sub indicators, Hong Kong ranks third globally in terms of "government efficiency", while its rankings for "business efficiency" and "infrastructure" have significantly increased, ranking in the top ten globally. Industry insiders believe that the rise in rankings reflects Hong Kong's stable position as an international financial center and its popularity among global investors. "With the promotion of policy tools such as' Cross border Wealth Management Platform 2.0 'and the optimization of mutual recognition arrangements between mainland and Hong Kong funds, the interconnection and connectivity between Hong Kong and mainland financial markets have gradually strengthened, especially in the Guangdong Hong Kong Macao Greater Bay Area, where the economy is large and the market potential is abundant. This is a huge opportunity for any asset management enterprise." Liu Jianyang, Chief Executive Officer of Trust Services and Insurance at Xinan Hong Kong, said. In 1996, the American financial group Xinan Financial Group chose Hong Kong as its first market to open up in Asia, and subsequently established its regional headquarters in Hong Kong. Since then, it has gradually expanded into markets in mainland China, Southeast Asia, and the Middle East. "Hong Kong's market regulation is highly transparent, with a simple low tax system and top-notch professional services and talent. These advantages remain attractive to multinational corporations." Liu Jianyang stated that Hong Kong has strong economic development momentum, and the SAR government is also focusing on attracting funds and talents, which makes him very optimistic about the development prospects of Xinan in Hong Kong. The 35th report of the Global Financial Center Index evaluates 121 financial centers worldwide, with Hong Kong ranking fourth globally. The Shenzhen Hong Kong Guangzhou technology cluster has been ranked second in the global innovation index by the World Intellectual Property Organization for four consecutive years... Hong Kong's economic vitality and resilience are evident. Liu Kaixuan predicts that in the future, more overseas financial or technological innovation companies will choose to establish regional headquarters in Hong Kong. The Ideal City for Family Offices: "Most family offices that settle in Hong Kong view Hong Kong as a gateway to the mainland market. At the same time, Hong Kong is also the world's largest offshore RMB business center, making it an ideal location for opening family offices." Jessica Coutrella, Chairman of the Hong Kong Family Office Association, said that in the past six months, family offices from the Middle East and India have expressed interest in coming to Hong Kong. Industry insiders believe that since the Special Administrative Region Government released the Policy Declaration on the Development of Family Office Business in Hong Kong in March last year, more and more ultra-high net worth families have turned their attention to Hong Kong. According to data from the Investment Promotion Agency, out of the 322 companies that received assistance in Hong Kong in the first half of this year, 52 were family offices. According to Deloitte's market research report released this year, there are approximately 2700 single family offices in Hong Kong, more than half of which are established by ultra-high net worth individuals with assets exceeding $50 million. The SAR government has taken a series of measures such as the "New Capital Investor Entry Program" to consolidate its position as a global hub for family offices. The Financial Secretary of the Special Administrative Region Government, Chen Maobo, stated on the 7th that the "New Capital Investor Entry Scheme" has been launched for more than 4 months and has received over 3800 inquiries and more than 340 applications. In principle, 117 cases have been approved. Industry insiders believe that this plan can attract overseas ultra-high net worth individuals to settle in Hong Kong, thereby promoting the establishment of more family offices in Hong Kong. Huang Yibin, head of consulting services for family offices at HSBC Global Private Bank in the Asia Pacific region, stated that currently, ultra-high net worth individuals have a clearer demand for families, and the SAR government is actively participating in the local family office ecosystem. Based on market feedback, relevant policies are formulated and updated, creating a positive cycle mechanism for industry development. "Through comprehensive support such as investment management, tax incentives, talent attraction, and philanthropy, the Hong Kong family office ecosystem can support ultra-high net worth families' effective planning and inheritance of family wealth." Huang Yibin said. (Lai Xin She)
Edit：Lubaikang Responsible editor：Chenze
Source：XinhuaNet
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