PWMA Digest
Essential read
Nikkei Asia, 17 June 2024
The Hong Kong government is shifting its investment strategy to transform the city into a tech hub, as geopolitical pressure builds and traditional growth drivers of finance and property face challenges. The government-owned Hong Kong Investment Corp. (HKIC) made its first public investment in the AI company SmartMore, which is valued at around $1.28 billion. This marks a shift from the government's previous smaller bets through the Hong Kong Science and Technology Park and Cyberport. The HKIC investment in SmartMore is part of a wider push by Hong Kong to burnish its status as an international hub for innovation and technology. This includes subsidy arrangements, plans for an AI supercomputing center, and initiatives to attract tech startups.
Hong Kong Economic Times, 24 June 2024
Deputy Financial Secretary Wong Wai-lun said that various data show that Hong Kong is dynamic and resilient. Hong Kong continues to see capital inflows, with total bank deposits recording HK$16.6 trillion in April, an increase of more than 2%. More than 120,000 talents have arrived in Hong Kong in the past year and a half. He also pointed out that companies have also returned to Hong Kong, and the number of family offices, hedge fund managers, and private equity fund managers in Hong Kong has increased by 24% in the past three years.
South China Morning Post, 24 June 2024
Hong Kong has become the largest source of climate-aligned government bonds in Asia and the 5th largest cumulative issuer of government green bonds globally. Hong Kong's sustainable debt market saw a 236% year-over-year increase in 2023, reaching $18.2 billion. Green bonds made up most of this at $15.6 billion, with social bonds at $2.6 billion. The city can further capitalize on the trend of "transition finance" by expanding its taxonomy to include transition activities, to mitigate greenwashing and facilitate cross-border capital flows.
Asian Private Banker, 24 June 2024
Asia’s High-Net-Worth-Individuals (HNWI) business owners are increasingly seeking non-banking financing amid a decline in capital raised via Hong Kong’s IPO market and a prolonged high interest rate environment, according to regional head of Equities First. With a less stressed loan to capital ratio and favorable interest rates, asset-backed financing is becoming more popular among major and minor shareholder who wishes to raise fund. While the first half of the year saw a 35% and 15% in funds and deal volume, the market is optimistic for the second half as Hong Kong is welcoming more Middle Eastern investment and new measures from China Securities and Regulatory Commission (CSRC) to boost IPOs.
Bloomberg, 25 June 2024
After a slow start, Hong Kong's IPO market is expected to rebound in the second half of 2024. The number of IPO filings in Hong Kong has risen in the past two months, and there has been an 83% increase in IPOs announced since mid-April compared to the same period last year. China's pledge to speed up approvals for listings outside of the mainland is seen as positive for Hong Kong's IPO market, which has seen a 33% year-on-year drop in proceeds raised since the start of 2024. Stricter rules for domestic listings in China and a stalled rally in Chinese shares may also drive more companies to list in Hong Kong.
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PWMA Events Q2 Highlights
The summary below highlights notable PWMA events and activities over the past quarter, from April to June. Going forward, we plan to send you more regular updates outlining the important events and happenings across the organization.
1. PWMA Leadership Breakfast
2. PWMA Apprenticeship Programme – 2024 Orientation
3. PWMA x HKIB - Trends in Family Offices
4. PWMA x Bloomberg - Women in Private Wealth 2024
5. PWMA joined delegation led by USFST of the HKSAR Government to the Middle East