Author: Enoch Yiu

Improvements to the Wealth Management Connect scheme in February have proven to be a game-changer, with investment via the cross-border trading channel jumping by four times between January and April, according to government data and industry players. The amount of money traded under the scheme quadrupled to 50.7 billion yuan (US$7 billion) in the first four months of the year, while the number of investors using it rose 60 per cent to 110,000, according to government data. ICBC Asia has seen a significant increase in customers and assets under management since the enhancements to the Wealth Management Connect scheme were…

Hong Kong is an attractive destination for overseas start-ups and entrepreneurs looking to develop their ventures, thanks to its deep financial market, availability of capital, and international status, as highlighted by Clara Chan Ka-chai, CEO of Hong Kong Investment Corporation (HKIC). Chan emphasized that the city’s low taxes, free flow of data, and robust financial system provide a solid foundation for business growth. The HKIC, managing HK$62 billion (US$8 billion), aims to boost Hong Kong’s position as an innovation and technology hub through partnerships and investments with start-ups. Recent collaborations with local AI unicorn SmartMore and Beijing-based Biomap demonstrate the…

“UBS sees Hong Kong as an ideal IPO market due to the opportunities it offers for mainland investors,” says a UBS spokesperson. With the recent allowance for mainland trading of Hong Kong-listed international firms, UBS is poised to assist companies seeking dual listings or listing solely in Hong Kong. Featuring in tours to promote Hong Kong’s IPO advantages, UBS aims to attract international listings to HKEX. Saudi firms, including Aramco, now have the option of secondary listings in Hong Kong. Despite slipping in global rankings, Hong Kong is making a comeback with over 100 listing applications in the pipeline. With…

Exciting news from the Hong Kong Investment Corporation (HKIC) has been revealed by CEO Clara Chan Ka-chai. More deals are set to be made every quarter by the HKIC, setting the stage for economic growth and industry development in Hong Kong. Exploring the HKIC: John Lee Ka-chiu announced the establishment of the HKIC in the 2022 policy address. With four funds in place and a fifth fund on the horizon, the HKIC aims to attract companies to Hong Kong and support local start-ups. HKIC’s Unique Approach: Chan highlighted the HKIC’s dual mandate: achieving returns for the government while also fostering…

WeLab’s Expansion in Southeast Asia Driven by Digital Banking Services With a rapidly growing demand for financial technology in Southeast Asia, WeLab sees the expansion of its digital banking services and technology exports as key to its growth. Last August, the company signed an agreement with HSBC to provide technology support in Malaysia. WeLab’s new digital bank in Indonesia, Bank Saqu, has already attracted a million users since its launch in November. CEO Simon Loong envisions serving over 200 million Indonesians in the long term, especially young entrepreneurs in need of digital banking services. Co-founded in 2013, WeLab has received…

The Hong Kong stock and futures markets are implementing a new arrangement that will allow trading to continue even during severe weather conditions. Currently, trading is halted if the Hong Kong Observatory issues a No 8 typhoon signal or a black rainstorm warning before the market opens at 9:30 am. Under the new system, investors can trade Hong Kong stocks and derivatives, as well as buy mainland A shares through the Stock Connect schemes. Investors, stockbrokers, and the government stand to benefit from this change, with increased trading opportunities and revenue collection through fees and stamp duties. The stock market…

Hong Kong Export Credit Insurance Corp (ECIC) has partnered with fintech start-up FundPark to offer a new insurance cover for trade loans, benefiting the city’s e-commerce sector. Under the deal, ECIC and French reinsurer Scor will provide insurance cover for the trade loan portfolio underwritten by FundPark for Hong Kong-based e-commerce businesses. This collaboration aims to reduce credit risks faced by FundPark and encourage more loans for online merchants. ECIC Commissioner Terence Chiu Man-chung highlighted the importance of this credit trade insurance for SMEs in Hong Kong and emphasized the role it will play in providing funding for e-commerce businesses.…

Hong Kong’s capital market, once struggling during the Covid-19 pandemic, has seen a significant rebound since Bonnie Chan’s appointment. Her first 100 days as CEO of HKEX saw the Hang Seng Index rise by 11% and the market’s daily turnover increase by 35%. The introduction of measures by the China Securities Regulatory Commission in April to support fundraising in Hong Kong has also boosted market activity. This led to an increase in IPO applications and raised HK$8.7 billion since April. Chan’s focus on building a resilient market ecosystem and launching new technology platforms like the Orion Derivatives Platform aims to…

Hong Kong’s stock exchange, HKEX, is implementing changes to improve governance by limiting directorships to a maximum of six per person, with each tenure capped at nine years. The consultation period for this plan is open until August 16, with the new rules expected to be in place by January 2025. The goal is to reduce the concentration of board seats among corporate elites and ensure directors have the time and capacity to fulfill their responsibilities, especially independent non-executive directors (INEDs). As part of Hong Kong’s efforts to enhance governance standards, HKEX is addressing concerns about overboarding among directors, with…

Clara Chan Ka-chai, known as the “goddess” and “little chilli,” successfully led Cathay Pacific Airways through a HK$39 billion rescue plan during the Covid-19 pandemic, which later secured her position as CEO of the Hong Kong Investment Corporation (HKIC). Her swift negotiations and strategic decision-making impressed many, leading to her promotion within the government-run wealth fund. Chan’s experience in handling investments at the Hong Kong Monetary Authority played a crucial role in Cathay’s bailout negotiations. She emphasized the importance of balancing funding needs with taxpayer returns to ensure a successful outcome for all stakeholders. The tough terms of the rescue…