Hong Kong has risen to become one of the world’s pre-eminent international financial centres and helped fuel the growing economies of Asia.
Around the world, investors are seeking to diversify and improve returns by allocating more capital to alternative asset classes such as private equity, hedge funds, real estate, private credit, commodities, infrastructure and digital assets. This is stimulating greater interest in allocating that capital to the Asia Pacific region, which continues to be the fastest-growing and most dynamic part of the global economy.
As a gateway to Mainland China and regional connector together with its attractive legal, tax and regulatory settings, deep talent pool, capital markets ecosystem, Hong Kong is a significant centre for alternative asset management, and ownership. However, Hong Kong is unquestionably facing some of its biggest challenges to date.
Some of these challenges are pandemic induced, and represent major current issues that Hong Kong is slowly but surely working its way through. The right lessons must be drawn from this period so that Hong Kong will emerge stronger and more resilient against potential future disruptions posed by any future variants of the COVID virus or other viral outbreaks. Against increasing competition and global challenges, including the pandemic, more should be done to maintain the city’s competitive advantages and to build an even brighter and resilient future. It is critical that a delicate balance is struck giving proper recognition to Hong Kong’s stature as an international financial centre and broader local public health considerations. The current trajectory provides reason for hope, but challenges remain
Looking beyond the pandemic, it is of vital importance and utmost urgency that the Hong Kong Government unequivocally communicate and demonstrate that the financial services sector matters.
This paper aims to support this process and highlight clear strategic imperatives for rebuilding Hong Kong‘s international reputation as a top-tier, world class city in which to work, live, raise families, and prosper.
Reasserting Hong Kong’s reputation as an international financial centre is essential to restoring Hong Kong’s place on the world stage. This will require high-priority conversations, commitment and conviction of asset managers, wealth managers, investors, policymakers, thought leaders, service providers, and other key stakeholders.
This paper, in collaboration with PwC, provides an overview of Hong Kong’s many opportunities and a range of areas where it can focus to further its success in the short, medium, and long term. Notwithstanding the challenges of the pandemic, this paper intends to support a rich dialogue between policymakers, regulators, asset managers, investors, and service providers as we all work together to support the long term growth of the alternatives sector in Hong Kong, and realise the economic and social benefits it provides.
It reflects views from the Alternative Investment Management Association’s consultations with alternative asset managers, as well as research and insights gathered by PwC through interviews and roundtables with key stakeholders in the alternative asset management sector.
We hope you find it valuable and thought provoking and would welcome your feedback or questions.
Time is of the essence, and the time for action starts now.
Kher Sheng Lee
Managing Director, Co-Head of APAC and Deputy Global Head of Government Affairs
Managing Director, Co-Head of APAC, AIMA
Asset and Wealth Management Leader, PwC Hong Kong
General Counsel & Co-Chief Operating Officer, Oasis Management Company Ltd.
The six pillars that set Hong Kong apart
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Alternatives in Hong Kong (English)
Alternatives in Hong Kong (Simplified Chinese)
Alternatives in Hong Kong (Traditional Chinese)
The Long-Short Podcast
The Long-Short is a podcast by the Alternative Investment Management Association, focusing on the very latest insights on hedge funds and private credit.
Each episode will examine topical areas of interest from across the alternative investment universe with news, views and analysis delivered by AIMA’s global team, as well as a host of industry experts.
The Long-Short returns to APAC to cover the recent launch of a joint paper by AIMA and PwC called "Alternatives in Hong Kong: building on the city’s strengths", which sets out six pillars that will support Hong Kong in retaining its status as a key financial centre in the face of challenges brought on by COVID-19, and competition for talent from other jurisdictions.
In part one we catch up with Phillip Meyer, General Counsel & Co-Chief Operating Officer of Oasis Management as well as the Chair of the Executive Committee of AIMA in Hong Kong, and Michael Bugel, Co-head of AIMA APAC, both of whom helped author the paper.
In part two, we speak to Lisa Tsui, Partner at PwC Hong Kong, who offered us her views regarding where Hong Kong sits in a global context as a financial services centre including the opportunities it has to leverage the growing need for wealth management services.
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