Latest news with #HongKong-domiciled
RTHK
7 hours ago
- Business
- RTHK
HK a safe harbour for funds amid turbulence: Paul Chan
HK a safe harbour for funds amid turbulence: Paul Chan Finance chief Paul Chan says two-thirds of the city's US$4 trillion of managed assets originates from outside Hong Kong. Photo: RTHK Financial Secretary Paul Chan said on Monday he is optimistic about upcoming results from the annual asset and wealth management survey conducted by Hong Kong's securities watchdog as the city continues to woo global capital with its offer of a "safe harbour" amid global turbulence. Speaking at the 18th annual conference of the Hong Kong Investment Funds Association in Admiralty, Chan said net inflows into Hong Kong-domiciled funds surpassed US$44 billion for the 12-month period in the runup to March, almost three times higher year on year. "We are optimistic about the upcoming SFC Asset and Wealth Management Activities Survey," he told event participants, many of whom are fund management elites. "At last count, Hong Kong managed nearly US$4 trillion in assets, more than 10 times of our GDP. "Notably, two-thirds of this capital originates from outside of Hong Kong. "Several factors are driving this growth. First, the Greater Bay Area (GBA). With its affluent population and growing demand for offshore asset allocation, Hong Kong is the natural choice." Chan said cross-border fund flows between the SAR and the GBA have increased by sevenfold to more than 100 billion yuan since the GBA Wealth Management Connect scheme was enhanced last February and hinted of more measures to come. Also contributing to the increase in fund inflows is the growing number of family offices setting up shop here, with the total expected to exceed 3,000 soon from the current 2,700, he said. Potential investments from some 1,400 ultra-rich individuals could amount to over US$5.2 billion following the introduction of the cash-for-residency New Capital Investment Entrant Scheme. This, he said, was because the city continued to stand out as a trusted gateway and "safe harbour" for global capital under the One Country, Two Systems framework. Chan said the government is improving the preferential tax regimes for family offices to further enhance the asset and wealth management industry. The aim is for the legislation to be submitted to the Legislative Council next year, with implementation from the 2025-2026 assessment year onwards, he said.
South China Morning Post
17-04-2025
- Business
- South China Morning Post
Goldman Sachs: US$370 billion in Chinese firms' ADRs at risk if US severs market ties
US individuals are more likely than institutional investors to sell American depositary receipts (ADRs) of Chinese companies if the Trump administration pursues a decoupling of the world's two biggest stock markets, according to Goldman Sachs. Advertisement American retail traders held about US$370 billion worth of ADRs, the US investment bank said in a report on Wednesday, basing the figure on subtracting strategic and institutional holdings from these companies' total outstanding shares. Companies with high retail exposure, such as Alibaba Group Holding at 40 per cent, would be more susceptible to sell-offs if they are forced to delist, analysts led by Kinger Lau and Timothy Moe said. Delisting risk for Chinese companies is resurging amid the escalating trade confrontation between China and the US. Goldman said in a separate report this week that a financial decoupling could lead to a US$2.5 trillion sell-off in stocks and bonds in the Chinese and US markets. 'Some US retail investors may be reluctant or unable to convert their ADRs into [underlying Hong Kong-listed] shares,' Goldman said. Advertisement US institutional investors were estimated to hold a combined US$830 billion of holdings across ADRs, Chinese stocks trading in Hong Kong (known as H shares) and China's yuan-traded onshore shares, Goldman said. That number rises to US$960 billion if Hong Kong-domiciled companies are considered.
