Over dinner in late August, I sat across from a Chinese mainland-born, Massachusetts Institute of Technology-trained quantitative analyst who had spent seven years in New York running strategies for a US hedge fund. He has just relocated to Hong Kong, where his firm is scaling to 600 employees. His reasoning was unambiguous: Hong Kong offers…
For decades, Hong Kong has been a magnet for the rich. From wealthy Chinese setting up family trusts to millionaires migrating from across Southeast Asia, all of them have been sucked in by the city’s promise of free capital flows, a trustworthy legal system and extensive financial expertise. But some worry this model could now…
Hong Kong’s retail leasing market remained under pressure with rental rates far below the pre-pandemic levels, while Beijing’s crackdown on capital flight and a potential rate hike in the second half of the year by the US Federal Reserve would add to sector uncertainties, according to analysts. The food and beverage sector has seen numerous…
A large number of mainland Chinese companies hoping to list shares on the Hong Kong stock exchange are anxiously waiting for a nod from the mainland securities regulator, with many now at risk of having their listing applications lapse. More than 430 companies were currently waiting in the initial public offering (IPO) pipeline, according to…
Hong Kong is seizing every opportunity to consolidate its role as a global financial centre, leveraging unique advantages and national strategies. This piece, the second in a miniseries focusing on the city’s financial industry ahead of the handover anniversary, explores the likelihood of an “IPO Connect” that could inject much-needed liquidity into the market and…
China’s crackdown on cross-border securities trading could strengthen – rather than diminish – Hong Kong’s financial role, according to economists, as Beijing steers more capital through official channels and reinforces the city’s status as an offshore yuan hub. “I would argue that these moves make the importance of Hong Kong even bigger,” Diana Choyleva, founder…
Mainland customers can still open bank accounts in Hong Kong, but banks must adopt stringent new checks to ensure their processes are “compliant and orderly”, the Hong Kong Monetary Authority (HKMA) said in a statement on Saturday. “The banking industry has implemented the new regulatory requirements set out in the HKMA circular to ensure the…
Tiger Brokers reported a 17.5 per cent year-on-year jump in first-quarter operating profit in an announcement on Tuesday, without any mention of the looming punishment from China’s securities regulator over alleged unlicensed cross-border trading services. Tiger Brokers said its operating profit rose to US$47.6 million in the three months ended March 31, while revenue climbed…
As news spread on Wednesday that Hong Kong banks were tightening scrutiny on mainland Chinese clients opening savings and investment accounts, Zhe Ye – an auctioneer based in the southwestern province of Yunnan – was stunned. The former asset appraiser had been planning a trip to Hong Kong to open an account, hoping to buy…
China’s market regulator announced a sweeping investigation on Friday against three major brokers running cross-border trading, as it launched a two-year crackdown on investment leaving the country. Photo: David Dennis via Flickr. China does not allow private individuals to directly invest in overseas markets, requiring them to trade assets only through approved third-party channels. However,…