Christopher, before we talk about, well, for good, I got to ask you about how
you're assessing this banking crisis that we're seeing in Europe and the US
here right now. Do you see any kind of bigger fallout
from Credit Suisse and are any kind of contingency measures in place
similar to all of you? We have been monitoring the situation
closely and back in Hong Kong to see us sort of is, as you mentioned, our
exposure to those isn't very limited in terms of those life example out.
The market settles our banking system. They are very much robustly regulated.
Like, for example, if you look at the current chapter adequacy ratio for our
banks basically is well exceeded 20 percent way above the national level.
So all these things is something that is testimony to the robustness of financial
regulation. But of course, with all of these things,
if we are monitoring situation like all of you.
Because we've seen perhaps some anecdotal talk of there being flows of
money into Hong Kong. What are you seeing in terms of that as
this banking crisis continues to affect the global banking system in terms of
money coming in and out of Hong Kong? Generally speaking, if you look at the
way that our capital markets, like the bank market works, I think they have
been slowly operating and we see no issue so far.
At the same time, I think back to the theme of today's interview, as you
highlighted, basically it is about wealth.
And that's exactly what we tried to do, tried to strengthen and also consolidate
our role as asset and wealth management center by joining more family offices
here. Christopher, David here.
So what what is new about what the offering is right now and I'll ask him
directly what what are what is Hong Kong offering that Singapore cannot even look
at the overall landscape of ultra high net worth individuals?
I think it's estimated over 20000 of them back in Hong Kong, which is the
largest size among old global cities. But we want to do more and consolidate
more. And that's why in the coming Friday, we
are going to provide a policy statement in terms of a whole area of measures
that we'll put forward to draw malls and offices here, because we see a lot of
synergies between what we do here and the needs of family offices and
specifically in terms of the policy statement.
While I would not show all of the details because all the details to be
announced is Friday, I think there are a few few sneaky things.
Number one is that we will have a tax concession, which is a full tax
concession for single family offices. And the bar that we set right now is 30
million U.S. dollars.
And for those in government offices who will invest in Hong Kong for that
amount. To some additions that will be given a
full tax concession of sixteen point five percent.
That's number one. And number two, in terms of what will be
new. As highlighted in the budget earlier, we
will relaunch a capital investment engine scheme, i.e.
for people who are putting money in the local asset money market, excluding
property. We allow them to come, reside and
develop here. And for details, we are still working on
those and we will share more later on. But that said, I think these are the two
things, among others, that will be showcased in the coming policy statement
to be announced in the coming Friday. Well, so good summit.
Right. Christopher, I don't mean to steal
thunder from Friday. You're saying that some of the good
stuff for them. But since you mentioned something I need
to ask you then the tax concession, that's one.
Will you have a a minimum amount that family offices will need to keep in Hong
Kong as a way, I guess, to to to bolster the offering?
Yeah, I think similar to other schemes in the world.
We do have a minimum. As I highlighted, it's a 30 million U.S.
dollars and you compare that amount with other schemes globally.
I would say that's a fairly competitive level and that's it.
I would say in terms of family office wells, we talk about the next
generation. Very often I'm not just talking about
financial returns. They're looking for gold royalty like
investments by art, like charities. And that's why when a coming well, for
good summit, it is actually a very broad range of subjects that we'll cover.
And there will be for one is tax. One is about Shery Ahn.
One is about art and is about philanthropy.
So the reason that we named this summit well, feel good.
There are two reasons. Number one for good is what we do know
in English means plastic. So if I may well different from other
well, basically it's meant to be lost at the same time to be passed on from
generation to another. That's why we put a wealth of good for
that sense and other meaningful wealth is that it means for good causes.
As I highlighted and said, now that this generation really are looking for
returns beyond financial returns, it could be social returns or more broadly,
charities, whatever. And that's why we put this as the
overall theme of the summit. And under this theme, the four topics I
just highlighted. Okay, Chris, I want to get a sense,
though, of, you know, you're trying to attract family offices into Hong Kong,
but Hong Kong is suffering from certain image problems such as the encroachment
on its legal system. For one thing, it's something which
people who really, really respected, but also that's comes with the national
security law and the territories proximity with China here as well and
the vagueness of that national security law.
How are you going to navigate that and make it a sell,
in fact, throughout the latter part of last year and early part of this year?
I've been going to different places across the world in terms of having
meetings with business and also financial people.
I think one message is very clear that Hong Kong's financial system and also
financial center strings of every office, that's number one.
And number two, in terms of the rule of law, the issue just mentioned, I think
Hong Kong is one of the few jurisdictions in Asia where you can
still sue the government is to win. And it is very much at a court of law.
It was the case before and is due to case now.
And number three, in terms of the security issue, I think we had no
dissimilar from other jurisdictions where they also have a similar provision
into protecting national security. So on that account, I think for national
security, it actually provides a stability that we require to further our
development. And you also mentioned about the
possibility to me that I would say that this advantage because after all, if we
look at all the connected grants, for example, in the capital markets that we
have built Bond Equity ETF, be it like one connect and now the swap connects
and serial going on there and husband to wealth management connect.
I think all of these collective teams are playing to our advantage.
And the one country, two systems and it's it's down the Hong Kong.
So we could even tell.