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Asia's art scene has changed over the last 12 months to be dominated by younger, cashed up buyers looking for more contemporary art, and the region's leading auction houses have changed their approaches to meet these new consumer tastes. Know which artists are fetching high bids on the auction block on page 28.
Likewise, millennial travelers are now looking for inspiration for their travel adventures on social media, online travel agents like Klook are investing millions to create content around destinations and packages they are selling. Read more on page 40.
Meanwhile, Hong Kong has been struggling to get its tourism numbers back up to prepandemic levels. To counter this, the government is spending millions to bring in mega events to the city. Read what experts have to say about this move on pages 22 to 23.
Banks will not only see ease of operations with the new tool but also with new hires. Pages 32 to 34 revealed that banks ramped up hiring, except for investment bankers.
Investment bankers, however, will likely be in demand by companies pursuing mergers and acquisitions, especially as experts predict a busy year-end in the market with shareholders and private equity turning undervalued public companies and seeking alternative listings. Turn to page 18 for more information.
Read on and enjoy!
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Foodtech and fintech emerge as bright spots in Hong Kong’s startup
If there’s one standout factor for the surge in food technology startups, credit the Hong Kong government. Its drive to increase agricultural output through modern and eco-friendly production methods has been relentless. In 2023, the foodtech sector experienced a substantial year-on-year increase.
Why HK investors flock to Thailand's residential market
Investors and expatriates from Hong Kong are showing a growing interest in Thailand's upscale residential property market, enticed not just by the affordability, but also by the prospects of securing higher rental yields and achieving substantial capital gains.
MBA programmes attract global talent and boost female enrollment
MBA programs in Hong Kong are experiencing a surge in demand. In this year's MBA survey conducted by Hong Kong Business, six providers reported over 1,533 enrolled students in both part-time and full-time setups, a rise from the 1,354 students in 2022 from eight different providers.
Government scraps MPF Offsetting Scheme to enhance employee
For decades, Hong Kong’s Mandatory Provident Fund Offsetting Scheme has been a subject of countless debates, with critics condemning how employees appear to be cheated out of their hard-earned money because employers are allowed to draw from their pensions to offset severance and long service payments.
Endowus challenges commission biases in HK's financial advisory scene
Financial agents in Hong Kong often follow a commission-based sales model which can lead to misaligned advice and limit investors’ access to products that actually align with their investment goals. This is what pushed Singapore-based wealthtech, Endowus, to step into the market.
Retailers are urged to view returns management as loyalty drivers
Returns management is now becoming a core element of any retailer’s customer strategy, as trends show that it is one of the most effective means of retaining customer loyalty and satisfaction. However, some retailers still choose to shelve this concern, resulting in a disorganised or dysfunctional system.
At Fidelity, we have a forward-looking vision to help empower our clients to take charge of their investments and build a nest egg through digitalisation and retirement planning education. Our commitment has been recognised by industry awards and accolades over the years.
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Hong Kong Business High Flyers Awards 2024 Financial Services4
The above awards are for reference only. It is not indicative of the actual performance of the constituent funds. For the award information details, please refer to https://www.fidelity.com.hk/awards.
1 Fidelity has won Gold Rated Scheme from MPF Ratings for 12 consecutive years during the period of 2013 to 2024 - the rating(s) only represent MPF Ratings’ assessment standard (for details, please visit: https://mpfratings.com.hk/ratings-methodology/).The results are based on the investment choices and performance, fees and charges and qualitative assessment of an MPF scheme as of 31/12/2012, 31/12/2013, 31/12/2014, 31/12/2015, 31/12/2016, 31/12/2017, 31/12/2018, 31/12/2019, 31/12/2020, 31/12/2021, 31/12/2022 and 31/12/2023.
2 Fidelity has won Best Communication and Education Award from MPF Ratings for 8 consecutive years during the period of 2017 to 2024 - the award(s) only represent MPF Ratings’ assessment standard (for details, please visit: https://mpfratings.com.hk/awards-methodology/). The results are based on the assessment across the various communication and education criteria of an MPF scheme as of 31/12/2016, 31/12/2017, 31/12/2018, 31/12/2019, 31/12/2020, 31/12/2021, 31/12/2022 and 31/12/2023.
3 Fidelity has won Best MPF Post-Retirement Product in 2024 from MPF Ratings - the award(s) only represent MPF Ratings’ assessment standard (for details, please visit: https://mpfratings.com.hk/ awards-methodology/). The results are based on the assessment on the post-retirement initiatives of an MPF scheme as of 31/12/2023.
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Achieving “medical freedom” in Hong Kong requires $6.7m or 10 years of income, Prudential Hong Kong revealed.
In a report, the insurer revealed that residents struggle to achieve medical freedom due to high medical costs (66%) and due to network limitations of insurance plans, amongst others.
In Hong Kong, residents report that less than half of the medical insurance plans they currently own encompass services that they value such as global drug search (77%), second medical opinions (76%), and cross-border medical support (72%).
Additionally, only 43% of plans offer full single-room coverage, a priority for Hong Kong residents, and just 55% provide international medical services.
The report also found that more than half (54%) of residents want the quality of cross-border medical services to improve. With better services, the current usage rate of such services could increase by 48%.
More than half (52%) of employees are struggling with their finances, with some (35%) even living paycheck to paycheck, WTW reported.
Moreover, 29% believe their financial problems will worsen next year. WTW underscored that financial concerns negatively impact workers' well-being (63%), with 28% reporting higher levels of stress and anxiety.
These financial challenges also impact employees' confidence in their retirement, with 57% stating they are unable to improve their retirement situation, which, in turn, affects their engagement, productivity, and emotional health.
In addition, younger and mid-salaried employees express less confidence in their retirement savings.
RESIDENTIAL PROPERTY
The commercial investment and housing markets in Hong Kong are grappling with stringent mortgage loan approvals and high interest rates, which are expected to further decrease property prices over the next six months, according to JLL's mid-year market review and forecast.
"The stringent mortgage loan conditions have dampened the purchasing enthusiasm of investors, resulting in a decline in transaction volume. Such will further suppress the capital values of properties,” said Cathie Chung, senior director of Research at JLL.
“The commercial investment and home sales markets have been hit the hardest, ultimately affecting the overall economy. Demand-side support from the government is needed before the public loses confidence in the property market,” she added.
The office leasing market saw limited expansion and more lease renewals, leading to a soft performance in the first half of 2024. Gross leasing volume dropped by
28.1% from the latter half of 2023. Despite this, the market recorded a positive net absorption of 502,300 square feet due to the realisation of pre-committed space from new completions.
The overall vacancy rate hit a record high of 13.6% by the end of June, influenced by new office supply. Overall Grade A office rents declined by 4.3%, with Central experiencing the sharpest drop of 7.1%.
The FIREBS industry (finance, insurance, real estate, and business services) dominated leasing activities, accounting for 52.6% of the volume, with insurance and wealth management sectors being particularly active.
Large occupiers are capitalising on more affordable rentals to upgrade their office spaces, with sizable transactions of 20,000 square feet or more making up 29% of the total leasing volume in the first half of the year.
Retail market recovery is hindered by increased domestic consumption leakage due to strong northbound and outbound travel.
The stringent mortgage loan conditions have dampened the purchasing enthusiasm of investors, resulting in a decline in transaction volume
Although inbound arrivals rose by 64.2% year-on-year, departures of Hong Kong residents exceeded inbound tourist visits by 48.3%. Additionally, average spending per tourist on shopping and dining decreased by 17.4% in the first quarter of 2024 compared to the previous year.
High Street shop rents grew by 3.0%, whilst Prime shopping mall rents increased by 0.9%.
Leasing activities were polarised, with both high-end and mass-market tenants becoming more active in toptier shopping streets, leading to a slight improvement in the High Street shop vacancy rate to 11.5% from 11.6% at the end of 2023. Lower-tier streets struggled to attract tenants despite offering negotiable rents.
Over the last six months, the influx of international brands entering the Hong Kong market grew by 91% YoY. Mainland Chinese brands, accounting for 33% of these newcomers, have surpassed Japanese retailers, emerging as the most active new entrants in the city.
Meanwhile, the removal of cooling measures did not stop home prices in Hong Kong from declining, with a 1.7% drop in the RVD private domestic price index year-to-May, a 23.1% decrease.
There is wealth in good health for pets, as concerned owners are willing to spend on crocodile meat powder or swimming lessons for to keep their fur babies healthy and happy.
The increasing demand for pet health products and services in the city is indicative of the popularity of health supplements, such as crocodile meat powder for asthma, which is amongst the top sellers in SHOPLINE’s pet supplies category.
Based on Gross Merchandise Value (GMV), grooming services and pet-friendly swimming pool packages are listed as most soughtafter products or top-sellers in the e-commerce platform.
“This indicates that pet owners
are increasingly mindful of the holistic well-being of their pets. They prioritise ensuring their pets are hygienic and well-groomed, as well as incorporating fitness activities like swimming into their pets’ routines,” Nick Gao, regional general manager at SHOPLINE, told Hong Kong Business To capitalise on this trend, Gao advised merchants to divert their marketing efforts towards products and services that aid with pet wellbeing, like probiotics and eye health supplements.
As animal welfare awareness grows amongst owners, Gao also suggested that merchants offer high-quality pet food, healthcare, grooming services, and premium products to cater to
Rather than relying on new constructions, Hong Kong's solution to a green-certified building shortage lies in retrofitting old buildings.
Helen Amos, head of sustainability, Hong Kong at JLL, underscored that even with upcoming projects, the city will still fall short in meeting the growing demand for environmentally certified buildings. Existing buildings, once retrofitted with green measures, “can deliver environmental performance on par with, or even exceed that of newly constructed buildings,” said Amos.
“Recently, some of the existing buildings have achieved the BEAM Plus Existing Buildings and LEED for Operations and Maintenance (O&M) certifications, allowing developers to meet and capitalise on the growing demand for green office space among occupiers, effectively bridging the gap between supply and demand in Hong Kong's green building market,” she added.
This indicates that pet owners are increasingly mindful of the holistic wellbeing of their pets
pets’ specific needs. Merchants may also consider offering pet services such as dog walking and pet sitting, given Hong Kongers’ preference for services that “ensure their pets receive proper care and attention despite their busy schedules.”
For those planning to enter the market, Gao said dog products generate the highest sales, followed by cat products.
“Both the GMV and customer count for shops selling dog products are experiencing a steady, consistent increase,” Gao added.
Gao underscored that pets have become a key selling point for many businesses in Hong Kong and will continue to do so, especially since the global pet-related trade is projected to reach HKD$2.7t (US$345b) by 2027.
Further proof of the sector’s potential is Hong Kong’s Pet Festival, which saw a record-high of over 650 booths and 200 exhibitors.
SHOPLINE also saw its number of merchants specialising in pet products grow by nearly 30% in 2023.
The shortage of green buildings is a widespread issue, affecting not only Hong Kong but also most markets in the Asia-Pacific region.
A bare minimum
Within APAC, 87% of occupiers across the region target 100% green-certified portfolios by 2030, up from 4% of certified portfolios currently.
Developers, however, will only create two square feet of low-carbon space for every five square feet of demand between 2024 and 2028.
"Today, leasing office space in green-certified buildings is no longer a differentiator but a minimum criterion for most occupiers. We are seeing more and more companies adopt strategies such as energy audits, sustainable fit-outs, and green leases to achieve sustainable workplaces,” said Kamya Miglani, head of ESG Research, Asia Pacific at JLL.
In addition to retailers, commercial landlords like Link REIT and MTR Corporation are also harnessing the potential of Hong Kong’s pet economy.
“Pet-friendly facilities and amenities have been on the rise in Hong Kong lately, with the opening and conversion of pet-friendly malls or restaurants,” Gao said.
Credit card issuers are sitting on approximately HK$1.85b of revenue per annum– all they have to do is improve credit activation via more merchant deals.
One in two (51%) of total retail gross merchandise value (GMV) in 2023 was from credit cards, according to a report by strategy consulting firm Quinlan & Associates. It is also said to generate a “significant portion” of revenue for local banks.
Despite its dominance, the city’s credit card industry is facing three key structural challenges that are weighing on its revenue: oversaturation, underutilisation, and high churn.
“These structural issues directly affect credit card issuers’ profitability, contributing to inflated direct expense ratios for banks’ credit card business units, which are up to 7 times higher than that of their other business units,” said Benjamin Quinlan, CEO & managing partner of Quinlan & Associates, in an interview.
Quinlan advised credit card issuers to
change up their current strategy from acquiring card users to acquiring more merchants.
“Most local issuers remain heavily focused on acquiring new credit card users through a mix of welcome offers and rewards attached to new card products. However, data clearly indicates that there is little-to no correlation between the number of credit cards offered and customer spending,” Quinland noted.
“The opposite is true for credit card deals. Yet, despite their outsized impact on spending behavior (and therefore issuer revenue), the authors believe merchant deals are not being given due attention by issuers,” he added.
“By re-examining their existing approach to merchant deals, issuers tap into pockets of opportunity to drive customer spending and, in turn, their credit card revenues. But doing so would necessitate key strategic changes, such as improving customer awareness, leveraging targeted partnerships, and enhancing the overall customer experience of using deals,” Quinlan concluded.
Embark on a journey with V-Transform Expo 2024 on 18 October 2024, at Macau Tower, where innovation shapes the future in a symphony of technological marvels! It stands as a beacon, connecting tech landscapes for future growth.
As a certified 'Potential Technology Enterprise' recognised by the Macau Economic and Technological Development Bureau in 2023, Vastcom Technology Limited is dedicated to being a catalyst for innovation, supporting the digital transformation landscape in Macau. Its vision includes fostering knowledge exchange, providing industry updates, and creating business and investment opportunities. In the previous year, the company successfully orchestrated V-Transform Expo 2023, with a primary focus on the Macau region. Vastcom was fortunate to have the support of key government bodies in Macau for this event to ensure broader coverage and impact.
In the past few years, global financial markets have experienced turbulence, posing unprecedented challenges for businesses both at home and abroad. In the rapidly evolving landscape of 5G technology and artificial intelligence (AI), V-Transform recognises the internal and external pressures facing enterprise development. In the expansive realm of collaboration, the V-Transform Expo creates a vibrant space where
businesses from home and abroad can effortlessly connect with partners, investors, and growth opportunities. Joining Vastcom’s transformative journey, challenges will turn into unparalleled opportunities!
Uplifting speeches and a hundred voices
To infuse V-Transform Expo 2024 with expertise and insights, Vastcom extended invitations to industry leaders and professors within the relevant fields. These distinguished individuals such as Dr. Charleston Sin, Dr. Ren Yongjian, Mr. Richard Wei-Shun, Chang, Dr. Toa Charm, Mr. Tom Goh, and Mr. Xiaosheng Tan from Singapore, Macau, Hong Kong, Beijing, Hangzhou, Shenzhen, etc. will take centre stage as keynote speakers, sharing their profound knowledge through addresses that illuminate key industry trends and challenges. Additionally, panel discussions will be curated to facilitate engaging dialogues, offering attendees a unique opportunity to delve into the depths of critical industry topics.
Esteemed collaborators
An integral aspect of V-Transform Expo 2024 is the presence of leading technology companies as exhibitors and sponsors. The company is honoured to have garnered support from over 15 multinational tech giants.
V-Transform Expo 2024 stands as a beacon of innovation and collaboration, positioned to showcase the cutting edge of technology and foster transformative dialogues about digital transformation.
These 15 enterprises cover a wide spectrum of industries, ranging from cloud technology, network security, digital protection, 5G technology to artificial intelligence. Currently, Vastcom is very proud to have the support of five organisations——The Macau Productivity And Technology Transfer Centre, Data Literacy, Z-ONE Global, HKCNSA, and Hong Kong Junior Chamber, whose presence will add highlights to the expo. Vastcom sincerely looks forward to attendees’ participation in its exhibitor lineup, collaborating and exploring new opportunities with businesses, partners, and investors from the Greater Bay Area.
Digital entertainment experience
Technology is tangible! Step into the expo to see, feel, and try it first-hand. There will be mysterious products on display at the show. Immerse in cutting-edge experiences on-site through Vastcom’s digital interactive platform. Explore the digital lobby, interact with digital booths, and connect with representatives with similar interests.
Exploring the new frontiers of digital transformation By 2025, the digital technology landscape will see exciting prospects. artificial intelligence will be more widely used, the proliferation of Internet of Things devices will continue, and the commercialisation of
• V-Transform Expo 2024 is an interactive exhibition uniting industry leaders, innovators, and entrepreneurs. From market trend analysis to technology exchanges, the event fosters potential business opportunities.
• Academic Collab: Partnerships with scholars bridge theorypractice gap, ensuring depth.
• Partnerships: Industry collabs drive innovation. Govt reps witness digital journey.
This Page: V-Transform Expo 2023
Opposite Page: V-Transform Expo 2024
5G technology will drive advancements in areas like virtual displays and augmented reality. The importance of big data and data analytics will be further emphasised, whilst sustainability and green technology will garner more attention. These developments will catalyse transformations in the economy, society, and lifestyles, ushering in a smarter, more digitised future for human society.
To adapt to these trends, V Expo 2024 is positioned as an innovation catalyst, aiming to maintain leadership and contribute to technological development. Explore future trends, share practical experiences, and foster partnerships through keynote speeches, cutting-edge technology showcases, panel discussions, and collaborative platforms. Join in shaping the future! For more information, visit our website at www. vtransformexpo.com and follow us on LinkedIn and Facebook @ Vastcom Technology Limited. Let's embark together on this journey towards a smarter, more interconnected world!
Everyone has a different gut microbiome composition, even twins, which is why probiotics available in the market may work to resolve one’s gut health problem, but not for another. To address this gap, GUTolution came up with tailored probiotics.
The Hong Kong-based healthtech start-up manufactures custom probiotics based on the composition of a person’s unique gut microbiome which they analyse through health tests.
From the test, which can be done from home, GUTolution will develop a comprehensive report which sets out what is needed to resolve one’s gut health issues, amongst others.
Akin Smith, head of corporate partnerships at GUTolution, explained that they use shotgun metagenomic sequencing to analyse a person’s gut microbiome.
"At GUTolution, we utilize shotgun metagenomic sequencing, a cutting-edge technology that surpasses the limitations of traditional 16S rRNA gene sequencing used by other providers. While 16S sequencing can identify only a few species per test, our approach provides over 35,000 data points, allowing us to identify more than 4,000 species. This comprehensive analysis enhances our ability to understand microbial communities." Smith told HongKongBusiness
“This gives us the clearest possible picture of the gut microbiome. We have a much better base for providing recommendations,” Smith said.
In further elaborating on the advanced technology employed by GUTolution, Smith referenced policy formulation.
He stated, ‘When creating policies for Hong Kong, if policymakers were relying on a sample of only five people, this is likely suboptimal. By considering the entire population, policymakers gain a holistic view, enabling them to make more informed recommendations and policies. It’s the same with the gut microbiome.
Apart from the technology GUTolution uses, the startup also stands out in terms of price point. Smith said their tailored solutions are about $1,000 cheaper than most others available in Hong Kong
“It is important for us to make this as accessible as possible,” Smith said, adding that one of the startup’s goals is to educate people about gut health.
Data from the Hong Kong Society of Gut Microbiome (HKSGM) revealed that 40% of people in the city have a moderate to severe degree of gut microbiome imbalance.
Amongst those suffering from gut health issues in the city was none other than the CEO of GUTolution. His personal experience with gut issues led him to start GUTolution with co-founder Wilson Chang, dedicated to improving gut health for others.
MANUFACTURING
With Hong Kong’s impending ban on disposable plastics, businesses are urgently seeking solutions tailored to their specific requirements. Finding the ideal alternative, though, is not that simple. Here’s where Source Green steps in, providing bespoke sourcing for alternative packaging solutions.
“We have mapped out a huge global supply chain of alternatives. We have brands, we have innovators who are creating new materials. We also have factories that we can work with to help [companies] find alternatives for their packaging. We’re essentially a sourcing portal,” Sonalie Figueiras, CEO and co-founder of Source Green, shared in an interview with Hong Kong Business
Off the shelf alternatives
What makes Source Green special as a sourcing portal is the alternatives it offers which are “not available off-the-shelf,” Figueiras pointed out.
For example, the startup can help e-commerce brands access packaging made from mushroom foam, silphie paper, wool waste, or cornstarch for example. For brands in the F&B space, Source Green has packaging made from wheat bran, bagasse, and areca palm.
Figueiras, however, clarified that Source Green is not the creator of these
alternative packaging options available on their portal. Rather, what the startup does is help companies identify what available alternatives there are that fit their needs, then coordinates directly with factories or manufacturers on behalf of the startups to create and manufacture their packaging solutions.
Most companies are not aware of what is possible and not possible, citing algae packaging as an example.
“Today, there is no algae packaging at scale. It’s not an actual solution, but if you read the media articles, it appears that algae packaging is readily available and you may be thinking: ‘Wow, algae packaging is so exciting!’ This is where there’s such a gap and they need a navigator. We’re the navigator for that,” Figueiras said.
Small and medium enterprises (SMEs) in Hong Kong spend over 2,298 hours per year on outdated financial management methods, costing each business approximately HK$160,000 annually. PayTech startup KPay aims to bridge this gap by offering merchants an all-in-one payment solution within a single platform.
KPay offers two key tools, KConnect and KFund, to help merchants streamline their operations. KConnect brings together different Software as a Service (SaaS) solutions to customize the best options for each merchant, improving efficiency and reducing time spent on manual tasks. KFund, on the other hand, helps merchants secure loans by providing detailed and comprehensive data to lenders, enabling betterinformed lending decisions.
“We want to empower businesses to operate effortlessly and without distraction, allowing them to focus entirely on their growth because a lot of merchants continue to lag in digital transformation as technologies, especially for SMEs, are too complex and expensive,” KPay CEO and Co-founder Davis Chan, told HongKongBusiness
Y83 is the first student accommodation in Hong Kong to include a VR gaming area.
Acknowledging that play is essential during and outside school, operator Y.X ensures its accommodations support student residents in balancing their studies with leisure time by providing gaming facilities.
The latest development from Y.X, Y83 at 83 Wuhu Street, Hung Hom, is the first student accommodation to include a VR gaming area.
Y83 is a 25-storey property converted from a hotel and has 374 rooms that can accommodate almost 600 students.
Y83’s XR zone has Meta Quest 3, a VR gaming headset. The accommodation also has a “Y Zone gaming area and common room” where student residents can play board games, PlayStation 5 and Nintendo Switch gaming consoles. Every student accommodation project by Y.X includes the Y Zone gaming area.
For students not into gaming, Y.X has other facilities like gyms, a cross-
fit zone, and an activity room where they can “cultivate their interests and expand their social circles.”
Y.X is also doing its part to help students explore different interests by offering different activities to their residents such as culinary classes, creative art workshops, coffee art barista workshops, Chinese New Year’s Eve dinners, bowling days, movie nights and more. These activities are done across the three apartment complexes of Y.X.
“By offering myriad opportunities to interact as a community, Y.X aims to help young adults broaden their social circles and seamlessly adapt to the local lifestyle,” Andrew Chan, chief investment officer of Crystal Investment Limited, the parent company of Y.X, told Hong Kong Business in an interview.
Chan said that Y.X showcases student artwork from their drawing and craft workshops throughout its common areas, enabling students to “participate in the process of
By offering myriad opportunities to interact as a community, Y.X aims to help young adults broaden their social circles and seamlessly adapt to the local lifestyle
improving their living environment.”
Whilst Y.X’s accommodations provide ample leisure options, students can also enjoy dedicated study spaces like The Collab Space, Focus Space areas, and Zoom Room, all secluded from external noises to allow them to focus on their studies.
“Y.X is a place where you rest, work and share with ‘only’ students from multiple universities,” Chan said. “The variety of social connections with only student residents and a hassle-free living environment make Y.X accommodations an ideal place for students.”
In addition to offering a balanced lifestyle for student residents, Y83 takes pride in being a safe and healthy place to live.
For 2023-2024, Y83 received authorised certifications for good indoor air quality testing and has maintained the international WELL Health-Safety Rating for two consecutive years.
The partnership between Check Point and Vastcom presents an advanced EASM solution designed to anticipate and neutralise cyber threats before they impact an organisation.
In the dynamic theatre of digital operations, cyber defences constantly face evolving threats. Partnering with Vastcom, Check Point introduces its advanced External Attack Surface Management (EASM) service to fortify organisational cyber resilience. This service proactively identifies and mitigates unseen vulnerabilities, safeguarding indispensable assets. In an era of pervasive digital threats, the advent of comprehensive security solutions is critical. Check Point's collaboration with Vastcom addresses the triad of challenges: visibility, testing coverage, and prioritisation.
Check Point Software Technologies: Leading the way in cybersecurity
Check Point Software Technologies is a renowned cybersecurity company that provides industry-leading solutions to protect organisations worldwide against cyber threats. With a focus on innovation and security excellence, Check Point is committed to delivering cutting-edge technologies to safeguard businesses in today's digital landscape.
Vastcom Technology Limited: Trusted Check Point solution partner
In the digital age, cybersecurity is not just a concern—it's a necessity. Vastcom Technology Limited, founded in 2010, is at the forefront of cybersecurity solutions, with a strong focus on customer satisfaction. With offices in Macau, Hong Kong, Zhuhai, and Singapore, Vastcom offers a wide range of products and services tailored to assist customers in their digital transformation. Vastcom is a trusted partner for digital
transformation and ICT solutions, holding the ISO 27001 certification to ensure the highest security standards for IT Help Desk Services. Recognised for innovation, Vastcom received
the prestigious Technology Enterprise Certification from the Macau SAR Government, a distinction awarded to only 15 entities in 2023.
Vastcom & Check Point - External Attack Surface Assessment (EASM)
The confluence of Check Point's advanced EASM solution with Vastcom's technical expertise crafts a formidable defence mechanism tailored for contemporary digital challenges. This strategic partnership assists businesses of all sizes to preemptively strike against potential cyber threats.
Unveiling the Hidden: In the digital sprawl of today’s business environment, assets stretch across cloud, on-premises, and third-party services. Vastcom’s service commits to an exhaustive discovery of these assets, ensuring no component of a digital ecosystem goes unnoticed.
Anticipating Threats: Beyond recognising vulnerabilities, Vastcom’s approach is to preemptively address them. The company’s proactive vulnerability assessment and management processes are foundational in identifying potential security gaps before they are exploited by malicious actors.
Mimicking the Adversary: With auto-pen (Dynamic Application Security Testing), Vastcom simulates real-world cyberattacks against applications. This critical testing phase helps uncover otherwise hidden vulnerabilities, reinforcing applications against advanced threats.
Prioritising Protection: Categorising assets based on criticality and risk exposure enables focussed security efforts. This strategic classification ensures that the most critical vulnerabilities are addressed with priority, optimising security resource allocation.
Strategising Defence: Vastcom’s risk analysis goes beyond traditional metrics to provide a nuanced understanding of potential threats in the context of a company’s unique operational landscape. This insight allows for informed decisionmaking and fortification of defences in alignment with business priorities.
Reinventing Cybersecurity: Guarding Every Corner of the Digital Landscape Vastcom’s pioneering EASM service is a guardian in the shadows, meticulously uncovering and protecting against the vulnerabilities hidden within your digital expanse. It's a common misstep for traditional security measures to miss these concealed risks, leaving a significant portion of one’s digital presence exposed and easy prey for savvy cyber attackers. The innovative approach doesn't stop at unearthing these hidden dangers; it transforms them into actionable priorities, enabling teams to settle the most pressing issues. By integrating cutting-edge analytics and continuous vigilant scanning, Vastcom’s positions businesses to not just to react to threats but to proactively anticipate and neutralise them, propelling them ahead in the cybersecurity game and ensuring a safer digital future. As the digital realm continues its inexorable expansion, the threats within evolve in complexity and cunning. The alliance between Check Point and Vastcom forges a path towards a new standard in cyber defence through its EASM service. By choosing its proactive security measures, businesses can gain more than protection; it can gain assurance in their resilience against the cyber adversities of tomorrow. Join Vastcom in revolutionising security strategy and shielding what is unequivocally invaluable.
This strategic partnership assists businesses of all sizes to preemptively strike against potential cyber threats
Stephenson Harwood's spaces can seamlessly switch from a boardroom to a seminar hall.
Asingle legal case can span multiple fields of law, making it crucial for legal firms to have an environment where collaboration and knowledge sharing flourish. Stephenson Hardwood recognised this and created their new office to support these practices with a "collaboration zone" and centralised social hub.
The centralised social hub, one of everyone's favourite spaces in the SH’s new office at One Taikoo Place in Quarry Bay, was designed to “encourage interaction, knowledgesharing, and a sense of community amongst the team," said Evangeline Quek, Greater China office managing partner of Stephenson Harwood (SH). The centralised social hub features a large communal kitchen and lounge area.
“It [is] an ideal spot for client meetings, brainstorming sessions, and team discussions,” added SH.
For the legal firm, ensuring a collaborative environment in the Hong Kong office is significant, given that it supports a diverse range of legal teams, including those in commercial, corporate, dispute resolution, employment, finance, and other practice areas.
The new SH office boasts an expansive, multipurpose events space that can seamlessly switch from boardroom meetings to large seminars and event venues.
Other unique spaces in the office include a pantry named "refreSH," a quiet room, and a client area offering a breathtaking view of Hong Kong East CBD.
1 The lounge area is part of the central social hub where employees can interact and share knowledge.
2 The office has an internal pantry called “refreSH”
3 The firm's sign greets clients and employees at the entrance.
4 The glass windows offer clients and employees a view of the Hong Kong East CBD.
5 The multipurpose space within the glass enclosure can be used for anything from meetings to large seminars.
6 The quiet room among the open tables offers employees a space for matters requiring privacy.
Gen AI and sovereign clouds ensure data privacy, compliance, streamlined processes, and fraud prevention.
As companies across the insurance landscape look for new ways to serve customers and ensure security, AXA recognised the importance of generative artificial intelligence (Gen AI) and sovereign clouds to achieve these goals.
The term “artificial intelligence” has been around since 1956, with the first Gen AI application created in 1966. However, as technology moves forward with new algorithms, generative artificial intelligence (Gen AI) has captured global attention and found various uses in the insurance industry.
In AXA, several large language models (LLM) use cases have been shared across AXA entities, including developer assistant, content generation, augmented workspace, knowledge assistant, and instant coverage check (ICC). With these, expected impacts include higher productivity, faster time to market, and knowledge-sharing optimisation.
AXA has recently established Virtual Lab, its experimentation framework on LLM and Gen AI. This allows AXA entities to ideate, test, and refine solutions, as well as share learnings and investments.
Part of this framework is ICC, where customers can receive accurate and clear answers in their preferred channels. Through ICC for Agents and Supporting Staff, automation allows for a reduced number of requests handled by agents and allows for "human-like" customer support. It also allows agents to focus more on high-value
activities, increases x-sell and up-sell, opens opportunities for more products, and enables growth by selling additional coverages to existing customers, amongst others.
Virtual Lab reduces the risks in AI and LLM initiatives as the company will be geared for any future technological advancements. Global executives don’t want to be left behind but as Gen AI is geared to become more intelligent, business leaders need to adapt to prepare their organisations for a gen-AI-driven future. “GenAI still needs to prove value in our industry- and organisation-specific use cases. This requires to experiment, fail fast, and iterate. AXA’s courage to split work and share outcomes is a major opportunity to seize,” AXA said.
AXA’s approach to insurance goes beyond AI innovation, also prioritising data security and compliance with sovereign clouds which guarantee data storage within specific geographic regions and adherence to local regulations. Sovereign clouds are crucial to the insurance industry since the sector often deals with sensitive customer information.
Though data may be more secure, adopting sovereign clouds presents its own set of challenges, such as balancing local and remote compliance, maintaining robust audit trails for transparency, and ensuring control over data and operations.
Several best practices can be used to address these challenges, including advanced encryption methods (external encryption key
management, HSM solutions, and confidential computing) for data at rest, in transit, and in use. Companies also need to implement strict policies and guardrails to guarantee data remains within the designated region.
It is important to control user access by employing identity and access management (IAM) solutions and access governance frameworks. Finally, clear communication about data handling practices has to be maintained whilst ensuring control over data and operations.
AXA expects to reach several goals as it embarks on the LLM/Gen AI path to innovation. It expects to create new markets and target new customer needs. It also seeks to continue giving quality service to its existing markets and customers by developing new products and assets, whilst entering adjacent markets.
Through sovereign clouds and adherence to best practices, businesses can earn customer trust as well as ensure compliance with regulations. It also guarantees that sensitive data remains within authorised jurisdictions. The insurance sector, once behind on automation and digitisation, has now closed the gap.
With the rapid growth of Gen AI, companies have to keep pace. By embracing sovereign clouds and Gen AI in tandem, organisations can navigate regulatory complexities, drive innovation, and deliver superior customer experiences with confidence.
DEAL #1: L'OCCITANE'S CONTROLLING SHAREHOLDER HAS OFFERED TO DELIST THE COMPANY FROM HKEX AT HK$34 PER SHARE, UP BY A 15.25% PREMIUM FROM HK$29.50.
DEAL #2: SINOPHARMA PLANS TO TAKE CHINA TRADITIONAL CHINESE MEDICINE HOLDINGS FOR NEARLY US$3B (HK$23.43B) IN ONE OF THE BIGGEST M&A DEALS SINCE 2020
L’Occitane and China Traditional Chinese Medicine Holdings are among the companies delisting from HKEX.
Hong Kong’s M&A market may have faltered early in the year, but experts anticipate a busy year-end with shareholders and private equity turning undervalued public companies private and seeking alternative listings.
One of the companies to have joined the wave of privatisation deals in Hong Kong recently is French skincare company, L’Occitane.
In April, L’Occitane revealed that its controlling shareholder has proposed delisting the company from the Hong Kong Stock Exchange (HKEX) at HK$34.00 (SG$5.88 or US$4.35) per share, a 15.25 percent premium to its last closing price of HK$29.50 before trading was stopped on April 9.
In February, China based-Sinopharma also proposed to take private Hong Kong-listed China Traditional Chinese Medicine Holdings for nearly US$3b (HK$23.43b). If the deal pushes through it will be “ one of the biggest privatisation deals for a Hong Kong-listed firm since 2020,” according to Mergermarket, a service of ION Analytics.
The following month, CIMC Vehicles also announced the delisting of its H shares from the HKEX, whilst telecom services provider HKBN was reported to have plans to go private as well.
Yiqing Wang, managing editor for Asia Pacific at Mergermarket, said Hong Kong’s shrinking stock market with Hang Seng Index (HSI) hovering below 20,000 is “setting the scene for a wave of privatisation deals.” Despite
a strong rally since the beginning of this year, HIS still sees a drop of 4.23% in the past 12 months.
In the Asia-Pacific (APAC) region, there have been 26 take-private deals from January to April, amounting to US$8.2b (HK$64.04b).
Sector-wise, real estate or property is driving M&A deals in Hong Kong, ranking first in deal value.
The six deals in the real estate sector amounted to US$1.2b (HK$9.37b), accounting for 60% of the total deal value between January to April.
In the wider APAC region, Wang noted that real estate was also a key focus. One notable transaction in the sector was the US$2.8-b (HK$21.87b) sale of a 60% stake in Dalian Wanda Group’s mall unit, Newland Commercial Management, by a consortium led by PAG.
Behind real estate is technology with a deal value of US$348m (HK$2.72b) or 18% of the total year-todate. Volume-wise, the tech sector led Hong Kong with nine deals. Technology, particularly AI, is also a major driver of M&A activity in APAC, said Norton Rose Fulbright Singapore partner Craig Loveless Finance and Professional Services both recorded a deal value of US$134m (HK$1.05b), but the latter had six deals, whilst the former had five. Also in the top five sectors was Consumer Products with four deals.
It’s expected to promote healthy competition and improve credit knowledge of locals.
Credit
Hong Kong banks and credit firms will now have a clearer view of clients’ ability to repay their loans thanks to Credit Data Smart. The new operating model uses past and present consumer data to give a better view of their credit health to all credit providers.
Developed in collaboration with financial institutions and local authorities, the move is expected to help potential new credit providers better assess customers’ creditworthiness and enhance the service quality of CRAs in the city.
“The presence of multiple CRAs will promote healthy competition in the credit reference industry. This competition will have a direct positive impact on service quality, driving agencies to improve their offerings and provide enhanced services to consumers in the market,” a representative from the Hong Kong Association of Banks (HKAB), one of the industry groups involved in the creation of CDS said via exclusive correspondence.
Regulatory collaborations
The Hong Kong Monetary Authority (HKMA) worked closely with other industry associations and local regulators in the creation of CDS.
“The HKMA has been working
It offers credit providers a broader array of choices when selecting the sources of consumers’ credit data.
closely with the Industry Associations, including Hong Kong Association of Banks, the Hong Kong Association of Restricted Licence Banks and Deposittaking Companies, and the Hong Kong S.A.R. Licensed Money Lenders Association Limited, to introduce more than one consumer credit reference agency (CRA) in Hong Kong through Credit Data Smart (CDS), with a view to enhancing the service quality of consumer CRAs and reducing the operational risk of having only one commercially run service provider in the market, particularly the risk of single point of failure,” a representative from the HKMA told Hong Kong Business
HKAB clarified that Credit Data Smart does not directly impact the outcomes of loan approvals.
“Instead, it offers credit providers a broader array of choices when selecting the sources of consumers’ credit data. This flexibility allows credit providers to make informed decisions based on their preferred credit scoring models and data sources, catering to their specific requirements and preferences,” the association stated.
An ecosystem of sharing Three CRAs were chosen to participate in the pilot of Credit Data Smart. These Nova Credit
Limited, PingAn OneConnect Credit Reference Services Agency (HK), and TransUnion Credit Information Services.
Wingo Wong, managing director of TransUnion, said that they shared insights and data on data management and consolidation to help build Credit Data Smart. One of these are their proprietary data formats.
“These formats help all credit providers (CPs) easily download and upload data from the centralized platform. We also provided useful advice on the consolidation of different collateral data of CRAs and conducted the consolidation for all participants,” Wong shared with the publication.
Wong and TransUnion believe that CDS will open a new era not just for the credit industry but for up to 5.5 million customers in Hong Kong.
“The advent of CDS opens the door for all participants to bring wider data access, new and enhanced products and more choices to businesses and consumers alike,” he said.
Greater consumer knowledge
CDS is not just expected to enhance the operations of credit companies, it’s also primed to improve credit data and financial knowledge of Hong Kongers.
One tenet of CDS is that CRAs will provide a free credit report to consumers once every 12 months.
This will give consumers a starting point to make regular credit monitoring a habit, says Wong.
“By staying vigilant through regular monitoring, consumers can make more informed financial decisions and take proactive steps to improve their creditworthiness,” he said.
Wong added that CDS and the yearly reports will also enhance personal data security and serves as a preventive measure against identity theft and fraudulent credit applications. For example, should consumers see information in their credit reports that are inaccurate, they can request to correct and change the inaccurate information.
Experts suggest partnering with event providers to create package tours.
Hospitality and tourism players are at the cusp of fully reaping the benefits of Hong Kong’s mega events boom if only they prioritise value offerings.
Shaman Chellaram, senior director, of Hotel Advisory Asia at Colliers Hong Kong, underscored that the stronger Hong Kong dollar, cheaper prices in other Asian markets, and expensive airline tickets are making the city “more expensive on a relative basis.”
“With the increase of more budget-conscious, experience-driven travellers, we need to address this with value offerings,” Chellaram told Hong Kong Business
Prudence Lai, consultant at market research provider Euromonitor International, articulated a similar view, saying that “value tourism is key to driving value inbounds other than merely volume.”
Lai said communication and support from the government and the tourism board will help
Entertainment events usually draw a large number of visitors and can also increase the length of stay in the city because they involve participation
industry players groom value tourism in the city.
Yong Chen, associate professor at EHL Hospitality and Business School, recommended that hospitality firms tailor their services to event participants to ensure a valuable stay for those attending mega-events.
“Customised services may include providing updated information on events, transportation information and arrangements, as well as helping guests book tickets and handle other logistics,” Chen said.
Hotels and other hospitality suppliers can also partner with event providers to create package tours that encompass accommodation, dining, and event activities for tourists.
“Such tour packages can not only increase the overall appeal of the event but can also simplify tourists’ decisionmaking,” Chen added.
Knowing the tourists
Another way for indusrty players to capitalise on these mega-events is by
understanding the quality of visitors they will attract, said Dan Voellm, MRICS, CEO and co-founder of AP Hospitality Advisors.
Lai reinforced this idea, highlighting the necessity for hospitality players to recognise and assess the types of tourists and the primary activity zones the events will draw.
“For example, hospitality players such as hotels and restaurants in the Hong Kong Island area may see more direct benefits for events being held in the Hong Kong Convention and Exhibition Centre. This could help hospitality players to better plan their resources and capacity to greet the potential tourism surge brought by the mega-events,” Lai said.
Looking at specific events, she said expos and trade events such as Jewellery & Gem WORLD Hong Kong and Cosmoprof Asia will likely bring a surge in overnight visitors.
Hong Kong is undergoing a destination brand transformation from a shopping haven to a focus on driving sports and cultural tourism. This means resources and marketing campaigns will be heavily focused on these events by the government and tourism boards to attract and drive value tourism.
Cultural and sports events such as Clockenflap Music and Arts Festival and World Lacrosse Women’s U20 Championship are also “important to watch and observe,” she added.
For Chen, culture, sports and other entertainment events usually draw a large number of visitors and can also “increase the length of stay of visitors in the city because they involve the participation of visitors.”
“Unlike business conventions, these events are usually participated by visitors in groups, such as family and friends, and hence can further increase their expenditure in a wide range of hospitality sectors,” Chen told Hong Kong Business.
Business conventions, however, remain important for Hong Kong where MICE (Meetings, Incentives, Conferences and Events) tourism is
a key focus. Lai underscored that the type of visitors MICE tourism attracts has a higher average expenditure per trip compared to leisure tourists.
Higher average expenditure per trip may also drive value tourism in Hong Kong, the Euromonitor expert added.
With over 100 MICE events planned by the government in the second half of the year, Lai anticipates a substantial increase in guest counts and occupancy, helping the hospitality industry recover.
Chen said the mega events also have indirect effects on other industries. For example, upstream industries in Hong Kong, such as manufacturing wholesaling, consultancy and financial services may benefit from suppliers and organisers who need to purchase goods and services.
“Since Hong Kong is an advanced economy, tourist expenditure can easily spill over to other sectors through inter-sector transactions, which can in turn create more revenues in the whole economy than tourists’ direct expenditure in tourism and hospitality,” he stressed.
Chellaram, meanwhile, said that the 210-plus mega events outlined by the government for 2024 are expected to reel in about 1.7 million visitors, averaging about 8,095 visitors per event, and a net positive contribution spend of $2,530 per person.
While the hospitality sector faces certain challenges, if the mega-events gain traction, he believes the city could potentially see an increase in hotel occupancy of 3% to 5%. With the right promotion of these events and cross-sector collaboration, Chellaram also expects F&B to see a slight
upward trend of 4% to 6%.
Conversely, Voellm observed that there has not been much marketing done to promote these events individually overseas.
“General marketing campaigns tend to have a less lasting impact than those for individual events,” he said.
Chellaram underscored that international, regional, and wider local marketing of mega events are needed to “increase visibility and really drive the economy and encourage inbound visitors.”
“More collaboration is required between the public and private sector to address this in the right way,” the Colliers expert said.
More than marketing, experts also suggest that the government do more to increase the connectedness of event venues to accommodation sites and different modes of transport.
Chen said doing so would provide visitors with more options and further enrich their travel experience.
“The government can make alternative accommodation, such as Airbnb-like accommodation on the outskirts of the city, accessible through seamless transport connections. Not only would this arrangement reduce the supply burden of accommodation in the downtown, but it would also provide opportunities for businesses located in the suburbs to thrive,” Chen shared with Hong Kong Business.
Voellm highlighted the need for additional efforts to maximise the industry's benefits from megaevents, pointing out that whilst the endeavour is honourable, managing “these peak periods of demand can
be challenging and may negatively impact the visitor experience.”
Chen shared a similar sentiment, stating that hotels, restaurants, and transportation may not be able to catch up with the surged demand during the events.
“As a consequence, prices will be driven up, which could not only deter visitors’ participation but also abbreviate their length of stay. Due to the surge in demand, it is likely that services at restaurants, hotels and event venues are not delivered as fast as expected,” Chen said.
“Other mishaps or service failures could also happen to visitors, resulting in an unsatisfying experience and hence consumer complaints,” he added.
Smarter scheduling
Voellm said developing a calendar of events of various scales would be more beneficial. “Of course, mega events make for good PR but the cost at times can be significantly higher,” he said.
“Hong Kong has always been popular for its vibrancy, which has been lacking of late. Adding smaller events would help to bring back the buzz. Macau hosts far more events than Hong Kong. More creativity to differentiate events from other destinations would thus be highly desirable,” he added.
Recognising the economic importance of smaller events whilst attracting more landmark international world-class events will substantially boost the hospitality and tourism sector, noted Chellaram.
“Ensuring we deliver a higher level of service and a memorable experience is absolutely key,” the Colliers expert added.
Prices will be driven up, which could not only deter visitors’ participation but also abbreviate their length of stay
Lai shared the same sentiment, saying that Hong Kong need not focus on a few infrequent megaevents but on a wide range of year-round events, even if they are relatively small in scale.
“The high diversity and frequency of these events can not only increase a large number of visitors but can also make demand more evenly distributed in time, and alleviate the supply constraints in hospitality,” she said.
Companies may offer boat trips for scattering ashes as interest in green burials rises.
In Hong Kong, the competition for space extends beyond the living to the deceased. It’s been hardly discussed, but there is a critical shortage of niches.
The government, though, has put a positive spin on the situation by promoting green burials, raising hopes for a very acceptable solution for modern residents.
Under a green burial, cremated ashes are scattered in designated waters or in Gardens of Remembrance (GoRs). There are 13 GoRs under the management of the Food and Environmental Hygiene Department (FEHD).
By 2025, Hong Kong will see an additional GoR in the Shek Mun Columbarium in Sha Tin.
Data from the FEHD shows that since 2013, green burials have become increasingly popular amongst Hong Kong residents, with the number of cases rising from 3,400 to 9,400 by 2023. In that year, green burials accounted for 16.5% of all deaths.
Key players in the field have embraced this more sustainable approach to burial. Amongst those
It establishes a permanent connection with the natural world at the final moment of life, leaving behind a better world for future generations
that have implemented green burial facilities are cemeteries managed by The Board of Management of the Chinese Permanent Cemeteries, The Hong Kong Chinese Christian Churches Union, and the Hong Kong Buddhist Association.
Notable examples include Junk Bay Chinese Permanent Cemetery, Pokfulam Chinese Christian Cemetery, and Hong Kong Buddhist Cemetery in Cape Collinson.
The Diocesan Board of Catholic Cemeteries launched its “Burial of Cremated Ashes” program in the Garden of Remembrance at St. Raphael’s Catholic Cemetery starting on May 1. Meanwhile, the Tao Fong Shan Service Unit is actively planning to construct green burial facilities at its cemetery.
innovative devices for scattering ashes in Gardens of Remembrance or at sea. Additionally, companies can support the initiative by creating commemorative keepsakes, transforming small amounts of ashes into items such as crystals, diamonds, gemstones, or photo frames.
Traditional vs green
Comparing green burials against traditional burials, the FEHD noted that the former incurs relatively lower costs and offers a simpler and faster application process.
Alan Leung, director of Hong Kong Funeral Logistics, echoed this, saying the cost of a green burial will only be around US$2,300 (HK$17,933) more or less.
Leung said many Hong Kongers are also opting for green burials for financial reasons.
Green burials also allow the remains of humans to “return to nature,” which Leung said hold a “significant meaning.”
“[It] establishes a permanent connection with the natural world at the final moment of life, leaving behind a better world for future generations,” the FEHD shared with Hong Kong Business. Hong Kong’s green burials, however, are not just scattering of ashes. It encompasses the use of eco-coffins and opting for simple and environmentally friendly funerals in hospitals.
Leung said eco-coffins use pure wood, instead of metal, glass or PVC plastic. Having eco-coffins is now part of the criteria for licensing in Hong Kong, he added.
Meanwhile, the FEHD said the living may also opt for using fresh flowers as offerings instead of burning joss paper, during ancestral worship practices, engaging in electronic worship, and offering digital offerings to make burials more sustainable.
The government is also encouraging private entities to support green burial practices by offering services or related products, such as private boat or vessel trips for scattering ashes in one of the three designated waters.
FEHD also suggested that companies in the sector develop
The FEHD said the promotion of green burial will help support the sustainable development of Hong Kong in the long run as “land resources that demand burial facilities could be released for other purposes.”
Leung believes that the adoption of green burials will even grow in Hong Kong, saying that it may soon account for up to 20% of deaths in the city in a couple of years.
Retail analytics delivers incredible insights to increase sales, reduce costs and create amazing customers experiences, but only if you can navigate your data.
In today’s digital age, many retailers feel like they are drowning in data and clutching for insights. As consumers interact with brands and retailers through numerous touchpoints, the amount of data collected by medium to large size businesses is immense. Much of this data could provide valuable insights about products, online and in-store sales, inventory and customer behaviour and preferences, but it’s often scattered across platforms and locations and never fully utilised.
The Tecsa Group helps organisations conquer this overwhelming sea of data. By transforming the way businesses access and use data, Tecsa’s OneViu platform helps retailers gather diverse information from a vast number of sources and analyse millions of transactions in real-time.
“OneViu is a decision intelligence platform that empowers retail-decision makers with direct access to data and in-depth insights, presenting a “single source of truth” so anyone in an organisation can get actionable insights and make faster, better and more profitable decisions,” says Tony Buffin, Chairman, The Tecsa Group. “By harnessing data effectively, OneViu also enables retailers to deliver personalised engaging customer experiences and boost operational performance.”
Pan-Asian success story
Earlier this year Tecsa successfully piloted OneViu in collaboration with DFI Retail Group, whose 10,700 stores across Asia include well-known brands such as Wellcome and Mannings in Hong Kong, and Giant, Cold Storage and Guardian in Singapore. Tecsa has a long-term partnership with the group, having designed and launched yuu, Hong Kong’s most popular rewards program with 4.6 million members.
”We recognise that embedding this new capability as a critical component within different DFI processes is as important as the technology itself,” adds Tim Duff, Tecsa’s Director of Retail Consulting.
The speed of adoption of OneViu continued to be strong, with over 10.8k reports run in the 10 months following its launch in February 2023.
Despite its extensive regional footprint, DFI had no unified method of analysing retail data. Like so many retailers it was capturing huge amounts of data across its businesses, but it was using several analytics solutions, each with their own proprietary tools and methodologies that slowed decision making.
Tecsa worked with DFI’s commercial teams to understand their needs and tailor the platform for their businesses and streamline and strengthen its analytics. The result is the bespoke OneViu platform that offers a 360-degree view of the retail landscape, making it easier to identify trends, understand consumer behaviour, and make fast data-driven decisions. Most importantly for DFI, the platform is putting its rich customer data at the heart of its retail strategies.
Supercharging the power of DFI’s data has already earned honours for Tecsa and DFI, with OneViu winning for Analytics – Retail in the Hong Kong Business Technology Excellence Awards 2023.
By analysing customer behaviours OneViu supports more personalised shopping experiences and identifies cross-selling and upselling opportunities. It also helps to anticipate and respond to changing customer needs by quickly recognising demand and identifying emerging trends. For example, DFI have used this capability across their brands to understand long-lasting consumer behavioral changes post-Covid.
OneViu’s cutting-edge data science and technology, provides users with answers to questions that would normally require significant analytical resources and time. After Tesca conducted training sessions, within a few hours DFI commercial team members were able to optimise their product assortments and improve merchandising strategies, and promotions.
“OneViu has been a true transformation for the DFI business. The platform has enabled us to leverage the vast data we have, in order to provide our customers with a better experience both in our stores and online, particularly when it comes to ranging and assortment,” says Danni Peirce, Chief Executive Officer 7-Eleven, DFI Retail Group.
Network of services and solutions
With a network of consultants worldwide combining global best practice with extensive local knowledge, Tecsa works with brands seeking to boost their in-house loyalty and analytics capabilities. It creates multi-partner loyalty programmes and ecosystems that expand opportunities for customer engagement.
Not only did Tecsa launch yuu, one of Asia’s most successful loyalty programs, the group also brought together some of Hong Kong’s leading brands in retail, financial services and dining as part of DFI’s “loyalty super app”. An estimated 70% of Hong Kong’s adult population uses the yuu app regularly. The concept was recently rolled out to Singapore where partners are seeing similar results.
“Over the past five years we have partnered with some of the world’s most successful consumer brands across a range of sectors including retail, fashion, QSR, financial services, travel and energy,” said Koos Berkhout, Co-Founder of Tecsa. “Across the world these loyalty programs and brand partnerships have impacted well over half a billion customers!”
Following this successful launch of OneViu, Tecsa is working with a number of companies from diverse sectors to explore the potential for the platform to unleash more opportunities to build better relationships and profitability through putting customer data at the heart of their digital and business transformation.
HKEX conducted IPO inquiries on 16 newly listed firms last year.
Two former directors of a GEM-listed food and beverage company were caught misappropriating listing proceeds for personal use. Although the Hong Kong Exchanges and Clearing Limited (HKEX) identified the discrepancy, initial investigations couldn't prove the funds were diverted to their accounts. The Securities and Futures Commission's (SFC) involvement later confirmed the misappropriation.
The case underscores the critical need for regulatory cooperation in preventing financial misdeeds, particularly in light of IPO-related misconduct, suspicious financial arrangements, and ramp-and-dump scams affecting the city's financial markets.
True to their commitment to combat IPO-related misconduct, the HKEX conducted inquiries into 16 newly listed companies’ use of IPO proceeds over the past year, whilst the SFC sought disqualification and compensation orders from the Hong Kong Court against directors of a listed company for IPO-related breaches.
Increased cooperation between the two entities will help achieve regulatory objectives in a more “costeffective manner”, noted Stephanie Chan, partner at the Hong Kong office of law firm Sidley Austin.
“Compared to the HKEX, which usually invites listed companies to provide written submissions, the SFC has much wider statutory investigative powers, such as powers to compel subjects of investigation or other parties to produce documents, to execute search warrants to search premises and to obtain documents, and they can also require a person to attend an interview to give evidence. Through collaboration, the regulators can better allocate their investigative resources,” Chan told Hong Kong Business. In a recent case, the HKEX
identified some questionable transactions involving a listed company during their routine monitoring of the company’s announcements. Recognising the potential issues, the HKEX referred the case to the SFC for further investigation.
“The SFC is better placed to obtain evidence that may not otherwise be available to the HKEX. In that case, the SFC shared the evidence with the HKEX to facilitate its investigation. This is a good example showing the benefits of strategic collaboration between the regulators,” Chan said.
IPO-related misconduct
Chan said most IPO-related misconduct cases involve the misuse of proceeds through dubious financial arrangements that lack commercial justification and can cause significant losses for listed companies.
and underwriting commissions.
They may also make disproportionately high upfront payments to consultants and promoters not aligned with their purported purposes.
“There are also other cases involving suspicious financial arrangements at the IPO stage to artificially satisfy the initial listing requirements and create a false market of the shares,” Chan said.
She further noted that ramp-anddump scams, another key area of focus for the HKEX and the SFC, may involve market manipulative activities conducted by sophisticated crossborder syndicates through taking steps to“ramp” up a listed company’s share price by spreading favourable news on social media to lure investors.
The SFC is better placed to obtain evidence that may not otherwise be available to the HKEX
She said many listed companies involved in these cases do not properly disclose their change in use of IPO proceeds when it materially diverges from their initial business plans disclosed in the prospectus.
Newly listed companies may misuse IPO proceeds by paying unusually high, undisclosed expenses to parties related to directors or shareholders, disguised as listing expenses like IPO consultancy fees
“They will then “dump” the shares at a very high price and cause the share price to collapse and leave the investors with significant losses,” Chan said.
With the increased scrutiny over IPOrelated misconduct, Chan advised directors and senior managers of listed companies to “maintain good corporate governance and implement effective internal controls to ensure compliance with the regulatory requirements.”
Japan’s Teppei Takeda and China’s Sun Yitan are amongst the emerging names in Asia.
Basquiat's "Native Carrying Some Guns, Bibles, Amorites on Safari" copped the highest bid at the Phillips Evening Sale (Photo from Phillips)
Younger and fresher names are gaining prominence in the art scene as Asian collectors brush past their comfort zones, shifting their gaze from Western values to a wider spectrum of artists and themes.
Francis Belin, president of Christie’s Asia Pacific, said the desire to diversify collections with works by emerging contemporary artists is amongst the motivations for their Asian buyers when purchasing art.
Auction house Phillips also observed this trend as some of the top performing lots in its Spring sales were works by younger Asian artists such as Teppei Takeda of Japan and Cui Jie, Sun Yitian, and Xia Yu of China.
Takeda’s “Painting of Painting 026” fetched US$235,528 (HK$1.84m) during Phillips’ Evening Sale on 31 May, more than six times its pre-sale high estimate.
The art piece “set the second highest price for the artist at auction,” said Meiling Lee, head of Modern and Contemporary Art in Asia at Phillips. In the same evening sale, Sun Yitian, often referred to as China’s “It” artist, achieved her second highest price with the sale of “A Tender
Asian art also resonates with the “new, techsavvy, younger generation” of buyers
Panther” at US$211,163 (HK$1.65m).
This year, Phillips made sure to put a spotlight on younger artists. “In our Spring auctions in Hong Kong, we also offered a selection of Chinese contemporary works produced by artists born in the 1960s to 1990s, including Zhang Enli, Ding Yi, Huang Yuxing, Liu Wei, Chen Ke, Xia Yu, Cui Jie, Sun Yitian, Zhang Zipiao, and more,” Lee said.
With works of younger artists, particularly those of Asian descent, deservedly hugging the limelight, Phillips has increased their share in Hong Kong Sales.
In addition to showcasing emerging talent, Phillips has also spiced up
the mix of Asian artists. There were Contemporary and Modern artists from China, Japan, Korea and Southeast Asia in its inaugural New Now auction launched in Hong Kong last November. In July, Phillips will be presenting a selling exhibition featuring works from two young female Chinese artists.
“This season, we presented a selection of works by the Japanese Gutai group, the country’s first postwar radical art movement,” Lee added.
Emerging and established Being “in with the new” doesn't mean “out with the old” for Asian buyers. According to Jasmine Prasetio, managing director, of Southeast Asia at Sotheby’s, collectors in Asia have been “extensively collecting art both old and new, established and emerging, from the East and the West.”
Amongst the established names in Asia, Yayoi Kusama and Yoshitomo Nara are standouts.
Prasetio said these two Japanese artists “have always had a firm representation and patronage internationally.”
“With the growing collector base and demand, more and more collectors look for iconic works by these artists,” said the Sotheby’s expert.
In Sotheby’s Spring Sales, Nara’s “I Want to See the Bright Lights Tonight” fetched US$12.3m (HK$96m).
Meanwhile, Kusama's INFINITY NETS (ZGHEB) from 2007 realised US$3.3m (HK$26m) in Phillips’
Modern & Contemporary Art auction held in May.
“Iconic paintings by Nara and Kusama featured in the Day Sale all sold above their pre-sale estimates,” added Lee.
Work by Yayoi Kusama took up approximately 26% of the market share in Phillips’ Modern & Contemporary Art auctions in Hong Kong this Spring.
Christie’s likewise felt the demand for Nara and Kusama’s artworks, saying their Asian Contemporary pieces “all had solid performances.”
Contemporary, Modern, and Impressionist
There has been consistent interest in Asia on Contemporary, Modern, and Impressionist works of art, according to Prasetio.
Phillips saw this interest in its Spring Modern & Contemporary Art Hong Kong Sales which fetched US$38m (HK$296m) total, a 22% increase from its Fall 2023 sale.
Top lots in the season included "Native Carrying Some Guns, Bibles, Amorites on Safari" by Basquiat sold for US$12.6m (HK$99m); Banksy’s "The Leopard and Lamb'', which sold for US$4.7m (HK$36.8m) or double the pre-sale estimate; and Zao Wou-Ki’s "25.11.81" which sold for 1.7 times its pre-sale estimate at US$1.5m (HK$12m).
“All these top lots were fresh-tothe-market,” Lee noted.
At Sotheby’s, Asian interest in
Impressionist and Modern works of art increased, accounting for 18% of bidders in the first half of 2023, up from 13.8% in 2022.
For Christie’s, works by Marc Chagall and the Impressionist line-up at in the Evening Sale at its Hong Kong Spring Auctions 2024 were also 100% sold, whilst Chinese Modern works by Zao Wou-Ki, Sanyu, and Chen Yifei had a solid performance.
Asian art
Asian art, including Chinese ceramics works of art and paintings, has also been popular, especially amongst Southeast Asian buyers. Christie’s
reported that the number of buyers from Southeast Asia in the Asian Art cluster rose by more than 40% this Spring versus 2023.
As a fine example of Asian art’s popularity, Christie’s sold Qing Imperial Ceramics from The Wang Xing Lou Collection for US$15.8m (HK$123m).
Christie’s also sold its entire multiple entire single-owner Chinese Paintings collections which included Property from the Collection of Dr. Wong Chun Bong, and the Family Collections of Chong Fung Kuen, K’ung Hsiang-Hsi, Loh Cheng Chuan, and the Kwok Family.
Asian art also resonates with the “new, tech-savvy, younger generation” of buyers, said Belin.
According to Christie’s, almost a quarter of all its Asian art buyers were
millennials, whilst 21% were new.
Across all art categories, auction houses have observed a strong interest in art from young collectors.
Matthew Elton, who founded and manages Hotlotz, one of Singapore’s foremost auctioneers, noted that he has encountered buyers from a wide age range.
“There is often a misconception about auctions, that all collectors are in their more ‘advanced years’, but actually we are seeing a very broad age range amongst our bidders,” Elton told the magazine.
To appeal to this demographic Hotlotz conducts a monthly “entry-level” “Interiors” sale where they auction off quality furniture, decorative items and collectibles every first Sunday of the month.
“We’re definitely finding that younger people are also coming at auctions with a more sustainability hat on as well, whereas 20 or 30 years ago, they thought everything had to be brand new in their homes, but now they’re really interested in looking for that cool vintage piece or that secondary market picture,” Elton said.
In Christie’s Hong Kong 2024 Spring Auctions, almost a quarter of their buyers were new; and amongst them, 43% are millennials.
In 2023, Christie’s also saw a growth in new and younger buyer spend, led by Asia-Pacific.
According to Christie’s, Asia-Pacific buyers accounted for 66% of its global millennial buyer spend and 54% of its global new buyer spend. Meanwhile, millennials drove 35% of APAC’s
new buyer spend. Within the AsiaPacific region, Mainland China was the biggest contributor to Christie’s global new buyer spend (30%) and millennial buyer spend (36%).
At Sotheby’s Hong Kong Spring Sales in April this year, millennials or those aged 40 and below accounted for over half (55%) of all bidders across its sales.
Prasetio said Sotheby’s saw stronger participation from Gen Z and millennial bidders in sales of wine (36%), Chinese works of art (29%), and jewellery (28%).
Christie’s also observed this trend, with millennials constituting 52% of their new buyers in the luxury art segment which includes wine and jewellery, as well as
watches and handbags.
At their Hong Kong Spring Auctions 2024, Christie’s sold a "Cartier ‘India’ Tutti-Frutti” necklace for US$8.72 (HK$67.80m), and a superb ruby and diamond ring for US$6.43 (HK$49.99m).
Meanwhile, “The Epic Cellar,” a single-owner collection of wine, was 96% sold by lot and fetched US$8.6m (HK$67m).
For younger buyers who are only setting foot on the art scene and do not have a lot of budget, Lee said prints and multiples can be a good place to start collecting fine art.
Phillips offers prints and multiples which they call “Editions,” which are more affordable than unique paints and sculptures “but usually require highly complicated techniques with a master printer to create an edition,” said Lee.
20 or 30 years ago, they thought everything had to be brand new in their homes, but now they’re really interested in looking for that cool vintage piece
To further engage the new, younger, and tech-savvy generation of collectors, Belin underscored the need for digital evolution.
Amongst the auction house’s digital investments include “Christie’s Live,” and “Christie’s WeChat miniprogramme” which are specifically for biddings.
“We were the first international auction house to launch a WeChat mini-programme with online bidding and livestreaming functions – which are essential for connecting
with young, tech-savvy Chinese collectors,” Belin said.
“We continue to innovate on the platform and recently introduced AI translation, to make content such as sales information and condition reports available in Chinese,” he added.
Christie’s also utilises platforms such as Instagram, RED, a Chinese social media platform, and Douyin, a platform for short-form video like TikTok, to present and showcase their auctions.
Hotlotz is also a leader in digitalisation amongst auction houses in Singapore, conducting all their bidding online even before the pandemic.
“We made a decision six months before the onset of the COVID virus was discovered to go online only because we felt that it’s actually a safer and more practical environment for bidding to take place,” Elton said.
“I personally think that auctions are all about building trust, if people trust us, they happily bid on all types of items, Elton added.
The Hotlotz founder also highlighted that online bidding systems are great from a marketing perspective as this allows the auction house to use technology to reach a global audience.
“We recently sold a collection of Chinese & Southeast Asian Trade Porcelain for Aman Resorts Founder, Adrian Zecha, and the majority of the pieces ‘went home’ as they were snapped up by online bidders from China and Vietnam,” Elton said.
Besides enhancing their digital footprint, the world’s leading auction houses are also broadening their physical reach.
Sotheby’s, for one, has a new 24,000-square-foot space in Central, Hong Kong, called “Hong Kong Maison” Through their new address at Landmark Chater, Sotheby’s aims to host exhibitions and auctions all year round.
“The accessibility and visibility of this space will provide an unparalleled platform for our showcase and curation,” Prasetio said.
In September, Christie’s will move its Asia-Pacific headquarters to The Henderson in Hong Kong in order to
“to support our growth for art and luxury” in the region, Belin said.
“The decision to relocate comes in response to Asia’s global market demand.”
Christie’s will occupy 50,000 square feet spanning the 6th to 9th floors of The Henderson.
The auction house will host its inaugural sales at The Henderson on 26-27 September for 20th and 21st Century Art, followed by a series of Luxury sales in October and Asian Art sales in November, kick-starting a new year-round calendar.
In March 2023, Phillips opened its new Asia headquarters in West Kowloon.
Given that the three major auction houses will have permanent spaces in Hong Kong, Lee expects the art market in the region will become “more mature.”
“We have also seen ambitious new homegrown fairs launched in Asia as well, although these efforts will pay off remain to be seen but it’s good to see the whole ecosystem in the region is heading to the next level,” Lee said.
Elton, for his part, said the success of the secondary market will also result in the success of the primary markets or galleries.
“People can only ever hang so many pictures on their walls. If they can’t find a good, fair, and honest way to sell things, they perhaps don’t want any more — they can never buy any more pictures from galleries. There’s a kind of circle of life going on here. It’s important for the primary markets to do well, but it’s super important for the secondary market like us to equally do well because we support each other,” Elton concluded.
Trade and private bankers are most in demand, although banks are cautious.
The recovery of staff numbers in HSBC and other banks in Hong Kong propelled the number of total bankers employed across select banks in the city to an increase in 2023– but investment bankers are likely not enjoying the hiring boom.
About 82,705 bankers and staff are employed by 16 banks in Hong Kong, according to data from the 2024 edition of the Hong Kong Bank Rankings by Hong Kong Business This is 8% higher than the estimated 76,576 staff employed by the same 16 banks in 2023.
Key to this rise is HSBC, reporting about 26,000 employees in Hong Kong by the end of 2023– a 30% increase from its total staff numbers of just around 20,000 in 2022. At its peak, and before it announced a restructuring and planned job cuts in early-2020, HSBC had employed 29,000 staff in the city.
Shanghai Commercial Bank added 241 employees in 2023, totaling 1,913 in Hong Kong by the end of 2023– a 14.41% increase from the 1,672 people it employed in 2022.
Chong Hing Bank, CMB Wing
Various bulge bracket banks have let go of candidates from analyst to managing director level, given the lack of IPOs and M&A activity
Lung Bank, Public Bank, and the Industrial and Commercial Bank of China (Asia) also saw a net increase in their Hong Kong staff numbers in 2023.
Dah Sing Bank maintained the same level of employees between the two years, the bank stated in its annual report.
In contrast, many of the biggest employers in the city reported lower staff. Notably, Bank of China (Hong Kong) (BOCHK), Hang Seng Bank, and Citi Hong Kong– reported marginal declines in their total workforce between 2023 and 2024.
BOCHK lost over a hundred staff in the 12-month period. Overall, BOCHK’s staff numbers remained at over 12,000 in 2023, hovering at the same levels as the previous year.
Hang Seng Bank reported a net loss of around 23 people over the same period. Tai Sang Bank, with 35 employees by the end of 2023, said goodbye at least three times over the 12 month period.
Investment bankers laid off Banks in Hong Kong have ramped up layoffs of investment bankers
in the city as they contend with a double whammy of slowing initial public offerings (IPOs) and mergers & acquisitions (M&A), analysts told Asian Banking & Finance.
“Various bulge bracket banks have indeed let go of candidates from analyst to [managing director] level, given the lack of IPOs in the Hong Kong market and M&A activity in Hong Kong and China,” Sue Wei, managing director of Hays Greater China, said in an interview.
Chris Corcoran, associate director of Financial Services for Robert Walters, echoed the sentiment.
“The sell side is very quiet,” Corcoran said, when asked about the current hiring situation for investment bankers in the city.
“There are much more layoffs than there are hiring. To be frank, it’s pretty much across the board. A lot of the traditional volume is down in the Investment Banking Division.”
Wei, meanwhile, cited the merger of UBS and Credit Suisse, as well as the “global financial situation” as factors for the slowdown in investment banking activity.
Investment banking activity in Hong Kong remained sluggish throughout 2023. There were only 70 IPOs recorded, 21% lower than in 2022; whilst deal value fell by 56% to just US$5.93b (HK$46.3b), according to a report by KPMG. In Q4 2023, active HK IPO applications dropped to 59, down from 89 in Q4 2022.
High salaries a factor?
Wei observed that many international banks are implementing layoffs and redundancy measures primarily at higher salary levels, whilst simultaneously hiring more junior or worker-level staff.
Pre-pandemic, investment bank analysts in Hong Kong reportedly took home US$86,493 (HK$675,000) on average, according to an analysis by eFinancialCareers, based on data from recruiters.
Corcoran cautioned on making a direct correlation between the salary levels as the reason for layoffs–although he did note that, with global banks’ investment banking activities becoming more regional in
scope, banks may possibly opt to hire bankers in places where the salaries are not as high.
Trade, private banking stable
It has been a different hiring trend for other sectors. Corcoran noted demand for trade finance roles. “The actual traders, the sales traders, the trade support people that are booking trades and doing middle and backoffice work; the trading arms of banks [are] where we’re seeing more activity,” he enumerated.
Wei noted demand for private bankers, although she did note that interview processes have “taken longer than traditionally” as their clients turn more cautious amidst the global outlook.
“Several local banks, Chinese banks, and Singaporean banks are strategically expanding their private banking services to align with Hong Kong’s growing family office sector,” she said.
Relationship managers and private bankers with connections to China’s wealthiest are in demand, Wei added.
“We do see various banks engage in overseas talent, in particular relationship managers with strong PRC connections and sustainable finance roles, given ESG (environmental, social and governance analysis) is quite new in the HK market,” Wei said.
One major challenge beyond investment banking which lenders in Hong Kong face is the limited talent pool, which has shrunk even more
during the pandemic.
“A lot of young expats and people who were not permanent residents in Hong Kong did leave. Banks and people across the whole FSC industry are looking to replace that talent, but, because there hasn’t been as much hiring, it’s going to be hard to replace that until we have another higher volume recruitment cycle across the whole market to try to bring in that talent and significant numbers,” Corcoran noted.
Bankers from mainland China may help fill in this talent gap.
Wei noted that getting a work visa in Hong Kong has become more accessible for mainland Chinese professionals in recent years.
“Under [the Top Talent
We do see various banks engage in overseas talent, in particular relationship managers with strong PRC connections
Pass] scheme, individuals from mainland China can secure a visa without needing immediate employment upon arrival. As a result, we’ve witnessed a notable increase in Chinese talent coming to Hong Kong in search of job opportunities,” Wei said.
Lion City’s attractiveness wanes
As for the future prospects of investment bankers, one thing is certain: they are probably not as keen to explore Singapore as they were a couple of years back.
There are still people looking to move from Hong Kong to Singapore, but not in the same numbers that they did kind of two years or 18 months ago, Corcoran said.
“During the lockdown there was a massive market of people looking to leave Hong Kong to go to Singapore. Now, not as much anymore. There’s a lot of constraints in the Singapore market: it’s tougher to get visas for non-Singapore nationals,” Corcoran pointed out.
Cost of living is another factor that has reduced Singapore’s attractiveness.
“Rent has gone up significantly; school places for expats are harder to come by as well. So, the attractiveness of Singapore during lockdown and COVID is somewhat waning, I think because of the reality on the ground,” Corcoran added.
The bank has expanded services to cater to stablecoin issuers and Web3 companies.
Hong Kong’s ZA Bank has rolled out dedicated banking services for stablecoin issuers looking to do business in the city — positioning itself as one of the first banks in the market to specifically cater to this segment.
The move is part of ZA Bank’s widened scope of services, which has seen the virtual-only bank expand to offering business banking services especially for Web3 companies and start-ups, says Devon Sin, alternate chief executive for ZA Bank.
“For the Web3 agenda, we want to move faster because we are very optimistic about the rapid development of Hong Kong, and we believe that this is going to be one of the key drivers of potential growth engines for the Hong Kong economy,” Sin told Hong Kong Business in an exclusive interview.
“We put more resources there, but that doesn’t mean we are just doing that. We still support a lot of the start-ups doing the account opening, even though they’re not Web3 related — it can be restaurants, start-ups in e-commerce and in trade, all kinds of start-ups,” he added.
Sin played up two advantages that ZA Bank has over traditional lenders in servicing Web3 companies. First is their knowledge about Web3 itself. “We know the Web3 ecosystem players, we know how each of these players play their roles in this ecosystem,” he said.
Second is ZA Bank’s agile nature when it comes to technological integration with Web3 clients.
In this Hong Kong Business exclusive, Sin sheds light on many questions about the new service for stablecoin issuers and ZA Bank’s Web3 mandate.
Tell us more about the new service for stablecoin issuers. As a bank, we offer custodian services. From the stable coin issuer, especially in the Hong Kong regulatory framework, that's supposed to be 100% asset-backed.
That means for the issuer, if they want to mint or issue $100 worth of stable coin, they have to have [to have] an equivalent $100 of assets. They can hold this in cash, time deposit, or like T-bills.
In the bank’s agenda, we help to facilitate putting [their] client’s money in a bank account. So we are called a reserve bank or custodian banks for the stablecoin issuer. This is one of the key services that we provide them.
The money they get from their clients for minting a stablecoin for whatever purpose they want, that money is going to be kept in the bank.
This… is a brand new service in Hong Kong. The first point is that stablecoin is a new thing. We have to work closely with the regulators on how the bank should support the stablecoin issuer on the asset arrangement. And the second point is how we have to provide transparency about, for example, this stablecoin issuer has indeed got 100% backed
fiat or asset for their minted stable coins. That is something the banks will have to provide.
Has the Web3 client base always been a target of ZA Bank? In your view what makes ZA Bank the bank of choice for Web3 customers?
When we launched four years ago, we didn’t have any kind of business banking services. At first, we supported retail banking for the locals; that is what we launched in 2020. After two years, we started the SME business. We were not just focusing on the Web3 industry… we were focused more on doing micro financing [and] SME loans products because these are also one of the underserved markets in Hong Kong. Even today, when many people say, ‘Oh, [ZA Bank] is going to be the go-to bank for the Web3 industry,’ we are not just handling Web3. We are still offering the other SME [services], the trading [and] the other government-backed loans. I will say we are still a more diversified business.
A knowledge standard difference still gives us a bit of an advantage over the traditional banks
For the Web3 agenda, we want to move faster because we are very optimistic about the rapid development of Hong Kong, and we believe that this is going to be one of the key drivers of potential growth engines for the Hong Kong economy. We put more resources there, but that doesn’t mean we are just doing that. We still support a lot of the start-ups doing the account opening, even though they’re not Web3 related — it can be restaurants, start-ups in e-commerce and in trade, all kinds of start-ups.
A total of 6,748 teachers fled their positions, straining Hong Kong’s education system.
Students will soon be greeted by empty teacher's desks, as the brain drain continues to threaten Hong Kong's educational scene.
After the past school year 2022/23, a record number of 6, 748 teachers have left their positions. This figure includes teachers from schools in the Kindergarten Education Scheme; in primary and secondary schools in the Direct Subsidy Scheme, and aided special schools.
This marks an increase of 4.4% in kindergartens, 1.4% in public primary schools, 2% in public secondary schools, and 2.1% in aided special schools in the 2022/23 school year compared to the 2021/22 school year.
Why they leave
“There are various reasons for teacher wastage, which mainly include retirement, pursuing further studies, changing to other types of schools, taking up employment outside the teaching profession, and leaving the post due to other personal reasons. With the declining school-age population, the demand for teachers would decrease correspondingly,” the Education Bureau said.
The urgency of this dilemma stems from the fact that the teacher exodus has impacted a substantial number of teenagers in Hong Kong who are still in their formative years.
“Regardless of the reasons behind the brain drain in the city’s schools, a dropout rate of 16.1% in KGs joining the Kindergarten Education Scheme in the academic year of 2022-23 among veteran teachers with no less than fifteen years of valid experience must not do any good to the local schools in areas of teaching, counselling, and extracurricular training of the teenagers in the SAR’s population,” Mervyn Cheung Man-ping, advisor of HK Women Teachers’ Organisation and chairman of HK Education Policy Concern Organisation told Hong Kong Business
Professional and economic impact
If the territory is harassed by a noticeable drain of highly qualified teachers, the strong and competitive manpower edge in different fields will undesirably be cut back in the long run
For years, Hong Kong has been renowned for hosting top-tier schools in Asia, solidifying its status as a pivotal region for high-quality education. This reputation is being compromised by the ongoing teacher exodus.
“Positions of middle management in the school sector, including assistant principals, chairpersons or heads of academic subject panels and such other functional areas as student discipline and careers guidance, were left vacant in appreciable numbers and became filled by teachers with much lower seniority and far less authority or influence in the teaching grades. This could unfavourably affect the operations of schools and the quality of training imparted to students across the school system,” he said.
Despite vacancies being filled, the lack of veteran teachers suggests that the concern over quality education persists and requires immediate attention.
“Currently, all economic and professional sectors in the HKSAR are making strenuous efforts to woo talents, and the success or otherwise in this worldwide scramble for professionals is crucial for sustainable
development in the respective fields. School teachers are of no exception in this race,” Cheung said.
Adding to this, Cheung said: “Normal retirements can still be reasonably considered accounting for the bulk of departures from the city’s teaching force. HK’s free and compulsory education up to Secondary Three was introduced in 1978, a policy which was followed by a massive expansion in the provision of basic education seats through a gigantic programme of new school development," Cheung added.
He explained that because of that initiative, there was a rise in demand for new teachers in the ’80s, many of whom have reached or are approaching the formal retirement age of 60 in recent years. This has contributed to the high rates of natural attrition amongst local teachers.
“If the territory is harassed by a noticeable drain of highly qualified teachers, the strong and competitive manpower edge in different fields will undesirably be cut back in the long run, which in turn will deal a heavy blow to the impressive growth of the city’s economy amid heated competition round the world,” he warned.
With a strong network, custom solutions, and cutting-edge technology, they continue to shape the future of the logistics industry.
In the intricate world of logistics, efficiency and innovation are key factors, serving as the foundations that propel the industry forward. Streamlining operations and adopting cutting-edge technologies not only enhance the speed and accuracy of processes but also enable companies to stay agile and responsive to the evolving demands of a dynamic market.
Rhenus Warehousing Solutions HK has emerged as a trailblazer in this landscape, securing the prestigious Automation - Logistics category award at the High Flyers Awards 2024. This accolade not only recognises their commitment to customer-centric solutions but also highlights their groundbreaking initiatives in digital transformation and automation.
The Hong Kong operations of Rhenus Warehousing Solutions currently boast four locations and three warehouses.
“Our philosophy is always to prioritise our customers' interests. We embrace new technologies to streamline processes and maximise operational efficiency. Thus, we ensure that our customers experience enhanced productivity and satisfaction,” said Dennis Mak, Director of Rhenus Warehousing Solutions HK.
Extensive network, custom solutions, and cutting-edge technology
Rhenus Warehousing Solutions HK stands tall on three key strengths that position it as a formidable force in the logistics industry. Firstly, it has a robust background, coupled with a dense network of strategic locations, which forms the backbone of its status as a global logistics empire. Additionally, the company's unwavering commitment to
crafting tailor-made logistics solutions is evident in its approach, ensuring that each client's unique needs and challenges are not just met but exceeded. More importantly, Rhenus sets itself apart by embracing cutting-edge technologies, fostering an
environment of constant innovation. This dedication ensures the company stays ahead of the curve, consistently adopting future-oriented approaches to warehousing processes and automation innovations. By integrating these strengths seamlessly, Rhenus Warehousing Solutions HK not only navigates the complexities of the present logistics landscape but actively shapes the industry's future trajectory.
and attraction
In a dynamic market where differentiation is essential, Rhenus took a significant step forward last year with the introduction of its second smart warehouse solution project in RIH. The Goods-to-Person RobotShuttle (GRS) solution marked a milestone, making Rhenus the first warehouse in Hong Kong to deploy three different models of picking robots in live operations. This project not only showcased innovation but also garnered attention from the community.
Key attributes associated with Rhenus Warehousing Solutions HK's brand identity include customer-centricity, innovation, and operational efficiency. Their winning project, the deployment of multi-AMR in Yuen Long, serves as a testament to the success and uniqueness of their offerings. The solution went live in June 2023, and the seamless migration of an existing fashion customer to the new system underscored the company's ability to deliver impactful solutions.
Digital transformation is at the core of Rhenus Warehousing Solutions HK's strategy. The Rhenus Innovation Hub exemplifies their commitment to incorporating technologies into their warehousing solutions. “Digitalisation is not a project but a process, and we are committed to incorporate technologies into our warehousing solutions. Through the Rhenus Innovation Hub, we hope to connect the world through logistics,” Mak stressed.
Driving innovation with agility
The adaptation to ever-evolving market dynamics is a continuous learning process and Rhenus Warehousing Solutions HK envisions incorporating these learnings into their operations. The ongoing changes in the business environment will likely drive further innovation, ensuring the company remains agile and responsive to emerging trends.
Securing the Automation - Logistics category award at the High Flyers Awards 2024 is a significant achievement for Rhenus Warehousing Solutions HK. The honour symbolises recognition for their commitment to customer needs and their role as innovators in the logistics industry. Looking ahead, the company’s main mission is clear – to continue pushing boundaries, exploring new frontiers, and maintaining a steadfast commitment to growth and excellence on an international scale.
Rhenus Warehousing Solutions HK's triumph at the High Flyers Awards 2024 is a testament to its unwavering dedication to excellence and innovation in the logistics sector. As they continue to evolve and shape the future of warehousing solutions, their story serves as an inspiration for industry peers and an example of success in a rapidly changing business landscape.
Eight in 10 Hongkongers book travel based tips from content creators.
Travellers used to spend hours on online forums and review websites, reading through hundreds of reviews to decide which places to visit in a foreign country or which hotels to book. Now, all they need is a simple TikTok video with phrases like “here’s what you need to know” or “there’s a hidden gem in…” to set their itineraries.
Knowing the power of travel recommendations from content creators, Klook has expanded its JOYKreator programme, establishing an ecosystem where influencers and customers can seamlessly share content.
“We observed that content creators have become one of the most followed sources for travel ideas and recommendations,” Kenny Sham, general manager of Hong Kong & Macau at Klook, told Hong Kong Business
In Hong Kong, about nine in 10 customers rely on recommendations from content creators to book travel experiences and products, data from Klook’s Travel Pulse survey revealed.
Since the programme’s inception last year, Klook has worked with more than 300 influencers who together, have a follower base exceeding six million. They have jointly created over 1,600 pieces of content for the platform.
Influencers need at least 5,000 followers across social media platforms like Facebook, Instagram, or TikTok to qualify for the programme, excluding blog platforms. All new “Kreators” receive a US$10 voucher.
The programme enables Kreators to earn commissions from bookings made using their exclusive promo codes.
In addition to leveraging influencers, Klook has utilised artificial intelligence (AI) to enhance content generation.
For example, its Klook AI (K.AI) chatbot can also provide travel recommendations to its customers.
“When customers purchase a Japan rail ticket on our platform, we will also recommend nearby accommodations, activities, and various other experiences to enrich their journey,” Sham shared.
Klook AI has eight language versions to provide better recommendations and assistance in itinerary planning to customers.
“We aim to leverage AI to identify new opportunities with more personalised content and value-added services,” Sham shared with the publication.
AI integration is one of the three key areas Klook plans to focus on after securing US$210m in funding.
In 2023, the platform launched 123 Klook Pass products, more than double the 2022 record.
Sham said Klook will also expand its hotel accommodation and transportation options.
Currently, the platform has over 3,000 hotel accommodation options in the Asia-Pacific region
Recent updates to Klook’s accommodation roster feature the addition of Japanese hotel chains, formerly exclusive to their local websites for bookings.
On the topic of transport options, Sham said Klook plans to provide more airport transportation and transfer services and expand rail product services including Japan railways and High-Speed Railway that links Hong Kong and major cities in Mainland China.
Klook also hopes to increase its coverage of self-drive products since the platform has seen sustained increase rental car demand. Japan’s self-drive services, for example, saw a 180% YoY growth in January 2024.
“In the coming year, we will cover more markets and countries, and collaborate with more local partners to increase pick-up and drop-off locations,” Sham said.
“We [will] also provide self-drive insurance products that can be purchased directly after renting a car,” Sham added.
Another area that Klook plans to enhance with its fresh funding includes product innovation.
Amongst product innovations in the pipeline include the expansions of the variety of “Klook Pass.”
We observed that content creators have become one of the most followed sources for travel ideas and recommendations
Another area of investment for Klook is its membership programme. Sham shared that the platform will further invest in “Klook Rewards” especially since its members contribute 20% or about one-fifth of their additional revenue.
In Hong Kong, the platform’s home base, Klook will launch HK Rewards 2.0 which introduces more exclusive member benefits like a 12% discount on the third transaction for Gold members.
Firms in Hong Kong can now act against Mainland infringers without dual proceedings.
Intellectual property (IP) owners can now sue infringers in Mainland China and enforce damages against a Hong Kong entity where their assets may be held, and vice versa. Unlike in the past, there is no need to initiate two separate proceedings because of an enhanced arrangement between the two jurisdictions.
Before the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (MJREO/Cap. 645) was extended to include IP infringement disputes. “A claimant who successfully obtained a monetary judgment in Mainland China had to initiate separate debt proceedings against the Hong Kong entity to recover the judgment debt,” explained Kelley Loo, partner at Deacons Intellectual Property.
“It is not uncommon for Chinese infringers to move their assets to be held by a Hong Kong entity to avoid enforcement by mainland Chinese authorities, and use a Hong Kong entity to operate an infringing online store offering goods to consumers in the Mainland,” Loo told Hong Kong Business magazine.
“In the circumstances, the arrangement would allow the brand owner to sue the Mainland infringer and Hong Kong entity in the Mainland, and then enforce the award in Hong Kong through simple registration, and vice versa.”
Registration of a mainland Chinese court judgment must be made in the Court of First Instance in Hong Kong.
To enforce a Hong Kong court judgment in mainland China, individuals “must secure a certified copy of the judgment and a certificate from the pertinent Hong Kong court, and then apply for registration with the Intermediate People’s Court located either in the residence of one of the parties or at the asset location of the judicial debtor,” Loo said.
“Detailed procedural requirements for registering judgments are set out in Practice Direction 38 of Hong Kong and the SPC Judicial Interpretation,” she added.
Citing another example where the arrangement may be helpful, Douglas Clark, a partner at Tanner de Witt, said Hong Kong businesses used to have a hard time enforcing action against Mainland entities selling infringing products to the city as the infringement only occurs in Hong Kong.
“They could only sue them in Hong Kong but then there was no way to enforce a judgment obtained in Hong Kong in [the] Mainland,” Clark told Hong Kong Business. Sharing more from experience, Clark said he had managed numerous cases involving the pursuit of Hong Kong companies whose owners were actually based in the Mainland.
“We haven’t really been able to do effective action in Hong Kong, because we couldn't get to the money, the money is with a person somewhere else,” Clark said, adding that such a scenario is common in the video game industry, where the equipment and peripherals are manufactured in the Mainland but sold through Hong Kong entities.
With the new arrangement in place, Clark is optimistic on achieving better outcomes for his clients, such as the toy company that encountered serious infringement in the Mainland. Clark said the profits of the infringing Mainland company were being channelled through a Hong Kong entity.
“They took a lot of action in China, but they couldn’t get through to the money in Hong Kong. We had to sue in Hong Kong, but it was quite difficult. Now, we will be able to just sue in Hong Kong on the basis that we have litigation going on in China,” the expert from Tanner De Witt said. “We expect to get large damages. We want to enforce those damages, ultimately in Hong Kong, and we could freeze assets here [in Hong Kong].”
In addition to monetary judgments, businesses can also enforce judgments for non-monetary relief, as well as compensation or damages awarded in criminal proceedings.
The arrangement also provides businesses with “greater flexibility” in selecting the most suitable forum for pursuing their claims.
They could only sue them in Hong Kong but then there was no way to enforce a judgment obtained in Hong Kong in the Mainland
“Previously, the judgment creditor was required to show that the parties had agreed to submit to either the exclusive jurisdiction of the courts in mainland China or Hong Kong. Therefore, a party seeking to enforce a Hong Kong judgment in mainland China would have had to expressly agree to the Hong Kong courts having exclusive jurisdiction over the underlying dispute, and vice versa. In practice, this was often a barrier to enforcement,” Loo said.
Under the new arrangement, parties no longer need to specifically agree on jurisdiction; however, they must establish that the original court in Mainland China or Hong Kong has a jurisdictional connection to the proceedings through factors such as the location of the defendant, the place of contract performance, and other relevant criteria.
But employers may opt to slash their working hours to avoid paying them benefits.
Hong Kong has finally revised the “418 Rule” that had, for three decades, kept employees from attaining benefits. The new rule enables workers to enjoy Employment Ordinance (EO) benefits if they work 68 hours for the same employer over 4 weeks.
Over 11,400 employees who are currently not employed under a “continuous contract” are expected to benefit from the change, according to the Labour Department.
The previous rules have given employers a convenient loophole to prevent their part-time employees from meeting the “continuous employment” status: they’d cap the work scheduled for the fourth week at just under 18 hours, noted Cynthia Chung, corporate commercial partner at Deacons.
“There has actually long been a discussion as to whether change needs to be made regarding how ‘continuous employment’ is defined,” Chung told Hong Kong Business “The current 418 rule has been in place for approximately 30 years, and a glaring loophole under the current rule is that some employers exploit it by having their part-time employers work many hours during the first three weeks of employment, then cap it to under 18 hours in the fourth week…thereby excluding them from enjoying the benefits granted by the Employment Ordinance to those employees who meet the status of continuous employment,” Chung said.
In February, the Labour Advisory Board agreed to revise the “continuous contract” requirement under the Employment Ordinance. This amendment is set to be introduced in the Legislative Council in the first half of 2025.
This completely eradicates the loophole: so long as employees work at least 68 hours in a four-week period, employees will be covered by the EO and are entitled to basic protection according to the amended law.
Benefits include the payment of wages, restrictions on wage deductions and granting of statutory holidays, the Labour Department told Hong Kong Business
In addition, they will also be entitled to benefits such as SH pay, paid annual leave, sickness allowance, statutory maternity leave, statutory parternity leave, severance payment, and long service payment.
Enhanced protection
In addition to providing more benefits, the amendment aims to protect employees from potential exploitation.
Workers in full-time or part-time setups will be protected under the law, covering a significant number of employees in sectors such as construction, retail, and hospitality, where short-term employment contracts are common, according to Chung.
The Labour Department also anticipates that the relaxation of rules will benefit more employees with shorter working hours.
Increased attractiveness
The new rules may also come with the possible caveat of solving manpower shortages, the Labour Department said.
“We envisage the change will help attract more people to
Employers may need to sit down and have a think as to whether they could afford to hire as many part-timers as they wish, and afford to pay out the benefits
enter the labour market and may help alleviate the manpower shortage in industries like the retail, accommodation and food services sector, and public administration, social and personal services sector which have engaged more employees with shorter working hours,” it noted.
One downside though is that employers may turn stingier in hiring part-timers, noted Stephanie Yip, corporate commercial associate at Deacons.
“Currently, Hong Kong is experiencing a serious manpower shortage, and many employers have been aggressively hiring especially part-timers,” Yip said.
“However, due to the present economic challenges, employers may need to sit down and have a think as to whether they could afford to hire as many part-timers as they wish, and afford to pay out the benefits guaranteed under the Employment Ordinance if such part-timers meet the new continuous employment status.”
Many employers– especially in the retail and hospitality sector– have designed employees’ work schedules to exploit the loophole of the 418 rule to avoid the costs of paying out benefits granted to employees under continuous employment, according to Chung.
Employers might choose to slash employees’ working hours downwards, which in turn could hurt the pay of employees, she warned.
The government signalled that it will provide employers with sufficient time to prepare their operations before the amendments take effect.
“We will also launch a publicity campaign to make clear the amendments to employers and employees, on top of our regular enforcement action,” the Labour Department said.
Although the legislative amendment is focused on specific demographics and is adequate for the present labour market, Yip mentioned that Hong Kong law will eventually take a step further to address the prevailing gig economy, thereby enhancing worker protection and labour inclusivity.
PRECLINICAL CANDIDATES INTERNAL R&D PIPELINES
TARGET INDICATION
TNIK
Idiopathic Pulmonary Fibrosis (IPF)
Kidney Fibrosis (KF)
IPF (Inhalable)
USP1 BRCA-mutant cancer
3CL pro COVID-19
QPCTL Immuno-Oncology
PHD 1/2
Anemia of Chronic Kidney Disease Inflammatory Bowel Disease (IBD)
ENPP1 Solid tumors
KAT6 ER+/HER2- breast cancer
DGKA
CDK12/13
TEAD Solid tumors Solid Tumors Solid Tumors
cMYC
MAT2A MTAP-/- cancer Solid Tumors
The city has set up 16 life and health R&D centers as part of its InnoHK initiative.
Hong Kong is vying to secure another title beyond its role as a financial center: to be a global medical hub. The city is investing in new facilities– including an IT park– and is rolling out new regulations to strengthen the local pharmaceutical industry.
Speaking at the opening of the 4th Asia Summit on Global Health (ASGH), Hong Kong Chief Executive John Lee revealed a number of new collaborations and facilities. Chief of this is the Shenzhen-Hong Kong Science and Technology Innovaiton Cooperation Zone, which he said will start unveiling its first buildings later in 2024.
Life and health technology will be a focus of the park’s research and development work.
Hong Kong has also established 16 life and health-related research and development (R&D) centres in the InnoHK research clusters.
In terms of financial investments, the city has injected billions of dollars into the health industry to fund
Life and health technology will be a focus of the park’s research and development work.
projects such as the RAISe+ Scheme and support life and health technology.
Hong Kong also has policies to expedite the registration of new drugs through the “1+” mechanism rolled out last November.
“The mechanism allows for the registration of specific new drugs that are supported with local clinical data, with the approval from only one reference drug regulatory authority,” Lee said.
The measure also aims to attract more drug development, increase clinical trials, and strengthen the drug evaluation ability and expertise of Hong Kong.
Soon-to-rise facilities
Lee said the government is also working on establishing the Hong Kong Centre for Medical Products Regulation, which the city aims to be an internationally recognised authority that registers drugs and medical devices under the “primary evaluation” approach. This means directly approving applications for
registration of medical products based on clinical trial data.
Another facility that Hong Kong will set up later this year is the Greater Bay Area International Clinical Trial Institute, in cooperation with the Shenzhen government
The facility will serve as a clinical trial support centre for biomedical and research institutions. It will coordinate clinical trial resources for Hong Kong in the public and private sectors.
Private sector efforts
Companies are also doing their part to support the move to make Hong Kong a medical hub.
Fred Tung, deputy chairman of the Hong Kong Medical and Healthcare Device Industries Association (HKMHDIA), said in a separate session that the organisation is working with other groups to connect local companies with their counterparts in Mainland China.
Tung said HKMHDIA will expand its coordination with other cities in the Greater Bay Area and other countries.
Latest discoveries revealed at 4th Asia Summit on Global Health give patients hope.
In the near future, curing dementia may just be as simple as scheduling a doctor’s visit and getting some shots. Developments in the medical field studying the cure for dementia are experimenting on new treatments that include vaccination and anti-amyloid or antibody treatments, neurology experts told attendees of the 4th Asia Summit on Global Health (ASGH) held at the University College London on 16 May.
“We know a huge amount about dementia now. And it’s become very exciting just recently, because of the latest developments,” Michael Hanna, director of the UCL Queen Square Institute of Neurology, said at the 4th Asia Summit on Global Health.
Medications being developed
An accumulation of protein aggregates called amyloid in the brain is believed to be one of the causes of dementia. Treatments currently being tested target this protein to cure a patient, Hanna said.
The expert said one of the existing anti-amyloid treatments is conducting several sessions of injecting an antibody to the brain.
Another approach being studied is vaccination so the patient generates antibodies that continually remove amyloid from the brain, he said.
This treatment is still under experimental phase, the expert noted.
Whilst millions suffer from dementia worldwide and is common amongst the elderly, Hanna emphasised that this is “not an inevitable consequence of aging” and that “normal ageing should not include dementia.”
This is where early detection becomes vital since treatments will only work if done early, theneurology expert noted.
Hanna said there have been drug trials that showed a slowdown in the progression of dementia. However, patients involved were already exhibiting symptoms, which means they have lost millions of neurons.
“So the power of these blood tests
is to try and detect those people who really have a preclinical stage,” he said. “The preclinical stage will have a much bigger effect if you actually try to prevent the neurons from dying in the first place.”
Through innovation, Hanna believes that blood biomarkers will soon be developed to predict the onset of dementia.
Hanna also noted that there are already 12 recognised risk factors associated with the possible development of dementia. These include hypertension, diabetes, and lack of exercise.
Researchers have also discovered different proteins that showed a pattern that could help predict the development of Alzheimer’s disease (AD), he noted.
To help those affected by diseases like Parkinson’s, some companies have developed products that would help ease their everyday life.
This includes a wheelchair that transforms into a rollator to help patients when they exercise. Some organisations are also continuously researching dementia.
From the Hong Kong Centre for Neurodegenerative Diseases, a recent study looked into using blood transcriptome analysis for AD
The preclinical stage will have a much bigger effect if you actually try to prevent the neurons from dying in the first place
diagnosis and patient stratification.
The researchers said their analysis of the blood transcriptome in AD patients revealed “key molecular phenotypes, including genes, modules, pathways, and subtypes of blood cells, that may be closely associated with AD pathogenesis and progression.”
“Given the ease of blood sampling, blood transcriptome analysis could provide insights into human diseases, aiding the development of technologies for disease diagnosis, monitoring, and patient stratification. This could ultimately facilitate both early intervention and precision medicine for AD and other human diseases,” the study said.
The health summit is a flagship event of the International Healthcare Week (IHW), organised by the Hong Kong Trade Development Council (HKTDC). It rolled out the theme “Innovation. Inclusion. Impact.” and attracted about 80 global leaders in healthcare.
These included business executives, investors, international research and medical experts and health officials, who discussed various industry issues, such as medical and healthcare innovations, healthcare development in China and healthcare investment prospects.
Growing awareness of the importance of addressing environmental challenges is driving demand for innovative climate tech solutions around the world. With the rapid evolution of the climate technology industry in Hong Kong, the city is positioned as a leader in this sector and a key player in the global sustainability journey.
Hong Kong’s progress is bolstered by Mainland China's advancements in electric vehicles (EVs), renewable energy, and green finance. China has transformed itself into an EV leader: it was responsible for 35% of global EV exports in 2022, when domestic EV sales increased by 82% to account for nearly 60% of global EV purchases. The country has also been the world’s largest and fastest-growing producer of renewable power for more than ten years. China’s goal to achieve carbon neutrality by 2060, with carbon emissions peaking by 2030, is a top priority for the Chinese government. The 14th Five-Year Plan reiterated the importance of investing in the development of clean energy technology over the 2021-2025 period to ensure China can achieve these targets.
Mainland China’s success in building out its greentech industries has set the stage for Hong Kong to excel in developing a climate tech startup ecosystem. Already, more than 100 greentech companies and startups operate from Cyberport and Hong Kong Science and Technology Parks (HKSTP), and many of them are working on technologies that can combat global warming and enhance the sustainability of the city and urban centres worldwide.
Hong Kong’s thriving climate tech landscape
Climate tech development in Hong Kong is gaining momentum as the city strives to address its own environmental challenges. Innovation that is rooted in the city has the potential to drive positive change, foster economic growth, and contribute to a more sustainable future. From renewable energy solutions to waste management breakthroughs, local innovations are reshaping the way that cities interact with the environment.
Among the climate tech startups that call Hong Kong home is one of the world’s leading climate risk analytics companies. Using big data and enhanced artificial intelligence (AI), it empowers financial institutions, corporations, and real estate companies to make climate-informed decisions regarding risk mitigation, resilience planning, and capital allocation.
Hong Kong also boasts one of Asia's leading sustainability data and software-as-a-service providers. The firm leverages environmental, social, and governance (ESG) data sets, satellite imagery, advanced climate models, and financial modelling to help investors quantify their portfolio risks. It also enables fund managers to set up ESG-related fund mandates and supports organisations to simplify ESG reporting.
Another notable climate tech startup in Hong Kong has developed processing technology to transform cellulose, the most abundant organic compound on Earth, into a sustainable composite material. Fully biodegradable within 75 days, this patented new plant-based polymer can replace single-use plastics in applications like disposable
JAYNE CHAN Head of StartmeupHK InvestHK
dishware and coffee capsules. The technology provides more options for restaurant owners and individual single-use plastic items will soon be banned in Hong Kong.
Showcasing Hong Kong's supportive startup environment on the global stage, a company nurtured at HKSTP has developed a new way to build and recycle lithium-ion batteries for EVs. Its technology reduces greenhouse gas emissions from production by 40% and produces a battery that lasts up to 10% longer. Crucially, the battery’s lithium, cobalt, and nickel components can also be economically recovered and reused.
HKSAR Government’s initiatives to support climate tech startups As climate tech increasingly plays a pivotal role in addressing the world’s most pressing environmental challenges, the Hong Kong SAR Government is championing the growth of the sector. Through various funding schemes, incubation programmes, and policy incentives, the Government is promoting greentech, which includes climate tech, as a key pillar of Hong Kong's economic future.
The 2024/2025 Hong Kong Budget outlines policies with the potential to boost the city’s fast-growing climate tech sector. These include the introduction of the Green and Sustainable Fintech Proof of Concept Subsidy Scheme, which will provide early-stage funding support for green fintech, facilitating commercialisation and fostering the development of new initiatives.
The Budget also includes a proposal to extend the Green and Sustainable Finance Grant Scheme, originally set to end in mid-2024, until 2027. Additionally, the scope of subsidies will be broadened to include transition bonds and loans. This initiative aims to incentivise industries across the region to utilise Hong Kong's transition financing platform as they progress towards decarbonisation.
The Government is also currently exploring the feasibility of offering green methanol bunkering services for both local and ocean-going vessels. It will announce an action plan within the year and conduct feasibility studies on other green fuel alternatives, creating opportunities for climate tech startups in the sector.
Strengthening Hong Kong’s status as a hub for both greentech and green finance, the Government set up a Green Technology and Finance Development Committee last year to drive development in these areas. In February, the Hong Kong Green Week brought industry leaders from the region to the city to encourage startups to expand as part of the local ecosystem.
In addition, the Financial Services and the Treasury Bureau and Invest Hong Kong fully support the inaugural One Earth Summit on 26 March, which aims to address critical climate issues in the financial sector. The Government will also co-host a Joint Climate Finance Conference in Hong Kong with Dubai towards the end of the year, prioritising knowledge sharing and collaboration to elevate Hong Kong as a centre of climate finance and sustainability for Asia Pacific.
The HKSAR Government’s policies demonstrate its firm commitment to building the climate tech industry.
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