AUCTION HOUSES DRAW AFFLUENT SOUTHEAST ASIAN BUYERS
TALENTS SHUN BANKS ON LENGTHY HIRING
LUXURY BRANDS BRING STYLE TO THE TWINS AT KAI TAK
CODE-CREATE AI WEAVES TEXT INTO FASHION
FEWER BUT BIGGER DEALS PUSH M&A TO 10-YEAR PEAK
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Auction giants are setting their sights on Southeast Asia, where collectors are stepping up to the block.
At Bonhams, auction spending by Southeast Asian collectors rose 67% year-on-year, whilst Sotheby’s reported stronger bidding from the group during its March Hong Kong sales. Discover the other growth drivers of Asia Pacific’s art market in our cover story on page 28.
In the mergers and acquisitions space, growth has been driven by fewer but larger deals, pushing the local M&A market to a 10-year high. Experts said businesses are pursuing strategic transactions to build scale and resilience amid economic pressure and regulatory headwinds. Read the full story on pages 16 to 17.
Regulatory complexity is also reshaping how banks hire. From AML and KYC to AI governance and data privacy, compliance demands are extending recruitment timelines and making it harder to attract top-tier talent. Learn more about how banks are addressing these challenges on pages 32 to 33, and discover which institutions are still expanding their teams in our latest rankings on page 34.
Tighter oversight may also be coming for the healthcare sector following the closure of Alliance Medical Group. Experts discuss the implications of Alliance Medical Group’s closure on page 26, highlighting critical gaps and necessary reforms in the healthcare sector.
Read on and enjoy!
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Gen Zs taking over consumer preferences in APAC markets
The combined wealth of Hong Kong’s 50 richest individuals on the 2025 Forbes list rose to $2,315.38b (US$301b), up from $2,276.92b (US$296b) last year, despite ongoing property market challenges and trade tensions, according to Forbes Asia. The minimum net worth to make the list this year rose to $11b from $8b.
Eat100 eyes more restaurants to cut food scraps
Eat100, a startup that sells surplus food from restaurants at a discount, aims to expand its partner network to boost its food waste reduction, which is its core mission. The startup has saved 3,160 kilos of food waste since it launched its mobile app in 2023, and this year, it seeks to save about 62,400 kilos of food scraps.
CK Hutchison will not sign the deal with a BlackRock-led group selling the former’s two port operations near the Panama Canal, according to a Reuters report citing two people with knowledge of the matter. The news agency said China’s market regulators will conduct an antitrust review of the port deal.
Hong Kong’s growth projected to moderate at 1.9% in 2025
Hong Kong’s economic growth is projected to moderate to 1.9% in 2025 amidst persistent external headwinds, according to the ASEAN+3 Macroeconomic Research Office. The agency warned that without stronger and more targeted policy actions, the city may struggle to maintain stability and its competitive edge.
By 2025, Gen Zs will account for a quarter of APAC consumer base, overtaking millennials as the largest generation globally. This milestone signals a transformative shift in consumer behaviour throughout the region. Gen Zs purchase based on pleasure and purpose, whilst also considering cost and convenience.
Pacific partners with
to boost SAF use
Cathay Pacific has partnered with China Petroleum & Chemical Corporation (Sinopec) to refuel select flights departing from Hong Kong International Airport (HKIA) with sustainable aviation fuel (SAF). The SAF will be produced and blended with conventional aviation fuel by Sinopec.
Lower stamp taxes on Hong Kong’s residential properties are unlikely to drive prices up despite a surge in transactions under $4m because of a persistent oversupply, analysts said.
With about 108,000 private homes forecast to come to the market in the next three to four years, developers are under pressure to keep rather than raise prices, Elliott Hau, head of financing valuation at Colliers Hong Kong, told Hong Kong Business.
“The overall impact on property prices may be limited due to the ongoing oversupply issue,” he said in an interview.
The government cut the ad valorem duty for flats worth $4m to $100m from $60,000 on 26 February, spurring a 33% increase in property transactions from a month earlier, Hau told the magazine.
“But the increase is not solely due to the ad valorem duty adjustment,” he said. A significant factor is the large property stock developers are holding, which is driving them
to cut prices and use various marketing tools to boost sales, he added.
In March, the government dismissed claims of a residential oversupply, citing a private housing vacancy rate of 4.5% at end-2024 — in line with the 20-year average — and rising rental prices.
Lucia Leung, director of research and consultancy for Greater China at Knight Frank, said the impact of lower taxes on house prices would be gradual, adding that increased real-estate activity could help stabilise the market.
“I don’t think the adjusted ad valorem duty thresholds will have any direct and immediate impact on property prices in Hong Kong,” she said.
Both analysts said lower taxes could make housing more affordable for entry-level buyers but might not trigger a dominant market shift.
"This adjustment may increase demand in this segment, making it easier for potential homeowners to enter the market," Hau said.
The Colliers executive said overall demand continues to favour more expensive units. In March, properties that are priced above $4m accounted for 71.4% of transactions, up from 63.9% a month earlier.
“This suggests that the market may not react significantly to the policy, indicating that flats below $4m are not dominating the market as anticipated,” Hau said.
Developers have started lowering prices to take advantage of the tax cuts, particularly for properties under $4m, Hau said. There were 440 first-hand property transactions below $4m in March, he pointed out.
The top-selling project was Vanke Le Mont in Tai Po with 182 units sold, followed by Sun Hung Kai’s YOHO West Parkside in Tin Shui Wai with 75 transactions, and The HAVA in Yuen Long by Kerry Properties with 68 units.
Leung also expects more developers to lower the prices of units that they originally targeted to price higher than $4m or below to stimulate sales. Hau, on the other hand, forecasts continued growth in transaction volumes in the next six to 12 months.
He noted that 12,193 housing units were sold in the first quarter, 24.1% more than a year earlier. In March alone, deals rose 68% to 5,367 from a month earlier, he pointed out.
Leung, meanwhile, predicts transactions for flats below $4m to rise 5% to 10% in the next six to 12 months.
“The revised ad valorem duty is likely to boost overall transaction volumes, not just for properties under $4m, but across the entire market,” Hau said. But prices would remain low in the short term due to the anticipated large supply of homes coming to the market, he added.
Leung said the tax cuts would support the broader property market by boosting sentiment and reinforcing signs of a stabilising market.
“If interest rates continue to decline, coupled with developers actively launching new projects, it will further unleash market momentum, especially for low-priced properties,” she added.
If interest rates continue to decline, coupled with developers actively launching new projects, it will further unleash market momentum
AHong Kong push to ease benefit eligibility for part-time workers may prompt employers to shift to fixed-term job contracts to avoid additional costs, which could total around $150m a year across all industries.
“Businesses are likely to consider the balance between full-time and part-time staff as a higher proportion of part-time staff are likely to be entitled to the same employment protections and benefits as full-time staff,”
Kathryn Weaver, a partner at Seyfarth Shaw LLP, told Hong Kong Business
“Employers could define working hours
clearly,” she said in an exclusive interview, adding that changes to the employment ordinance could add about $150m in annual costs for Hong Kong employers.
The government estimates that the measure is expected to benefit around 11,400 workers, Weaver added.
Under the measure announced on April 11, employers must follow the 4-68 rule, where a worker who works 68 hours for four straight weeks is considered a “continuous contract” employee entitled to benefits such
Seniors preparing for safer retirement living are driving the demand for home renovation services in Hong Kong, where they are emerging as a key business opportunity as a fifth of the population turns 65 or older within the decade.
Installing railings and non-slip floors in the bathroom or stairs, replacing poor lighting and making the floor as open as possible for wheelchair or walker access are just some of the ageing-in-place changes that the elderly may need.
"The growing senior population, combined with cultural shifts such as younger family members emigrating, has increased the urgency for elderly-friendly home environments," Vera Yuen, who teaches economics at HKU Business School, told Hong Kong Business
“The pandemic has also accelerated demand as seniors and their families
prioritise health and safety at home,” she said in an exclusive interview.
Global demand for services needed by people who don’t want to live in retirement homes is set to balloon by 60% by 2030, and she expects Hong Kong, where the market is worth about $1b, to follow the trend.
Looking ahead
Lawrence Lui, executive director at elderly-focused home renovation service provider Longevity Design House & Longevity Technology, said that he expects the number of industry players to grow from fewer than 10 to hundreds in the next 10 years.
“At the moment, we are still a niche market, but 10 years later, it will become a core business opportunity because onefifth of Hong Kong’s population will be over 65,” he told Hong Kong Business
as rest days, paid annual leave, sickness allowance, and severance pay.
Previously, employees had to work at least 18 hours per week for four consecutive weeks. Wendy Wong, partner at Simmons & Simmons, said the old rule was often exploited by employers who reduced hours in a single week to avoid obligations.
“Given the increased costs that come with compliance with the 4-68 rule, employers may choose to design their employees’ work schedules so that they fall outside the 4-68 threshold,” Cynthia Chung, a partner at Deacons, said in a separate interview.
Weaver said employers should review existing contracts for any potential increase in labour costs. “Once the bill has been implemented, employers should also update any definitions of ‘continuous contract’ in their employment contracts and policies.”
The food and beverage, hospitality, retail, construction, and entertainment industries, which rely heavily on part-time workers, may need to adjust their budgets, said Stephanie Yip, a senior associate at Deacons.
Weaver said the bill aligns with a global trend and reflects the growing recognition of the importance of flexible and part-time work, even though the scope is relatively modest compared to some international standards.
The Labour Department expects the bill to bring people back into the workforce and help employers facing a manpower shortage.
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Food startup not only powder (nop) is looking to expand to Southeast Asia as it seeks to double its more than 20 business-to-business (B2B) partners this year to help give new life to expiring and ugly fruits from producers and suppliers using its freeze-drying tech.
“We want to expand into Southeast Asia, potentially through a franchise or distributor model,” co-founder Fioni Fong told Hong Kong Business. “Above all, we want to establish a strong brand identity that prioritises not just profitability but also social impact.”
The company is exploring tie-ups in Thailand, whilst Singapore is the focus when it comes to identifying partners that are keen to turn fruit waste into new products, she told the magazine in an exclusive interview.
Fong seeks to double nop's more than 20 business-tobusiness partners this year and increase the amount of fruit waste it recycles to 8,000 kilos from 5,000 kilos daily.
The startup operates mainly on a B2B model, collecting fruit waste or fruit surplus from suppliers such as supermarkets, food and beverage restaurants (F&B), and hotels. The waste is then freeze-dried and transformed into powders or other products, which can be reused by these suppliers.
In Hong Kong, food waste, including fruits, accounts for 30% of municipal solid waste, according to data from the Environmental Protection Department.
Fong said one of their partners is a large F&B operator in Hong Kong whose main business is a bakery. “They have a lot of leftovers when it comes to fruits [that they use as] toppings on their cake,” she said. “They send these fruits to us, and we transform them into mainly powder.”
She added that the the powdered fruit is formulated into end-products such as strawberry collagen drinks.
The startup also works with a partner hotel that buys nop's products and incorporates these into “sustainable” menu offerings, such as yoghurt drinks and smoothies.
Since they work with fruit waste, Fong said they have to manually inspect all fruits, cutting these into small pieces — about 0.5 to 1 centimetre — to ensure that they are free from mould. The startup also has a business-to-consumer model, where they create their own products they sell online, such as smoothie powder and fruit crisps.
Fruits from partners such as hotels are usually pre-checked by the suppliers themselves, so nop only carries out a basic inspection. Thorough manual checks are reserved for fruits from new partners, Fong told the magazine.
Fong's team is looking into upgrading machinery to improve food safety, boost collection efficiency, and lower the cost of converting fruit waste into valuable products. “We’ll prioritise continuous innovation in our products,” she said.
Code-Create introduced an artificial intelligence (AI) tool that lets fashion designers generate original, customisable collections with just a few clicks without violating artistic rights.
AiDA 3.0, the company’s AI tool that has been in development for the past five years, promises to speed up the design process by over 60%, quickly generating unlimited designs based on user input.
Launched by Code-Create, AiDA 3.0 was created by AiDLab, one of the startup's strategic partners. Users can input keywords for their design idea, and AiDA 3.0 will create a sketch that they can change. The tool also offers options for fabric patterns and colors.
“A big pain point in the creative industry design is the inspiration stage — the process of putting together ideas, mood boards, and themes for collections,” Kim Wong, co-founder and CEO at Code-Create, told Hong Kong Business in an exclusive interview.
“That part actually takes designers a very long time. With AiDA and the special structures we have, [we] can speed up that process without sacrificing designers’ creativity,” she added.
AiDA or AI Design Assistant has more than 500,000 sketches in its public database. It also generates inspiration from existing designs in users’ private
libraries, helping designers preserve their style. Pieces created from these designs can be sold, benefiting both designers and brands, Wong said.
“Designers have the option to make their designs open for others to use as a secondary source of creativity, or they can choose to allow only viewing without reuse,” Wong said. This allows the platform to protect its users’ intellectual property, whilst also building a community of designers.
Users can generate unlimited designs with the artificial intelligence tool for a subscription fee of $500 a month.
"We do not intend to use AiDA to replace humans — that is not its purpose,” Wong said. “That’s why we call it AiDA — it’s a very interactive AI design assistant. We use AiDA to enhance designers' time for creativity."
Moshi Mosh AI has developed a platform that allows prompt writers, storytellers, and fans to create and interact with AI-generated characters through chat and video calls, providing a way for content creators to connect with their audience.
“We will be the first character AI platform that enables prompt writers and storytellers to create chatbots or characters, which they can then monetise and use to grow their fan base on our platform,”
Alvin Tse, CEO at Moshi Mosh AI, told Hong Kong Business
Tse said creators who join their creator partnership programme could earn $15 (NT$500), $30 (NT$1,000), or $45 (NT$1,500) a month, depending on their level. Earnings are based on factors such as the number of chats and user engagement with their AI characters.
“This is just the starting point; we're actively working on ways for creators to earn even more,” he said. “We believe prompt writers could become the next generation of YouTubers, and we’re building towards that vision.”
Moshi Mosh is seeking to raise seed funding in the next three months to boost its talent team and infrastructure.
Beauty brands like Chanel, Dior, and Giorgio Armani opened stores in the mall.
Lifestyle International Holdings Ltd.’s new shopping mall in Kai Tak, East Kowloon has attracted several luxury retailers including Coach, Chanel, and Dior, apart from a slew of sports fashion brands like Nike and Adidas.
The latter is in keeping with The Twins’ slogan of being Hong Kong’s first and only “sportainment” shopping complex. Spanning more than 1.1 million square feet, it is a retail and commercial hub featuring two towers with more than 700 tenant spaces, housing a mix of fashion, entertainment, dining, and lifestyle brands.
East Kowloon's core
“Tower I emphasises a holistic approach to retail with over 480 brands, including many first-time entrants in Hong Kong,” Kamshim Lau, executive director at Lifestyle International, told Hong Kong Business in an interview.
The first tower opened on 15 November 2024, whilst the second tower is still under construction.
The government is redeveloping the former Kai Tak Airport site in
We are confident in the longterm growth potential of Kai Tak as a core business, lifestyle, and entertainment destination
Kai Tak, Kowloon, starting with the construction of Kai Tak Sports Park, Hong Kong’s biggest integrated sports and entertainment complex that opened on 1 March.
The site is expected to become the core of East Kowloon, made up of residential buildings, an interconnected transportation system, and retail and commercial developments.
High-end beauty brands like Chanel, Dior, Giorgio Armani, YSL, Shiseido, Cle de Peau, and La Mer have set up shop in the mall. There are also stores from fashion brands like Coach, Longchamp, Kate Spade, agnès b, Onitsuka Tiger, Atsuro Tayama, Polo Ralph Lauren, and Tory Burch.
Tower I is set to launch Restaurant Park, featuring three floors of restaurants and eateries, along with TT SITE, a 5,000-square-foot multipurpose and exhibition space, and Sky Koen, a 19,185-square-foot sky garden and sculptural park.
“Tower I’s Restaurant Park is a foodie destination presenting an array of different dining experiences, including one floor dedicated to
Japanese cuisine,” she added.
Meanwhile, shoppers are also flocking to the SOGO Kai Tak store, which transferred from Tsim Sha Tsui when its lease ended on 12 March 2024.
“SOGO Kai Tak features over 480 brands, including the largest beauty destination in East Kowloon spanning over 2 floors, a comprehensive Baby Mart with over 120 brands and the most extensive offering of home & lifestyle brands in Hong Kong,” according to the executive director.
“The diverse range of international and local brands, unique dining experiences, and scenic Sky Koen provide tourists with compelling reasons to explore and enjoy this vibrant retail destination,” she added.
'Different together'
In addition, Lau said the interior environment is designed to offer comfort to customers with a VIP lounge, resting areas, and spacious baby changing rooms.
Embodying the concept of “Different Together,” Lifestyle designed the mall with contrasting interiors. Since its launch last year, The Twins Tower I has achieved an occupancy rate of over 95%.
“Initial feedback from customers and tenants have been highly encouraging and we are confident in the long-term growth potential of Kai Tak as a core business, lifestyle, and entertainment destination in Hong Kong,” Lau said.
Its merger with the world’s biggest hotel operator has led to greater guest traffic.
The Park Lane Hong Kong has joined Marriott International, Inc.’s Autograph Collection under a 15year franchise deal, unveiling a revamped hotel that highlights contemporary local art in Causeway Bay. Its merger with the world's biggest hotel operator has led to greater guest traffic through the brand’s Bonvoy loyalty programme, which has 220 million members.
The hotel, which has 820 guestrooms and suites, expanded its lifestyle amenities early this year to include the Ebb & Flow Café, the Playt Buffet with its signature Seafood Bar, and the SKYE Roofbar & Brasserie.
"If you step into the Ebb & Flow lounge, you'll see an entire art wall dedicated to promoting and providing a platform for
young, up-and-coming artists,” Luc Bollen, general manager at The Park Lane Hong Kong, Autograph Collection, said in an exclusive interview with Hong Kong Business. "We brought in street artists to decorate our all-day dining room, adding a more vibrant, youthful, and modern feel to our rooftop — something reflected throughout the hotel.”
The Park Lane's proximity to Victoria Park, the Royal Yacht Club, and Causeway's shopping districts further enhances its appeal. "That combination is very rare in Hong Kong, especially the luxury of both a harbour view and a park view," Bollen told the magazine.
Unlike traditional hotels that renovate every 12 years or so, The Park Lane wants change that is continuous and adaptive.
Companies are focusing on scale, efficiency, and long-term positioning.
Hong Kong’s deal activity surged to a decade high of $473.58b (US$60.33b) in the first five months— more than double the level a year earlier—as companies chased fewer but bigger transactions.
Volume rose 12.7% year-on-year to 382, with businesses pursuing strategic deals to build scale and resilience amidst regulatory shifts and economic pressure, Elaine Tan, deals intelligence senior manager at the London Stock Exchange Group (LSEG), told Hong Kong Business in an exclusive interview.
“A more cautious M&A (mergers and acquisitions) climate influenced by the current tariff environment hasn’t deterred major and big-ticket deals from being announced,” she said. “[They] continue to move forward, driven by broader strategic imperatives," she added.
Hong Kong’s deal value in the first nine months of last year fell 38.6% year on year to $413.68b (US$52.7b), the lowest nine-month total since 2012, according to LSEG.
Craig Loveless, a partner at British-American business law firm Norton Rose Fulbright, said the trend toward larger deals is playing out across the global M&A market.
“Smaller transactions might be facing more hurdles or being put on hold altogether,” he told Hong Kong Business
Charles Bremner, a partner at Norton Rose Fulbright, said economic uncertainty and potential synergies are also pushing companies to prioritise larger M&A deals.
“Rather than pursuing a higher volume of smaller transactions, they tend to focus on larger deals that offer clear strategic value, such as market consolidation, access to new technologies or expansion into new geographies,” Bremmer said.
“Larger deals often promise greater synergies—for example, cost savings, revenue enhancements or operational efficiencies—that can help justify the investment and provide a clearer path to value creation,” he told Hong Kong Business
The industrial and power sectors dominated Hong Kong’s M&A scene, accounting for 71% of the total deal value, Tan said. Ports, logistics, and automotive transactions boosted industrials to $174b (US$22.2b), 14 times higher than a year earlier.
A key transaction in the industrial space was Geely Automobile Holdings Ltd.’s $18.2b (US$2.32b) takeover of Ningbo-based ZEEKR Intelligent Technology Holding via a stock swap.
Energy and power deals skyrocketed to $161b (US$20.51b), a 75-fold increase from the year-ago level.
Deals in the energy and power space included Xinneng (Hong Kong) Energy Investment Ltd.’s $78.7b (US$10.03b) privatisation of ENN Energy Holdings Ltd., and SPIC Yuanda Environmental Protection Co. Ltd.’s $67.59b (US$8.61b) takeover of Wuling Power Corp. Ltd. from China Power International Development.
Risk-off deals
Tan said retail also made a strong comeback, rising almost six times year on year to $37.68b (US$4.8b). Deals included Xinda Motors Co. Ltd.’s $23.39b (US$2.98b) acquisition of a 67% stake in China ZhengTong Auto Services Holdings Ltd. and Paragon
Shine Ltd’s acquisition of a 79% stake in Wanchai-based Sun Art Retail Group Ltd. for $10.44b (US$1.33b).
Values of deals under $7.85b (US$1b) and those in the $7.8b to $39.3b (US$1b to US$5b) range dropped 9% and 29.6% year-on-year, respectively, according to Tan.
Bremner said “risk-off” deals are gaining momentum in Hong Kong, where companies are acquiring smaller firms that complement their business or industry. He added that several deals involved companies focused on Southeast Asia and the Middle East.
As of 17 June, one deal between a Hong Kong and Southeast Asian company had been completed, whilst another was pending, Tan said.
Hong Kong’s Affinity Equity Partners has acquired Indonesia’s PT Yupi Indo Jelly Gum through PT Confectionery Consumer Products, whilst Thailand’s CPF Investment Ltd. is about to buy Hong Kong–based CP Pokphand Co.
Neha Singh, chairperson and managing director at Tracxn Technologies Ltd., said the US is the leading acquirer in Hong Kong’s M&A market. There is also deal activity in Europe from Germany, France, and Italy, whilst Singapore is an active player in Southeast Asia.
Tan said Hong Kong’s biggest M&A transaction to date involved a consortium led by New York-based BlackRock, Inc. and Global Infrastructure Management LLC, along with Switzerland-based Terminal Investment Ltd. Sarl.
The investor group bought an 80% stake in Hutchison Port Holdings Sarl and Hutchison Port Group Holdings Ltd. from Kowloon-based CK Hutchison Holdings Ltd. It also acquired a 90% interest in Panama Ports Co. from Hutchison Port Holdings.
The value of the two transactions was estimated at $150.7b (US$19.2b) Tan said.
Bremner expects to see more deal activity in Hong Kong as it boosts its capital and liquidity pool.
By late May, Hong Kong funds raised from new share offerings had reached $76b, more than seven times the tally a year earlier.
Public listings would likely allow investors to exit and fund fresh acquisitions, Singh said.
‘We will strengthen our engagement with the government initiatives to reinforce Hong Kong's role as a premier family office hub’
Clement Lam CEO, Sun Life Hong Kong
As Sun Life Group celebrates 160 years globally and 133 years in Hong Kong, CEO Clement Lam shares how the insurer is shaping the future of high-net-worth wealth management.
In a landmark year celebrating Sun Life Group’s 160th global anniversary and Sun Life Hong Kong’s 133-year presence in Hong Kong, the multinational life insurer has emerged as a market leader with a recordbreaking 2024 performance.
At the helm is Clement Lam, CEO of Sun Life Hong Kong, who is steering the insurer toward an ambitious future focussed on high-networth (HNW) clients. In this exclusive interview with HongKongBusiness, Lam outlines how the company is strengthening its leadership in wealth succession, family office valueadded services, and sustainable investments, solidifying its role as a trusted partner for Asia’s HNW families and reaffirming its legacy in the region's evolving financial landscape.
How does Sun Life Hong Kong's 2024 performance compare to overall market trends in Hong Kong’s insurance industry?
Clement Lam: Sun Life Hong Kong emerged as the No. 1 insurer in broker channel, with an industry-leading Annual Premium Equivalent of HK$5,814m, according to the Insurance Authority. Our 90% year-on-year growth across all distribution channels far exceeded the market average of 28%, with growth rates 3.2 times faster than Hong Kong’s overall insurance sector. This extraordinary growth reflects the successful execution of our multi-channel strategy and underscores our accelerating market leadership.
As CEO, how do you plan to strengthen Sun Life's leadership in the high-net-worth insurance sector?
Clement Lam: With 30 years of expertise serving global HNW clients, Sun Life Hong Kong ranks No. 1 in average premium per single-premium policy amongst the city's top 10 non-bank insurers (Insurance Authority, 2024). Our premier HNW business continues to thrive, with policies exceeding HK$100m in sum assured, representing 11.9% of our total sum insured, whilst high-value policies with first-year premiums (FYP) of HK$10m+ contributed 30.9% of total FYP. Building on Sun Life's 160-year global legacy, we combine financial strength and stability with unparalleled underwriting expertise to deliver tailored insurance solutions. Our global reach and local expertise allow us to serve clients effectively across borders, which is
particularly valuable for our HNW clientele. We're proud to maintain industry-leading retention rates, reflecting our commitment to client satisfaction and long-term relationships. To build on this success, we are further sharpening our expertise in wealth succession and governance. Strengthening strategic partnerships remains key - collaborating with global tax advisors, legal professionals, and family office consultants to expand our suite of value-added services, including trust planning and family governance solutions. Our financial stability is reinforced by top ratings from S&P, A.M. Best, DBRS, and Moody's, instilling confidence in our clients.
What opportunities do you see for enhancing support for ultra-high-net-worth families in wealth succession and governance?
Clement Lam: The government's strategy to position Hong Kong as a premier family office hub has intensified the demand for sophisticated wealth succession planning and value-added services within the high-networth ecosystem. Aligning with government policies, we provide tailored advisory services including global tax planning, trust structuring, and family governance solutions.
In 2023, we became the first insurer to collaborate with InvestHK, hosting a family office seminar for over 100 partners to discuss Asia's leadership in wealth management. In 2024, we became the first local insurer to partner with a top Hong Kong institution in delivering family office courses. Moving forward, we will strengthen our engagement with government initiatives to reinforce Hong Kong's role as a premier family office hub. We also observed that high-net-worth individuals are increasingly focussed on wealth succession planning, comprehensive crossborder financial services (especially in the Greater Bay Area), and a growing commitment to sustainable investment opportunities. The needs of high-net-worth clients have evolved from pure wealth accumulation to comprehensive wealth succession and nextgeneration succession planning. They prioritise wealth succession, tax planning, and asset protection over mere coverage. They prefer
high-coverage savings insurance, large sumassured life insurance, universal life insurance, investment-linked insurance products, key person insurance, and business continuation insurance. They can flexibly allocate funds through premium financing, policy pledging, and other methods to achieve goals such as business expansion, philanthropic planning, and financial security for their families.
What are your next steps in expanding Sun Life’s high-net-worth ecosystem?
Clement Lam: Our next phase in strengthening the HNW ecosystem focusses on digital innovation and deepening strategic partnerships. Enhancing our digital solutions will improve client interactions, whilst further collaborations with global tax advisors, legal professionals, and family office consultants will reinforce a holistic service offering. Sun Life remains dedicated to delivering exceptional value to our clients, ensuring seamless financial planning and legacy solutions.
Looking ahead to 2025 and beyond, what are Sun Life Hong Kong's key priorities?
Clement Lam: Our priorities for 2025 and beyond include further solidifying our HNW leadership, advancing our family office ecosystem, and enhancing digital capabilities to meet evolving client needs. We will continue innovating wealth succession and governance solutions whilst strengthening government and industry partnerships to position Hong Kong as a global hub for ultra-HNW financial services. With robust performance, innovative products, and a global network, Sun Life Hong Kong is well positioned to its mission: "To be Asia's premier HNWI service provider, offering comprehensive wealth management, health optimisation, and sustainable investment strategies for high-net-worth individuals."
‘Sun Life remains dedicated to delivering exceptional value to our clients, ensuring seamless financial planning and legacy solutions’
From cutting-edge digital platforms to bespoke HNW services, Sun Life Hong Kong is redefining client experience and cementing its leadership in life and health insurance.
As Sun Life Hong Kong celebrates its 133rd year of anniversary, the company continues to lead through innovation and client-centric solutions.
Christine Yeung, General Manager, Life and Health, shares how Sun Life is enhancing client experience with powerful digital tools like eSunPro and SunWallet, whilst expanding its high-net-worth ecosystem to meet the growing demand for legacy planning, family office services, and crossborder medical support.
Through a focus on talent development and personalised service, Sun Life is reinforcing its position as Hong Kong’s first multinational life insurer—and as a trusted partner for families navigating today’s complex wealth and health landscapes.
How is Sun Life Hong Kong enhancing its client experience and distribution strategy, and what new initiatives can clients expect?
Christine Yeung: Sun Life Hong Kong is dedicated to elevating client experience through innovative digital solutions and personalised services. Our eSunPro platform and SunWallet provide seamless healthcare and policy management, whilst SunWallet’s multi-currency capabilities— supporting 17 currencies—offer enhanced flexibility for clients.
Our eSunPro platform is an innovative health management solution designed for medical and critical illness policyholders with eligible insurance plans, providing end-to-end
support from diagnosis to post-treatment care. Services include free cancer gene testing, 24/7 medical hotlines, cashless payments, mainland companion services, psychological counselling, and pet care. The platform combines advanced medical technology with personalised care, simplifying healthcare access across borders. Additionally, our upgraded cashless arrangement service in Mainland China now covers over 4,200+ designated hospitals, ensuring hassle-free medical access. These advancements, alongside seven value-added medical services, reaffirm our commitment to delivering exceptional client experiences.
How is Sun Life evolving its HNW offerings to meet the changing needs of clients?
Christine Yeung: Sun Life continues to enhance its High Net Worth (HNW) product offerings, adapting to evolving client needs. We actively support the family office value-added service ecosystem, providing premium value-added services for wealth inheritance, including global tax consultation, trust structuring, and family governance, ensuring ultra-HNW families receive bespoke financial planning.
Our HNW ecosystem provides valueadded services across seven key areas, including global tax consultation referrals, business and personal legal advisory
referrals, trust and company secretary services referrals, immigration and overseas education advisory referrals, professional directorship services referrals, family office structure consultation referrals, and assistance in drafting an enduring power of attorney referrals.
As the first multinational life insurer in Hong Kong, how does Sun Life maintain its leadership in such a competitive industry?
Christine Yeung: Continuous investment in people is essential to building long-term brand credibility and sustaining industry leadership.
To achieve this, Sun Life Hong Kong has established the Sun Life Training Academy, featuring two major academies and seven specialised divisions to foster professional growth at all career stages. We place financial advisor training and development as our top priority, recognising the high standards required to serve the highnet-worth market. Our monthly training programmes ensure advisors continually refine their expertise and deliver exceptional service to clients.
By focussing on high-net-worth solutions, including wealth succession and family office value-added services, we ensure Sun Life remains a trusted industry leader. Anticipating market trends and prioritising client needs will continue to drive meaningful impact.
Sun Life Hong Kong is dedicated to elevating client experience through innovative digital solutions and personalised services
Grade B and C offices are likely to benefit from the conversions.
Property companies in Hong Kong should consider converting more commercial buildings into student housing, apart from halting commercial land sales, to address the city’s office slump, property analysts said.
Doing so will “provide greater flexibility in land use,” according to Rosanna Tang, executive director and head of Research at Cushman & Wakefield Hong Kong.
“We anticipate that these measures will help the office absorption, whilst offering more housing options in the market, stabilise rents, and effectively address the challenges associated with the shortage of student beds,” Tang said in an exclusive interview with Hong Kong Business. The education sector has been driving the demand in Hong Kong’s commercial property market in the past six months, according to Kathy Lee, senior director and head of research and retail consultancy at Colliers Hong Kong.
She cited Hong Kong Metropolitan University’s acquisition of One HarbourGate East Tower in Hung Hom to bridge the gap in student accommodations.
“We suggest that conversion of office buildings into student accommodation, which is a similar concept to what we had before when we converted office buildings to hotels when the tourism market was booming and we didn’t have enough hotel supply,” Lee said.
“Once the government allows this conversion from office to student accommodation, we expect some Grade B or Grade C office buildings to consider such conversions,” she told the magazine.
One in three university students in Hong Kong are vying for a single campus bed, with demand possibly exceeding 50,000, Tang said.
She added that some students have been forced into the private rental market, making the government's
move to rezone commercial sites for residential use a timely decision.
The rezoning was part of budget measures, along with pausing commercial land sales for fiscal year 2025-2026, amidst rising office vacancies and sluggish sales. The government sold only six commercial sites from 2010 to 2024.
JLL Hong Kong’s managing director Alex Barnes said the halt on sales of commercial sites will allow more time for the market to absorb new supply and for economic conditions to improve.
With 13.5 million square feet of net leasable area in Hong Kong’s Grade A office market, Tang said it would take five to six years to bring vacancy rates down to single digits, assuming an annual net absorption of 1.2 million square feet and no economic shocks.
Other commercial land sales
According to Hannah Jeong, head of valuation and advisory services at CBRE Hong Kong, it would take seven years for the commercial market including industrial space to stabilise, assuming a yearly take-up of 1.6 million square feet.
She noted that whilst the government is suspending commercial land sales until next year, land transactions are still possible through other agencies that are not covered by the ban, such as the Airport Authority Hong Kong and West Kowloon Cultural District.
The Northern Metropolis project, which includes the San Tin Technopole innovation hub, is another area where land sales will still continue. Part of the megaproject is the Hung Shui Ha Ka/Tsuen New Development Area, which aims to provide not less than 2 million square meters of commercial floor area. “The impact [of the halt] is relatively minor in the current market climate,” Jeong said. Still, Lee expects the sales halt to give the market time to take up some of the available space, allowing it to “pivot” from high vacancy rates.
Regulators may have to enforce measures to prevent anti-competitive behaviour.
Regulators are expected to ramp up oversight of Hong Kong’s food delivery market after the exit of UK-based Deliveroo reduced competition to two players.
“Authorities could introduce measures to prevent monopolistic practices and ensure that the market remains fair and competitive, ultimately benefiting consumers,” Xiao Lei, assistant professor of Innovation and Information Management at the HKU Business School, told Hong Kong Business. He also expects increased marketing from Keeta and Foodpanda to win over former Deliveroo users and partners.
More regulatory scrutiny
Deliveroo shut down its Hong Kong operations on 7 April and sold some assets to Foodpanda, a unit of Berlinbased Delivery Hero SE, after facing intense competition from Keeta, which entered the Hong Kong market in May 2023 and quickly gained significant market share.
Delivery Hero SE said Deliveroo’s customers and couriers in Hong Kong will be redirected to foodpanda, with certain vendors also onboarded to the platform.
"This will expand foodpanda’s offering, providing customers with
access to a broader selection of restaurants and grocery businesses, including some previously only available on the Deliveroo platform," Delivery Hero SE said in a statement.
Keeta, owned by Chinese shopping platform Meituan, could attract regulatory scrutiny as it grows, according to Hannah C. L. Ha, a partner at law firm Johnson Stokes & Master (JSM) Hong Kong.
Keeta’s growing market power might get scrutinised, especially concerning “exclusive arrangements, parity clauses, and tying practices,” similar to those flagged in the Hong Kong Competition Commission’s (HKCC) probe of Foodpanda and Deliveroo in 2022, the lawyer said.
The investigation focused on the platforms’ suspected anti-competitive conduct involving restrictive contract terms for restaurants.
Ha noted that Meituan is under antitrust scrutiny on the mainland, which could expose Keeta to heightened regulatory attention.
As the market becomes more concentrated, Ha said the remaining major players must avoid coordinated conduct such as fixing prices and market sharing.
Foodpanda should honour its
December 2023 commitments to the HKCC, Ha said.
The commitments include amending or removing contract provisions that restricted restaurants from partnering with other platforms, offering lower prices on their channels, or using only selected Foodpanda services.
“Whilst competing to expand, platforms must ensure fair competition practices and avoid conduct that could restrict market competition and violate competition rules,” she told the magazine.
Both Keeta and Foodpanda should boost investment in tech and logistics to enhance delivery efficiency, personalisation, and partner variety as their customer base expands, Lei said in a separate interview.
They should also align restaurant partnerships with customer preferences to sustain market position, such as offering high-end or niche cuisines to attract discerning diners, according to Ha.
Both should have enough riders to meet demand, accept orders promptly, deliver on time, and maintain food quality, she added.
“Delivery companies planning to enter the market should conduct localised marketing campaigns that resonate with the local culture, including partnering with local influencers,” Lei said. Localisation is an area where Deliveroo lacked, he pointed out to Hong Kong Business.
“Deliveroo, as a UK-based company, did minimal localisation in the Hong Kong market, whereas Keeta from Meituan leveraged its deep understanding of Chinese consumers,” he said. “Adapting services to meet local preferences and cultural nuances can significantly impact market penetration and customer loyalty.”
To compete effectively, players must first navigate the food delivery market's high entry barriers, such as logistics, Ha said.
The lawyer advised providing environmentally friendly delivery options and catering to niche segments, including specialty cuisines, premium dining, or specific dietary needs.
At RGA, we live on the boundary of what’s possible. We’ve broken ground as the only reinsurance company to focus on life- and health-related services, ensuring that financial protection is accessible to those who need it most.
Trust accounts could also protect consumers from clinics that go under.
The government should create a healthcare compensation fund to protect consumers, analysts said, after thousands of patients with at least $3.4m in claims were left in limbo when Alliance Medical Group abruptly closed.
Healthcare providers could also be encouraged to set up trust accounts to ensure prepaid funds are protected and available for refund if needed, Rathanesh Ramasundram, regional practice area leader for healthcare and life sciences in the Asia-Pacific region at Frost & Sullivan, said in an interview with Hong Kong Business
“This incident has opened a lot of vulnerability, from the consumers, the authorities, and the providers,” she said in an interview. “Moving forward, there should be a collaboration, a consensus, on how they are going to overcome and manage these situations again."
Regulation and transparency Hong Kong authorities, which received thousands of complaints in May, are investigating the closure of Alliance Medical Group, which offered services including vaccination packages for children.
Ramasundram said the compensation fund would be similar to the one used by the travel industry to pay consumers who buy packages from licensed agents that go under.
Lawrence Iu, executive director at the public policy think tank Civic Exchange, highlighted the need for regulation and transparency, adding that industry players should be subject to routine reporting and independent audits.
“This isn’t the first prepayment issue in Hong Kong,” he said. “We had one before involving a gym. The government learned a lot from that case, but the fact that it’s happening again highlights the lack of a proper system for regular audits and transparent reporting.”
He was referring to Physical Fitness, which closed in September 2024 and owed about 4,000 customers almost $133m in undelivered prepaid services.
Iu said industry players must regularly disclose information such as patient volume and financial health, which should be a factor in licence issuance.
The healthcare industry has “fragmented supervision,” Iu said, adding that agencies should work together to ensure proper regulation. “There are different departments that regulate the healthcare sector,” Iu explained. “The Department of Health is responsible for licensing providers, but it isn’t really focused on regulating how they should receive prepayments or ensuring that they can actually provide the service after the prepayment.”
“The Consumer Council, on the
other hand, helps oversee how the prepayment structure works, but it cannot really regulate how providers deliver the service,” he added.
The government has proposed a cooling-off period and limits on the duration of healthcare contracts, which Ramasundram described as “very strong” actions.
“A statutory cooling-off period allows consumers to reconsider and withdraw from contracts within a set time frame, whilst limits on contract length and prepayment amounts essentially reduce consumers’ exposure to risk,” she said.
“Evidence from other sectors like fitness suggest that cooling-off periods can significantly reduce consumer losses in the event of sudden business closures,” she added.
But lu said contract limits provide “minimal safeguard.” “Healthcare providers can find a more innovative payment schedule or terms to ignore the cap," he told the magazine.
Moneyed Millennials and Gen Zers are spending more on art pieces.
Auction houses like Sotheby’s and Bonhams are luring the growing pool of wealthy Southeast Asian collectors who pay top dollar for art produced by globally and regionally renowned artists.
Affluent Millennials and Gen Zers in their early 40s and late 20s have sharply increased their spending on art, emerging as a key clientele for international auction houses.
“We’re seeing remarkable momentum out of Southeast Asia, where collector participation has grown significantly,” Elaine Holt, deputy chairwoman at Sotheby’s Asia, told Hong Kong Business. There was strong bidding from Southeast Asian collectors at Sotheby’s March sales in Hong Kong. “This signals an exciting expansion in tastes and confidence across the region,” she said.
Southeast Asian spending at Bonhams’ auctions have risen 67% year on year, said Julia Hu, Bonhams
These young collectors know exactly what they want and are intentional in their approach
managing director for Asia.
“This underscores the region’s rising influence and deepening collector engagement,” she told Hong Kong Business. “Southeast Asia is emerging as a dynamic buying force, driven by rising affluence and a growing passion for art and collecting.”
Hu said younger art collectors are driving the demand and shaping the future of collecting.
Millennials and Gen Zers accounted for 37% of London-based Bonhams’ buyers at its Hong Kong auctions in the first half, while people in their 30s and 40s made up 40% of Sotheby’s Hong Kong marquee sales which were held in March.
Renoir’s “Baigneuse accoudée,” one of the evening’s top lots at the Sotheby’s auction, was sold to a collector in their 30s for $23.56m.
“This highlights not just youthful interest, but also significant buying power,” Holt said.
“These young collectors know
exactly what they want and are intentional in their approach,” Hu said. “They are well-researched, digitally savvy, and highly connected, sharing ideas and passions with peers and industry insiders.”
“For them, collecting is personal, it’s about self-expression and staying true to their values,” she added.
Aside from the growing interest from young clients, their preferences are also changing, Holt said.
“Collectors are no longer confined to modern and contemporary art,” she said. “Many are expanding their collections beyond fine art into design and lifestyle objects.”
Last year, Hong Kong’s share in the global modern and contemporary art market doubled from 7% in 2015, narrowing the gap with London at No. 3, according to the Mishcon 2025 China art market report.
“Medium-wise, there’s continued interest in paintings, but we’ve also seen a growing momentum in sculpture, works on paper, and small-scale installations, especially when they present strong provenance or align with a recognisable name,” Holt said.
Some art pieces that Sotheby’s has sold include two of Francois Xavier Lalanne’s bronze geese sculptures titled “L’Oie” for $2.3m and $2.2m.
The auction house also sold Henry Moore’s “Working Model for Reclining Figure: Prop” for HK$20.5m, which is the highest price achieved by the British artist in Asia.
'Provenance and rarity'
Works of blue-chip artists are also in high demand across the Asia-Pacific market, especially those that are more affordable, Holt said.
Among the blue-chip works sold at Sotheby’s Hong Kong in Spring 2025 was “Fleurs de printemps (La Cruche aux fleurs de printemps)” by Marc Chagall, which fetched $34.5m, which was an auction record in Asia for the French artist.
Other blue-chip works that were sold at Sotheby’s Spring 2025 Hong Kong were “Beyond the Nebulae” by Japanese artist Yayoi Kusama for $1.9m; “31.08.2001 –09.09.2002” by Chinese artist Zao Wou-Ki for $14.4m; and “Joie de vivre I” by Vietnamese artist Mai Trung Thu for $6.9m.
Mai’s “Instant musical” was sold for $10.1m, while German artist Georg Baselitz’s “Triangle Between Arm and Torso” fetched $11.3m.
“Collector demand is most strongly influenced by two enduring factors: provenance and rarity,” Hu told Hong Kong Business. “Provenance, particularly fresh-to-market works, remains one of the most powerful drivers of collector interest.”
She said Bonhams presented several highly coveted collections in the first half, including the Dr. & Mrs. Hu Shih-Chang Collection, Trudy and John Cohen Collection of pendants, Jules Speelman Collection, and Chang Chun Collection.
These helped drive the auction house’s Asian art sales to $217m, a 57% increase from a year earlier.
Bonhams also sold works by Japanese contemporary artist Tetsuya Ishida, who died at 31, leaving behind only 217 pieces. Hu said Ishida’s art is highly sought after due to its rarity.
In December 2024, Ishida’s “The Men on a Belt Conveyor” achieved a record-breaking $10m, whilst his “General Manager’s Chair in an Abandoned Building” artwork was sold for $7.6m in May.
“These results underscore the enduring appeal of rare and extraordinary pieces, which resonate deeply with collectors seeking
something truly unique,” she said.
Hu said Bonhams would keep getting fresh-to-market works with exceptional provenance, provide competitive estimates, and curate compelling sales to engage collectors amidst stiff competition.
“Innovation remains central to our strategy,” she told the publication. “Engaging younger and new buyers will be critical to driving growth and capturing future opportunities.”
Holt said Sotheby’s would keep expanding its selection of blue-chip artists at accessible prices, whilst deepening client engagement to drive growth in the Asia-Pacific market.
Sotheby’s March evening sale outperformed expectations, selling 95% of lots and 99% by value, despite tight supply. “It also drew more bidders per lot than ever before, a strong vote of confidence from our collector base,” Holt said.
The evening sale hauled in $297.5m, according to Artnet.com,
which is operated by New York-based Artnet Worldwide Corp.
Bonhams also performed well in the first half, posting a 26% yearon-year increase in its Hong Kong auction sales to $390m, Hu said.
The auction house reported a surge in private sales, particularly in luxury categories, driven by the growing demand for immediate, discreet, and flexible transactions.
“Our dual focus on auctions and private sales continues to drive strong results across the region,” Hu said. Holt and Hu remain positive for the rest of the year, citing Hong Kong’s leadership in the AsiaPacific art market.
The 2025 Art Basel and UBS Art Market report found that 15% of mid-tier auction houses globally expect sales to grow this year, and 45% anticipate steady sales. Last year, global auction sales dropped 20% to $183.7b (US$23.4b), the lowest since 2020.
Self-insurance could lower premiums over time and improve liquidity. INSURANCE
Aquicker licensing process and lower capital requirements for in-house or "captive" insurers are expected to spur multinational companies based in Hong Kong to set up their own insurance units, analysts said.
This would cut or eliminate profit margins charged by third-party insurers, lower premiums over time, and improve liquidity, they added.
The enhanced control over risk management and tailored coverage options also present a significant draw, allowing companies to design insurance programs that perfectly align with their unique operational needs and risk profiles.
This strategic advantage, combined with potential cost savings, makes Hong Kong an increasingly attractive domicile.
“If you're a large company with significant premium volume or insurance needs, establishing a captive can offer a cost-efficient and effective insurance solution,” Patrick O’Sullivan, head of International Insurance Solutions at global investment management firm Barings, said in an interview with Hong Kong Business.
Using captive insurance also lets business groups consolidate global insurance programs into one structure and ring-fence risks by region or type, he said.
The Insurance Authority has updated its rules to boost Hong Kong’s allure as a domicile for captive insurance, including an expedited licensing process, reduced capital requirements, streamlined reporting, and more flexible outsourcing operations.
Captive insurers in Hong Kong also get a 50% cut in their profit tax rate on insurance business related to onshore and offshore risks.
“We will continue to make sure eligibility for [the tax concession] is subject to fulfilment of relevant
conditions,” Clement Lau, executive director of the Policy and Legislation Division at the Insurance Authority, told Hong Kong Business.
“Captive insurers can improve cash flow by giving the parent company control over the timing of claim payments and premiums,” O’Sullivan said.
In May, HSBC Holdings Plc unit Wayfoong (Asia) Ltd. was given a captive licence in Hong Kong, the fifth captive insurance provider and the first multinational enterprise to get a licence under the updated rules.
There were more than 6,000 licensed captives globally as of May, according to Business Insurance’s captive domicile rankings. In the Asia-Pacific region, Singapore was the leading captive domicile, hosting 89 licensed captives, based on data from the Monetary Authority of Singapore.
Hong Kong is seeking to compete in the captive insurance
market that is currently being dominated by Bermuda.
“Hong Kong shares many of the same qualities [as Bermuda],” O’Sullivan said. “It’s home to a large number of international companies, advisory firms, investment managers, and legal firms.”
“With the recent introduction of the Hong Kong risk-based capital regime, it also has a strong and flexible regulatory framework,” he told the magazine.
The Insurance Authority is reaching out to target companies with tailored proposals and working closely with legal and advisory firms to provide end-to-end support, according to Lau.
O’Sullivan expects more applications, especially with the support infrastructure—legal, audit, investment, and regulatory—is already in place.
“Looking forward over the next five years, it’s going to be the bedding down of that ecosystem,” he said. “I don’t necessarily see too many challenges, given that the foundations are already laid.”
The Insurance Authority would continue promoting awareness of captive insurance benefits, enhance competitiveness through regulatory reviews, and develop local talent to support the sector, Lau said.
Hiring rose 2.5% amongst 15 lenders in Hong Kong Business' annual survey.
Banks in Hong Kong should streamline their application processes and reconsider language requirements if they want to hire and retain the top talent, recruitment experts told Hong Kong Business.
More selective and longer hiring timelines are hurting banks’ ability to attract workers, said Robert Sheffield, managing director for China and Hong Kong at Irelandbased recruitment consultant Morgan McKinley.
“We're seeing a number of [toptier candidates] take opportunities with competitors that offer a more streamlined and efficient hiring experience,” he said. Skilled workers in high demand are less likely to go through a longer interview process, he added.
Multiple hiring stages
Applicants often have to complete cognitive, personality, and behavioral tests to help predict job performance, along with the need to provide detailed references. Hiring managers also evaluate soft skills and emotional intelligence and how workers will fit the company culture.
They also face several layers of interviews with compliance and risk departments, and detailed documentation in each hiring stage, Sheffield said.
The long hiring process comes with stricter regulatory scrutiny in the past two years.
“Banks are under an enormous amount of pressure to ensure compliance, and you’ve got increasingly complex regulations related to anti-money laundering, artificial intelligence (AI), knowyour-customer (KYC) procedures, and data privacy,” he pointed out.
Banks have been hiring more people in KYC, asset liability and regulatory risk management, including credit, market, and operational risks, and anything
We're seeing a number of top-tier candidates take opportunities with competitors that offer a more streamlined and efficient hiring experience
tech-related, according to British recruitment company Robert Walters Plc.
Relationship managers continue to be in demand, especially those with “strong client networks,” said Elaine Chu, senior manager of financial services at Robert Walters Hong Kong.
It’s not just banks that are cautious. Job candidates have also started to consider bank stability before jumping ship, she noted.
“We’re seeing a lot more candidates who have been more reserved than they were, but also because the [pay hike] increments have become smaller as well,” she said in an exclusive interview with Hong Kong Business.
Meanwhile, lenders in Hong Kong might have to stop requiring job applicants to speak Mandarin, at least for some roles.
“When you actually look at the roles that they’re talking about, the
majority of those people will speak English,” Sheffield said. “There are a number of institutions that we work with where that process is probably three, four times longer than it was, and it's because of a mandate on Mandarin.”
“When you drill down into that, they cannot justify why it's there,” he added. Sheffield said about 70% of Hong Kong’s talent pool comes from Mainland China.
Chu said most banks in Hong Kong have not laid off people but changed their hiring methods.
“[For some], the seniority has changed. If a vice president leaves, they might hire an assistant vice president, and if an assistant vice president leaves, they’ll hire an associate,” she added.
“We are seeing a lot more internal applicants—direct applicants from the banks themselves,” she added.
The banking industry hired more than they cut last year, with 15 banks adding 2.5% more workers to 70,611, according to the latest bank ranking survey by Hong Kong Business. This is faster than the 0.16% growth in 2023
covering the same 15 banks plus Standard Chartered Bank Plc, which did not participate in this year’s survey.
Tai Sang Bank Ltd., Hong Kong’s smallest lender, and homegrown Hang Seng Bank, now owned by The Hongkong and Shanghai Banking Corp. Ltd. (HSBC), logged the fastest hiring growth at 40% and 19% respectively.
Hang Seng Bank added more than 1,300 people to 8,328, whilst Tai Sang increased its headcount by 14 to to 49.
The Asia-Pacific unit of HSBC Holdings Plc continued to be the biggest employer in Hong Kong’s banking sector with about 20,000 workers, the same as in 2023.
Apart from Hang Seng Bank and Tai Sang Bank, five other lenders hired more last year— Bank of China (Hong Kong) Ltd., Shanghai Commercial Bank, Chong Hing Bank, CMB Wing Lung Bank, and Public Bank (Hong Kong) Ltd.
Dah Sing Bank, one of the two remaining family-owned banks in the city, reported the fastest job cut of of 6.9%, according to the survey.
Industrial and Commercial Bank of China (Asia) and China Construction Bank (Asia) also had fewer employees, the latter based on the overseas worker count in its annual report.
IPO jobs
Chu cited the rise of contract hiring not just in the banking sector but across all sectors, whilst pay hikes were lower.
“Most of the increments are around 10%–15%,” she said. “Realistically, during a good market, we’re looking at approximately 20%.”
Sheffield said automation of key business processes is starting to affect banks’ hiring attitudes.
“A lot of outsourcing and offshoring and generalist roles without specific in-demand expertise are being removed from organisations,” he said, citing the use of generative AI in the middle and back offices.
Hiring by investment bankers was slow as global deal volumes remained subdued.
“There is demand for topperforming deal makers, and there’ll be aggressive hiring sprees on occasion, but that’s going to be far less prevalent,” Sheffield said.
Chu said positions related to initial public offerings (IPO) have
been opened amidst a listing resurgence.
In the first half, Hong Kong’s IPO proceeds were projected to have jumped more than eightfold to $108.7b (US$14b) from a year earlier, accounting for 24% of the total globally and putting it at the top spot, according to data from Ernst & Young Global Ltd. (EY).
Mainland Chinese companies seeking to unlock growth via dual listing are driving the city’s listing revival, it said.
The Hong Kong IPOs of several A-share listed companies or their spin-offs boosted the average proceeds by more than fivefold year on year, according to an EY June report.
The average IPO proceeds during the period ranked second among all first-half periods in the past decade, only trailing behind the exceptional performance in 2021, it added.
Source: LSEG
Social interaction during events is the future of retail and mixed-use development.
Agovernment push to relax approvals and fees for commercial events is expected to boost pop-up activity in Hong Kong malls that could help ease a year-long retail slump.
“With the new initiative, it would be a lot easier for landowners to allow and facilitate a wide variety of stakeholders to operate, maybe a weekend carnival or festival celebration, which can showcase new and independent stores,” Chris Law, government committee head at the city’s Urban Land Institute, told Hong Kong Business in an interview.
“It can add a lot of interesting, innovative, and exciting offers to existing retail, food, and beverage offerings in shopping centres,” he said. “With the possibility of more pop-up stores, people might return just two weeks after their visit.”
Retail sales in Hong Kong dropped 13% year-on-year to $29.4b in February, extending a year-long streak
of monthly declines, according to the Census and Statistics Department.
The pilot programme that will run until 10 April 2027 allows landowners or mall operators to use some areas for commercial or promotional activities without having to seek a permit for multiple events.
pop-up
The so-called waiver fees cost $17,000 for the first month and $5,000 a month after, down from more than $60,000 per event.
Operators can use as much as 20% of open spaces in private developments and approval time is down to about a month. Noncommercial events are free.
In 2024, Hong Kong shopping malls hosted several pop-up events, including Fashion Summit 2024 at AIRSIDE, K-pop group NJZ (formerly known as NewJeans) Supernatural POP UP at Hysan Place, and the Avantgardey Official Pop-up
at Festival Walk in June.
Pop-ups — temporary retail space that open for a limited time, often to sell seasonal items or promote a brand — held in malls this year include the Artist-Made Collection by SEVENTEEN at YOHO MALL I, PopCorn x Time Out Tasting Grounds at PopCorn 1, and the Chill Guy Pop-Up at Festival Walk.
Revenue from China’s pop-up store market is expected to more than double to $852b (CNY800b) this year from 2021, showing the format’s growing influence on retail sales and consumer traffic, according to a 2024 study by Yuyang Gao from the International Department of Jinling High School Hexi Campus in Nanjing.
Jason Kwong, head of land consultancy at Colliers Hong Kong, said the eased rules could boost the income of tenants in commercial spaces, whilst also making the properties and their occupants more visible.
Social interaction during events, pop-up or otherwise, is the future of retail and mixed-use development, along with space for newer, independent stores, Law said. These events would also encourage more placemaking, creating spaces that boost social interaction, support local businesses, and foster a sense of belonging, he added.
“Placemaking can offer enormous, untold advantages to landowners or property owners because when people start to identify with a place, they build a solid relationship with it and will return again and again,” Law said, citing placemaking efforts at Tong Chong Street Market and Tai Kwun.
Kwong expects the scheme to benefit big developers the most, including Henderson, Hysan and Chinachem, and Sun Hung Kai. Henderson has committed at least 25,000 square meters of open spaces at Site 3, Harbourfront in Central.
It cut insurance premiums by 11.7% after climate-proofing its properties.
Link Asset Management Ltd. (Link), the manager of Link REIT, is stepping up its climate resilience efforts to advance its sustainability agenda and generate added value after becoming one of Hong Kong’s biggest private solar power operators.
Asia’s biggest REIT by asset value has been paying lower premiums after deploying mitigating solutions against rain-related risks, such as flood barriers and gates, and drain maintenance at its various assets, Calvin Lee Kwan, Link managing director for sustainability and risk governance, told Hong Kong Business in an exclusive interview.
“They actually recognised this and rewarded us with a 11.7% reduction in our insurance premium,” he said. “By mitigating climate risks, we’ve been able to create new value through reduced insurance premiums.”
According to Kwan, the company reviewed their top properties by net property income across key jurisdictions, including Hong Kong, Singapore, Shanghai, Beijing, and Sydney, and assessed the key climate risks affecting them.
Link then deployed mitigation solutions tailored to each threat, quantified the lower risk, and communicated the results to its insurers.
Link recently co-published a white paper on sustainability-linked insurance with AXA Hong Kong & Macau (AXA) and Marsh.
Sustainability-Linked Insurance (SLI) is a property insurance solution that integrates climate risk mitigation and incentivises resilience investments.
“It establishes a blueprint for other organisations to follow in terms of how they might be able to create additional value for some of the sustainability efforts that they have in place,” Kwan told the magazine.
Decarbonisation push
Link plans to roll out its climate resilience initiatives across its remaining portfolio, he said. It has 130 assets in Hong Kong, 12 in Mainland China, and another 12 across Australia, Singapore, and the United Kingdom.
“We want to have an asset-by-asset assessment, not just of the top income-producing ones, but of every property,” Kwan said. “We will continue what we’ve done over the last few years and apply it across the entire portfolio.”
Link will also continue its decarbonisation push, with a focus on solar panels. As of April, the company had installed 58 solar power systems across 53 properties with a capacity of 4,500 kilowatt-peak (kWp). Back in 2020, its installed capacity stood at just 1,500 kWp across 28 assets.
Link achieved scale by using light, counter-weighted or
flexible solar photovoltaic modules, which are panels that don’t need strictly flat surfaces. These panels do not need to be anchored to the roof, which means they do not affect the building’s structure or safety, and make installations easier.
“We don't have to do structural reinforcement of those rooftop spaces, or add additional structures in place,” Kwan said. “That ends up leading to better cost-efficiency and low installation and maintenance costs.”
By mitigating climate risks, we’ve been able to create new value through reduced insurance premiums
The panel design fits its older buildings in Hong Kong, he pointed out. The company has invested about $78m in solar photovoltaic systems and is getting close to a 20% return.
Link calculated its return under the Hong Kong feed-in tariff programme, which rewards producers of renewable energy by letting them sell electricity to the grid at premium rates. According to Kwan, Link's sustainability initiatives can be categorised into two groups: those that protect and preserve value, and those that create new value.
As insurers race to stay competitive and meet evolving client expectations, they continue to navigate their respective transformation strategies by integrating digital technologies that improve efficiency, catalyse innovation, and reshape customer expectations.Amongst these technologies is generative artificial intelligence (AI).
As a member of a leading global insurance group, AXA Hong Kong & Macau has maximised the impacts of generative AI, launching several initiatives across its various domains that have contributed to improving operational workflows and enhancing customer experience. One of the standout initiatives in its portfolio is the enablement of Secure GPT, a generative AI-powered tool designed to transform daily operations and enhance employee productivity securely. As the first generative AI tool introduced within AXA Hong Kong & Macau, Secure GPT has set new benchmarks for industry innovation by not only improving efficiency but also fostering a culture of innovation amongst employees, empowering them to integrate advanced AI solutions into their daily workflows. At the same time, it has facilitated the automation of fragmented processes that were previously too small to justify traditional automation investments. Tasks such as drafting email templates, summarising documents, and categorising data for reporting are now handled
efficiently by AI, freeing up employees to focus on strategic activities. This has not only reduced operational costs but has also improved employee productivity and morale. According to the user survey report, 35% of users have saved one to two hours weekly and 12% have saved over two hours through process automation.
Its pilot users have also tested a series of use cases, which project 400 mandays per year in savings, bringing a 30% rise in improvement.
The tool’s remarkable success is further highlighted in several key solutions it has implemented. Amongst these solutions is the development of the Mail Bot, which leverages large language models to facilitate email understanding and triage.
The Mail Bot solution has been integrated with existing digital services based on a microservice-based architecture, significantly improving operational responsiveness and service quality. It has streamlined customer interactions by reducing response times and increasing the accuracy and efficiency of case triaging, leading to enhanced customer satisfaction.
Another highlight of the tool’s impact is in the GenAI Carnival, an innovative and gamified learning event that has engaged staff members. This initiative has showcased the creative potential of AI through interactive sessions, competitions, and use case demonstrations,
As one of the leading insurers in Hong Kong and Macau, our purpose is to act for human progress by protecting what matters.
successfully driving higher employee engagement with AI tools.
The event has not only educated staff on the practical applications of generative AI but has also created a collaborative environment where employees could experiment with AI capabilities, further solidifying the adoption of AI-driven processes across departments.
AXA Hong Kong & Macau Data Science and Management Director Elaine Chan, who has been with AXA for over 10 years, was the lead of the launch of Secure GPT. She highlighted that true AI transformation is goes beyond sophisticated models and empowers everyone to be AI-literate.
“Watching all colleagues gain hands-on experience with Large Language Models (LLMs) via GPT and discover how AI can enhance their daily work has been profoundly rewarding. This experience solidified my belief that AI literacy is the new digital literacy,” she said.
“By providing access to our GenAI tools and all the training support, we show our commitment to innovation and enhance our capabilities as an organisation." she added.
With the potential of generative AI application significantly influencing the development of new innovative insurance products, AXA Hong Kong & Macau envisions leveraging this technology to drive future advancements.
As it builds on the success of its current initiatives, it sees the exploration of Secure GPT’s new applications as the next step. By utilising the tool’s API feature, AXA Hong Kong & Macau aims to expand its knowledge base and unlock innovative use cases that align with its strategic vision, delivering greater business value and enhancing operational efficiency across departments. Chan shares the next step to implement a structured feedback loop to gather insights from employees as part of this evolution. Such action is expected to allow AXA Hong Kong & Macau to regularly
• The Secure GPT initiative user survey reported 35% of users saving 1-2 hours weekly and 12% saving over 2 hours through process automation.
• The Secure GPT launch training programme and engagement events boosted AI awareness and skills, with 95% of staff completing training and 73% feeling upskilled.
• The Secure GPT pilot users tested a series of use cases, which projected 400 mandays/year in savings (30%+ improvement), boosting employee experience and productivity.
Opposite
update and refine its generative AI tool, ensuring it evolves to meet changing needs and incorporates the latest technological advancements.
“Through regular feedback sessions and collaboration, we will identify areas requiring further support, encourage adoption, and align Secure GPT with our organisational goals. These efforts will not only foster innovation, but will also strengthen collaboration across the company, paving the way for AI-driven digital innovations in the future,” she said.
As the insurance industry increasingly moves toward digital transformation, AXA Hong Kong & Macau stays on top of this progress, underpinning its vision to remain a leader in digital transformation within the industry.
Moving forward, AXA Hong Kong & Macau sets its sights on expanding Secure GPT’s capabilities, promoting responsible AI, and driving digital innovation. It also aims to enhance operational efficiency, empower employees, and deliver exceptional value to customers as it continues to refine AI-driven solutions and foster collaborations. These efforts are expected to keep the company at the forefront of the insurance industry, bringing reduced response times, increased efficiency, and accurate and reliable information.
AXA Hong Kong & Macau’s commitment to AI literacy, responsible innovation, and collaboration through its deployed AI solutions has earned them the prestigious recognition from the Hong Kong Business High Flyers Awards 2025. It has bagged the accolade in the Generative AI- Insurance category.
“Winning this award is a proud moment for AXA Hong Kong and Macau, validating its commitment to innovation and digital transformation. It reflects the success of initiatives like Secure GPT and inspires further advancements,” Chan said of the company’s success.
Tech listings may come from China, Singapore, Malaysia, and the Middle East.
Ameasure allowing confidential filing is expected to bring a wave of overseaslisted companies and early-stage biotech and tech firms to Hong Kong, boosting the local listing momentum with more than $76b already raised as of 25 May this year.
The figure is more than seven times higher than a year ago and nearing 90% of last year’s total, Financial Secretary Paul Chan Mopo said in a blog post.
Confidential filing rules that started on 6 May could help protect proprietary data for growing specialist tech and biotech firms and price-sensitive details for mature companies seeking dual listings, PwC Hong Kong Capital Markets Leader Eddie Wong said.
“This dual protection is particularly valuable for R&D-intensive firms where premature disclosure of technical or clinical trial data could compromise competitive advantage or market valuation,” he told Hong Kong Business in an interview.
Hong Kong had 17 IPOs worth $18.7b in the first quarter — almost four times more than a year earlier and before the confidential filing took effect — according to data
from the Hong Kong Exchanges and Clearing Ltd.
On 20 May, Chinese electric vehicle battery maker Contemporary Amperex Technology Co. Ltd. debuted in Hong Kong, raising $36.1b (US$4.6b) in the world's biggest IPO this year.
Christopher Ma, a partner at Simmons & Simmons, said confidential filing is "likely the most compelling feature” of Hong Kong’s Technology Enterprises Channel (TECH), which seeks to streamline the listing process for specialist technology and biotechnology companies on the main board of the Hong Kong Stock Exchange.
“It directly addresses concerns about premature disclosure of sensitive operational strategies and proprietary technologies, which is particularly crucial for early-stage companies,” he said.
“Avoiding premature disclosure could minimise unnecessary public attention during the listing process, which also helps companies maintain competitive advantages whilst building stronger pre-initial public offering (IPO) investor relationships,” he told the magazine.
Adrian Lo, head of Ipsos Strategy3,
expects most tech and biotech listings to come from Mainland China, the Greater Bay Area, Southeast Asia especially Singapore and Malaysia, and the Middle East. He also sees listings from Chinese companies based overseas.
He said mainland companies like Contemporary Amperex Technology Co. Ltd., which is planning a $39.2b (US$5b) Hong Kong IPO, are driven by US delisting threats and investment restrictions, and are likely to take advantage of Hong Kong’s streamlined process, confidential filing, and weighted voting rights.
‘Greater share’
“ASEAN and Middle Eastern tech and healthcare firms are targeted for their interest in Asian capital markets and overseas Chinese companies face regulatory pressures abroad, [but] evidence for these markets is less definitive,” Lo said.
He expects Hong Kong to “capture a greater share of global specialty listings” with the enterprise channel.
Diamantina Leong, a capital market service partner at PwC Hong Kong, said it would “catalyse listings across several high-growth industries,” including biotechnology, pharmaceuticals, artificial intelligence, information technology, and telecommunications.
“Across all these industries, the channel’s pre-IPO consultation service reduces regulatory uncertainty, a critical factor for R&D-driven businesses with complex valuation propositions,” she told the magazine in a separate interview.
She said the channel’s structured framework provides clear guidance on approval timelines and regulatory expectations, allowing listing applicants to optimise their capital and operational expenditure throughout the listing process.
“This is particularly valuable given Hong Kong's six-month financial statement validity rule, which imposes a strict window for IPO completion before requiring updated financial information disclosures,” Leong added.
Hong Kong’s updated listing process requires regulators to complete reviews within 40 business days. Companies have 60 business days to respond, in line with the sixmonth financial disclosure rule.
More than 90% of companies want to hire the best foreign talent.
More tech companies are shifting staff and operations outside Hong Kong to cut costs and stay ahead of the game, despite the city’s efforts to retain them, analysts said.
“With the increasing demand for specialised tech talent, Hong Kong companies are tapping into global talent pools to fill the gaps [with] Malaysia, the Philippines, and India — the top countries where Hong Kong companies are sourcing talent,” Karen Ng, regional head of expansion for North and South Asia at Deel, Inc., told Hong Kong Business.
'Appealing destination'
A 2024 report by the Californiabased payroll and human resource company found that 94% of business decision-makers want to hire the best foreign talent.
“They remain upbeat regarding the city’s talent landscape, citing its global reputation as a key factor that
makes it an appealing destination for top talent,” Ng said.
Local demand for software developers plunged 90% from 2022 to 2024, but only because these companies are choosing to hire offshore, according to recruitment firm Hays Hong Kong.
Melissa Lau, director at Robert Half Hong Kong, said many local banks and non-financial service firms have relocated their dev teams from Hong Kong to Vietnam, Malaysia, the Philippines, and mainland China.
“Our conversations with businesses have revealed Singapore is experiencing a similar shift in developer demand, with some roles relocating to Malaysia due to its proximity and lower operating costs,” she said in an exclusive interview.
Local talent going global
Software developers and engineers are the most in-demand amongst local
firms hiring globally, whilst overseas demand for Hong Kong tech talent continues to rise.
“There’s been a 47% year-on-year increase in the number of Hong Kong professionals hired by US companies,” Ng said. “We are seeing Hong Kong developers go global.”
Amidst stiff competition, Hong Kong firms are investing in upskilling particularly around artificial intelligence (AI). “The shift is less about switching industries and more about adapting for the future of work,” she said.
“This means that employers must also step up their hiring strategy and workplace offerings to be more in line with global practices to attract talent locally and globally, especially as Gen Zs enter the workforce,” she added.
Deel’s 2024 Rakuten survey found that 18% of workers take into account career growth, whilst another 18% look at company values. Sixteen percent of workers also consider benefit packages when choosing to apply for or stay on the job.
Lau said AI has helped software developers automate mundane tasks, letting them focus on more complex and creative work.
Demand for AI engineers more than quadrupled, and hiring of AI directors rose threefold from 2023 to 2024, according to the Deel report. AI-related roles have a median salary of $573,100 (US$73,000), which is more than double the average of all job positions.
AI also introduced new roles such as AI engineers and developers, who focus on creating and implementing AI algorithms. There's also a growing demand for highly specialised developers with strong business knowledge.
“Developers should prioritise upskilling and reskilling to futureproof their careers and increase their market value,” Lau said.
“Companies often collaborate with Cloud vendors like AWS and Microsoft to organise seminars or programs for their internal IT teams. These IT teams then deliver the latest information and best practices internally,” she added.
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As part of international reforms to standardise the reporting of over-the-counter (OTC) derivatives reporting and enhance regulatory transparency, several jurisdictions — including the EU, UK, Singapore and Australia — have revamped their reporting regimes in 2024. These changes align with new international standards by mandating the use of Unique Transaction Identifier (UTI), Unique Product Identifier (UPI), Critical Data Elements (CDEs), and ISO 20022 XML schema to facilitate data harmonisation.
Whilst the new scope and responsibility for reporting of OTC derivatives remain unchanged, the format and substance of the required data have shifted significantly.
After a period of industry consultation and to allow time for the market to implement changes on a staggered basis, the Hong Kong Monetary Authority (HKMA) published its consultation conclusions in September 2024 and will implement a similar re-write of its own OTC derivatives reporting rules with effect from 29 September 2025. Although market participants may benefit from implementation experience in other jurisdictions, the Hong Kong regime includes distinct features that they must address.
The Hong Kong reporting obligation – What and who it covers The Hong Kong reporting rules are set out in the Securities and Futures (OTC Derivative Transactions – Reporting and Record Keeping Obligations) Rules (Cap. 571AL) (“HK Reporting Rules”).
Entities subject to these rules include authorised institutions such as banks, approved money brokers, SFC-licenced corporations, recognised clearing houses (RCHs) acting as central counterparties, and certain authorised automated trading service providers acting in a central counterparty capacity (ATS-CCPs).
An entity is required to report if it is a counterparty to any OTC derivative transaction as defined in the Securities and Futures Ordinance (Cap. 571), excluding certain types of currency contracts. Reporting is also triggered when such transactions are conducted in Hong Kong on behalf of an affiliate, where the affiliate is a counterparty.
The question of what constitutes “conducted in Hong Kong” is detailed in the Frequently Asked Questions on the Securities and Futures (OTC Derivative Transactions – Reporting and Record Keeping Obligations) Rules (Reporting FAQs), updated on 20 December 2024.
A de minimis exemption applies where the total notional amount of a prescribed person’s outstanding OTC derivatives does not exceed (HK$235.5m). Once this threshold is breached, the exemption granted by the reporting rules is permanently lost.
For asset managers, it is important to note that collective investment schemes are excluded from the definition of “affiliate” under Hong Kong’s rules. Although fund trustees require a Type 13 SFC licence, they are exempt from reporting when acting in this role. This differs from the European Union (EU), United Kingdom, or Singapore, where managers may need to report transactions on behalf of funds.
In Hong Kong, asset managers only have reporting obligations if they are conducting proprietary trading. Entering into OTC derivative
KAREN LAM Partner Simmons & Simmons Hong Kong
transactions as agents for client accounts or funds does not trigger a reporting requirement — even if the manager or its affiliates hold shares in a corporate fund structure.
Although future amendments may broaden the scope to include asset managers licenced under Type 9, the latest revisions do not remove the exemption for collective investment.
When a reporting obligation arises, transactions must be reported electronically on a T+2 basis to the Hong Kong Trade Repository (HKTR), which is operated by the HKMA.
Unlike the EU/UK and Singapore, where multiple repositories such as DTCC Derivatives Repository are recognised, HKTR is the sole recognised trade repository in Hong Kong.
This means that even if an entity has upgraded systems for other jurisdictions, adjustments may still be necessary to align with the HKTR’s specific operational requirements.
Whilst the entities responsible for reporting remain unchanged, the revised rules entail a significant operational uplift to accommodate enhanced data requirements. The number of reportable data fields will increase to 183 in Hong Kong, as compared to 130 in Singapore, 203 in the EU, and 204 in the UK.
Not all fields apply to all products or contracts. Nevertheless, all reports must now include UTIs, UPIs, and CDEs in ISO 20022 XML format.
A central question is: Who generates the UTI when both counterparties are subject to reporting? The Reporting FAQs provide a waterfall for determining the responsible party. This party must generate, share, and pair such UTI, though the actual generation can be delegated via agreement to another party or third-party provider.
By contrast, there is no regulatory requirement for sharing the UPI. In Asia, the prevailing approach — particularly amongst sell-side firms — is that each reporting party is individually responsible for obtaining a UPI.
This diverges from Europe, where buy-side entities often appoint brokers as delegated reporting agents to handle submissions on their behalf under 'voluntary delegated reporting' arrangements, and they are typically papered with a written contract called a delegated reporting agreement (DRA) which would cover the reporting of UPIs as well. As buy-side may not be set-up to obtain UPIs in their reporting in other jurisdictions, they may need to sign up to services to obtain such UPI from Derivatives Service Bureau (DSB) or other agents who can obtain UPI on their behalf.
The updated rules will also introduce enhancements to the risk management framework, including tighter margin and collateral management standards to reinforce financial resilience in OTC derivatives trading.
It is important to note that unlike in Europe where position-level reporting is permitted under certain conditions, Hong Kong mandates reporting on the trade-level reporting only.
Hong Kong is not an isolated case of a global metropolis facing acute sustainability challenges. Annual mean temperature increases in Hong Kong in the last three decades have more than doubled compared to historical trends.
Despite warming faster, we are retrofitting existing buildings (90% of which will still be in use in 2050!) at a snail’s pace due to a lack of funding sources and policy direction to generate momentum, and only 5% of our buildings currently meet the highest sustainability standards. We must change course swiftly if Hong Kong is to maintain its status as a thriving and liveable world-class metropolis.
However, like urban development the world over, our experts are almost always working in silos, and silos inherently reduce alignment, innovation and create resistance to change. The result is slow transformation in the sustainability and resilience of our cities.
As Hong Kong faces increasingly complex urban challenges, it is becoming clear that isolated expertise is no longer sufficient, and we need to move beyond treating sustainability, social impact, and economic value as separate challenges.
To address this challenge in urban development: the tendency to remain isolated within professional silos, a recent initiative brought together around 40 participants from diverse fields; including developers, financiers, engineers, designers and academics in Hong Kong.
As a collective, all participants focused on two distinct real sites; Sham Shui Po, one of the city’s densest and poorest districts in much need of urban renewal and historical revitalisation; and San Tin, part of the city’s masterplan for the Northern Metropolis development, a green field site set to become San Tin Technopole, a hub for clustered innovation and technology.
Mixing passionate professionals across expertise is like setting up a chemical reaction experiment. Over two days, engineers and ecologists collaborate on nature-based flood management, developers and community groups finding win-win solutions for urban regeneration, financiers and sustainability experts creating new value-capture mechanisms to incentivise investment, and architects and social
JENNY ZHANG Director of Sustainability Urban Land Institute
scientists designing truly inclusive spaces.
For San Tin, the teams proposed integrating the technology hub with existing wetlands and village life, creating a unique blend of transformation whilst preserving nature and heritage. This would have been impossible without cross-disciplinary collaboration.
For Sham Shui Po, multi-disciplinary teams developed solutions for sustainable urban regeneration that would preserve community character whilst enabling economic growth. The proposals included creative financing mechanisms combined with social preservation strategies.
In the future, I strongly recommend that all significant urban development project planning should require the participation of multi-disciplinary parties – including the public sector to avoid expertise being siloed. We need truly collaborative mindsets that set up interconnected feedback loops across various processes within and between organisations, as well as public education that crosses the traditional professional boundaries so diverse stakeholders can contribute informed feedback.
But can we update the regulatory and industry processes around urban development so that they encourage these integrated solutions?
The ultimate vision of our city is clear and should be aligned between public and private sectors — we want a thriving real estate sector that’s creating value for the people, businesses and the environment it relies on. The business case is clear-cut — integrated thinking towards urban development projects generates more value creation opportunities, whilst also providing a more sophisticated risk management framework.
However, a wide-spread mindset change is urgently needed to connect individual aspirations into collective action, and that is what our convening methodology aims to realise.
By breaking down silos today, we can build the Hong Kong of tomorrow—a vibrant, resilient, and prosperous city that is not only Asia’s premier financial and business hub, but also a human-friendly city that provides community cohesion and distinctive experiences that cannot be replicated elsewhere.
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