Hong Kong's fund industry remained resilient amid last year's macroeconomic challenges and is now starting to recover, the head of the city's financial watchdog said, adding that the city's fund industry has remained resilient and is now starting to recover, helping to strengthen the city's international competitiveness. He added that connections with other markets are a top priority for future development.
“We're starting to see some good signs of recovery,” Christina Choi, executive director of investment products at the Securities and Futures Commission (SFC), said during a panel discussion at an industry event on Monday. “Although 2023 remained full of challenges, including high interest rates, inflation and geopolitical tensions, the asset management industry remained relatively resilient.”
The Hong Kong-based fund's assets under management will grow by 5% in 2023, with net inflows in the first three quarters up more than 200% year-on-year to HK$54 billion, Choi said at a roadshow hosted by the association. Stated. Luxembourg's fund industry.
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Looking ahead, Mr. Choi cited the three-year strategic priorities for the Hong Kong securities market announced by the SFC last week, including maintaining market resilience, increasing the attractiveness of Hong Kong's capital markets, improving operational efficiency, and technology. and leading financial transformation through ESG (environment, society, corporate governance).
Exchange Square, the home of the Hong Kong Stock Exchange. Photo: Xiaomei Chen alt=Exchange Square, home of the Hong Kong Stock Exchange. Photo: Chen Xiaomei>
“The idea is not just that we need to update and implement international standards, but also that we want to take a fresh look at product approvals in Europe,” Choi said. “We're watching closely and trying to think ahead. How can we facilitate the launch of similar products while maintaining investor protection?”
The SFC is “ambitious” about expanding mutual recognition and its “Connect” plan to enable cross-border trade with mainland China. “Meanwhile, we also want to work with industry and stakeholders to look at other markets in the Middle East, other parts of Asia and around the world,” she said.
Asia's largest hedge fund hub and cross-border asset management center, Hong Kong's asset management business exceeded HK$30.5 trillion at the end of 2022, with 64 percent of funds coming from investors outside Hong Kong. It is said that it has been procured. Financial Services and Treasury Department.
The SFC approved 2,927 funds as of end-September 2023, according to regulator data.
On the ESG front, Choi said the fund industry's main focus is “tackling potential greenwashing”, noting that Hong Kong's regulator has banned retail funds from labeling and advertising themselves as “ESG funds”. It added that it had issued clear guidance on how to do so.
“We ask fund managers to annually assess how their ESG goals are being met and we monitor their disclosures, so in some ways the best approach is a good disclosure-based approach. I think so,” Choi said. “So far we haven't had any major issues because we've implemented this more front-loaded approach.”
This article originally appeared in the South China Morning Post (SCMP), the most authoritative news organization on China and Asia for more than a century. For more stories from SCMP, explore the SCMP app or visit SCMP on Facebook. twitter page. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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