Hong Kong Business (January - March 2024)

Display to 31 March 2024 HK$40

Issue No. 73 Hong Kong’s Best Selling Business Magazine

HIGH FLYERS AWARDS 2024

10 INVESTMENT IDEAS TO EXPLORE THIS YEAR ‘EMOTIONAL LOYALTY,’ THE NEW WAY RETAILERS RETAIN CUSTOMERS TICKETING AND MEMBERSHIP PLATFORM EXTENDS CUSTOMER JOURNEYS THROUGH NFTS MAINLAND’S CLAMPDOWN ON IPOS LIKELY TO BOOST LISTINGS IN HONG KONG

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HK HIKES PENALTIES FOR OCCUPATIONAL SAFETY AND HEALTH STANDARDS VIOLATIONS

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HONG KONG BUSINESS | Q1 2024

HONG KONG

FROM THE EDITOR

BUSINESS

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To secure competent legal counsel and support your future investments in Hong Kong, we list the region’s most influential lawyers under 40 for you to connect with. The entire list is on pages 30 to 31.

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ick off the year with investments in alternative space, healthcare, renewable energy and more as recommended by experts on page 24.

We also list the top 50 insurance companies whose premiums have reached a total of HK$511.7b, set in contrast with analysts’ observations that the complex financial environment and shrinking population have curtailed industry growth. See the full story and rankings on pages 34 to 35.

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In this issue, we also highlight outstanding organisations whose achievements were recognised in the Hong Kong Fund Managers Awards, Hong Kong Business National and International Business Awards, and Technology Excellence Awards 2023. Check out the list of award recipients on pages 40 and 42. Congratulations!

Lastly, we celebrate 20 years of recognising exceptional business leadership through our list of High Flyers. They have played a pivotal role in shaping Hong Kong’s contemporary business landscape into its current form. See the index on page 72.

May we have a successful year ahead.

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HONG KONG BUSINESS | Q1 2024

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CONTENTS

24

COVER STORY 10 INVESTMENT IDEAS FOR 2024

FIRST 06 Stamp duty cuts can’t avert property crisis

BRIEFING 08 HK hikes penalties for occupational safety and health standards violations 10 HKEX cuts paper use, document requirements in revamped listing regime 12 ‘Emotional loyalty,’ the new way retailers can retain their customers

RANKINGS 34 Hong Kong’s top 50 insurers experience 7.7% YoY premium contraction in 2022

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LEGAL LUMINARIES 10 MOST INFLUENTIAL LAWYERS UNDER 40

72

HIGH FLYERS PROFILES OF HONG KONG’S OUTSTANDING ENTERPRISES AND BUSINESS LEADERS

INDUSTRY INSIGHTS

STARTUP 14 Wholesale marketplace bridges Asian retailers to global independent brands 16 Ticketing and membership platform extends customer journeys through NFTs 18 Startup for startups: Engineers help entrepreneurs swiftly build their business

SPACEWATCH 20 Lodes flips the switch at new Hong Kong office to turn on creative minds

22 Mainland clampdown on IPOs likely to boost listings in Hong Kong 28 Legal firms boost maritime practices in step with government’s hub goals 36 Greenwashing in banking: real concern or overblown issue?

REPORT 38 How businesses can navigate and rebuild eroding consumer trust

EVENT COVERAGE 40 Financial trailblazers and innovators recognised at Hong Kong Fund Managers Awards 2023 42 Get to know Hong Kong’s top technology companies and exceptional businesses

For the latest business news from Hong Kong visit the website

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HONG KONG BUSINESS | Q1 2024

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News from hongkongbusiness.hk Daily news from Hong Kong MOST READ

MARKETS & INVESTING

What Asia’s elite need to know about HK’s new tax bill High-net-worth individuals and affluent families in Asia are being lured back to Hong Kong with a new bill that offers tax concessions for family-owned investment holding vehicles (FIHV) and single-family offices (SFOs). The bill lays out different requirements for FIHVs and SFOs to be exempted from profits tax.

COMMERCIAL RETAIL

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TELECOMMUNICATIONS

Fibre coverage in APAC markets continues to expand The Asia-Pacific (APAC) region continues to expand fibre coverage in emerging markets after optical fibre networks in the area reached most households—exceeding the 500-million mark as of year-end 2022.

The total fibre broadband subscription in APAC is 85.1% share of the entire subscriber base.

COMMERCIAL PROPERTY

HEALTHCARE

SMEs prioritise on-site work over concerns on health and well-being Employee well-being is increasingly taking a backseat in Hong Kong’s small- to mediumsized enterprises (SMEs), with a recent study by QBE revealing that as a growing number of employers promote on-site work, the focus on the health and wellness of their staff diminishes.

HR & EDUCATION

Three key elements that fuel branded mobile app success

IWG’S unmanned co-working centre opens doors in Hong Kong

Expats deterred by Hong Kong’s language requirements

Retailers developing or have a branded mobile app often grapple with achieving high adoption rates, which experts say can be addressed by incorporating three key features.These are loyalty and rewards programmes; channels linkages; and mobile app maintenance.

The increasing number of organisations planning to downsize their office footprint — not only to respond to the new way of how people are working, but also to cut on costs — have pushed IWG to bring its self-service brand,OpenOffice, to Hong Kong. It offers 8000 square feet of workspaces in Wan Chai.

Many Hong Kong firms still fail to hire international talent despite relaxed immigration rules. The primary barrier? Language requirements.

The key to taking full advantage of this is to reassess talents needs versus “baked-in” expectations of what the fit looks like for a role, says HR expert Matthew Gollop.

HONG KONG BUSINESS | Q1 2024

HONG KONG BUSINESS | Q1 2024

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FIRST LAND ACQUISITION A SNUB FOR DEVELOPERS? RESIDENTIAL PROPERTY

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ith more government tenders withdrawn in 2022-2023 than in the previous seven years, experts question Hong Kong developers’ waning interest in land acquisition.

Data from JLL’s Residential Market Monitor showed that four residential sites have been withdrawn from the government tender since 2022, exceeding the total of three sites recorded from 2015 - 2021.

Recently, two residential sites in Tung Chung, Area 106B and Package 1 of Tung Chung East Station, which could yield a total of 1,614 units, withdrew from tender.

“Tung Chung and the Northern Metropolis both adopted infrastructureled planning, however, residential sites in Tung Chung did not gain enough appeal despite having larger railway capacities for potential population growth than some of the proposed development areas in the Northern Metropolis,” JLL commented.

The real estate expert said the growing number of withdrawn tenders reflects that the developers are losing their appetite for land acquisition.

“We expect this trend will continue and more sites will be withdrawn from the tender as the sales in the primary market failed to improve after the government relaxed the cooling measures,” JLL added, According to the expert, the average first-day sell-through rate of major projects launched in the two weeks following the Policy Address was 24.6% only, lower than the 73.9% rate from major project launches in 3Q23. “ If there is no significant improvement in the primary market, developers will continue to give the cold shoulder to the tender. The prevailing market conditions could pose challenges in achieving the long-term private housing land supply target,” JLL said.

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HONG KONG BUSINESS | Q1 2024

The relaxation is unlikely to reverse the downward trend of home prices (Photo by Weiye Tan on Unsplash)

Stamp duty cuts can’t avert property crisis RESIDENTIAL PROPERTY

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eal estate authorities contend that the government’s recent rollback of property cooling measures will have an “insignificant” effect on the market.

In the latest policy address, the government revealed plans to reduce the Buyer’s Stamp Duty (BSD) and the New Residential Stamp Duty (NRSD) from 15% to 7.5%, among other changes.

Colliers’ Head of Valuation & Advisory Services, Hannah Jeong said the impact of the reduction will be limited “since there is a gap with market expectation.”

“The special stamp duties were intended to curb speculation, but purchasing power is still heavily affected by the interest rate and the current economy though current property price has fallen by 15% as compared to the peak in 2021,” Jeong said. “Given the persistent high-interest rate and the economic instability in the past few years, residential home buyers maintain a ‘wait and see’ approach in the flat purchase, we estimate the overall full-year residential home prices will see a 4% to 5% drop in 2023

Hannah Jeong

Joseph Tsang

We are experiencing an economic downturn, and the demand for buying a second home is limited

and we expect the property price will continue its downward trajectory in 2024,” Jeong added.

Joseph Tsang, chairman of JLL Hong Kong, described the relaxation as a “band-aid solution,” adding that it is unlikely to reverse the downward trend of home prices.

Tsang said the reduced BSD will have a limited impact on the market given that Mainlanders’ home-hunting trend in Hong Kong has faded and mainland China’s economy remains weak. “Over 90% of the buyers in the new residential projects released in recent years are local people,” he said.

Commenting on the impact of the reduced NRSD, Tsang said: “The housing market would benefit when the market sentiment is positive.

However, we are experiencing an economic downturn, and the demand for buying a second home is limited. It has no impact on the housing market.”

What the government should do instead according to Tsang is reduce the target for private housing supply to an average of 12,900 units per year, reintroduce the mechanism of triggering land for auction to replace the current regular tender, and remove all cooling measures in the housing market, including stress tests.

Another demand-management measure which the government introduced was shortening the applicable period for payment of the Special Stamp Duty (SSD) to two years.

This means that property owners who dispose of their property two years after acquisition will not have to pay the SSD, which amounts to 10% of the property price.

The policy, according to Rita Wong, executive director and head of Valuation & Consulting, Valuation & Advisory Services for Greater China at CBRE, is unlikely to steam up sales activities.

However, coupled with the relaxation of BSD and NRSD, the policy offers more flexibility to buyers and loosens the liquidity cuff during buy considerations.

Rosanna Tang, executive director and head of Research at Cushman & Wakefield Hong Kong, also believes the adjustments introduced by the government will ease property costs for residents, thereby improving market sentiment and restoring confidence among potential buyers and upgraders.

HONG KONG BUSINESS | Q1 2024

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HR BRIEFING

HK hikes penalties for occupational safety and health standards violations If convicted on indictment, employers can be slapped with a $10m (US$1.28m) fine and 2 years in jail.

PROFESSIONAL SERVICES/LEGAL | by Diana Dominguez

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ith over a hundred workers dying from occupational injuries in the first half of 2023 alone, the government sees the urgent need to enforce heftier penalties for employers found to be violating occupational safety and health standards.

Under the amended ordinance on occupational safety and health, employers, proprietors and occupiers of premises found breaching their general duties can face a maximum fine of $10m (US$1.28m) and two years’ imprisonment for such offences on conviction on indictment.

Offences under the general duty (GD) provision have also become triable as indictable offences. “Extremely serious health and safety breaches can be tried at a higher level of court,” Tess Lumsdaine, partner and Head of Baker McKenzie’s Employment & Compensation Practice in Hong Kong, told Hong Kong Business.

In the event that an employer is convicted on indictment, Lumsdaine said the court must consider “the turnover of the employer’s business and other financial information given by the employer in assessing the appropriate fine.”

The maximum penalty that an employer can face if found guilty in a lower court without a jury, of breaching their general duty under Section 6A of the Factories and Industrial Undertakings Ordinance (FIUO) and Section 6 of the Occupational Safety and Health Ordinance (OSHO), is $3m (US385,000). If the employer was found contravening such general duty “willfully and without reasonable excuse,” the penalty on summary conviction could be up to $3m and six months imprisonment.

Maximum fines for other summary offences have also been adjusted. Depending on the severity of the offence, fines can range from $25,000 to $400,000 (US$3,200US$51,300). Previously, the range of fines was $10,000$200,000 (US$1,280-US$25,600).

Meanwhile, the amended ordinance also extends the time limit for prosecution of summary offences from six months to nine months, allowing the Labour Department more time to gather evidence to press summary offence charges.

Industries affected by the ordinance “The FIUO covers industrial undertakings, for example, factories and construction sites whereas the OSHO also covers non-industrial work premises such as offices and stores. All sectors are therefore impacted by the changes to the legislation,” Lumsdaine said.

The construction, manufacturing, and waste management industries are more likely to feel the impact of the changes due to the nature of the work performed and the number of workplace accidents associated with these industries.

“When introducing the proposed changes, the Labour and Welfare Bureau noted that the number of fatal industrial accidents had been hovering at around 20 cases per year for the past decade, with no sign of reducing,” Lumsdaine said.

In addition, the maximum penalties under the FIUO and OSHO had not been reviewed for more than two decades

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HONG KONG BUSINESS | Q1 2024

The construction, manufacturing, and waste management industries are more likely to feel the impact of these changes (Photo by Guilherme Cunha on Unsplash)

Tess Lumsdaine

May Ng

OSHO also covers non-industrial work premises such as offices and stores

and the overall amount of fines is still on the low side. “By way of example, they referred to the average fine for summonses relating to fatal cases in 2020 being only about $30,500 (US$3,900),” Lumsdaine continued.

The changes introduced therefore seek to enhance the deterrent effect of OSH offences under both ordinances by significantly increasing penalties.

“The amendments increase the penalties under OSH legislation for the first time in almost 20 years. While the effect of the increase in penalties will unlikely be seen immediately, it is hoped that this will further enhance occupational safety and health performance in Hong Kong in the long run,” May Ng, Partner at DLA Piper in Hong Kong, said.

The Labour Department will be responsible for the enforcement of this ordinance. It is expected to adopt a three-pronged approach to OSH matters through inspection and enforcement, publicity and promotion, as well as education and training.

“We anticipate an increase in the Labour Department’s activity [in] each of these areas to accompany the introduction of the enhanced penalties,” Lumsdaine said.

Complying with standards In addition to acknowledging the introduced changes to the ordinance, employers, proprietors, and occupiers of premises must “provide adequate safety training to staff and supervisors and tie in non-compliance with health and safety obligations as an internal disciplinary offence,” Lumsdaine said.

Complying with relevant industry codes of practices issued by the government, such as the Code of Practice on Safety Management for industrial undertakings should also be imperative.

Lumsdaine also noted that “regularly conducting safety management audits to identify any potential exposure that needs to be addressed” and the “review [of] insurance policies covering workplace accidents” must be considered at all times.

Lastly, Lumsdaine said that “ensuring a clear delineation of responsibility and liability is made in agreements with subcontractors when work is subcontracted out” is crucial for the accomplishment of the OSH objective.

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LEGAL BRIEFING

HKEX cuts paper use, document requirements in revamped listing regime Despite eliminating signatures, the streamlined listing process imposes new legal advice requirements for accountability and integrity in submissions.

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MARKETS & INVESTING | by Noreen Jazul

ontending with a lengthy and paper-heavy listing process will soon be a thing of the past for companies in Hong Kong, now that the local bourse moves to require electronic document submissions.

Apart from listing documents, the expanded paperless listing regime also requires issuers to disseminate corporate communications by electronic means starting 31 December 2023, said Pan Tsang, partner at Robertsons Solicitors.

“Issuers should review and amend their constitutional documents where necessary to facilitate their compliance with the new requirements before the end of the transitional period,” advised Tsang.

Listing applicants would also benefit from streamlined documentary submission requirements under the new regime as many forms and documents will be removed or codified in the Listing Rules, said Tsang.

Under the regime, HKEX will remove the requirement to submit Form M104 where companies list details of their top five customers and suppliers. HKEX will instead update its Guidance Letter GL86-16 to require disclosure of the information required by Form M104, according to Hong Kong law firm, Charltons.

Other documents that companies are no longer required include forms M105 or a completed checklist on basic qualifications for new listing under the HKEX Listing Rules, M106 (completed checklist on basic requirements for contents of listing documents under the HKEX Listing Rules and the Companies Ordinance), M107 (completed checklist on HKEX Listing Rules on the valuation of and information on properties), and M108 (completed checklist on HKEX Listing Rules on Accountants’ Reports).

Another leading firm, Stevenson, Wong & Co, said the removal of these forms raised concerns from some parties.

“Some believe that forms M105, M106, M107 and M108 checklists are ‘useful tools’ for the sponsors and advisers to conduct compliance checks before the submission of listing applications,” it said. “In response, HKEX maintains their view that these documents are unnecessary, and the removal of these documents will not absolve the professional parties of their obligations.”

For Charles Wu, counsel at Clyde & Co, the changes brought about by the expanded regime will “undoubtedly lower costs and increase efficiency” of listing in Hong Kong.

“The paperless regime may streamline the listings process and corporate communications, thereby saving time for issuers and underwriters alike,” Wu said.

Additional requirement for directors Wu, however, said that whilst the new paperless regime provides the added convenience of electronic submissions and communications, “it does not materially change the role of directors and senior management in the listing process.”

In fact, directors will have an additional requirement since they will no longer have to sign various forms

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HONG KONG BUSINESS | Q1 2024

Pan Tsang

Charles Wu

The removal of these documents will not absolve the professional parties of their obligations

under the regime. According to Charltons, HKEX will remove the signature and certification requirements for submission documents if they serve only as evidence of the sponsors’ approval of the contents or certify that the submissions are true copies of their originals.

Amongst the forms from which the signature requirements had been removed by the HKEX is Form M111 on the market comparable analysis.

“Whilst directors will no longer have to sign various forms, they will be subject to the new requirement of obtaining legal advice on their obligations under the Hong Kong listing rules.

Satisfying this requirement may reduce the amount of time saved from no longer having to sign various forms,” Wu said.

“They are still required to ensure that all information in the listing application is true, accurate, and complete,” Wu added.

Directors must obtain legal advice from qualified Hong Kong solicitors. “The prospectus must reveal when the director obtained such legal advice and confirm that the director understood and confirmed his/her obligations thereunder,” Wu added.

Should there be a data breach from one participant in the transmission of documents electronically, which led to the submission of an inaccurate or incomplete application, the directors and sponsors may still be liable, warned Wu. Wu added that companies must not assume that the paperless regime will make the “substantive aspects of a listing application any easier than before.”

“While electronic submissions and communications remove administrative hassle, they do not lessen the obligation of directors and sponsors to ensure that the listing application is true, accurate, and complete,” Wu said.

“The discharge of this basic duty means that the actual substantive process of the listing, such as due diligence, audits, and legal opinions, may only change on the margins or not at all,” he said.

Electronic submissions will remove administrative hassle (Photo by Racool_studio on Freepik)

HONG KONG BUSINESS | Q1 2024

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MARKETING BRIEFING

‘Emotional loyalty,’ the new way retailers can retain their customers One in two consumers buy only from brands they trust so keeping that relationship exciting pays off.

COMMERCIAL RETAIL | by Noreen Jazul

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n long-running loyalty programs such as Cathay Pacific’s AsiaMiles or DFI Retail’s YUU Rewards, customers are often rewarded for their “transactional loyalty” as they make purchases. But these days in Hong Kong, where almost half of consumers want to actively engage with brands, experts suggest that companies also prioritise building of “emotional loyalty.”

“Hong Kong consumers are looking to build more authentic, one-to-one connection with brands, as there is an increased tendency for Hong Kong consumers to select unique, curated and personalised experiences,” Prudence Lai, senior analyst for travel and loyalty at Euromonitor International, told Hong Kong Business.

Citing Euromonitor’s “Voice of Consumers: Loyalty” survey, Lai said the consumers participate in loyalty programmes of a brand that “offers or gifts just for being a customer,” “helps solve a problem,” and “say ‘thank you’ for being a customer.”

“This shows that customers with strong interest in engaging with brands through joining loyalty programmes are searching for more personalised and emotional connections,” Lai said.

HSBC’s “Travel Guru” membership programme demonstrates effective loyalty building in businesses, and was launched “to stay relevant to their target consumer groups after observing the strong sentiment for outbound travel,” she said.

“Through staying up-to-date in terms of the needs and wants of target segments and innovating loyalty programme offerings around it, it helps in building emotional loyalty towards the business,” she added.

One of the programme’s features is the personalised alerts for members, informing them of the latest travel offers.

Customised for customers Customer personalisation, according to Kai Tang, head of Adyen Hong Kong, is fundamental to developing an effective loyalty programme.

Citing Adyen’s Hong Kong Retail Report, Tang said 70% of Hong Kong consumers would like to see more personalised discounting at retailers they regularly visit to shop.

Retailers, however, fail to create tailored discounts and seamless, personalised cross-channel experiences due to a “disconnect” between online and in-store transaction data, with only 23% being able to do so.

A way to connect data from online and in-store transactions is through “unified commerce,” said Tang.

“Unified commerce” ensures that “data from all sales channels can be consolidated and accessed with a single view.”

“By doing so, retailers can gain insights of customers’ purchasing patterns and shopping behaviours across channels, helping them boost interactions with customers and personalise services, eventually promoting loyalty,” Tang said.

Data that brands can use to come up with tailored benefits is payment data.

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Unified commerce consolidates data from all sales channels into one view (Photo from Pexels)

Prudence Lai

Kai Tang

There is an increased tendency for Hong Kong consumers to select unique, curated and personalised experiences

“This is what we term as ‘payment-linked loyalty,’ where businesses can use customer recognition to make their existing loyalty programme more frictionless for their customers by removing the need for a traditional loyalty card or app,” Tang explained.

“A customer’s payment method can effectively become his/ her loyalty card, which can automatically trigger discounts, tailored recommendations, and other rewards,” Tang added.

Gamification Another way for brands to actively engage with their customers is through “gamifying” their loyalty programmes.

“Gamifying interaction between customers and brands increases the number of touchpoints and creates habits to engage with brands with higher frequency, and in the end groom customer retention,” said Lai. Amongst the brands that have adopted gamification include F&B chain Maxim and Sephora.

Maxim’s omnichannel Eatie app has mini in-app games where customers need to complete challenges for rewards.

With an omnichannel approach, the restaurant is able to redirect its online traffic to offline outlets.

Sephora, on the other hand, has a feature called “Beauty Insider Challenges” where loyalty programme members can do tasks to earn more reward points. Some involve purchases of selected participating items, whilst others do not.

“Other than building an individual app to gamify experience, embedding gamification in loyalty programmes can build reason and excitement amongst customers to engage and groom retention,” Lai said.

Given that one in two Hong Kong consumers only purchase from brands that they trust, Lai said it is important for brands to increase the frequency and duration of engagement with customers.

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STARTUP

Wholesale marketplace bridges Asian retailers to global independent brands Markato has over 200 brands from markets like Europe, the United States, and Australia.

Brian Lo and Martin Li, founders of Markato

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COMMERCIAL RETAIL | by Noreen Jazul

etailers and businesses can now skip the hassle of attending trade shows to find new suppliers of goods and items with online marketplace, Markato, where they can connect with over 200 brands hailing from markets like Europe, the United States, and Australia.

Through Markato, retailers and buyers in Hong Kong can access over close to 5,000 unique products.

Brands in the platform fall under the home lifestyle, beauty and wellness, and accessories categories.

“What we are doing is basically a one-stop shop for retailers and buyers to be able to discover different brands.

They can simply add items to cart and check out,” Martin Li, co-founder of Markato, told Hong Kong Business.

Li, together with his co-founder Brian Lo, also streamlined the process for logistics and payments, which have been considered barriers to crossborder retail transactions.

“We built a logistics infrastructure that’s able to support interaction between retailers and brands in a seamless way. Also, when the retailer pays us, we are able to very quickly 14

HONG KONG BUSINESS | Q1 2024

and accurately convert that to the right currency and pay the brands on time,” Li shared with Hong Kong Business.

Describing their buyer pool, Li said that Markato attracts a diverse mix of customers. This includes retailers who are interested in new brands and products to stock in their shops. There are also businesses like hotels, gyms, and restaurants, which purchase items for operational use.

We built a logistics infrastructure that’s able to support interaction between retailers and brands in a seamless way

Gateway to the world As much as the platform works as a gateway for Asian retailers and buyers to access global brands, Markato also serves as a pathway for global brands seeking to establish their presence in Asia.

“I think there’s a lot of high-quality brands from different places in the world that are trying to break into Asia. But because of different languages, different kinds of duties, and import restrictions, it’s almost impossible for them to solve these problems. They don’t have the resources to do that,” Li said. “[Markato] is a one-stop shop for them to be able to sell to Asian retailers as easily as if they were

selling it locally to customers in their home country,” Li added.

Apart from giving global brands a platform to establish their presence in Asia, Li said he and Lo built Markato to make the wholesale experience less expensive.

“When we buy something in Hong Kong, a lot of times, it costs a lot more than it costs in Europe or the United States when we buy from there. We always ask ourselves why? It was through, I think, a lot of different experiences that we realised that the traditional wholesale experience is what really makes it expensive,” Li added.

By using Markato, retailers can save roughly 20% off wholesale transactions and logistics costs.

Ultimately, Li said he wants Markato to be a market where buyers and sellers meet.

“Markato is a Greek word for markets and this is very reflective of the business we’re building. But I think, more importantly, when [retailers, buyers, and brands] meet in this market, we don’t only want them to only meet, we want them to benefit from the connection. We want to help them establish a longterm connection and grow their business,” Li said.

Expanding to Singapore The marketplace, which is currently only available to retailers and buyers in Hong Kong, will soon be launched in Singapore. Markato’s entry to Singapore is amongst the initiatives that the duo will be taking on using their fresh funds.

In 2Q23, the startup raised US$5m in a seed funding round led

by Lightspeed Venture Partners.

Li said he also plans to hire more people to boost their engineering, logistics, and merchandising teams to improve their platform.

“We will make sure that retailers have the most savings and most access to brands worldwide, whilst giving brands access to vast retail opportunities in the Asian market,” Li said.

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billions passengers

©Getty Images

each year benefit from Thales technologies

thalesgroup.com Building a future we can|all HONG KONG BUSINESS Q1 trust 2024 15

STARTUP

Ticketing and membership platform extends customer journeys through NFTs

Moongate allows event organisers to build relationships with their attendees post-event and beyond.

LEISURE & ENTERTAINMENT | by Noreen Jazul

I

n a traditional Web 2 ticketing platform, a customer’s journey ends after the event, leaving organisers unable to build loyalty or relationships with their attendees.

In order to change that, Jonathan Mui and Peter Hui built an NFT ticket and membership platform called Moongate.

“We are focused on bringing Web 3 to the mass audience. In our opinion, crypto or NFT, specifically, was really kind of misused. [It was used for] speculative purposes, and really just trading kind of profile pictures,” Mui told Hong Kong Business.

“Moongate is focused on building utility-based NFTs for ticketing and also using NFTs for kind of membership use cases,” he added.

Ticketing On the ticketing front, Moongate helps event organisers and promoters extend the customer journey.

“Before the event, they could offer various benefits and perks and even upsell packages at a discount directly on our platform,” said Mui. “During the event, they could conduct various kinds of gamification campaigns, such as scavenger hunts with NFT-based rewards using our platform. Then after the event, they

It’s just very easy for people to carry their digital identity across different brands, and reap different rewards

could continue to foster the customer relationship by offering ongoing benefits to customers.”

He explained that there is a “gatedcommunity channel directly on our platform that allows event organisers to maintain a relationship with the audience.” As such, there is an opportunity for attendees to continue availing themselves of benefits and updates throughout the year.

One of the events that Moongate is working on is the ticketing for one of Thailand’s biggest music festivals, Wonderfruit, which attracts between 20,000 and 30,000 people.

“They came to us asking for a solution to figure out how to actually engage like past VIPs,” Mui said.

“In the existing system that they were using, there really was no ways to reward people that were loyal to them in the past. Everyone that buys a ticket is seen as a brand new customer, without any special benefits or privilege provided to those that are actually repeat customer or true fans” Moongate’s proposal was for the Wonderfruit organisers to transform the tickets into a new form of “membership pass.”

“People that hold a special NFT pass, not only get VIP access to the upcoming festival, but over time, they

NFT passes serve as VIP access cards and invitations to future rewards or events (Photos from Moongate)

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would also be able to unlock a bunch of unique and exclusive experience that are tied to it, not only at the event, but also kind of like any other upcoming satellite event, or like future years’ events,” Mui explained.

Membership On the membership front, Moongate helps businesses attract the younger generation.

According to Mui, most of the conglomerates they have worked with have existing memberships systems, but most of the users are 30 to 40 plus years old.

“Basically, they tell us that they want to find something that can rejuvenate their whole membership program and appeal to the younger audience, and they find that kind of NFT is a great way to do it because it’s fun,” Mui said.

Apart from being “fun,” Mui said doing a membership system on the blockchain allows cross sharing of data across different brands.

“If ‘Brand A’ wants to partner with ‘Brand B,’ in the past and in the Web 2 space, it’s actually very difficult and costly to set up from a data perspective,” Mui said.

“With our platform, because all the core membership data is stored on the blockchain, it’s just very easy for people to carry their digital identity across different brands, and reap different rewards,” he added.

Amongst the businesses that Moongate has been working with is an unnamed conglomerate in Thailand that owns some of the largest luxury malls and hotels in the region.

“We’ve been building with them for almost a year now a very comprehensive NFT based membership that will be implemented across their entire ecosystem of malls, hotels, restaurants, etcetera,” Mui said. “I think the cool thing with this specific membership program is they’re doing a lot of cross brand partnerships, which is kind of one of the main benefits.”

HONG KONG BUSINESS | Q1 2024

17

STARTUP

Startup for startups: Engineers help entrepreneurs swiftly build their business Sparkmate not only mentors in product development, but also funds climate tech solutions.

BUILDING & ENGINEERING | by Noreen Jazul

I

nstead of waiting months or years to get market feedback on their prototypes, businesses specialising in climate technology solutions can fast-track product development in 5-week cycles.

Engineers Morgan Pelissier and Maxime De Simone built a “startup for startups” called Sparkmate, collaborating with entrepreneurs and corporations in all stages of product development to build prototypes and engage in more robust processes for ideation and review.

“We streamline product development. We work on a “5-week methodology” approach meaning that every 5 weeks we release a new version of a client’s prototype. This approach allows us to go to the market way faster, get feedback, and then iterate from there,” Pelissier told Hong Kong Business.

Pelissier shared that a business working with Sparkmate for a year can get 10 versions of their product.

“That’s 10 different hypotheses that you’re able to validate or invalidate.

What we are helping people to do is launch technological products that solve the world’s problems, particularly on climate,” he said.

Pelissier, however, clarified that Sparkmate is not a factory, but they have the machinery like 3D printers, laser cutters, CNC (computer numerical control) machines to build the products they develop alongside their partner entrepreneurs.

One of the businesses they helped is a boat manufacturer. Pelissier said the company sought help in their digitalisation journey.

“A few years ago, they told us: ‘The market is changing, digital is coming and we don’t know how to adapt. Can you help us?’ So, we talked to everyone in the company for like 10 weeks, kind of a coach and consultant, identifying market opportunities,” Pelissier recalled.

“We came up with this idea of making a device that reduced fuel consumption and CO2 emissions on professional boats. We validated 18

HONG KONG BUSINESS | Q1 2024

Sparkmate trainees work on a new prototype order (Photo from Sparkmate)

What we are helping people to do is launch technological products that solve the world’s problems, particularly on climate

SCAN FOR FULL STORY

the idea super quickly, made a rough prototype in five weeks and tested it on boats. We realised we were able to gain 30% fuel efficiency, so we iterated on it,” he added.

Within a year, Pelissier said Sparkmate was able to make 10 new versions of the product. Since then, Sparkmate has also built a subsidiary of the boat company that provides solutions for fuel efficiency in the maritime ministry which is called Oria Marine.

Tribe of entrepreneurs Sparkmate has always been about people, making a tribe of entrepreneurs working to address the world’s problems which is why Sparkmate began a new initiative.

Founders Pelissier and De Simone, after all, built the company to maximise their impact without being stuck in the rut of traditional engineering companies.

“I think the world is falling short in terms of the number of entrepreneurs that want to tackle issues related to climate change like mobility, food production, or waste management. Most of the time that’s because these issues are too complex, too big of a challenge

for entrepreneurs,” Pelissier said.

Under the new initiative, Sparkmate will select one entrepreneur per year to receive a US$1.5-m funding to develop hardware and build a climate tech startup with them.

“We’re going to switch from being a company that serves your company to being a company that’s going to build its own companies. So, we’re going to build the galaxy of climate tech startups,” Pelissier said.

“In the next few years, we’re going to scale and generate probably three to six companies in a year,” he added.

Apart from product development services and the startup studio initiative, Pelissier and his co-founders also help entrepreneurs through experiential learning events.

“Hong Kong’s ecosystem for entrepreneurship needs more education and support. So we invite an experienced entrepreneur to share their journey and lessons learned. The audience gets to ask anything they want,” Pelissier explained.

“It’s like paying back my dues.

I learned entrepreneurship from amazing entrepreneurs who shared their knowledge. I’m just trying to do the same to inspire the generation after mine,” he said with conviction.

HONG KONG BUSINESS | Q1 2024

19

SPACE WATCH

Lodes flips the switch at new Hong Kong office to turn on creative minds Italian artistry that marries form with function makes its way to the Asia-Pacific region.

COMMERCIAL PROPERTY

I

n its Hong Kong office, Lodes employs its innovative lighting solutions to serve a dual purpose: showcase products to clients and foster employee creativity.

The Venice-based lighting solutions brand underscores the role of lighting environments in stimulating creative thought in indoor settings.

In creating the perfect lighting environment, Lodes has a large window right next to the desk area, opening a view to the local park in Sheung Wan where the office is located. It gives the office a beautiful, calm ambience.

Volum by Snøhetta, a signature Lodes piece, is also displayed in the office. It serves as the limelight of the space as it celebrates functionality and the aesthetics of glass art.

“It serves not only as an office, but as a creative hub for architects, designers and industry professionals to meet

1

Massimiliano Tosetto

and connect in a relaxed way,” Lodes Managing Director Massimiliano Tosetto told Hong Kong Business.​ Lodes’ Hong Kong office which opened on 27 September also features “minimalist, refined decor,” similar to that of Lodes’ contemporary showroom in Milan and its headquarters in Marcon.

The office spans 55 sqm, a compact yet fully functional space. It has the capacity for small groups and one-onone meetings. The establishment was designed to create a dynamic and collaborative workspace ideal for meetings and networking. In the office, visitors can also “connect and interact” with a variety of Lodes’ products.

Talking about the office location, he said Lodes chose Sheung Wan because the neighbourhood is a blend of tradition and modernity.

2 Hong Kong 1 Lodes’ office features Snøhetta’s ‘Volum’ as the centerpiece

office is 2 The artfully lit by their own sophisticated and innovative lighting designs.

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4 Italian 3 Lodes’ lighting artistry is displayed in its Hong Kong office

Volum 4 Snøhetta’s casts a glow on

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Lodes’ carefully-curated contemporary design pieces

a lighting 5 As solutions brand, Lodes embraces the beauty of natural outdoor lighting.

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HONG KONG BUSINESS | Q1 2024

WINNER

BEST HOME THEATER

HONG KONG BUSINESS | Q1 2024

21

INDUSTRY INSIGHT: FINANCE

Mainland clampdown on IPOs likely to boost listings in Hong Kong

Amongst Chinese companies to be slated in the Hong Kong Stock Exchange is Alibaba’s logistics arm.

Cainiao Smart Logistics filed for a US$1-b IPO in the HKEX (Photo from Shutterstock)

MARKETS & INVESTING | by Noreen Jazul

H

ong Kong may soon hit a turnaround point in the stock exchange as companies jump ship from China in response to the latter’s move to curb initial public offerings (IPOs) to ensure market stability, experts say.

“It has been recently observed that there are increasingly more IPO candidates [in Hong Kong] coming from the Mainland,” Andy Wong, IPO leader and PRC-HK business coordination partner at SHINEWING (HK) CPA Limited, told Hong Kong Business.

Wong said these firms initially came to fundraise in the Shanghai Stock Exchange (SSE) or the Shenzhen Stock Exchange (SZSE), but are now switching to Hong Kong for IPO recently.

“It is likely that those ready IPO candidates will submit their application in the first half of 2024. So, we are expecting that the turnaround point [of the Hong Kong IPO market] is still in the second half of 2024,” he asserted.

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HONG KONG BUSINESS | Q1 2024

Andy Wong

Ringo Choi

Since the August clampdown in the Mainland, Hong Kong has seen the listing of Chinese companies such as Tian Tu Capital, a private equity company, as well as Alibaba’s logistics arm, Cainiao Smart Logistics Network, which filed for a US$1-b IPO in the Hong Kong Stock Exchange (HKEX).

Chinese battery manufacturer, Hebei Gellec New Energy Science & Technology Co., has also reportedly scrapped plans to list in the Mainland and file for an IPO in Hong Kong instead.

Meanwhile, China’s biggest ridehailing company, Didi Global, is also reportedly planning to list its shares on the HKEX in 2024.

Three measures Apart from China’s clampdown on listings, Wong believes three measures implemented by the Hong Kong government will help boost the attractiveness of the city’s IPO market.

One of these measures is the regime exempting innovative or

specialist technology companies from existing financial eligibility tests under the Listing Rule.

According to Wong, a specialist technology company had already filed its application at the end of August. “Hopefully, the case can be approved for listing by the end of the year,” Wong said.

He also believes that the formation of a task force to ensure stock market liquidity will improve the city’s entire capital market. The task force is chaired by Carlson Tong, the former chairman of Hong Kong’s Securities and Futures Commission (SFC).

The last measure which Wong thinks will help improve the IPO situation in Hong Kong is the proposed listing reforms to the Growth Enterprise Market (GEM) Board in which consultation ends in early November.

If the proposal gets a greenlight, GEM Board companies will be able to directly transfer to the Mainboard under the condition that they fulfill the Mainboard listing requirements.

Pricing Hong Kong’s ability to increase pricing will help improve IPO sentiment, said EY Asia-Pacific IPO leader Ringo Choi.

Choi underscored that pricing is currently what makes Hong Kong a less attractive market for IPOs. “When you compare an IPO in Asia versus Hong Kong, or a US IPO versus Hong Kong, the pricing of a Hong Kong IPO in general is on the lower side. Also, after one or two months, the liquidity of the Hong Kong market seems to die down or slow down faster than the other markets,” Choi said.

“Pricing is related to the quality of companies. Hong Kong will need to find ways to get good IPOs from other markets or from sectors which are extremely strong in Hong Kong.

For example, Hong Kong is famous for its property market,” he added.

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HONG KONG BUSINESS | Q1 2024

23

COVER STORY

10 investment ideas for 2024 Experts say it’s time to shift from public to private investments.

Private equity remains an “attractive asset class” for investment (Photo from Freepik)

by Noreen Jazul

W

ealthy investors are choosing to diversify their portfolios by investing in private and alternative assets, a strategy that is gaining attention and prompting many others to emulate.

Accredited investors in Singapore and professional investors in Hong Kong, for example, have also been diversifying into private markets and alternatives, which is underutilised in both markets, said Samuel Rhee, co-founder, chairman and chief investment officer of Endowus.

“The systematic harvesting of illiquidity premiums coupled with the fact that companies are staying private for longer and the structural growth of private credit that is disintermediating the banks allows for greater opportunities to be had for investors in this space,” Rhee told Hong Kong Business.

Currently, Rhee said investors are still underweight in private markets such as private equity and private credit.

The latter, however, has become more appealing to Asian investors.

Citing data from Preqin, Rhee said the Asian private credit market has 24

HONG KONG BUSINESS | Q1 2024

With private credit, the spread that we’re seeing today gives investors yields that are easily in the high single digit or mid-teens level of returns

surged from US$3.2b of assets under management (AUM) in 2000 to US$90b as of June, 2022.

As the Asia Pacific market matures, Preqin foresees accelerated growth in the Asian private credit market.

Alta’s head of Private Capital Markets, Muzahir Degani, also agrees that private credit will remain an “attractive asset class.” “Public or publicly listed credit [usually] receives a relatively smaller spread over the risk free rate, which, to some extent, you’re not very well covered in terms of inflation,” Degani said in a separate interview. “With private credit, the spread that we’re seeing

today gives investors yields that are easily in the high single digit or midteens level of returns.”

Ben Charoenwong, assistant professor of finance at the National University of Singapore Business School (NUS), said lending in the private credit market or distressed private equity vehicles may provide opportunities for investors within a rising interest environment given that “more borrowers have obligations due and require financing.”

“Although risk-taking appetite may subside going forward, there are still good deals to be found in private markets as the monetary,

Stripe had a significant down round in the middle of 2023 (Photo from Shutterstock)

COVER STORY

Samuel Rhee

Indonesia is considered a stand out in the private capital space (Photo by amadeustx on Shutterstock) Muzahir Degani

fiscal, and political situations around the world take a toll on the real economy,” Charoenwong told the Hong Kong Business.

Apart from private credit, private capital and private equity also offer great opportunities for investors, said Degani. “Looking at valuations in the private equity market, high growth tech companies have fallen quite significantly over the last 12 to 18 months. We’re able to pick up very good companies that have actually performed well over this sort of funding downturn within private equity and high-growth tech at very reasonable valuations compared to the height of the market,” he said.

As a case in point, Degani cited names like Stripe which, he said, ostensibly did an extremely significant down round sometime in the middle of this year.

“It was almost half the valuation of its peak in 2021,” he said. “If you look at the numbers [of Stripe], it’s actually grown more than two times over that period. You’re arguably getting twice the quality of the company at half the valuation.”

In terms of markets in the private capital space, Indonesia and Thailand stand out, said Degani.

“Select companies within the private capital space that are coming out from these markets are extremely strong. We’ll be keeping an eye out for attractive opportunities in Indonesia and Thailand,” he said.

Alternative assets Looking at alternative assets and investments, WRISE Wealth Management Singapore chief

investment strategist, Cheng Jingwei, has identified real estate, commodities, and hedge funds as high risk-reward instruments.

Multi-strategy hedge funds, in particular, have “consistently generated solid risk-adjusted returns through recent cycles,” said Rhee.

“Market neutral, low beta multi-strategy hedge funds have also generated meaningfully positive returns consistently and these returns shine brighter in periods of market dislocation and drawdowns as we have seen in the past few years,” added the Endowus executive.Charoenwong, for his part, said there are “likely bargains and opportunities that hedge funds can capture, albeit, a risky strategy.”

“As the yield curve steepens, there are also effects on securities where cash flows lie far out into the future,” said the Singapore-based professor.

Although risktaking appetite may subside going forward, there are still good deals to be found in private markets

He also finds commodities as a good short-term hedge for rising prices. “Oil prices have risen up to almost US$90 a barrel again.

However, it is worth noting that although commodities may provide tactical benefit, they are generally not good long-term investments,” Charoenwong said.

One to agree that commodities are a popular asset class is Jingwei, who has observed this among WRISE clients. Talking about real estate, Jingwei said APAC investors have traditionally focused on such asset classes which offer “a potential for high returns.”

Jingwei, however, warned that real estate also carries more liquidity risks in a higher interest rate environment.

Rhee, for his part, said investors are still underweight in private real estate.

Overall, Degani said real estate is a good inflation hedge because of its steady stream of incomes, and is even a better hedge for inflation than gold.

Healthcare and renewables Another sector which investors should consider dipping their toes into are healthcare and renewables and sustainability.

Charu Chanana, market strategist at Saxo, said there are opportunities in the healthcare sector given the ageing society.

Charoenwong raised the same point, adding that the United States and counties in North Asia are also seeing ageing populations.

The NUS expert identified telemedicine, new technological developments in biomedicine, and

Markets for renewable energy sources will continue to grow (Photo from Pexels)

HONG KONG BUSINESS | Q1 2024

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COVER STORY

Many opportunities are available in the healthcare secture given the ageing populations (Photo from Freepik)

wellness as areas of opportunities.

Charoenwong and Degani also pointed to companies and technologies involved in sustainability as a good investment, especially those working on the renewable energy sector and general carbon mitigation.

“These include electric vehicles, businesses related to smart grids and storage technologies, and carbon capture,” Charoenwong said.

More than electric vehicles, Degani said the whole electrification of the transport network offers investment opportunities for investors. No matter how the short-term market moves, Charoenwong said healthcare and sustainability sectors and related businesses will continue to grow.

Fixed Income, Asian stocks Should interest rates fall, Rhee said fixed income would be an attractive option. According to Saxo’s Chanana, the turn in the monetary policy cycle will likely to arrive in early 2024 which could eventually bring a significant respite for the Asian economies.

“A falling interest rate environment, when it comes, will be a big boon to the fixed income sectors,” Rhee said.

“In a falling interest rate environment, the high yield and credit markets in fixed income will come back strongly and equity markets in general should do well,” he added. Fixed income is something that family offices have been paying more attention to, according to Jingwei. Rhee, for his part, observed that fixed income has also become more appealing to Asian investors. Morevoer, they prefer to invest in Asian equities and bonds, said Jingwei.

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As the yield curve steepens, there are also effects on securities where cash flows lie far out into the future

“Whilst the current valuations for Asian equities and bonds are favourable, more concrete developments in market sentiment and economic stimulus in China are necessary to bolster confidence in the potential for meaningful capital gains in the upcoming year,” added Jingwei.

Charoenwong has a similar sentiment, saying that “Asian stocks appear cheap relative to the United States.” “Such pricing has historically correlated with relatively better returns going forward,” he said.

Money market funds and cash funds In a volatile market, keeping a significant portion of assets in cash or cash equivalents can be a reasonable choice; however, Endowus’ Rhee pointed out that investors can get better returns on cash allocations

by investing in money market funds and cash funds.

Goldman Sachs defines a money market fund as a mutual fund that “invests in short term debt securities.”

“These funds allow investors to participate in a more liquid, diverse and high-quality portfolio than if they were to invest individually,” the investment bank stated, adding that it is the “easiest way to gain access” to the money markets.

Forbes named JPMorgan Liquid Assets Money Market Fund, T. Rowe Price Government Money Fund, and BlackRock Wealth Liquid Environmentally Aware Fund Investor amongst the 10 best money market mutual funds of December, 2023.

According to Rhee, money market funds and cash funds yield higher rates over fixed deposits.

Charoenwong said investors have been “piling into” market funds as well, adding that they appear to yield more short-term gains. But he notes that “if the economy takes a turn, then central banks can cut interest rates quickly and investors in money market funds may suddenly see their yields fall.”

Investment strategies Apart from considering the 10 investments above, experts said the most important thing for investors to do, regardless of environment, is diversification.

“Risk management remains important while investing in Asia or

Ben Charoenwong

Cheaper Asian stocks have historically correlated with better returns (Photo by Kapi Ng on Shutterstock) Cheng Jingwei

COVER STORY other emerging markets, and portfolio diversification remains key,” she said.

Charoenwong said investors will specifically benefit from “diversification across geographies and industries.”

“This way, if some policy change affects one industry-market in a negative way, there are likely spillover winners elsewhere. For example, the US-China tension results in more American companies moving their supply chains into Southeast Asia, improving returns in the latter markets even if the returns in the Chinese market deteriorate,” Charoenwong said.

“In addition to the standard tools like diversifying across securities within a market, investors may want to focus on diversifying their risks across more dimensions, like industry and geographies. Investors who do not prefer to move allocations into and out of the market rapidly may consider incorporating cross-asset hedges to manage certain types of risks, such as those from currency and interest rate movements,” the NUS professor added.

Rhee, for his part, advised investors to consider adopting a dollar-cost averaging (DCA) strategy as a passive investment approach through a downturn. He defined DCA as periodic, recurring investments of a fixed amount of money into a specific asset.”

“Investors can either have a total investment amount in mind or have an ongoing investment

Real estate carries more liquidity risks in a higher interest rate environment (Photo from Freepik)

as a savings plan. DCA removes any emotional and behavioural mistakes and minimises market timing risk,” he explained.

“As such, investors, particularly those with a lower risk tolerance, are less likely to make impulsive, speculative decisions based on personal opinions or market conditions,” he added.

A DCA approach also allows investors to purchase more shares at lower prices whilst remaining positioned for an eventual market rebound, Rhee said.

WRISE’s Jingwei, meanwhile, suggested implementing a barbell strategy, especially for APAC investors. “A barbell strategy involves allocating a portion of your assets into lower volatility instruments

Financial markets may have mispriced the relevance of AI (Photo from Shutterstock)

Charu Chanana

Investors may want to focus on diversifying their risks across more dimensions, like industry and geographies

such as short-duration treasuries and high-quality corporate credit to secure a stable return as well as to keep the portfolio liquid,” Jingwei explained.

In addition to adopting a barbell strategy, Jingwei also advised investors to steer clear of longduration fixed-income investments due to the potential volatility in interest rates.

Whilst experts suggest good investments or strategies, Charoenwong underscored that investors should “avoid investing into something just because others have mentioned it, particularly if the investors themselves do not have any advantage in a particular investment,” citing AI as an example.

“Given current market conditions, investing in AI stocks may not yield good returns going forward based on the high current valuations already. The financial markets have focused a lot on the development of AI, but they may have mispriced the relevance of AI as a general purpose tool for other types of companies as well,” Charoenwong said.

He concluded with an important reminder for investors: “Good returns are not about whether you invest in a growing company.”

“It is whether you invest in a company whose performance is better than the market expects.

Therefore, when considering allocating a particular way, it is worthwhile asking ourselves what our beliefs are that differ from the market to justify higher-than-market returns,” he said.

HONG KONG BUSINESS | Q1 2024

27

INDUSTRY INSIGHT: LEGAL

Legal firms boost maritime practices in step with government’s hub goals Hill Dickinson is amongst the firms that have recently expanded global maritime practices.

Monthly subsidies are given to law firms and barristers who wish to specialize in maritime law (Photo from Shutterstock)

PROFESSIONAL SERVICES/LEGAL

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he maritime law sector is poised for growth this year, as legal firms increase their endeavors of attracting new talent and potential clients in response to Hong Kong’s ambitions of becoming a global shipping hub.

Damien Laracy, partner and head of Hill Dickinson Hong Kong, said the firm fortified its maritime legal team with 10 new hires in 2023, including ship finance practitioners.

“There has been rising demand for ship sale and purchase and ship finance, as shipowners are increasingly looking to decarbonise by finding or commissioning greener vessels to comply with new international regulations and market ESG standards,” Laracy said.

“We believe that the recent expansion of our transaction and ship finance practice will enable us to increase our service base to meet these enhanced demands,” Laracy added.

The government has made it a priority to nurture homegrown maritime legal talents with the creation of the Taskforce on Maritime and Port Development Strategy. In September 2023, the government also launched the “Maritime Services Traineeship Scheme – Legal” which Laracy said “provides a monthly subsidy to law firms and barristers with maritime business to provide traineeship for those who aspire to a career in maritime law.”

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Hong Kong’s status as the only common law jurisdiction in China has always made Hong Kong a uniquely attractive forum for resolving disputes

Keeping maritime hub status afloat Apart from building a strong maritime legal presence, Hong Kong has also established tax regimes to enhance the region’s core strength as an international maritime hub.

At present, Hong Kong’s half-rates profit tax regime covers carriage and chartering, ship agency, ship management or ship broking activities, and ship leasing activities.

Experts, however, suggest that government also look into incentivising and strengthening other areas of shipping.

Dr. Eugene Wong from The Hang Seng University of Hong Kong said there’s a need for arbitration and operation activities such as vessel planning and container flow planning because these activities actually happen in Hong Kong.

Wong said Hong Kong could learn from Nansha, Guangzhou in the Mainland, which awards shipping enterprises that have routes passing through its port, or having achieved a certain throughput level.

Whilst there are more that Hong Kong can do to attract shipping players, Wong underscored that the city’s current half-rates profit tax has also been beneficial to the industry.

Willy Lin, chairman of the Hong Kong Shippers’ Council, shared a similar sentiment saying the half-rates profit tax regime can help Hong Kong in its goal to encourage flagging.

Data from the United Nations Conference on Trade and Development showed that as of September 2023, Hong Kong is the fifth-largest ship-owning market in the world.

With 2,537 vessels flying its flag, Hong Kong accounts for 2.4% of the world fleet in terms of vessel numbers.

In terms of value, Hong Kong ranks sixth, with vessels flying its flag representing a 6.27% share in the world fleet.

More than the incentives, Lin said Hong Kong is working to make maritime services of “quality” to attract ship owners to come to the city.

“We [do] not only want them to come, but we want them to utilise Hong Kong’s quality service. In the past couple of years, actually, Hong Kong [has] embarked on not only trying to maintain a maritime center, we’re always trying to support the higher value added maritime services like maritime arbitration, shipping financing, [and] shipping insurance,” Lin said.

High-end maritime services Apart from maritime arbitration and dispute resolution and ship financing and leasing, and marine insurance, InvestHK said Hong Kong is also developing high-end maritime services for ship brokers and ship agents, and on ship management and chartering.

Making all other maritime services of quality and of high standard alongside a tax regime will be a good package to attract shipowners to register their ships in Hong Kong, added Lin. According to InvestHK, What could help Hong Kong further sail as a top player in the maritime industry is if it begins bunkering of sustainable fuels.

In the 2023 Policy Address, Chief Executive John Lee said Hong Kong will press ahead with the provision of liquefied natural gas (LNG) bunkering for ocean-going vessels (OGVs).

INDUSTRY INSIGHT: LEGAL 2023 Rankings

LAW FIRM

2022 Rankings

Foreign/Local

2022 Legal Professionals

2023 Legal Professionals

Managing Partner

1

Baker McKenzie

--

FOREIGN

--

217

TRACY WUT (CHINA AND HONG KONG)

2

Mayer Brown

1

FOREIGN

180*

167*

TERENCE TUNG SENIOR PARTNER*

3

Herbert Smith Freehills

3

FOREIGN

132

91*

MATTHEW EMSLEY (CHINA AND HONGKONG)

4

Li & Partners

4

LOCAL

96

92

ROBIN LI

5

Reed Smith Richards Butler LLP

5

FOREIGN

88

86

N/A

6

Skadden, Arps, Slate, Meagher & Flom

7

FOREIGN

79

85*

JONATHAN STONE

7

Woo Kwan Lee & Lo

6

LOCAL

81*

74

CARMELO LEE, JP

8

Latham & Watkins

7

FOREIGN

79*

78*

MICHAEL STURROCK MANAGING PARTNER (ASIA)*

9

King & Wood Mallesons

9

FOREIGN

72*

76*

SUE KENCH GLOBAL CHIEF EXECUTIVE*

9

Stephenson Harwood

12

FOREIGN

64

76

EVANGELINE QUEK OFFICE MANAGING PARTNET, GREATER CHINA

11

Eversheds Sutherland

13

FOREIGN

61*

69

BUTCHER, CHARLES MANAGING PARTNER ASIA

11

Linklaters

8

FOREIGN

75*

69*

WILLIAM LIU REGIONAL MANAGING PARTNER FOR ASIA*

13

HFW

10

FOREIGN

66

60

PETER MURPHY HEAD OF HONG KONG OFFICE

14

Norton Rose Fulbright

11

FOREIGN

65

57

PSYCHE TAI

15

Tanner De Witt

14

LOCAL

59

53

IAN DE WITT AND MARK SIDE JOINT MANAGING PARTNERS

16

Gallant

15

LOCAL

48

47*

PHILIP WONG

17

Robertsons

16

LOCAL

47

49

CHRIS LAMBERT

18

Clyde & Co

19

FOREIGN

35*

39

FEI KWOK MANAGING DIRECTOR, HONG KONG

19

Cleary Gottlieb Steen & Hamilton (Hong Kong)

18

FOREIGN

38*

37

MICHAEL A. GERSTENZANG GLOBAL MANAGING PARTNER

20

Jones Day

21

FOREIGN

20*

21*

JOELLE LAU PARTNER-IN-CHARGE - HONG KONG*

TOTAL

1624

1543

Notes: • The following firms opted out for this year’s rankings: Clifford Chance, Simmons & Simmons, and Wilkinson & Grist These three firms were part of the previous rankings at 2nd, 17th, and 20th place, respectively.

• (*) Information based on the firm’s website • Employee count is based on the number of legal professionals in each firm as of 30 September 2023.

HONG KONG BUSINESS | Q1 2024

29

LEGAL LUMINARIES

10 most influential lawyers under 40

F

our women and six men made it to Hong Kong Business’ 2023 most influential lawyers under 40 list.

Two of the youngest agents in this year’s list are from Hill Dickinson Hong Kong. This marks the first inclusion of the firm in the annual list.

Apart from Hill Dickinson, the 2023 list also features lawyers from Clyde & Co, HFW, Reed Smith, Richards Butler LLP, Robertsons, and Tanner De Witt.

1

Nicole Wong, Hill Dickinson Hong Kong, 31

This year’s awardees specialise in international trade, restructuring and insolvency, commercial dispute resolution, banking and finance, aviation, commodities, energy, family and matrimonial law, and more.

One of this year’s awardees also hold advisory roles in the Hong Kong Special Administrative Region (HKSAR) Government and the Law Society of Hong Kong.

Here are this year’s awardees arranged from youngest to oldest:

2

Nicole stands out as an awardwinning professional recognized for her significant contributions to the legal sector in Greater China.

She excels in cross-border dispute resolution and is commended for her legal acumen and client management.

Nicole is also dedicated to national and social development, as she recently served as Master of Ceremonies at the Law Society’s International Summit 2023 in celebration of the 10th anniversary of the Belt and Road Initiative, and she regularly mentors underprivileged youth and advocates for diversity and wellbeing through sports. Her multifaceted contributions position her as a rising star in the legal field.

3

Vivien Wong, HFW’s Hong Kong, 34 Vivien, a Senior Associate, is a rare Hong Kong-qualified lawyer with extensive expertise in aviation liability.

Fluent in Cantonese, Mandarin, and English, she advises on aviation claims and insurance globally, particularly in Greater China.

Vivien’s early career success includes handling around 300 aviation disputes. Notable achievements involve a key role in the world’s largest aviation insurance program and defending claims for a major Hong Kong-based airline.

She’s also a sought-after aviation law trainer. Vivien’s influence extends beyond law; she actively supports diversity and inclusion initiatives and provides pro bono legal aid to foreign domestic helpers in Hong Kong.

30

HONG KONG BUSINESS | Q1 2024

Felix Cheung, Hill Dickinson Hong Kong, 31 Felix, a distinguished Senior Associate, is a top-tier commercial dispute resolution lawyer in Hong Kong. Specialising in complex litigation, international trade, and transportation, he navigates cases from the Court of First Instance to the Court of Final Appeal. Felix was the lead case handler in Cargo Container Line Ltd v Benchmark Electronics (Thailand) PCL and others [2020] HKCFA 26.

Recently promoted, he played a pivotal role in a significant maritime law case, demonstrating both legal acumen and commercial insight.

Dually qualified in Hong Kong and England & Wales, Felix is a Fellow of the Chartered Institute of Arbitrators and an accredited mediator.

4

Tim Au, Tanner De Witt, 35 Tim is a Partner in the Restructuring and Insolvency Practice. He provides comprehensive advice to insolvency office-holders, including major accounting firms, and corporate clients on a wide range of restructuring and insolvency matters.

His expertise covers schemes of arrangement, asset recovery in insolvency estates, cross-border insolvency issues, and court applications related to bankruptcies, liquidations, and remuneration of office-holders, among others. Tim’s particular interest lies in cross-border schemes of arrangement, notably his involvement in the Kaisa and Burwill schemes. He also handles contentious scheme matters and has successfully opposed the sanctioning of the Century Sun scheme.

LEGAL LUMINARIES 5

Michelle Ho, Clyde & Co, 36

Michelle is a Counsel specialising in advising major international insurers on intricate claims, including D&O, professional indemnity, and more. Michelle represents global and regional insurers in high-profile cases globally, including US securities class actions. She excels in cyber breach and data breach response, such as assisting an international hotel chain with a major cyber breach.

As part of her commercial litigation practice, Michelle successfully defended a client and obtained wide ranging injunction orders in the English High Court (Queen’s Bench Division); the Supreme Court of the Eastern Caribbean (BVI), and some European countries.

8

Lau Chin Ching Rio, Robertsons, HK, 37

Rio ascended from Associate to Partner at Robertsons in just five years, managing a team of 12 legal professionals and eight staff members. He specialises in civil and criminal litigation, representing high-profile clients from a young age. His notable cases encompass barrister admissions, appeal cases, and matters tied to the Competition Ordinance and fraud. Beyond legal matters, Rio initiated an internship program fostering future talents, improving the firm’s image in embracing young talent.

His role extends to expanding the client base, strategic marketing planning, and implementing IT advancements. His career journey showcases an impressive legal career.

6

Cheryl Yu, Reed Smith Richards Butler LLP, 36

Cheryl is a triple-qualified Partner at Reed Smith LLP in New York and is based in Hong Kong. She excels in international arbitration, often representing clients in London, Hong Kong, and Singapore. She is also renowned for her skills in cross-border enforcement actions, asset recovery, and procedural matters. Her practice extends to guiding PRC Mainland companies in international expansion and providing tailored legal solutions to tech and emerging sectors.

Cheryl is actively involved in high-value arbitrations and complex disputes. Her contributions to the field include insightful articles on international arbitration, judicial precedents, and the Belt and Road initiative.

9

Pryderi Diebschlag, Clyde & Co, 38

Pryderi, a seasoned commercial disputes specialist, brings over a decade of expertise in international commercial arbitration and Hong Kong litigation. He focuses on cross-border investments, joint ventures, commercial fraud, and energy/ commodities disputes.

Pryderi has represented clients in various arbitration institutions and handled complex commodities transactions. His recent cases include Acting for a major international bank in a US$100m multi-contract multiparty arbitration administered by the HKIAC and advising a Chinese technology company in a US$16m claim for breach of representations and warranties.

7

Edward Beeley, HFW Hong Kong, 37

Edward, a Senior Associate at HFW’s Hong Kong commercial dispute resolution practice, boasts a diverse background, having studied engineering in the UK and initially worked at AP Moller-Mærsk before transitioning to law. He is triple-qualified in England & Wales, Hong Kong, and the British Virgin Islands.

Edward acts for market-leading traders, financial institutions and professional services firms and specialises in international arbitration, commercial litigation, contentious insolvency and offshore work with a particular focus on international trade and complex high-value commercial disputes.

10 Adrian Au, Tanner De Witt, 38

Adrian specializes in family and matrimonial law, covering pre/post-nuptial agreements, divorce, financial applications, and child arrangements. His clientele ranges from business leaders to high net-worth individuals with international backgrounds. He excels in addressing challenging jurisdictional issues, intricate financial arrangements, private client/family matters like custodial/parental arrangements and international relocation.

Adrian’s experience extends to advising PRC clients who have substantial assets in Hong Kong and in the PRC often involving jurisdictional issues, complex financial arrangements involving pension schemes, among others.

HONG KONG BUSINESS | Q1 2024

31

INDUSTRY INSIGHT: LEGAL

5 bills businesses should know in 2024 One of the measures will exempt onshore disposal gains from profits tax.

ECONOMY | by Noreen Jazul

H

ong Kong Business has curated a list of critical measures which are likely to impact business and investors alike in 2024, particularly those in the financial regulation and investment management space, as well as the F&B and hospitality industries.

First on the list is the “Inland Revenue (Disposal Gain by Holder of Qualifying Equity Interests) Bill 2023,” an amendment which exempts onshore disposal gains from profit taxes under three conditions.

Pan Tsang, a partner at Robertsons, said the bill is important for companies in Hong Kong that are undergoing expansions and restructuring since acquisitions and disposal of equity interests are a crucial aspect of these strategic moves.

“These businesses should carefully consider whether the three specified conditions set out under the bill can be fulfilled, and thus whether they can benefit from the non-taxation treatment under the scheme,” Tsang told Hong Kong Business.

The Inland Revenue Bill The measure provides that disposal gains shall be exempted from profit tax automatically under the following conditions: if the investor’s entity is an eligible entity; if the subject matter disposed of is an eligible equity interest in an eligible investee entity; and if equity holding conditions are met, or the exception to equity holding conditions for long-held leftovers is satisfied.

Eligible entities are either a legal person, a partnership, trust or a fund, with the exception of insurers.

Explaining the second condition, Tsang said “equity interest in an eligible investee entity” refers to “an interest that carries rights to profits, capital or reserves of the investee entity, and is accounted for as equity in the books of the investee entity under applicable accounting principles.”

“It does not apply to equity interests that are regarded as trading stock for tax purposes 32

HONG KONG BUSINESS | Q1 2024

The Hong Kong Monetary Authority proposed a new licensing regime for stablecoins (Photo by Gary Yim on Shutterstock)

SCAN FOR FULL STORY

and to certain non-listed equity interests in property-related entities which engage in property trading, property development or property holding,” Tsang said.

Equity holding conditions set by the bill include the investor entity holding at least 15% of the equity interests in the investee entity for 24 consecutive months before the date of disposal of the interest.

“The scheme will also apply if the investor disposes of the equity interests in tranches in a way in which the investor’s equity holding will fall below 15% after earlier tranche or tranches, so long as the subsequent disposal is made within 24 months from the latest earlier disposal for which the investor meets the 15% equity interest requirement,” Tsang said. “For example, an investor entity owns 30% equity interest in an investee entity as of July 2023. This investor entity proposes to dispose of its equity interests in two tranches, say 18% in August 2023 and 12% August 2024. In this regard, despite falling out of the 15% equity interest requirement, the second disposal

gain dated August 2024 would still be exempted from profits tax,” he added.

Type 13 Regulated Activity Still on the financial regulation and investment management space, another bill that business should take note of is the introduction of the Type 13 Regulated Activity (RA13) to the Securities and Futures Ordinance, its subsidiary legislation and various SFC codes and guidelines.

Katherine Liu, head of fintech and financial services at Stephenson Harwood, said the bill is anticipated to take effect on 2 October 2024.

Under RA13, depositaries or top-level trustees and custodians of collective investment scheme (CIS) authorised by the Securities and Futures Commission (SFC) will be required to get a licence or be registered with the statutory body, unless exempted.

“A depositary’s delegates will be exempted, as will any registered mandatory provident fund scheme or a constituent fund or any approved pooled investment fund offered to professional investors,” Liu explained.

HONG KONG BUSINESS | Q1 2024

33

INSURANCE RANKINGS

Hong Kong’s top 50 insurers experience 7.7% YoY premium contraction in 2022 Analysts said the market’s complex financial environment and shrinking population curtailed industry growth. Cross-border expansion could alleviate contraction pains.

INSURANCE | by Olivia Tirona

I

n an insurance market that has already reached maturity, how do consumers adapt? The latest Hong Kong Business Insurance Rankings sheds light on evolving consumer behaviours, where key factors such as a reduced appetite for linked products, a declining population size, and prevailing market uncertainties are reshaping the landscape. This shift is vividly illustrated by the 7.7% year-on-year contraction in premiums experienced by the top 50 insurance firms in 2022.

In total, the top 50 companies saw their premiums reach HK$511.7b, smaller than the HK$554.2b in 2021.

“In 2022, the linked products business decreased by over 50%, in terms of premiums industry-wide.

This reflects this lower demand because the financial markets didn’t do well. And so people don’t want to buy insurance-linked products Assistant Professor Ben Charoenwong, from the Department of Finance at NUS Business, told Hong Kong Business.

Complex financial environment The drop in overall premiums is linked to complexities in financial markets. Both stocks and bonds faced significant losses simultaneously, leading potential policyholders to adopt a cautious stance.

“Of course, the funny thing for

Ben Charoenwong

Man Kit Yip

Ken Lau

SCAN FOR FULL STORY

me — someone who studies the financial markets — is typically after you have a bad year, it tends to be better afterwards. And so you might want to start products when the price falls rather than avoid them,” Charoenwong said.

He said he anticipates a potential rebound in demand as market sentiment stabilises. Nevertheless, persistent demographic factors, including business closures and population shifts out of Hong Kong, may present a lasting obstacle to a complete recovery.

Segments and premiums To tally, 26 life or “long-term” insurers were included in this year’s rankings whilst 24 general insurers were counted. The life segment, which accounts for 91.3% of the rankings’ grand total, fell 8.9% YoY. On the other hand, Hong Kong’s top general insurers, 8.7% of the total, expanded by 7.1%.

Out of the top 15 insurers in Hong Kong, only five saw their premiums grow YoY. Namely, HSBC Life (third place, 33.3%), Hang Seng Insurance ( eighth, 36.8%), FTLife (11th, 27.6%), AXA General (14th, 4.0%), and Chubb Life (15th, 1.8%).

In terms of premiums accumulated, at first place is AIA International, which saw its 2022 premiums dip 14.8%. Trailing behind is Prudential

AIA International takes the lead in this year’s insurance rankings (Photo by Lewis Tse on Shutterstock)

34

HONG KONG BUSINESS | Q1 2024

Life at 2nd place, which also contracted by 12.0%. Insurers that followed were Manulife (4th, -22.8%), China Life (5th, -24.5%), AXA China (Bermuda at 6th place, -5.6%), BOC Life (7th, -10.6%), FWD Life (Bermuda at 9th, -23.8%), TPLHK (10th, -7.8%), Sun Life (12th, 23.6%), and YF LIFE (13th, 2.5%).

Long-term trends Examining the long-term trends, Charoenwong highlighted the impact of the ageing population in Asia on the insurance industry.

As the workforce shrinks and older individuals seek coverage, a potential decline in premiums is expected over time.

Hong Kong, being a mature financial market, may already have a significant portion of its population covered. This demographic shift places a burden on insurers, necessitating strategic expansion beyond borders to mitigate the impact of an ageing population.

“Hong Kong is already a decently developed financial market. Many people may already have insurance, right? So then the only effect they might see is this kind of mega trend of decreasing premiums over time, just because there are just fewer people. We kind of saw this in Japan. And that’s part of why Japanese insurers worked hard to expand across borders, to try to go to Vietnam, the Philippines and so on.

Because their population is ageing,” Charoenwong stated.

What insurers are doing to catch up To stay competitive, traditional insurers must improve their digital infrastructure, invest in user-friendly apps and websites, and streamline their claims processes. Whilst the transition may present challenges for incumbents, Charoenwong views these changes as beneficial for consumers, ensuring a more efficient and seamless insurance experience.

INSURANCE RANKINGS 2023 Rankings

Insurance Company

2022 Rankings

Classification

2022 Premiums (HK$)

2021 Premiums (HK$)

1

AIA International

1

LONG-TERM

$88.8b

$104.2b

2

Prudential (HK) Life

2

LONG-TERM

$68.4b

$77.8b

3

HSBC Life

5

LONG-TERM

$58.6b

$44.0b

4

Manulife (Int'l)

3

LONG-TERM

$46.8b

$60.6B

5

China Life

4

LONG-TERM

$35.7b

$47.3b

6

AXA China (Bermuda)

6

LONG-TERM

$27.2b

$28.9B

7

BOC LIFE

8

LONG-TERM

$23.8b

$26.7b

8

Hang Seng Insurance

10

LONG-TERM

$22.9b

$16.8b

9

FWD Life (Bermuda)

7

LONG-TERM

$21.8b

$28.6b $17.4b

10

TPLHK

9

LONG-TERM

$16.0b

11

FTLife

12

LONG-TERM

$14.2b

$11.2b

12

Sun Life Hong Kong

11

LONG-TERM

$9.9b

$12.9b $9.1b

13

YF LIFE

13

LONG-TERM

$8.9b

14

AXA General

16

GENERAL BUSINESS

$4.4b

$4.3b

15

Chubb Life

15

LONG-TERM

$4.3b

$4.3b

16

Bupa

17

GENERAL BUSINESS

$4.0b

$4.1b

17

Fubon Life Hong Kong

23

LONG-TERM

$3.4b

$2.3b

18

AXA China (HK)

18

LONG-TERM

$3.3b

$3.7b

19

CTPI(HK)

21

GENERAL BUSINESS

$2.7b

$2.6b

20

Zurich Insurance

22

GENERAL BUSINESS

$2.6b

$2.4b

21

HKMCI

19

GENERAL BUSINESS

$2.6b

$3.0b

22

HKMC Annuity

20

LONG-TERM

$2.5b

$3.0b

23

AIA Everest

14

LONG-TERM

$2.3b

$4.4b

24

AIG Insurance HK

24

GENERAL BUSINESS

$2.1b

$1.9b

25

Asia Insurance

25

GENERAL BUSINESS

$2.1b

$1.9b

26

Generali

29

GENERAL BUSINESS

$1.9b

$1.7b

27

AIA International

30

GENERAL BUSINESS

$1.9b

$1.7b

28

BOC Group Insurance

31

GENERAL BUSINESS

$1.9b

$1.6b

29

XL Insurance

28

GENERAL BUSINESS

$1.8b

$1.8b

30

Chubb Insurance

32

GENERAL BUSINESS

$1.8b

$1.6b

31

CIGNA Worldwide General

38

GENERAL BUSINESS

$1.6b

$1.2b

32

AGCS SE

39

GENERAL BUSINESS

$1.5b

$1.2b

33

TPRe

33

GENERAL BUSINESS

$1.4b

$1.5b

34

Liberty Int'l

37

GENERAL BUSINESS

$1.4b

$1.3b

35

FWD Life (HK)

27

LONG-TERM

$1.3b

$1.8b

36

Zurich International

34

LONG-TERM

$1.2b

$1.4b

37

CMBWL

47

GENERAL BUSINESS

$1.2b

$0.9b

38

Hong Kong Life

26

LONG-TERM

$1.2b

$1.8b

39

Blue Cross

41

GENERAL BUSINESS

$1.2b

$1.1b

40

QBE HKSI

40

GENERAL BUSINESS

$1.1b

$1.1b

41

PICC (HK)

48

GENERAL BUSINESS

$1.1b

$0.8b

42

TLIC

36

LONG-TERM

$1.1b

$1.3b

43

AXA China (HK)

43

GENERAL BUSINESS

$1.0b

$1.0b

44

AIA (HK)

42

LONG-TERM

$979.9m

$1.0b

45

MSIG Insurance

45

GENERAL BUSINESS

$978.5m

$961.1m

46

Prudential (HK) General

46

GENERAL BUSINESS

$975.2m

$954.5m

47

CNOOC Insurance

49

GENERAL BUSINESS

$966.6m

$638.1m

48

Principal

44

LONG-TERM

$878.9m

$998.8m

49

Blue

35

LONG-TERM

$815.8m

$1.3b

50

Chubb Life HK

--

LONG-TERM

$807.1m

--

TOTAL

$511.7b

$554.2b

7.7% decrease from last year’s rankings

HONG KONG BUSINESS | Q1 2024

35

INDUSTRY INSIGHT: BANKING & FINANCE

Greenwashing in banking: real concern or overblown issue?

Reputational risks abound for those who drag their feet about sustainability or engage in greenwashing.

F

MARKETS & INVESTMENT | by Frances Gagua

aced with pressures of trying to prove their green credentials, banks now field questions on the veracity of their sustainability initiatives and claims of “greenwashing”,experts told Hong Kong Business.

“I think it’s quite difficult to assess how prevalent greenwashing is.

Firstly, I don’t think anybody really does a reliable analysis of how prevalent greenwashing is. It’s detected anecdotally by incidents,” Eugene Goyne, EY Asia-Pacific Financial Services Regulatory Lead, told Asian Banking & Finance in an interview.

“What I would say is, there’s a massive increase in the volume of sustainability disclosures coming from different perspectives,” Goyne said.

With the increasing amount of sustainability-linked financial products and disclosures coming out, it’s expected that there will be a level of mistakenly inaccurate or misleading statements, and even an element of deliberate misrepresentation or fraud. But this isn’t limited to just greenwashing, Goyne said– it’s a common occurrence when disclosures and regulations are involved.

“Sustainable finance is no different in that respect to other forms of financial disclosures or product disclosures,” Goyne noted. “There’ll be a level of mistake and there’ll be a level of fraud. You see that in listed company disclosures and bank disclosures and asset manager disclosures. But sustainable finance isn’t any more vulnerable to that.”

Goyne recognized, however, that reputational risks abound for those who drag their feet about sustainability or engage in greenwashing practices.

“Trust and disclosures to the financial system are absolutely critical for the system to help society transition to a more sustainable future. And greenwashing will undermine that trust when it occurs, if it’s prominent enough, or widespread enough. It’s hard to say how much it’s affected the trust in a brand, but it will be damaging when 36

HONG KONG BUSINESS | Q1 2024

No common standards or regulations are available yet for monitoring sustainable finance (Photo by Alfo Medeiros on Pexels)

Sustainable finance is no different in that respect to other forms of financial disclosures or product disclosure.

There’ll be a level of mistake and there’ll be a level of fraud

it occurs,” Goyne said.

More promises, less action Where exact data on greenwashing could not be found, companies’ performances can be studied. A research by the Hong Kong Monetary Authority (HKMA) released in 2022, for example, found that about one-third of corporate green bond issuers were found to have poorer environmental performance after their initial green bond issuance.

Whilst this might not directly reflect the status of greenwashing in 2023, this indicates a level of greenwashing prevalence in the market, especially when there are not yet any fines introduced by the regulators in APAC, says Alan Au, APAC ESG Lead at Capco.

There is no similar study conducted for banks, but there were studies that bank investments to sustainability have stagnated in one of the major markets of interest when thinking about greenification: energy. A study by Sierra Club, Fair Finance International, BankTrack, and Rainforest Action Network found that just 7% of the total financing value

extended by banks to companies for energy projects were funnelled to renewable energy.

“We did see that over the period [2016-2022], there is an increase in the value of financing that’s going to renewable energy. But at the same time, there’s also an increase in the value of financing that’s going to companies engaged in fossil fuels,” Ward Warmerdam, Senior Financial Researcher for Profundo, had earlier noted to Hong Kong Business.

The lack of structure A major challenge to accurately measuring and reporting sustainability efforts of financial institutions (FIs) is the lack of high-quality and reliable ESG data to enable clear net-zero commitments and adequate implementation plans to align with the local decarbonisation aims, Au said.

The lack of regulatory enforcement on established ESG guidelines is another challenge.

This is compounded by the fact that there seems to be no consensus amongst regional and global regulators on how sustainability should be reported or measured.

INDUSTRY INSIGHT: BANKING & FINANCE “Let’s take the example of the EU regulation, what’s called the SFDR, or the sustainable finance disclosure regulation. It requires fund managers to label funds as to what type of ESG goals they have,” Goyne said. “The labels are regarded by the industry as very confusing, and I’m not sure many consumers would understand.”

Risks of fines or other sanctions imposed by regulators are strong drivers for investors to do more due diligence and to interrogate claims and labels made by institutions, according to Au.“There is good news, since we are witnessing more climate reporting regimes becoming compulsory and believe that central banks and other authorities will also be expected to pursue enforcement action soon,” Au said.

Not an excuse The absence of this “common” standard or regulation, however, should also not be treated as an excuse as to why banks are failing to become more sustainable, having problems meeting earlier sustainability commitments, or resoring to greenwashing.

“What each financial institution has to do is to look at its profile, the types of claims that they are making, the risks they are facing, and then act appropriately,” Goyne said.

At a product level, banks must have a good product governance structure.

The bank, especially, has to review how it understands the products it’s selling, the customers it is selling said products to, and what their sustainability preferences and investment choices are, said Goyne.

Line between guidance and control One big risk that banks face when it comes to possibly greenwashing is the actions of their clients– particularly when it comes to lending.

As an example, Goyne noted that a bank can lend money to a company for a perfectly sustainable activity.

However, it becomes an issue when said client suddenly goes off and does something that is not sustainable.

“Say, I’m a bank and I work with my corporate client on a green bond, for example, to build smokestack filters so it doesn’t pour as much greenhouse gases into the environment. And then that same company goes and dumps a lot of dangerous chemicals in a river,”

Goyne said. In this case, the question becomes: who is at fault– and could the bank be faulted?

Au, meanwhile, outlined three ways that banks and FIs are engaging in greenwashing: empty commitments; exaggerating green or sustainability credentials of their products and services; and underrepresenting exposures to relevant environmental risks. Both Au and Goyne, however, believe that not all instances of “greenwashing” are intentional.

“It can occur from a lack of ESG or sustainability-related capability in the organisation or reliance on ESG data obtained from third parties that might not provide the most comprehensive and relevant information,” Au said.

Need of education Furthermore, despite the growing number of banks putting out sustainability products, demand for it from within Asia is slow to pick up.

“There’s possibly less social concern about greenwashing here in Asia or public awareness,” Goyne noted in the interview. “Demand for ESG products in Asia, particularly at the retail level where there might be concerns about greenwashing, is not significantly high yet.”

The hesitance arises from concerns on returns and the lack of knowledge around sustainability issues.

“Is the history of product performance good enough? Is there enough wide range of products? How do I understand what I might be buying?” Goyne noted, adding that clients are concerned that they may not really understand sustainability.

The future Au advised institutions to improve their long-term capacity to prevent greenwashing–by developing capability to respond to the fastchanging regulatory landscape and to source and manage high quality data that helps them monitor and disclose their ESG performance and progress.

Experts welcomed the increasing ESG oversight across Asia, noting that greenwashing as it stands today is no longer just a matter or reputation, but also presents risks to the financial system and the economy at large.

“With Asia predicted to account for over two-thirds of the global GDP at risk from climate change by 2050, the region cannot afford to slow its

Eugene Goyne

Alan Au

green transition to prevent the most catastrophic consequences. That is why we advise banks and financial institutions to combat greenwashing to not only contribute to governments’ ESG objectives but also enable themselves to effectively transition to the low-carbon economy in the future,” Au concluded.

Goyne, for his part, emphasized the necessity for continually informing and teaching the public on sustainability issues.

“Education is really important here and that’s not just education of the industry and people in the industry. It’s also education of the public. Because even in the public, sustainability, climate change, they’re very complicated topics.

“I’m not sure to what degree sustainability and climate change is really treated as a subject in schools, and how much your average citizen really understands these issues in an actionable sort of way. So if I, as a citizen, see your company making statements, do I understand those statements? Do I understand how serious climate change is and how it works? If I was faced with an investment opportunity that said it’s climate positive, would I understand what they’re saying?

Some basic literacy on those topics would be very useful, not just in financial services, but for society as a whole,” Goyne concluded.

More climate reporting regimes are now becoming compulsory (Photo from Pexels)

HONG KONG BUSINESS | Q1 2024

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REPORT: RETAIL

How businesses can navigate and rebuild eroding consumer trust

An IPSOS report showed that brands can show empathy by redefining value for customers.

complement what the government does, Calvar said the government should also work to create a sense of stability and differentiation.

“By creating a sense of stability and differentiation, opportunities will emerge and that will create a positive sentiment amongst consumers,” said he said.

Brands must understand the context and needs of their consumers (Photo from Pexels)

by Noreen Jazul

C

onsumer-reliant businesses such as those in fast-moving consumer goods and retail sectors are facing a challenging year as consumer trust towards brands in Hong Kong continue to erode. Data from IPSOS’ Global Trends show that only one third (34%) of consumers trust business leaders to tell the truth.

To add, 69% of Hong Kongers feel the cost of living is, by and large, the doing of both the local government and businesses.

“An important reason for this lack of trust is consumers believe that inflation is partly due to businesses being too greedy. Of course, when consumers feel businesses are putting their own commercial priorities before the interest of the wider community, trust is bound to be eroded,” Javier Calvar, group service line leader at IPSOS, told Hong Kong Businesses.

“To regain trust, brands need to understand consumers’ expectations, the context in which they live their lives,” Calvar added.

He said brands can act with empathy by, for example, “redefining value for customers.” “[You can offer] value packs, add relevant benefits to your products to justify your prices, position your products as self-reward, and ensure

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that [your] product portfolios cover a wide range of price points,” he said.

Calvar underscored that brands need to develop long-lasting trustbased relations with consumers because it is the only way for them to build loyalty and grow their market share.

“It is fundamental for brands to understand the community they’re meant to serve, to understand the expectations that consumers have when they buy their products or services, to understand the context in which they use and consume those products and services, and to engage with their target segments with a degree of empathy,” he elaborated.

“All that needs to be placed in a context of diversity. [The] Hong Kong consumer base is not a homogeneous group, you have older consumers whose needs are very different from the needs of younger millennials or Gen Zers. It is a complex task, but something that businesses must address as a matter of priority if they want to induce sustainable consumption,” he added.

The task of regaining consumer trust and confidence, however, should not be shouldered by businesses alone.

Business and government must work together to achieve this goal.

As businesses need to

When consumers feel businesses are putting their own commercial priorities before the interest of the wider community, trust is bound to be eroded

Javier Calvar

Pessimistic view Creating a sense of stability and differentiation would also help prevent businesses from leaving the city, said the expert from IPSOS. “When you look at Hong Kong before the pandemic, Hong Kong had an edge by being so close to China’s Mainland, whilst at the same time being very much connected to Southeast Asia. That needs to come back,” Calvar said.

“There is a need to maintain a strong connection with the Mainland, but we still need those connections to Southeast Asia and the rest of the world. If we get that stability and dedifferentiation elements, then that will create opportunities, and that will attract not just businesses to stay, but also new businesses to come and to contribute and benefit from Hong Kong’s economy,” he added.

Data from IPSOS showed that 41% of Hongkongers believe businesses in the city will leave.

Some 40%, however, still believe that the business community in the city will remain stable.

“What you have here is lack of clarity about the future of Hong Kong. This is symptomatic of the economic environment in which we are living in.

“Consumers are looking at reality perhaps through a pessimistic lens. There is also an element of nostalgia here believing that the old days were better than the days that we’re currently living through,” observed Calvar.

Calvar, however, underscored that businesses leaving or staying will really depend on which sector they belong.

HONG KONG BUSINESS | Q1 2024

39

EVENT COVERAGE

Financial trailblazers and innovators recognised at Hong Kong Fund Managers Awards 2023 Hosted by RaffAello Investment Management (HK) Limited, the prestigious event was held on 31 December 2023, in Conrad, Hong Kong.

I

n the dynamic Hong Kong market, fund managers have to possess astute financial acumen, strategic thinking, and an unwavering commitment to delivering optimal returns for investors. Innovation thrives as these financial trailblazers navigate such complexities, employ cutting-edge technologies, and embrace investment strategies to stay ahead in the ever-evolving landscape of fund management.

In a grand celebration of financial excellence and innovation, the Hong Kong

Fund Managers Awards 2023 was held on 31 December 2023, at Conrad, Hong Kong.

The awards programme, hosted by RaffAello Investment Management (HK) Limited, marked by a captivating cocktail gathering followed by a prestigious awards dinner, brought together industry leaders, fund managers, and stakeholders to honour the outstanding achievements within the dynamic Hong Kong market.

The Hong Kong Fund Managers Awards 2023 serves as a testament

to the commitment and exceptional performance exhibited by professionals dedicated to delivering unparalleled value to investors. Through the event, professionals from across Hong Kong also enjoyed a platform for networking, knowledge exchange, and the celebration of financial prowess.

Congratulations to all the winners for their exceptional contributions to the fund management world! See the full list of winners below:

ChinaAMC China Focus Fund Best Investment Strategic Fund

RaffAello Securities (HK) Ltd. Best Small Medium Cap Broker 2023

Franklin Templeton – Asia Pacific Structured Equity Fund Best Alternative Investment Fund

RaffAello Investment Management (HK) Ltd. (Tycoon Designated Investment Partner) Best Hong Kong Investment Team

Ten Asset Management Best Emerging Market Small Fund - Marco, Fixed Income Fund Pheim Sicav-Sif-Asean Emerging Companies Fund Best ASEAN Fund Seavi Advent PE Fund Best ASEAN Emerging PE Fund BOCHK ALL Weather China New Dynamic Equity Fund Best Greater China Equity Fund LFX Global Value Chain Innovation Fund Best Global Value Chain Innovation Fund Henderson (China) Investment Company Limited Best Asian Family Investment Team Hong Kong & China Gas Investment Team Best Global ESG Investment Team UOB SEA Healthcare Fund VCC Best Asian Healthcare Fund Nan Fung Trinity(HK) Limited Excellent Family Office Multi Assets Award China Wantian Holdings Ltd. (1854.HK) Most Valuable Investment Award Hong Kong Institute of Financial Analysts & Professional Commentators Ltd. Best Fintech Achievements Award ChinaAMC Absolute Return Fund Best Absolute Return Fund 深圳市紅土祟實創業投資基金 – 深創投 中國最佳私募基金-工業軟件 40

HONG KONG BUSINESS | Q1 2024

Phillip HK Newly Listed Equities Index ETF Fund Most Innovative HK Equities ETF Fund Harvest ESG China Equity Fund(HK) Best ESG China Equity Fund Rabbit Credit Ltd. Most Outstanding AI Financial Innovation Award

EVENT COVERAGE

HONG KONG BUSINESS | Q1 2024

41

EVENT: HONG KONG BUSINESS AWARDS

Get to know Hong Kong’s top technology companies and exceptional businesses

H

ong Kong has long been at the forefront of innovation and economic growth in Asia. The city’s strategic location, wellestablished infrastructure, and business-friendly policies have made it a global hub for finance, trade, and technology.

With a thriving startup ecosystem and a strong focus on fintech, Hong Kong continues to attract both established corporations and entrepreneurial talent. Its role as a gateway to the vast Chinese market, combined with a commitment to research and development, positions Hong Kong as a dynamic centre for technological advancement and business opportunities, ensuring its continued relevance on the world stage.

In recognition of companies that have thrived in their respective industries over the past year, Hong Kong Business proudly named its winners in the HKB National Business Awards, HKB International Business Awards, and Technology Excellence Awards on 21 September 2023.

The HKB National and International Business Awards, in their sixth and eighth editions, respectively, honour exceptional local and first-rate international businesses in Hong Kong and give recognition to their outstanding initiatives.

The awards programme was judged by Charbon Lo, Partner at Crowe (HK) CPA Limited; Eugene Liu, Managing Partner at RSM Hong Kong; and Andy Wong, IPO leader and China and Hong Kong Business Leader at SW Hong Kong.

Meanwhile, the HKB Technology Excellence Awards lauds outstanding companies that made exceptional contributions in pursuit of technological innovation.

Entries were evaluated by Matthieu Lambert, Partner, Consulting Microsoft Technology Practice at Deloitte China & Asia Pacific; David Chen, Partner, Technology Consulting at Ernst & Young Advisory Services Limited; Stanley Sum, Partner, Digital Enablement at KPMG China; and James Lee, Partner - Consulting (Analytics & Cloud Transformation) at PwC Mainland China and Hong Kong.

When asked about his judging criteria, PwC’s Lee explained that he focused on three main attributes: industry-leading, innovative, and impactful.

“In a corporate world, the ultimate goal of any form of digital transformation is to drive desired business outcomes. I think any judge would love to hear a happy ending story that vividly describes how the solution was able to bring many positive impacts to the organisation,” Lee said.

HKB NATIONAL BUSINESS AWARDS 2023

China Unicom Connectivity - Telecommunications

FSE Lifestyle Services Limited Conglomerates Nan Fung Group Real Estate Swiss-Belhotel International Hospitality & Leisure The Hong Kong & China Gas Co. Ltd & Maxim’s Group Energy

HKB INTERNATIONAL BUSINESS AWARDS 2023 The University of Manchester East Asia Centre Education Energy

HKB TECHNOLOGY EXCELLENCE AWARDS 2023 AIA Digital - Insurance American Express Digital - Financial Services AsiaPay Fintech - Financial Technology Candela Medical Skincare Technology - Healthcare Technology CertiK Cybersecurity - Technology 42

HONG KONG BUSINESS | Q1 2024

CLP Holding Ltd. Data - Energy Compass Group Hong Kong Limited Information Management - Food & Beverage Construction Industry Council (CIC) PropTech - Property Services DBS Bank (Hong Kong) Limited Fintech - Banking DBS Bank (Hong Kong) Limited Digital - Banking Eureka Nova Emerging Technology - Materials & Construction PropTech - Real Estate Fidelity International Cloud - Financial Services Fidelity International Mobile - Financial Services GrowthOps Digital - Financial Technology Hong Kong Housing Society Network and Broadband - Public Organization Hong Kong Productivity Council Smart Technology - Manufacturing Technology Robotics - Property Services

2023

3

BUSINESS 2023

Hong Kong Trade Development Council Digital - Public Organization HSBC API - Investment Banking HSBC Mobile - Banking iFAST Financial HK Limited API - Financial Technology Wealthtech - Financial Services

AIA

InSilico Medicine Hong Kong Limited AI - Pharmaceuticals Lenovo PCCW Solutions Smart City - Government IoT - Retail

American Express

Marriott International Digital - Hospitality & Leisure McDonald’s Hong Kong Enterprise Software - Food & Beverage MGM Automation - Hospitality & Leisure Mobile - Hospitality & Leisure Smart Technology - Hospitality & Leisure MTR Corporation Emerging Technology - Transportation Smart Technology - Transportation

Candela Medical

OpenSpace PropTech - Commercial Building Construction Prudential Hong Kong Limited Online Services - Insurance Rhenus Warehousing Solutions Hong Kong Limited Automation - Logistics River Square Company Limited Fintech - Supply Chain STAR Systems International Limited Smart City - Technology

China Unicom

Compass Group Hong Kong Limited

Taipei Fubon Bank Information Management - Banking Tecsa Hong Kong Ltd. Analytics - Retail Thales AI - Transportation The Bank of East Asia, Limited Analytics - Banking Big Data - Banking The Sandbox Blockchain - Technology

DBS Bank (Hong Kong) Limited HONG KONG BUSINESS | Q1 2024

43

EVENT: HONG KONG BUSINESS AWARDS

DBS Bank (Hong Kong) Limited

Eureka Nova

Fidelity International

GrowthOps

FSE Lifestyle Services Limited

The Hong Kong & China Gas Co. Ltd & Maxim’s Group

Hong Kong Productivity Council

HSBC

Hong Kong Trade Development Council 44

HONG KONG BUSINESS | Q1 2024

Hong Kong Housing Society

iFAST Financial HK Limited

InSilico Medicine Hong Kong Limited

3

2023

McDonald’s Hong Kong

Marriott International

MTR Corporation

MGM

Prudential Hong Kong Limited

STAR Systems International Limited

The Bank of East Asia

BUSINESS 2023

Rhenus Warehousing Solutions Hong Kong Limited

Swiss-Belhotel International

The University of Manchester East Asia Centre

River Square Company Limited

Tecsa Hong Kong Ltd.

Vastcom Technology Limited

Thales

WeLend Limited HONG KONG BUSINESS | Q1 2024

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HONG KONG BUSINESS | Q1 2024

47

CONGLOMERATES

3

FSE Lifestyle embraces Professional People and Innovative Technologies

Its 3 pillars of services namely Property & Facility Management, City Essential Services, and Electrical & Mechanical Engineering offer the best solutions to both corporate and individual clients.

FSE Lifestyle’s top management devotes to develop potential talents for the sustain growth of the Group

P

rofessional talents and innovative technologies are two critical elements for a successful business. FSE Lifestyle, as a service solution conglomerate that values quality and sustainability, takes pride in investing in employees’ growth and professionalism and modern technology deployment and innovation developments.

As a leading lifestyle services group in Hong Kong, Macau, and the Mainland, FSE Lifestyle delivers services through three major business segments: property and facility management services, city essential services, and electrical and mechanical engineering services, through their business units, including Urban Group, Kiu Lok Services Group, Waihong Services Group, Far East Engineering Services Group, FSE Environmental Solutions Group, General Security Group, Perfect Event Services, Nova Insurance Group, and FSE Engineering Group.

Mr. Patrick Lam, Executive ViceChairman of FSE Lifestyle, stressed that “adhering to our unique business model, we incorporate our advantages of professional talents synergising with innovative technologies to enhance our overall service efficiency that maximise the benefits to our customers.

Our services have been integrating into the public’s daily life. For instance, our property and facility service arms are now serving over 1 million people every day, that means we are servicing every 1 out of 7 people in Hong Kong.

Adapting Innovative Technologies to Sustain Service Quality FSE Lifestyle is a pioneer in the industry to introduce modern innovative technologies into its services. “To maintain high productivity and competitiveness in the market, we implement AI initiatives to

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customise innovative service solutions for our customers, such as smart toilet systems, real-time work monitors and drone applications through IoT platforms and 5G mobile applications,” said Mr Patrick Lam. In addition, the company’s E&M technical support and maintenance services have been applying Building Information Modeling (BIM) to integrate digital asset management tools to serve both developing and established property projects. Mr. Lam said, “Our uniqueness comes from the total solutions for our clients with the highest operational efficiency and cost-effectiveness. Hence, they can enjoy a high quality of service at the most reasonable costs.”

Achieving Sustainable Development through ESG Advocacy FSE Lifestyle believes business sustainability requires a holistic approach considering the environment, the society, and a devotion to stringent corporate governance practices. “We are committed to reducing our environmental footprint, promoting the well-beings, health, and equity of our staff and the community, as well as prioritizing strong governance practices to establish our sustainable service model and maintain a steadily growing business, which bring the best values to our shareholders, our staff, our customers and the community.

Patrick Lam, Executive Vice-Chairman of FSE Lifestyle Services Limited

FSE Caring Day – Sharing our Cares for the Community Among its extensive CSR programmes every year, FSE Lifestyle has been hosting an annual signature event, “The FSE Caring Day,” since 2011. The event stands as a beacon of community engagement and goodwill, organized in collaboration with different NGOs and social welfare organizations, to serve and give back to the community. Through an array of thoughtfully curated services and activities, FSE Caring Day addresses pressing community issues, thus creating a caring culture, generating commercial and social alliances, and setting the stage for a brighter and more inclusive future for the Hong Kong people. Its dedication to creating a brighter, more inclusive world echoes its Vision: “Better Life, Better Home, Better Quality to You Every Day.”

The Company’s property and facilities management services keep pace with the innovation to take full advantages of Internet of Things

FSE Lifestyle incorporates professional talents with our innovative technologies to enhance service efficiency and cost effectiveness

HONG KONG BUSINESS | Q1 2024

49

ENERGY

3

Towngas collaborates with Maxim’s Group to develop Hong Kong’s first inter-plant waste heat system The eco-innovation partnership reduces CO2 emissions, advances the circular economy, and paves the way for sustainable solutions in the energy sector. according to Maxim’s specifications whilst minimising the risk of moisture contamination and microbial growth. This system is expected to reduce approximately 800 tonnes of CO2 emissions annually, equivalent to planting around 34,000 trees.

Towngas and Maxim’s Group were recognised at the HKB National Business Awards 2023

T

he Hong Kong and China Gas Company Limited (Towngas), along with Maxim’s Group, developed Hong Kong’s first inter-plant waste-to-energy system at Tai Po INNOPARK. “This project focuses on the utilisation of waste heat. We have developed a system to capture waste heat from our Tai Po Gas Production Plant and deliver it to Maxim’s food factory in the form of hot water, which serves as an energy source. During the initial design stage, our engineering teams, along with Maxim’s engineering team, worked closely and took great care to ensure that our design and installation would not disrupt the operation of the gas plant and maintain a consistent gas supply to our two million gas customers. After dedicating a significant amount of time and effort, we successfully completed the installation without any issues, allowing us to utilise the waste energy,” said Mr. Sammy Kong, Assistant General Manager - Commercial & Industrial Marketing & Sales of Towngas.

Waste Heat to Green Energy In 2019, Towngas and Maxim’s Group started collaborating on an innovative project to utilise waste heat generated during town gas production. By capturing and converting this residual heat that would otherwise be expelled into green energy, this project can reduce water consumption and operational costs associated with evaporative cooling.

The captured waste heat is transferred to Maxim’s food factory to power their desiccant dehumidifiers, ensuring precise humidity control and indoor air quality 50

HONG KONG BUSINESS | Q1 2024

Driving Sustainability Together This pilot project serves as a remarkable showcase of waste-to-energy conversion and embodies sustainable industrial ecology in action. ‘‘The profound impacts of climate change, such as extremely hot summers and recent flooding in Hong Kong and other parts of the world, underscore the importance of addressing sustainability. This project reflects our commitment to corporate social responsibility. We strive to meet consumer needs whilst minimising our impact on the environment. Maxim’s Group initiated various waste reduction programmes over a decade ago and has intensified our efforts in recent years through circularity projects like BOB craft beers, which upcycle surplus and unused bread. We will continue to collaborate and innovate with our partners to drive sustainable solutions,” said Mr Keith Siu, Chief Operating Officer (Hong Kong & Macau) of Maxim’s Group.

Towngas remains committed to pioneering sustainable solutions with our business partners to amplify the impact of our decarbonisation efforts and promote climate change awareness.

This eco-innovation project is also dedicated to further advancing circular economy principles within the energy sector, promoting sustainability and resource efficiency.

“Towngas has established a longstanding business partnership with Maxim’s Group. The key aspect of this partnership lies in the shared values and vision of

both companies, particularly in the area of decarbonisation. Maxim’s Group is a leading enterprise in the catering industry, whilst we are a leading enterprise in the energy sector.

Together, we aim to promote best practices within our respective industries. This project serves as a testament to the power of collaboration between our two companies. It also advocates for the widespread adoption of this approach across different industrial sectors. By showcasing the success of this project, we strive to inspire others to embrace this opportunity and contribute to a more sustainable future,” added Mr. Sammy Kong.

The vision of achieving carbon neutrality As a responsible energy company, Towngas is committed to providing energy-saving and emission-reducing solutions such as renewable energy, combined heat and power supply, and heat recovery. We also extract hydrogen from the supplied town gas in Hong Kong for local transport use.

The Group has also been actively developing its smart energy businesses on the Chinese mainland, including the conversion of food waste into natural gas. These new business developments will accelerate our efforts towards carbon neutrality with our customers, supporting Towngas’ vision of becoming carbon neutral by 2050, as well as our country’s 30-60 dual carbon goals, and contributing to a low-carbon future.

This project serves as a testament to the power of collaboration between our two companies. By showcasing the success of this project, we strive to inspire others to embrace this opportunity and contribute to a more sustainable future

HONG KONG BUSINESS | Q1 2024

51

CONNECTIVITY - TELECOMMUNICATIONS

2023

ISO 9001, ISO 27001, TVRA and PCI DSS, demonstrating compliance with international quality standards and reinforcing the commitment to security.

IDC Robot

Boosting Digital Transformation with Cutting-Edge Data Centre China Unicom Global’s Intelligent · Cloud Data Centre at the Forefront of Connectivity, Security, and Sustainability

I

n 2020, the world generated 64.2 zettabytes of data. By 2025, that number is expected to triple to over 180 zettabytes, driven by expanding mobile internet, rapid digitalization, and increased adoption of technologies like AI, cloud computing, and connected devices, according to Statista. These trends are propelling the data centre market towards a projected value of $517.15b by 2030, as indicated by Allied Market Research.

China Unicom Global’s Intelligent · Cloud Data Centre: Empowering Global Connectivity and Business Advancement Data centres are central to global business today, as evidenced by their proliferation in the world’s biggest urban centres. One such example is China Unicom Global’s Intelligent · Cloud Data Centre headquartered in Hong Kong, strategically positioned to facilitate global connectivity.

The 37,000-square-metre Intelligent · Cloud Data Centre, which launched in 2016, reaches more than 60 countries and regions via 15 submarine cables whilst offering interconnection to key cloud providers.

Customers stand to gain a whole host of benefits in the areas of network, innovation, security, and sustainability. Coming within a wider network that comprises more than 60 international submarine cable and 20 terrestrial cable systems, China Unicom Global is deploying more integrated data centres

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globally, with facilities being rolled out in Singapore, Tokyo, and Frankfurt.

Innovative Security Measures at Intelligent · Cloud Data Centre: Safeguarding Data and Mitigating Cyber Threats Security has become a paramount concern for both data centres and the internet in light of the current threat landscape. To enhance operational security, a pioneering approach has been developed in the Intelligent · Cloud Data Centre.

This novel model combines network operations (NoC, Network Operation Centre) and security operations (SoC, Security Operation Centre) into a unified “one-stop” centre.

To ensure robust cybersecurity, all connected channels are equipped with various protective measures, including host security hardening and intrusion prevention. These measures have proven successful in mitigating over 330,000 DDoS attacks in 2022. Moreover, China Unicom Global has further bolstered security by establishing a second data centre in Hong Kong, ensuring operational continuity and resilience against risks. The facility has obtained several certifications, including

Driving Sustainability in Data Centres: Intelligent · Cloud Data Centre’s EnergyEfficient Innovations Data centres currently account for 3% of global electricity consumption, a figure projected to rise to 4% by 2030, according to Data Centre Magazine. The Intelligent · Cloud Data Centre has dedicated several years to researching and adopting technologies aimed at reducing energy consumption and minimising carbon footprint. From an architectural perspective, the Intelligent · Cloud Data Centre was constructed with customisable, “super-high” cabinets that not only optimise available space but enable expansion in line with user demand and power usage. This has resulted in a remarkable 60% improvement in the centre’s overall efficiency.

In most data centres, the cooling system constitutes a significant portion of energy consumption. To address this challenge, the Intelligent · Cloud Data Centre focuses on implementing “greener cooling” solutions.

These include chilled water refrigeration, which offers 10 to 15% higher efficiency compared to air-cooling methods.

Additionally, intelligent frequency conversion technologies are utilised to optimise energy consumption further. Embracing emerging technologies such as AI and data analytics, the centre leverages these tools to optimise facility and energy usage.

Empowering Industries and Driving Innovation: Future-Forward Data Centre China Unicom Global offers a diverse range of data centre services to cater to various segments, including live streaming, gaming, smart cities, finance, retail and more. This comprehensive offering encompasses a mix of centralised, edge, and super-large facilities.

In addition to meeting different industry needs, China Unicom Global also fosters innovation. Through software development and its edge platform, the company enables unified, integrated management, and intelligent operation of global data centres.

This advancement supports the evolving distributed cloud infrastructure, facilitating efficient and effective management of data centres worldwide.

The Intelligent · Cloud Data Centre combines network operations (NoC, Network Operation Centre) and security operations (SoC, Security Operation Centre) into a unified “one-stop” centre

HONG KONG BUSINESS | Q1 2024

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It’s your moment

to keep the exceptional close at hand.

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HONG KONG BUSINESS | Q1 2024

55

CLOUD - FINANCIAL SERVICES

2023

Fidelity International takes home HKB Technology Excellence Awards for cloud migration The adoption of cloud was done in partnership with AWS and Microsoft Azure Cloud.

ACT AWS JPDC Migration Meet and Greet

Lee FitzHenry, Head of Technology Infrastructure Services, Fidelity International

G

lobal asset manager Fidelity International (Fidelity) won the Cloud - Financial Services category at the HKB Technology Excellence Awards 2023 for its successful adoption of cloud at scale, migrating its Asia business workloads to both AWS and Microsoft Azure Cloud.

Fidelity chose partners in this process to fully understand the approach, not only on how to migrate to the cloud but also how to achieve its goals linked to Automating Everything, designing for security, embracing agile, meeting governance and regulatory needs across Asia, and remaining costconscious and efficient in delivering the right business value.

Building for the future The fundamental principle of Automating Everything was clear for the programme.

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Fidelity designed, engineered, and built out over 80 new InnerSource Infrastructure As Code modules

Fidelity designed, engineered, and built out over 80 new InnerSource Infrastructure As Code modules to be reused not just in Asia but firm-wide so future cloud migrations meet its global Cloud objective. Fidelity has also created a new Finance Operations (FinOps) function to educate and track the changing nature of cost transparency in the cloud. The firm invested heavily in its people via dedicated learning paths for Cloud, Ways of Working, and also a new operating model around cross-functional teams.

Recognition for excellence Since the end of 2022, Fidelity has migrated the Asia workloads to AWS and Azure and

closed down the Hong Kong and Japan data centres. All of this has been achieved without major incidents and delivered under budget with increased performance.

“Fidelity International is pleased to be recognised in the HKB Technology Excellence Awards for cloud migration. Building a scalable, efficient business is key to ensuring we can adapt at speed, accelerate innovation, and focus on our clients,” the company said.

HKB Technology Excellence Awards, now in its fourth year, is presented by Hong Kong Business magazine. It aims to honour outstanding companies that have made exceptional contributions in pursuit of technological innovation.

Building a scalable, efficient business is key to ensuring we can adapt at speed, accelerate innovation, and focus on our clients

Fidelity MPF Tax Deductible Voluntary Contributions (TVC) Apply for TVC via SmartRetire Pay less tax and save more wisely The Fidelity SmartRetire mobile app makes setting up your TVC account easier and quicker.

Upon successful application, you can save up to HK$10,2001 on contributions yearly. Download SmartRetire now to set up your TVC account or make additional TVC contributions!

3 key benefits of managing TVC via the SmartRetire mobile app Streamlined and convenient process The entire online application process can be completed in 15 minutes! Best yet, you can conveniently make contributions by selecting various payment methods including Faster Payment System for instant online payment.

Debut launch of remote identity verification capability The identity verification process no longer has to be done face-to-face2. You can now complete the required identity verification anytime, anywhere with our mobile app.

Change or make additional contributions to your TVC account anytime You can make additional lump sum/monthly contributions or change your current monthly contributions to your TVC accounts easily.

Download the SmartRetire mobile app today Fidelity.com.hk/TVC 1

The actual tax savings depend on personal income level, entitled tax allowances and deductions as well as the amounts of qualifying deferred annuity policy premiums paid or the amounts of TVC made. Based on the prevailing highest tax rate (i.e. 17%) and the maximum tax deductible limit of HK$60,000, the maximum tax savings can be HK$10,200.

2 Applicable to HK permanent identity cardholders only.

FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity International. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited. Investment involves risks. Fidelity only gives information about its products and services. Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment. The third party marks appearing in this material are the property of the respective owners and not by Fidelity. This material is issued by FIL Investment Management (Hong Kong) Limited and it has not been reviewed by the Securities and Futures Commission.

HONG KONG BUSINESS | Q1 2024

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2023

INFORMATION MANAGEMENT - FOOD & BEVERAGE

Revolutionising Recipe Management: Compass Group Hong Kong’s Innovative Solution

The company’s user-friendly tool, streamlines meal planning, allowing users to focus on creativity whilst intelligently organising recipes, eliminating duplication, and providing versioning control.

I

n today’s fast-paced culinary world, efficient recipe management is the key to success.

Compass Group Hong Kong introduces an innovative recipe management solution that revolutionises the way recipes are organised whilst addressing the importance of minimising food waste and providing valuable information on carbon emissions and nutritional data.

Inspired by the need for a user-friendly tool that centralises all recipes in one place, Compass Group Hong Kong developed a solution that streamlines the often challenging task of meal planning.

By leveraging advanced algorithms, the solution analyses recipes and suggests meal plans tailored to user preferences and allergen restrictions. This saves time and effort and creates a stress-free user experience, allowing chefs to focus on what they do best.

Intelligently organising recipes What sets the recipe management solution apart is its intelligent search feature. This feature eliminates recipe duplication by providing suggestions as users input ingredients, ensuring consistency and efficiency in recipe management.

Additionally, the solution offers versioning control, enabling recipe traceability and facilitating easy updates and revisions.

Categorising and organising recipes based on dietary restrictions and preferences further enhances the solution’s usability.

Chefs can easily customise ingredient measurements and substitutions to meet specific client needs, making it an invaluable tool in the culinary industry.

Minimising food waste In today’s context, minimising food waste is of paramount importance. Compass Group Hong Kong’s recipe management solution addresses this issue by providing valuable information on carbon emissions and nutritional data. By accessing this information, consumers can make informed choices about their food consumption, promoting healthier lifestyles and environmentally conscious decisions. The solution empowers individuals to reduce waste, conserve resources, and contribute to a more sustainable future.

Compass Group Hong Kong’s recipe 58

HONG KONG BUSINESS | Q1 2024

Steven Lee, Head of IT & Digital Solutions at Compass Group Hong Kong

management solution is a testament to its dedication to culinary excellence, efficiency, and sustainability. This innovative solution empowers chefs by simplifying meal planning, minimising food waste, and providing valuable information. With a clear vision for integration and digital transformation, Compass Group Hong Kong is poised to lead the industry, delivering exceptional results and contributing to a more sustainable culinary landscape.

“Our recipe management solution has streamlined our meal planning process and provided valuable insights into carbon

emissions and nutritional data, which is essential in today’s context. Its intelligent search feature and versioning control have eliminated duplication and ensured consistency in recipe management,” Steven Lee, Head of IT & Digital Solutions, said.

Lee added, “We are proud of our recognition for this innovative solution and are committed to continuously enhancing it through seamless integration with other systems, optimising workflow and efficiency. We are dedicated to our digital transformation journey, aiming for a completely paperless operation that aligns with sustainability goals and minimises environmentaal impact. The recipe management solution has been instrumental in our success, contributing to our commitment to culinary excellence, efficiency, and sustainability.”

CONTACT Company name: Compass Group Hong Kong Limited Company address: Unit 1102B - 1104A, 11/F, Tower B, Manulife Finance Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong Contact number: +852 – 2518 – 6888 Fax number: +852 – 2518 – 6802 Email address: relations@compass-hk.com

Compass Group Hong Kong’s innovative recipe management solution

We are dedicated to our digital transformation journey, aiming for a completely paperless operation that aligns with sustainability goals and minimises environmental impact

2023

DIGITAL - FINANCIAL TECHNOLOGY

Empowering Financial Services: GrowthOps Asia’s Award-Winning Digital Transformation Approach The company was honored with the Digital - Financial Technology Award at the HKB Technology Awards 2023.

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he Financial Services Industry (FSI), finds itself navigating a landscape where unforeseen crises and evolving market dynamics continually test the resilience and value-creation capabilities of industry players.

This challenge is further compounded by the rise of new competitors, disrupting GrowthOps team at the HKB Technology Excellence Awards traditional business models, and the a global bank, have resulted in an impressive rapidly changing landscape of customer 80% reduction in daily manual operational expectations. The pressing need for digital tasks and a substantial savings in IT transformation has become an undeniable maintenance costs. imperative.

Eric Yu, General Manager of GrowthOps A recent survey by PwC reveals a sense Hong Kong and Regional Practice Lead for of apprehension among financial leaders, Asia Technology, said, “To realise enduring with 36% expressing concerns about the digital transformation, we at GrowthOps adequacy of their digital strategies, while concentrate on providing all-encompassing a more significant 62% are wary of the services that meet our clients’ current and potential pitfalls of flawed execution. In future needs. Our multifaceted approach this volatile climate, the FSI sector stands throughout the digital transformation at a crossroads, where strategic digital journey grants clients a wide-ranging and transformation is the key to securing a comprehensive perspective, enabling them to competitive edge. identify essential forthcoming steps. These GrowthOps Asia, founded by seasoned enhanced services ultimately foster business experts specialising in technology, growth, optimise operations, curtail costs, leadership development, and marketing, and boost service quality and efficiency.” is dedicated to empowering FSI players in the ever-changing business landscape.

Innovating for Every Stakeholders Their comprehensive digital transformation GrowthOps perceives digital transformation solutions offer vital support for addressing as a potent tool for enhancement and unique industry challenges and navigating refinement, far beyond a mere substitution through uncertainties. Trusted by leading of existing methods. Guided by a steadfast FSI companies across Hong Kong, Singapore, commitment to human-centric values, Malaysia, Philippines, Brunei, Vietnam, their comprehensive service offerings are Australia, and New Zealand, GrowthOps Asia thoughtfully crafted to cultivate a digital has established itself as the go-to partner for environment resonating with empathy and transformative success. consideration. This approach ensures an enriched, user-centered digital experience Sustainable Outcomes through a that significantly enhances the operational Consultative Approach efficiency and capabilities of their clients.

GrowthOps Asia adopts a consultative For example, consider GrowthOps’ approach, steering digital transformation current flagship project: an advanced endfrom preliminary evaluations to future to-end Talent Onboarding Solution driven planning, operational model development, by cutting-edge AI and data analytics. The and change management. Their innovative expected advantages are substantial, contributions, such as the Core System including a projected 30-50% boost in Transformation advisory services and novel onboarding efficiency, a 20-40% reduction improvements in Signature Verification, in operational costs, and the crucial ability Task Management, and Cheque Clearing for

We at GrowthOps concentrate on providing all-encompassing services that meet our clients’ current and future needs. Our multifaceted approach throughout the digital transformation journey grants clients a wide perspective, enabling them to identify essential forthcoming steps

to effectively align talent with strategic business objectives.

Industry recognitions GrowthOps Asia has also been recognised with multiple international awards, reaffirming its competitive edge and leadership in the industry. The latest accolade is the prestigious Digital Financial Technology Award at the recent HKB Technology Excellence Awards. This recognition highlights GrowthOps Asia’s exceptional achievements in transforming the FSI-Tech landscape through the implementation of adaptable, scalable, and sustainable solutions tailored to meet the ever-evolving market demands. Some other notable awards include Best Digital Transformation Expert of the Year Award

by Business Innovator and Best Diversity and Inclusion Strategies Award at the HR Star Awards 2023. Additionally, Eric Yu received the esteemed Most Valuable Professional recognition at the Tech MVP Awards 2023 by Campaign Asia.

Success driven by team excellence GrowthOps’ outstanding performance showcases its dedication to excellence, with a remarkable 18% year-over-year growth in the FSI-Tech sector, significantly outperforming the average in Hong Kong’s IT Consulting and Implementation industry.

According to Statista, this industry had a 16.7% growth in 2022, expected to decline to 8.6% in 2023.

Eric emphasises that real growth begins with the employees, and GrowthOps Asia prioritises a people-focused approach, contributing to its success. A recent internal survey highlighted this, with 87% of employees endorsing GrowthOps Asia as a fantastic place to work, indicating a significant 12% increase in job satisfaction.

Additionally, the company prides itself on gender diversity, maintaining a workforce comprised of 50% women, a notable achievement in the tech industry.

CONTACT Contact number - 2805 9009 Email address - hkg@growthops.asia Website URL - www.growthops.asia

HONG KONG BUSINESS | Q1 2024

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API - FINANCIAL TECHNOLOGY WEALTHTECH - FINANCIAL SERVICES

2023

iFAST Drives Digital Transformation in Asia’s WealthTech Landscape

The company’s commitment to online distribution channels, collaboration, and regulatory compliance positions iFAST at the forefront of digital innovation.

Impact of Online Distribution Channels Online distribution channels have revolutionised the WealthTech industry by offering investors convenient access to investment products and personalised advice.

These channels have disrupted traditional wealth management models by providing ease of transacting and real-time information availability. iFAST, in line with this trend, embraces the power of online distribution channels to provide clients with a seamless and user-friendly experience. Through our digital platforms, investors can access a wide range of investment opportunities and receive personalised recommendations.

Glory Lau, General Manager of Platform Services at iFAST Financial HK

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he Asia-Pacific region presents substantial growth opportunities for wealth management companies, and the growing trend of global connectivity within the industry has seen investments flowing into prominent Asian financial centres, including Hong Kong and Singapore,” said Mr Lim Chung Chun, the Chairman and CEO of iFAST Corporation. These centres have become hubs for international wealth management, attracting a significant influx of assets and playing a vital role in the region’s financial ecosystem.

The platform business model has gained prominence in the WealthTech sector due to its ability to provide investors with a comprehensive suite of wealth management solutions. By seamlessly integrating investment products, advisory services, and digital tools, this model enhances operational efficiency and delivers a holistic wealth management experience.

Recognizing the evolving and diverse needs of investors, industry players consolidate various services onto a single platform, catering to a wide range of requirements. “

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Collaboration and Regulatory Compliance The transformation of the WealthTech industry in Asia is driven by technological advancements, government support, and regulatory frameworks. iFAST recognises the importance of adapting to changing investor preferences and leveraging digital solutions.

“The company is committed to regulatory

compliance and collaborates with industry stakeholders to drive innovation and shape the future of WealthTech in Asia,” Glory Lau, General Manager of Platform Services at iFAST Financial HK, told Hong Kong Business.

Through their comprehensive platforms, iFAST empowers investors by delivering superior wealth management experiences and remains at the forefront of digital innovation in the region.

As Asia’s WealthTech landscape continues to evolve, iFAST stands out in driving digital transformation. With a comprehensive platform, iFAST provides investors with a wide range of wealth management solutions.

By embracing the core platform business model and leveraging online distribution channels, iFAST enhances operational efficiency and delivers a seamless wealth management experience. Through collaboration and regulatory compliance, iFAST aims to shape the future of WealthTech in Asia and empower investors on their financial journey.

Lim Chung Chun, the Chairman and CEO of iFAST Corporation

The company is committed to regulatory compliance and collaborates with industry stakeholders to drive innovation and shape the future of WealthTech in Asia

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61

HOSPITALITY & LEISURE

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Multiple Signings and Openings: Swiss-Belhotel International’s Expansion Across Continents The company’s commitment to forging strong partnerships and meeting diverse travel demands reflects its dedication to innovation and adaptability in the dynamic hospitality industry.

November also and another 25 to open, Swiss-Belhotel marks Malaysia as a International’s expansion transcends mere strategic location on the numbers; it’s about enduring partnerships and expansion map, with the extraordinary experiences. imminent opening of the This global growth showcases the brand’s Swiss-Belinn Cherengin adaptability, innovation, and commitment Hills. This addition to meeting evolving tourism demands, reflects the company’s solidifying its path to becoming a major focused approach player in the hospitality industry. The recent to establishing a Legacy Family Business Award 2023 from presence in key the Family Business Association New Zealand locations, and ensuring and the Hospitality & Leisure Award in the Swiss-Belhotel International makes strides in its global expansion a comprehensive HKB National Business Awards further affirm global footprint.

Swiss-Belhotel International’s dedication to The Indonesian excellence and innovation in the industry. s we approach the close of 2023, Swissexpansion has been impressive as well. The Belhotel International, a prominent recent unveiling of Swiss-Belcourt Lombok About Swiss-Belhotel International player in the global hospitality industry, in September 2023 strategically positions Swiss-Belhotel International is currently in is making significant strides in its worldwide the brand to cater to the rising demand for 20 countries, managing a portfolio of more expansion, marking a pivotal chapter in its premium accommodations, especially during than 125* hotels, resorts, and projects journey for the final quarter. The recent major events like the Formula 1 races in located in China, Indonesia, Malaysia, the ventures underscore the company’s staunch Mandalika. Additionally, the inauguration of Philippines, Vietnam, Thailand, Bahrain, Egypt, commitment to broadening its influence and the Grand Swiss-Belhotel Darmo Surabaya Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the leaving its mark on diverse landscapes. on 2 November 2023, marks a significant United Arab Emirates, Kenya, Australia, New From Africa’s core to Thailand’s tropical milestone as the first of its kind in Indonesia, Zealand, and Tanzania. The Group provides shores and the bustling cities of Asia, the a testament to the brand’ s commitment to comprehensive and highly professional organisation’s growth stands as more than providing elevated luxury experiences. development and management services in mere expansion; it’s a testament to its all aspects of hotels, resorts, and serviced unwavering dedication to forging robust Commitment to enduring partnerships, residences. Offices are strategically located partnerships and meeting the evolving unforgettable experiences in Hong Kong, New Zealand, Australia, China, demands of the global tourism industry.

“This rapid expansion is a testament to our Indonesia, the United Arab Emirates, the unwavering dedication to building strong Philippines, Vietnam, Malaysia, and Thailand, Growth through expansion to various partnerships with our owners and expanding covering Oceania, Asia, Europe, the Middle territories our presence globally, ” said Gavin M. Faull, East, Africa, and India regions.

Swiss-Belhotel International recently sealed Chairman and President of Swiss-Belhotel a vital deal to establish a presence in Africa, International. “We take great pride in our targeting Kenya as a strategic destination. proven track record of delivering positive Slated for an early 2024 introduction, outcomes for our owners. In the ever-evolving Nairobi is set to host the launch of two unique landscape of the global tourism industry, properties: the Swiss-Belinn Nairobi and the we’ve noted a substantial surge in demand for Nairobi Safari Club by Swiss-Belhotel. This our comprehensive portfolio of 16 distinct strategic move into the African terrain mirrors brands, designed to accommodate the varied the company’s intention to cater to varied requirements of hotel owners worldwide, traveller preferences and set new standards in spanning from economy to upscale luxury. the region’s hospitality landscape.

Swiss-Belhotel International maintains Simultaneously, the company’s expansion its unwavering dedication to expanding in Thailand is poised to make a splash with our global presence, with a resolute aim of the upcoming inauguration in November and reaching a remarkable milestone of 530 Gavin M. Faull, Chairman and President December 2023 of two properties - Cruiser of Swiss-Belhotel International properties by the year 2030.”

Island Resort by Swiss-Belhotel and Lanta With 102 properties already in operation Thip House by Swiss-Belhotel. The allure of these exotic locations seamlessly aligns with the brand’s diverse portfolio, offering This rapid expansion is a testament to our unwavering experiences for a wide spectrum of travellers dedication to building strong partnerships with our owners seeking unique getaways.

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and expanding our presence globally

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EDUCATION BUSINESS 2023

The University of Manchester East Asia Centre honoured for contribution to higher education

Its East Asia Centre is transforming education and addressing pressing global challenges, earning recognition in the awards programme’s Education category.

The University of Manchester East Asia Campus

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he University of Manchester East Asia Centre has won the HKB International Business Awards in the Education category for its East Asia Centre.

The campus presents a fantastic opportunity for students in the region to receive a world-class education, offering a nurturing academic environment that empowers students to become future leaders and change-makers actively contributing to sustainable development.

At the heart of the East Asia Campus is the Global MBA programme, which leads the market by addressing essential ESG-related topics, reflecting the campus’s dedication to tackling contemporary business challenges.

Driving Positive Transformation Guided by the university’s high standards of academic excellence and a steadfast commitment to positive transformation, the East Asia Campus plays a crucial role in shaping the academic landscape in East Asia and beyond. It serves as a model for addressing pressing societal challenges and advocating for sustainable practices.

The campus demonstrates its commitment to social responsibility through various community initiatives designed to nurture the students’ innovative problemsolving abilities. These initiatives prepare the next generation of engineers and scientists who are poised to drive progress and innovation on a global scale.

Through its transformative approach

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The campus plays a crucial role in shaping the academic landscape in East Asia and beyond

to research, student initiatives, public engagement, and sustainable practices, the University of Manchester Worldwide Limited actively tackles societal challenges and promotes positive change.

Global Impact Leadership As an esteemed educational institution, the University of Manchester has consistently achieved remarkable heights. In the 2023 Times Higher Education University Impact Rankings (THE Impact Rankings 2023), the university secured the top position in the United Kingdom and Europe and an impressive second place globally.

This accomplishment underscores the

university’s steadfast dedication to sustainable development goals and its mission to create a positive global impact.

Furthermore, the University of Manchester’s leadership in social and environmental impact is further evident in its outstanding rankings in THE Impact Rankings 2023.

It proudly holds the number one spot in the UK and Europe and a strong second place globally. This recognition solidifies the institution’s unwavering commitment to sustainable development goals and its determined efforts to drive positive change worldwide.

The campus proudly holds the number one spot in the UK and Europe and a strong second place globally

HONG KONG BUSINESS | Q1 2024

65

BIG DATA – BANKING ANALYTICS – BANKING

2023

The Bank of East Asia’s innovations take home two awards at HKB Technology Excellence Awards BEA has been recognised with the Big Data – Banking and Analytics – Banking awards at the HKB Technology Excellence Awards for MetaBase, and Intelligence-Led Financial Crime Prevention.

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he Bank of East Asia, Limited (BEA) is a leading Hong Kong-based financial services group that operates throughout Greater China and beyond. Customercentricity is one of BEA’s core values, and it aims to provide innovative cutting-edge financial products and services that meet the evolving needs of its customers. Coupled with a rich heritage and a relentless pursuit of excellence, BEA stands as a trusted partner in the ever-evolving landscape of modern banking.

MetaBase – the Next Generation Data Platform MetaBase is one of the initiatives that showcases how BEA revolutionises traditional data handling with emerging technologies.

The traditional legacy technology framework easily led to data silos and inconsistent data qualities; limited processing capacity and tooling also hindered analytics capability.

These issues used to be hurdles for the Bank to implement data or AI-driven, customercentric strategies in an effective and timely manner. The creation of MetaBase offers a solution by integrating internal and external data sources and leveraging the core cloudbased analytic toolkits. It enables every function in the Bank to gather holistic insights, gain an in-depth understanding of customers’ needs, and deliver products and services that exceed their expectations. With barrier-free data access and increased data knowledge, data silos were eliminated, ensuring over 95% of critical data quality and generating full-time equivalent savings. It is a transformative platform that centralises the Bank’s vast data assets and is equipped with a suite of toolkits for both self-serving and in-depth analysis.

Beyond a Platform MetaBase goes beyond an infrastructural change. It embodies BEA’s visionary outlook on the future of banking – supporting customers at every stage of their lives with a comprehensive range of banking products and services. It differentiates BEA from its competitors through a fresh approach, transforming data-driven and AI-powered analytics as well as decision-making for product innovations, customer experience management, and risk management.

MetaBase also sets a new standard for

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The Bank of East Asia at the HKB Technology Excellence Awards 2023

employee empowerment and engagement.

By providing self-serving and user-friendly analytic tools, employees are equipped with resources to enhance productivity, job satisfaction and efficiency. They are empowered to use AI to incorporate realtime and predictive data analysis, as well as machine learning algorithms for informed decision-making, streamlined processes, and improved customer outcomes. Most importantly, MetaBase enables BEA to better understand and serve customers, who are the first to see the positive impacts of personalised products and services.

Comprehensive Approach to Fraud Detection In an era where financial crime is evolving at an unprecedented pace, an innovative and proactive solution is imperative for protecting financial institutions from exploitation and preventing customers from falling victim to fraud. Intelligence-Led Financial Crime Prevention has revolutionised the way the Bank implements these objectives.

What is Intelligence-Led Financial Crime Prevention?

Intelligence-Led Financial Crime Prevention is a dynamic and data-driven approach that harnesses advanced analytics and valuable

intelligence to combat the heightened threat of financial crime risk. It differs from traditional rule-based systems by proactively detecting patterns and anomalies, rather than merely reacting to known fraud scenarios.

Achievements and Impact The achievements of Intelligence-Led Financial Crime Prevention is remarkable. By staying ahead of fraudsters, this approach has successfully prevented a multitude of scams, protecting victims and saving millions in financial losses. Its adoption not only ensured the safety of customer assets but also prevented fraudsters from abusing the use of financial technology.

The data-centric design makes Intelligence-Led Financial Crime Prevention highly flexible and scalable to adapt to the changes swiftly. It enables the Bank to further explore the inclusion of more data and apply enhanced measures to detect, deter and disrupt financial crime.

On the way forward, BEA will continually explore emerging technologies to enhance not only data analytics or the platform, but the overall customer experience, operation, and culture of innovation.

Through a combination of customer-centricity, digitalisation, and a commitment to excellence, BEA is dedicated to being the trusted and preferred banking partner in Greater China and beyond

HONG KONG BUSINESS | Q1 2024

67

BLOCKCHAIN - TECHNOLOGY

2023

Supercharging brand value through User-Generated Content in The Sandbox Its growing ecosystem empowers creativity, collaboration, and the metaverse’s thriving future.

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etaverse’s growth remained relentless as renowned brands like Gucci, Lacoste, and Paris Hilton further solidified their presence in The Sandbox.

Simultaneously, emerging interest groups found their place, forming communities around music (Infinite Pulse) and cinema (Cinerama).

Infinite Pulse, with 18 artists and labels including Jamiroquai, Warner Music Group, and Elvis Presley, offered users thrilling interactive experiences.

Cinerama introduced a LAND sale, enabling film enthusiasts to bring their ideas to life, with the backing of industry giants like Lionsgate, Skydance, and The Walking Dead.

Why the scramble for a spot on The Sandbox map? As modern society nears saturation in connectivity, brands seek alternative ways to engage the next generation. McDonald’s (Hong Kong) established a virtual store and metaverse experience in The Sandbox, drawing 90,000+ visitors with an impressive 38-minute average playtime. This far surpasses traditional media, sparking interest in Web3.0 for business goals.

The Sandbox’s Partner Diversity The Sandbox’s versatile platform attracts a diverse array of partners. Even the US heavy metal band Avenged Sevenfold engaged their fans through a game jam competition, allowing fans to publish games on the band’s virtual LAND and share in a US$15,000 prize pool in SAND tokens.

With over 125,000 LAND parcels sold (representing 75% of the map), The Sandbox boasts a diverse community of over 24,000 LAND owners. In 2023, it launched nineteen avatar collections and bridged over 50 collections from popular NFT projects, establishing itself as a metaverse leader.

Sebastien Borget, COO and Co-Founder of The Sandbox, said, “We are celebrating creativity in all its diverse forms in the metaverse, inspiring creators with our roadmap of product updates - all growing

step in unleashing game producers’ creative potential.

The latest Game Maker version (0.9) enhances the platform with new gameplay mechanics, templates, and social interactions, simplifying content production and offering more engaging functionality to players.

together as their creations define the exciting future of social interactions with avatars and entertainment, music, fashion, sports, gaming, culture, and media.”

UGC: Metaverse’s Creative Catalyst In today’s evolving virtual landscape, User Generated Content (UGC) takes centre stage, much like YouTube, TikTok, Fortnite, and Roblox disrupted their respective industries. The Sandbox elevates this trend by introducing online tools empowering brands and creators to pioneer a new form of entertainment, allowing users to truly own their digital assets and enhance their online experience.

In recognition of the metaverse’s rapid growth in Asia, The Sandbox chose Hong Kong for its first Global Creators Day event. They unveiled plans to empower creators and reach 2,000 user-generated experiences on its map in 2024. With over 200 creator studios, a pipeline of 200 experiences in production, 130,000 creators, and 24,000 LAND owners, The Sandbox is determined to expand its ecosystem.

The key to achieving this lies in focusing on User Generated Content (UGC). An upload tool was recently introduced, enabling users to promptly publish their experiences on The Sandbox Map, a pivotal

Empowering Creators in Web3 To bolster the creative ecosystem, The Sandbox announced a 100 million SAND Game Maker Fund, building on previous success in supporting over 200 projects with US$10m. This DAO-based selection system rewards community engagement and content creation.

“Web3 puts creators first by enabling a new kind of control, provenance, incentive, and royalty structure. Whether you make music, games, art, fashion, architecture, or any other content, The Sandbox is an easy-to-learn and empowering creative platform that allows creators to take advantage of a new system of control, ownership, and revenue for their content,” said Arthur Madrid, CEO and CoFounder of The Sandbox.

With over five million registered wallets, 800 global partners, and a remarkable 20% year-on-year increase in playtime per user, The Sandbox aims to onboard the next billion users into a metaverse accessible to all. The impending mobile version launch in 2024 positions The Sandbox to drive mass adoption and democratise access to the open metaverse, ushering individuals of all backgrounds into this dynamic digital frontier.

The Sandbox is an easy-to-learn creative platform that allows creators to take advantage of a new system of control, ownership, and revenue for their content 68

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69

AUTOMATION - LOGISTICS

2023

Rhenus Warehousing Solutions HK sets benchmark with robotics, transforming logistics landscape With the launch of the Rhenus Innovation Hub in Hong Kong and collaborations with Geek+ and the Hong Kong Productivity Council, the company has successfully deployed state-of-the-art solutions.

Dennis Mak, Director, Warehousing Solutions & Distribution - Greater China Rhenus Logistics

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henus Group is a leading global logistics service provider with an annual turnover of EUR 8.6b ($73.28b). With 39,000 professionals spread across 1,120 locations worldwide, the company offers comprehensive supply chain solutions that cover transportation, warehousing, customs clearance, and value-added services. As a family-owned business, Rhenus prioritises the needs of its customers above all else and continuously strives for innovation. This commitment to excellence has solidified its reputation as a leader in the industry.

Rhenus Warehousing Solutions HK has been actively pursuing digitalisation and innovation in the logistics industry. In 2021, the company launched the Rhenus Innovation Hub (RIH) in Hong Kong as a platform for incubating innovative ideas. With the strategic partnership with Geek+ (a leading global provider of advanced robotics and artificial intelligence solutions), Rhenus Warehousing Solutions HK has successfully deployed the first AMR project, the GTP Solution with Geek+ P800 robots in Greater China.

Efficiency boost and precision enhancement Building on the partnership with Geek+, Rhenus Warehousing Solutions HK continued their digitalisation journey with a trilateral cooperation with the Hong Kong Productivity Council (HKPC) in 2022. They brought out another smart warehouse solution project in RIH, a Goods-to-Person RobotShuttle (GRS)

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solution. Distinct from the first GTP project, GRS is a “Tote-to-person” picking solution.

Completed in May 2023, the project went live in mid-June and can support both B2B and B2C businesses, mainly serving Rhenus Warehousing Solutions HK’s existing fashion and cosmetics customers in Hong Kong.

The GRS project made Rhenus Warehousing Solutions HK the first warehouse in Hong Kong to deploy three different models of picking robots (Geek+ P800, RS5-DA & P40). The AMR solution eliminated the time and effort of Rhenus’ warehouse operators travelling between inventory sites and locations. It aimed to boost efficiency by 300%, whilst the Putto-Light system improved order accuracy and efficiency by using lights to guide warehouse operators to specific bin locations for picking and packing inventory, thereby reducing errors and minimising rework. The project was not only a new operational solution but also another showcase of RIH.

RHENUS WAREHOUSING SOLUTIONS HK CONSISTENTLY STRIVES TO BUILD UP COMPETENCIES TO BECOME MORE COMPETITIVE, CATCH UP WITH THE LATEST TECHNOLOGY TRENDS, AND SEIZE PROGRESSIVE OPPORTUNITIES Flexibility and competency in a dynamic landscape: In 2023, the same GTP solution with Geek+ P800 was implemented at Rhenus Logistics AG Switzerland. This was an example of how vision, insights, and innovative technology transition smoothly from the Rhenus Innovation Hub in Hong Kong to different locations worldwide and serves as an illustration showcasing how innovation can benefit and influence the worldwide operations of a company.

On the other hand, the company has connected with the community by collaborating with local universities and government departments. Multiple government departments have visited and explored Rhenus’ smart warehouse in Hong Kong. In June 2023, Rhenus Warehousing

Solutions HK launched its Summer Internship Programme in collaboration with the Hong Kong Polytechnic University and the Hong Kong Metropolitan University. This initiative aims to create shared value and have a positive impact through the RIH platform.

For this project, the company was given the Automation – Logistics award in the recently concluded Hong Kong Business Technology Excellence Awards. Now in its fourth-year run, the awards programme recognises outstanding companies that have made exceptional contributions in the pursuit of technological innovation.

In today’s rapidly evolving and dynamic business environment, maintaining a competitive edge and flexibility are paramount. As one of the key players in the logistics industry, Rhenus Warehousing Solutions HK consistently strives to build up competencies to become more competitive, catch up with the latest technology trends, and seize progressive opportunities. The partnership between Rhenus Warehousing Solutions HK, HKPC, and Geek+ is a collaborative effort to drive digitalisation and innovative solutions. By investing in modular and scalable systems, as well as adopting cutting-edge solutions and technology, Rhenus Warehousing Solutions HK is equipped to respond to evolving customer demands and industry trends, ensuring its sustained leadership as a 3PL service provider through innovation.

This approach also affords the flexibility to tailor both software and hardware solutions to address specific customer requirements and seamlessly expand operations when necessary.

Combined photo of AMR & GRS

Supercharging the power of data with Tecsa’s OneViu retail analytics platform Retail analytics delivers incredible insights to increase sales, reduce costs and create amazing customers experiences, but only if you can navigate your data.

In today’s digital age, many retailers feel like they are drowning in data and clutching for insights. As consumers interact with brands and retailers through numerous touchpoints, the amount of data collected by medium to large size businesses is immense.

Much of this data could provide valuable insights about products, online and in-store sales, inventory and customer behaviour and preferences, but it’s often scattered across platforms and locations and never fully utilised.

The Tecsa Group helps organisations conquer this overwhelming sea of data. By transforming the way businesses access and use data, Tecsa’s OneViu platform helps retailers gather diverse information from a vast number of sources and analyse millions of transactions in real-time.

“OneViu is a decision intelligence platform that empowers retail-decision makers with direct access to data and in-depth insights, presenting a “single source of truth” so anyone in an organisation can get actionable insights and make faster, better and more profitable decisions,” says Tony Buffin, Chairman, The Tecsa Group. “By harnessing data effectively, OneViu also enables retailers to deliver personalised engaging customer experiences and boost operational performance.”

Pan-Asian success story

Earlier this year Tecsa successfully piloted OneViu in collaboration with DFI Retail Group, whose 10,700 stores across Asia include well-known brands such as Wellcome and Mannings in Hong Kong, and Giant, Cold Storage and Guardian in Singapore. Tecsa has a long-term partnership with the group, having designed and launched yuu, Hong Kong’s most popular rewards program with 4.6 million members.

Despite its extensive regional footprint, DFI had no unified method of analysing retail data. Like so many retailers it was capturing huge amounts of data across its businesses, but it was using several analytics solutions, each with their own proprietary tools and methodologies that slowed decision making.

Tecsa worked with DFI’s commercial teams to understand their needs and tailor the platform for their businesses and streamline and strengthen its analytics. The result is the bespoke OneViu platform that offers a 360-degree view of the retail landscape, making it easier to identify trends, understand consumer behaviour, and make fast data-driven decisions. Most importantly for DFI, the platform is putting its rich customer data at the heart of its retail strategies.

Supercharging the power of DFI’s data has already earned honours for Tecsa and DFI, with OneViu winning for Analytics – Retail in the Hong Kong Business Technology Excellence Awards 2023.

By analysing customer behaviours OneViu supports more personalised shopping experiences and identifies cross-selling and upselling opportunities. It also helps to anticipate and respond to changing customer needs by quickly recognising demand and identifying emerging trends. For example, DFI have used this capability across their brands to understand long-lasting consumer behavioral changes post-Covid.

OneViu’s cutting-edge data science and technology, provides users with answers to questions that would normally require significant analytical resources and time. After Tesca conducted training sessions, within a few hours DFI commercial team members were able to optimise their product assortments and improve merchandising strategies, and promotions.

”We recognise that embedding this new capability as a critical component within different DFI processes is as important as the technology itself,” adds Tim Duff, Tecsa’s Director of Retail Consulting.

The speed of adoption of OneViu continued to be strong, with over 10.8k reports run in the 10 months following its launch in February 2023.

“OneViu has been a true transformation for the DFI business. The platform has enabled us to leverage the vast data we have, in order to provide our customers with a better experience both in our stores and online, particularly when it comes to ranging and assortment,” says Danni Peirce, Chief Executive Officer 7-Eleven, DFI Retail Group.

Network of services and solutions

With a network of consultants worldwide combining global best practice with extensive local knowledge, Tecsa works with brands seeking to boost their in-house loyalty and analytics capabilities. It creates multi-partner loyalty programmes and ecosystems that expand opportunities for customer engagement.

Not only did Tecsa launch yuu, one of Asia’s most successful loyalty programs, the group also brought together some of Hong Kong’s leading brands in retail, financial services and dining as part of DFI’s “loyalty super app”. An estimated 70% of Hong Kong’s adult population uses the yuu app regularly. The concept was recently rolled out to Singapore where partners are seeing similar results.

“Over the past five years we have partnered with some of the world’s most successful consumer brands across a range of sectors including retail, fashion, QSR, financial services, travel and energy,” said Koos Berkhout, Co-Founder of Tecsa. “Across the world these loyalty programs and brand partnerships have impacted well over half a billion customers!”

Following this successful launch of OneViu, Tecsa is working with a number of companies from diverse sectors to explore the potential for the platform to unleash more opportunities to build better relationships and profitability through putting customer data at the heart of their digital and business transformation.

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High-Flyers 2024 Profiles of Hong Kong’s Outstanding Enterprises and Business Leaders

Archikris Design Group 74 | AXA HK & China 76 | AXA HK & China 78 Fidelity International 80 | Hang Seng Bank 82 | Hastens Store HK 84 | Hyatt Regency HK 86 Mayer & Associes 88 | Paragon Trading Asia Ltd 90 | Prime Credit Ltd 92 | Rafaello Investment 94 Rhenus Warehousing Solutions HK 96 | Rotary Club of Homantin Hill 98 | Soteria Trust 100 | Standard Chartered Bank 102

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ARCHIKRIS DESIGN GROUP

ARCHIKRIS HIGHLIGHTS IMPRESSIVE DESIGN AND CRAFTSMANSHIP

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amous for its magnificent craftsmanship and outstanding design intuition that highlights clients’ tastes, leading design firm Archikris Design continues to inspire industry players with its remarkable performance and strong portfolio. The prestigious firm also prides itself in close relationships it has established with returning clients and referrals, who make up most of its business.

In recent years, many interior design projects in Hong Kong have gotten complicated as they involve several parties during the planning and the execution. This is something that Archikris Design has already resolved through its one-stop service that includes designers, architects and contractors to deliver a streamlined process. From design brief to completion and handover, clients enjoy a minimum hassle, care-free service.

Winning the High Flyers Awards’ Interior Design category consecutively for 19 years now, Archikris Design has managed to provide clients with a wide range of luxurious residential and commercial projects that are pinned on innovation and class.

The firm’s luxury residential and commercial projects ranges anywhere from 1,000 to 50,000 square feet, which includes exquisitely built individual houses in prestigious areas such as Middle Gap Road in The Peak, One Beacon Hill in Kowloon Tong district, as well as the prominent Bamboo Grove on Kennedy Road in Wan Chai.

Middle Gap Road is amongst the most expensive addresses in the world,

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with prices reaching HK$200,000 per square foot. It is where Hong Kong tycoons and C-suite executives of global conglomerates currently reside.

Whilst, the Bamboo Grove project is a large-scale rejuvenation project for the housing estate where the team refreshed and restored over 100 units for a grand total of approximately HK$50m.

This feat led to the Hong Kong SAR government inviting the design firm for a design project for their offices in Kowloon Bay. Archikris’ quality of work is also manifested through its Escada, Max Mara, Carlsberg, Leica, and the Hong Kong Institute of Bankers projects, where the firm was specifically appointed to design the interiors of the famous brands.

Delivering premium services Helmed by Nison Chan, Archikris’ recipes for success include integrity, punctuality, and budget control. These values guide the firm in ensuring quality design management and stakeholder communication.

“I believe that it is our commitment to trustworthiness, punctuality, quality craftsmanship and ability to stay within the budget that is the reason for our success,” Chan said.

Projects being undertaken by Archikris are always unique due to various factors such as the surroundings, budget, client needs, amongst others that ultimately complement the form and the function.

INTERIOR DESIGNER PHILOSOPHY

FAST FACTS

Quality and punctuality underpin the company’s ethos and premium service that every client is guaranteed.

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Archikris Design Group predominantly focuses on sizeable luxury residences with an average size of more than 2,000 square feet. Its work signifies the essence of opulence.

The practice adheres to its core values of integrity, punctuality and budgetary control which contribute to keeping its list of heavyweight clients coming back.

The Archikris team is straight with using high-quality materials from around the globe whilst maintaining price transparency.

This Page: ParknShop, Leica headquarters, Tsim Sha Tsui Star Gallery Karaoke Restaurant, Harbour Glory Opposite Page: Max Mara store

Amongst the most recent ventures of the company is a project in the resort town of Karuizawa, Japan.

An upmarket mountain resort at the foot of Mount Asama in Nagano Prefecture, Karuizawa is located at a lofty altitude of roughly 1000 metres.

It has been promoted as a mountain resort by Western residents of Japan since the late 1800s. With many urban elites owning a second home in the area today, Archikris made its mark in the area.

The spectacular hillside resort project utilises the natural sunlight from its floor-to-ceiling glass facade to showcase stunning artwork that sets a stark contrast to the teal-accented furniture. With panoramic views of the splendid natural mountains of Karuizawa, Archikris has also designated natural elements of leafy foliage in the design to create a seamless theme of nature on the premises.

In winning the High Flyers Awards, Chan and the team pledges to continue the best practices that ultimately defined the Archikris brand.

“We will continue our commitment to trustworthiness, punctuality, quality craftsmanship and budget consciousness to serve our existing and future clients,” he said.

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AXA HONG KONG & MACAU

AXA DRIVES TRANSFORMATION WITH EMPLOYEE LEARNING

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n today’s rapidly evolving business landscape, staying agile and embracing technology is vital for success. Leading insurance firm AXA Hong Kong & Macau excels in this regard, offering a wide range of insurance and wealth management solutions to over 1.65 million customers. Their commitment to innovation and customer-centricity has been instrumental in navigating the impact of technology on their operations.

Under the leadership of Data Science and Management Director Elaine Chan, AXA Hong Kong & Macau leverages data to drive performance improvements and enhance customer satisfaction.

“Learning new data tools and tech keeps me fresh and growing. It’s like having a compass that guides my curiosity and helps me navigate a constantly changing world,” said Elaine.

technical glamour but by the value it brings to customers and the business.

AXA’s focus on data science and its application to digital transformation has streamlined internal processes and increased efficiency.

Through advanced technologies like automation and machine learning, AXA has automated repetitive tasks, streamlined workflows, and freed up time for employees to focus on other tasks. The company’s approach to digital transformation ensures inclusivity and accessibility, with investment in colleague training to enhance digital literacy, empowering them to actively contribute to the transformation process.

Upholding these values and possessing strong technological adoption skills led Chan and the Center of Excellence Team to launch AXA Hong Kong Data Academy in 2022, initiating a data culture campaign aimed at empowerment and data science education.

The “why” of data science work Before joining AXA, Chan observed that companies were either pioneers in data science or held significant market share, not both. However, her tenure at AXA allowed her to initiate innovative projects recognised with prestigious awards. Over the past year, the company has extended its data and technology adoption across the organisation, emphasising user understanding for maximum business impact.

Chan emphasises that the success of data science isn’t defined by

Enabling self-service data capability AXA Hong Kong Data Academy’s primary goal is to foster a data-driven culture and promote cloud adoption within the company. Colleagues participate in learning programs, including on-site tutorial sessions, and have the opportunity to take the Microsoft Power BI Data Analyst certification exam with AXA Group’s support.

The Academy features five learning programs, including selected LinkedIn Learning courses on Power BI and SQL, totalling approximately

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BIG DATA - INSURANCE PHILOSOPHY

FAST FACTS

We are moving forward every day, guided by our four core values: Customer First, Integrity, Courage and One AXA

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The general satisfaction score with AXA Data Academy was 8.89 out of 10, achieving encouraging results.

Around 90% of the participants would recommend AXA Data Academy to their friends/ colleagues Over 300 minutes of training that we had organised in AXA Data Academy for every participant

This page: AXA Hong Kong & Macau Team AXA Hong Kong Got Dashboard Talent event Opposite page: Elaine Chan, Data Science and Management Director, AXA Hong Kong & Macau

300 minutes of training. AXA Hong Kong currently boasts around 400 Power BI users. On-site tutorial sessions focus on utilising Customer 360 DataMart (C360) and Power BI, enabling colleagues to derive actionable insights from data for better decision-making and business growth.

In addition to training, AXA organised the AXA Hong Kong Got Dashboard Talent event, allowing colleagues to showcase their creativity and data visualisation skills using Power BI dashboards. Data enthusiasts from various departments shared their work.

AXA Hong Kong Data Academy, with approximately 400 colleagues as members, has garnered positive feedback and recognition from participants, boasting an average satisfaction score of 8.89 out of 10. Key performance indicators, such as increased data queries, DataMart users, and the acquisition of 200 new Power BI licenses, underscore the Academy’s impact.

Chan’s team has earned recognition for its contributions to digital transformation and future skills development through data science and artificial intelligence.

Looking ahead, AXA Hong Kong aims to strengthen data networking within the organisation by establishing Data Champions and a Data Community in 2023. These Data Champions from various business teams will facilitate knowledge transfer and provide valuable support.

The company recognises that equipping employees with essential data skills and fostering a learning environment prepares them to navigate the challenges and opportunities of the digital age.

A look into the future In the future, AXA Hong Kong & Macau believes that companies need to redefine how they leverage technology while collaborating with humans constructively. They emphasise a human-centred approach to technology to deliver value to customers and the organisation.

Their dedication to data science and digital transformation has earned them recognition, including the Big Data - Insurance category win at the prestigious High Flyers Awards presented by Hong Kong Business magazine. The award acknowledges the team’s hard work, dedication, and innovation in driving digital transformation.

Chan is thrilled and honoured to receive the award, viewing it as validation of their efforts and motivation to continue pushing boundaries. In the rapidly evolving business environment, AXA remains committed to innovation, especially in data-driven capabilities, emerging technologies like artificial intelligence and machine learning, and digital offerings to deliver a seamless and personalised customer experience.

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AXA HONG KONG & MACAU

LEGACY MODERNISATION IS THE FUTURE OF INSURANCE

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nsurance companies are faced with a collective challenge of legacy systems. Whilst it is difficult to let go and replace these systems amidst such a rapid pace in the market, the need to modernise solutions and embrace digital transformation has become imperative for most.

Modernisation is critical not only to the future growth of the company itself but also the entire industry.

Research from management consulting firm Gartner revealed that 74% of cost savings found in hardware, software, and staff are through application modernisation. It also showed that roughly one-third of insurers see their core systems as a high risk for their enterprise. As such, the transformation roadmaps of insurance companies should be powered by strategy and technology.

Leading insurance company AXA Hong Kong is in the process of modernising its legacy IT infrastructure to ensure full compatibility with the latest technologies such as web3 and AI. By embracing these advancements, the company aims to enhance its service offerings to clients while also harnessing the potential advantages related to ESG (Environmental, Social, and Governance) considerations. This proactive approach not only minimises the risk of system downtime but also positions AXA Hong Kong as a forward-thinking organisation committed to

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innovation and responsible business practices.

The firm currently has around 2,000 staff and 7,000 agents serving over 1.55 million clients in Hong Kong and Macau for more than 30 years.

Whilst reliance on agents in generating new business and maintaining relationships with clients is nothing new, inexperience and the lack of digital support limits their speed of growth and learning.

At the same time, 74% of as-is IT infrastructure and applications of AXA Hong Kong follows the AXA group direction, and move out servers/applications out of regional environments. Thus, a step out from AXA Group and transfer of the ownership back to AXA Hong Kong IT is highly required.

Primarily, the transformation strategy of the firm will include combining data from all lines of business, providing an integrated data view for customers, agencies, and partners, revealing the power of data on serving customers with a single view and enabling all the business units to provide better sales and servicing.

A look into AXA’s legacy modernisation With a well-defined microservice-driven framework, AXA Hong Kong has established rigid incremental processes that follow the key business triggers

CLOUD -INSURANCE PHILOSOPHY

FAST FACTS

Our purpose is to act for human progress by protecting what matters. All employees in our organisation share the same goal of being a lifetime partner of our customers by providing humanised services and solutions to them.

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AXA Hong Kong and Macau is a member of the AXA Group, a leading global insurer with presence in 50 markets and serving 95 million customers worldwide.

Our goal is to be the insurance and holistic wellness partner to the individuals, businesses and community we serve.

At the core of our service commitment is continuous product innovation and customer experience enrichment, which is achieved through actively listening to our customers and leveraging technology and digital transformation.

This Page: AXA Hong Kong & Macau office Opposite Page: Gary Ho, Chief Technology Officer, AXA Hong Kong and Macau

in different stages and strive for successful legacy modernisation with minimal business disruption.

The first part of the process is on the surface, where systems are going to be simplified by building a transversal engagement layer for customers, agents, brokers, or partners to have access to some of the available data or services in a digital and consistent manner.

Next, the process is going to involve replacing some applications supporting part of the core business value chain like claims management or policy administration. It is then going to group common functions and replace part of a core business domain in value proposition management, pricing and underwriting.

Lastly, the roadmap is going to replace all legacy core business applications for a specific line of business. This involves transformation programmes with complex migrations and integration with the existing and surrounding applications.

In view of the need of modernisation transformation, AXA Hong Kong’s modernisation roadmap ultimately replaces core systems with packaged applications by reducing technical complexity via system consolidation and business process automation.

Aside from this, the firm’s IT team works closely with the business teams to ensure all business requirements are clearly documented, prioritised and delivered. This is done through change management, business process reengineering and workshops, and agile and scrum initiatives.

AXA Hong Kong’s legacy modernisation roadmap has been successful in ensuring business continuity and in enabling future

modernisation initiatives. Such a strategy has been applied to the firm’s Life Producer agent experience – its migration from Legacy Server to ACE Portal for IT system modernisation.

Through the project, the firm has strengthened and transformed the B2B2C Distributed Platform via API capabilities, resulting in surging policy sales and revenues. It has also revamped legacy components, and supported quick-to-market product launch and online sales journey.

AXA Hong Kong has also been able to apply this technology to its AXA Hong Kong HR application. It is a cloud-native mobile application that consolidates and furthers the Employee HR journey, improving employee experience through digitalised engagement, in alignment with the firm’s values and group direction. Moreover, the platform offers an appreciation wall for colleagues to send messages of recognition, a point reward system to earn and redeem rewards, and a manager wallet for managers to allocate points. By praising others via commenting, one can get points to redeem coupons from HR partners.

With this modernisation project, AXA Hong Kong has seen a 2-point increase in net promoter score, indicating the employees’ satisfaction with the working environment. Internal assessments have also shown that employees are 3% more satisfied in digital experience and that they embrace the firm’s working culture by 3% more.

The company’s successful digital transformation initiative has become successful and has delivered long-term business value for its stakeholders.

Now, it is currently embarking into the insurance industry cloud by offering insurance-as-a-service capabilities.

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FIDELITY INTERNATIONAL

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AT THE FOREFRONT OF INNOVATION AND CLIENT CENTRICITY

he rapid changes in the market have heightened the demand for digital transformation. It has propelled renowned asset management firm Fidelity International to continue innovate to better serve their clients, and give them the power to achieve greater financial health throughout every stage of their lives.

With over 50 years of global investment management expertise, Fidelity International is one of the largest asset management firms in Hong Kong managing retirement assets, serving both Mandatory Provident Fund (MPF) and Occupational Retirement Schemes Ordinance (ORSO) schemes.

Combining its investment management prowess with personal investing and retirement savings platforms, Fidelity aims to collaboratively build better financial futures with its clients.

Active in Hong Kong since 1981, the company employs over 470 professionals in its Hong Kong office which caters to retail, institutional, and wholesale clients, offering a comprehensive suite of services, including MPF, ORSO schemes, and personal investing solutions covering a comprehensive range of mutual funds.

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clients, emphasising long-term investing as a key component. As a family and management-owned company, Fidelity takes a generational approach to its services and investments on behalf of clients.

Recognising the importance of keeping pace with evolving client needs, Fidelity invests in upgrading its digital capabilities, services, portals, and touchpoints to facilitate convenient account & portfolio management, retirement planning, and wealth accumulation for its clients. The company offers various interaction channels, including digital, call center, and inperson meetings, ensuring clients’ diverse preferences are met. Besides, Fidelity also continues to widen the investment options available for clients.

In August 2023, Fidelity expanded its fund range by introducing two equity funds to its MPF scheme, providing members with diversified investment opportunities whilst mitigating market volatility.

Sustainability is at the core of Fidelity’s identity as a responsible asset manager. The company integrates ESG (Environmental, Social, and Governance) principles into its investment strategies and actively engages with companies to promote sustainability goals. With clients focusing on transparency and positive change, Fidelity has bolstered its capacity in sustainable investing, growing its team to over 30 professionals stationed across Asia and Europe.

FINANCIAL SERVICES PHILOSOPHY

FAST FACTS

By combining leading investment management capabilities, with personal investing and retirement savings platforms, we are working together to build better financial futures.

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More than 50 years of global investment management experience, with our services reaching customers in over 28 locations worldwide.

Active in Hong Kong since 1981, offering retail, institutional and wholesale clients a wide range of products and services, including MPF and ORSO schemes, personal investing and mutual funds.

One of the largest retirement asset management firms in Hong Kong, servicing Hong Kong working populations with both MPF and ORSO schemes.

Fidelity has been named House of the Year - ESG from Asian Private Banker for three consecutive years and Fidelity MPF Scheme has also won the ‘’Gold Rated Scheme’’ for eleven consecutive years from the MPF Ratings.

Opposite page: Charlotte Chan, Head of Workplace and Personal Investing, Hong Kong at Fidelity International • Fidelity Pension Event - Themed under ‘Staying ahead of global workplace trends’, where Charlotte presented global thought leadership insights together with guest speakers to share best-in-class industry practices on how to maintain a robust talent pipeline while embracing financial wellness • Fidelity MPF Market Outlook Q4 2023 Webinar - Offered members with global market trends and latest update to help strategise their investment portfolios • Fidelity SmartRetire Mobile App upgraded to 4.0+ version to serve both pension and personal investing clients • Fidelity wins ‘Mobile - Financial Services’ and ‘Cloud - Financial Services’ categories at the Hong Kong Business Technology Excellence Awards

Innovate to delight clients with a seamless experience Fidelity is committed to placing customer satisfaction at the heart of everything it does and has taken significant strides to strengthen client engagement through digital innovation. One of its goals is to provide a seamless client experience in its mobile app, especially for clients managing both pension and personal investing accounts.

The Fidelity SmartRetire mobile app, initially designed for pension clients, has evolved into a comprehensive financial management hub for both pension and personal investing clients. Offering userfriendly features such as viewing fund holdings, transaction history, and e-statements, the app facilitates easy and convenient access to their investments. Moreover, it extends beyond transactions to enable clients to receive and manage their rewards, read about latest investment insights, open additional accounts at Fidelity, and review their investment portfolio anytime, anywhere.

Fidelity has actively promoted the SmartRetire app to increase digital

take-up and usage through online campaigns, digital advertising, informative videos, and members’ communication channels. Its achievements were also recognised by the Hong Kong Business Technology Excellence Awards 2023. “Our vision is to build better financial futures for our clients. We are committed to supporting people to achieve and stay in great financial health throughout every stage of their lives,” Charlotte added.

Fidelity’s dedication to digital innovation, sustainability, and exceptional services has earned it accolades, including the Financial Services category award at the High Flyers Awards. “We are honoured to receive the High Flyers Awards from Hong Kong Business for four consecutive years. It is a continuous recognition of our efforts in serving our clients. We will continue to provide the best services and support to our clients along their different life stages. With the eMPF Platform underway, we will work closely with our Trustee and the eMPF Platform Company to ensure a smooth transition for our members,” Charlotte said.

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HANG SENG BANK

HOW HANG SENG BANK EMBODIES CUSTOMER CENTRIC SERVICE DELIVERY

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ang Seng Bank has established itself as a key player in Hong Kong’s banking landscape, with customer-centricity as its hallmark. As a leading entity in the Greater Bay Area (GBA), Hang Seng Bank Global Banking has consistently translated this customer-first philosophy into action, delivering premier advisory services and a superior customer experience.

The Bank’s leadership and innovative approach have been recognised within the financial community. Hang Seng Bank was awarded the High Flyers Awards by Hong Kong Business, marking it as one of the most successful companies in Hong Kong, specifically in the Global Banking category.

Innovation Since 1933 Since its founding in 1933, Hang Seng has been at the forefront of innovation, offering best-in-class banking, investment, and wealth management services that centre around the client’s needs. It is the largest local bank in Hong Kong, serving a considerable customer base of over 3.9 million. The Bank provides a broad range of Global Banking 82

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products and services, including a diverse array of RMB services.

In the past year, Hang Seng Bank Global Banking has continued to serve customers effectively. With a deep understanding of customer priorities and concerns, the Bank has concentrated on assessing and delivering tailored banking solutions. Services are offered through a multitude of channels, including API, digital, mobile, and automated channels, as well as through dedicated Business Banking Centres. The Bank has devised comprehensive global payments solutions for Global Banking customers across various industries, addressing the specific needs of sectors such as real estate, hotel and hospitality, retail, nonbank financial institutions, securities, and insurance.

Hang Seng Bank has introduced Magic DICE, a unique payment and collections solution tailored to e-commerce clients. This cash management system encompasses digital offerings, virtual account services, and commercial card solutions, all designed to improve cash flow management for clients and their payment processes. By employing a subscription-based pricing model, the Bank aims to enhance the operational efficiency of e-commerce merchants while

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With a market capitalisation of about HKD248.2 billion at 31 December 2022, Hang Seng Bank is one of Hong Kong’s largest listed companies. The corresponding figure was HKD1.7 billion on 13 June 1972 when the Bank was first listed.

The Bank reported a profit attributable to shareholders of HKD10,165 million in 2022, compared with HKD54.7 million in 1972.

Hang Seng’s cost efficiency ratio for 2022 was 43.5% – among the lowest in the banking world.

This page: Hang Seng Headquarters Opposite page: Rose Cho, Head of Global Banking at Hang Seng Bank

streamlining banking transaction costs.

The Bank excels in cross-boundary transactions, highlighting the effectiveness of its collaborative approach. Teams from the mainland and Hong Kong work in unison to support customers across the GBA, whether they are expanding southbound or northbound. The pioneering commercial banking e-Sign service for mainland customers, is a first for a Hong Kong bank, with remote account opening service to Hong Kong companies with mainland shareholders.

Hang Seng Bank supports the all-rounded adoption of FinTech, such as the development of the central bank digital currency (CBDC), aligning with the Hong Kong Monetary Authority (HKMA)’s “Fintech 2025” strategy. As the leading advocate of CBDC, Hang Seng was the only bank to have three use cases under the e-HKD Pilot Programme led by the HKMA. By conducting real-life simulations, the Bank

explored providing fast, seamless and customised programmable payment experiences in merchant reward programme, government subsidy disbursement and peer-to-peer transfer, thereby offering valuable insights into the potential readiness of e-HKD in Hong Kong.

Celebrating Excellence in Banking Hang Seng Bank’s success is predicated on a strong customer-centric approach, ensuring that it meets the requirements and addresses the specific needs of each client. The Bank’s expertise and advisory services are geared toward achieving high levels of customer satisfaction and aiding sustainable growth alongside its customers.

The High Flyer Awards highlight the exceptional efforts of companies within Hong Kong’s Global Banking sector, and Hang Seng Bank is proud to be among those recognised for driving collaboration, investment, and regional development.

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HASTENS STORE HK

HIGHLIGHTING A PREMIUM BEDDING BRAND FOR HONG KONG

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ong Kong’s top spending customers deserve a choice of a premium brand for bedding in their shopping list like any other market.

This is the value that furniture company Hastens puts on its customers. With 170 years of experience in manufacturing, the brand has committed to bringing customers the best quality of deep sleep and good health it can provide.

In recent years, it has established over 30 brand stores in Asia, including Hong Kong. This has been well-received by customers due to its inherited craftsmanship by all-natural materials such as horse tail hair, wool, cotton, and flax which have zero damage to the human body. Whilst its Hong Kong branch became absent eight years ago, it has reopened with a much firmer brand value.

Unique Experiential Bed Testing Hastens Hong Kong does not position itself as a furniture store, but a fashion luxury lifestyle store. It is operated and run by experienced team members, with mattress experts and marketing experts leading the team. Besides the sales and marketing team, it also has customer services, logistics, installation and maintenance teams for pre- and after-sales service.

Currently, the branch has introduced eight premium models of continental beds, with each bed including a bottom base box spring, 84

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mattress, topper and the option of a headboard. These eight models are: Adjustable, Maranga, Eala, Herlewing, 2000T, Dremer, Vividus and Grand Vividus.

Each model has a different size and firmness for customers to bespoke for their personal needs. It can even be tailor-made to two firmness in one mattress with different tensions on the left- and right-hand side.

Meanwhile, the store has designed a unique experiential journey under the consideration of customer’s privacy and intimate feeling.

It has a bed testing programme that is similar to a five-course fine dining menu in restaurants.

This programme provides a comprehensive relaxation experience with comfortable amenities, allowing customers to enjoy an uninterrupted one-hour break. This is refined from time to time to align with clients’ expectations. This product differentiation, through sharing experiences, is what sets the brand apart from other manufacturers. Achieving big success in the market with the reopening of the Hong Kong store in Landmark Atrium means much for the company in terms of brand building and a complete supply chain in the development of the Greater Bay Area.

“All Hastens beds are bespoke to customer’s requirements. Therefore, the trial experience is very important during the selection process,” according to the company.

LUXURIOUS BEDDING PHILOSOPHY

FAST FACTS

Hästens makes beds that will change your life, and alter the way you think about sleep.

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Hastens (Hast is Swedish for horse) history is the backbone of the company. The brand was founded in 1852, is Sweden’s oldest manufacturer of beds and began by primarily making saddles.

The saddle makers of Hastens initially manufactured beds only on demand, which over the time bedding had become the main business of the company.

In late 1980’s, Jan Ryde, the present owner took over the reins at Hastens and thus become the fifth generation to run the privately owned family company.

- Hastens bed as the Purvey to the Royal Court of Sweden, has 25 years guarantee against spring and frame breakage.

Today, Hastens has brand stores all over the world, and Asia is the fast growing places for introducing good health from Hastens bed’s quality deep sleep.

Opposite page: Jackal Lo, Director, Hastens Store HK (left) , Andrew Wong, Director, Hastens Store Hong Kong (right) This page: Hasten’s Pillows and Mattresses, Jan’s Master Piece - Hastens 2000T cut-through box (last photo)

Visionary Leadership in Handcrafted Mattresses The successful business of Hastens in Hong Kong would not be possible without the visionary leadership and guidance of its directors Jackal Lo and Andrew Wong. Both of them have been working with various international mattress brands in the past years and have become close partners in serving these well-known brands.

They have learned over the years how a handcrafted mattress is different from a machine-produced mattress, and the skills of how to serve the customers to select the correct mattress for their needs. Needless to say, Lo and Wong have found the Hastens bedding system to be the best quality product in the world.

“There are not a lot of well-known beds in the global market which [are] handcrafted with natural materials. We are unique amongst all our competitors because of our long history and legacy,” the directors said.

Elevating Brand Value Being well supported by its parent company in Sweden, Hastens Hong Kong continues to strengthen its global strategy, brand attributes, and brand value. This is evidenced by the training programme its Sweden

brand principal is conducting for the Hong Kong staff to learn about the brand philosophy, the production that makes the difference, the customer servicing skill, and the after-sale maintenance technique.

The company today still continues to answer to demands in luxurious home living and lifestyle products amidst the substantial growth for such properties in recent years. Hastens is now going to focus on new product design and development to meet customers’ needs.

Its strong performance and renewed mission in delivering the premium choice of quality bedding to Hong Kong customers have been recognised by the Hong Kong Business magazine, as Hastens received the win in the Luxurious Bedding category at the High Flyers Awards, an annual accolade given to the region’s most successful companies for the year.

The esteemed awards programme attests to the excellence of top enterprises that offer innovative products and exceptional services.

Hastens remains successful in being a top luxurious bedding brand despite its existence dating back to 1852. “In Hong Kong, we admit that we will continue to have the same mission: to introduce the besthandcrafted bed to customers who believe good quality deep sleep will lead to good health,” the directors said.

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HYATT REGENCY HONG KONG, TSIM SHA TSUI

LOOKING INTO HYATT REGENCY TSIM SHA TSUI’S WORLD OF CARE

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he hospitality industry is gradually recovering from the pandemic’s impact, and as it does, it is redirecting its focus towards seizing new opportunities that have arisen amidst the crisis. Many establishments are harnessing technological innovations, reevaluating their offerings, and intensifying their communication efforts to rebuild client confidence.

In this year, one of the most pressing concerns in the industry is sustainability and how organisations dynamic practices to guide their businesses toward success and a sustainable future. Leading the way in this endeavour is Hyatt Regency Hong Kong, Tsim Sha Tsui, which is committed to implementing environmentally friendly practices and green initiatives to protect the planet and maintain environmental sustainability.

This commitment is a testament to their dedication to caring for the planet, people, and responsible business.

At the helm of this mission is General Manager Per Kredner, a seasoned Swedish hotelier with over 20 years of experience in the hospitality industry, having worked in various global locations, including Dubai, Muscat, Singapore, Shanghai, and Tokyo. His extensive expertise in hotel management led him to key positions at prestigious properties like Grand Hyatt Dubai, Grand Hyatt Singapore, and Park Hyatt Shanghai.

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Making it possible Kredner assumed the role of General Manager at Hyatt Regency Hong Kong, Tsim Sha Tsui, in August 2016, where his strategic leadership has played a pivotal role in the hotel’s success.

Reflecting on his position, Kredner expressed his excitement and humility, stating, “I am excited and humbled by the opportunity to work with such a talented team of associates who have contributed greatly to the hotel’s success since its opening. I look forward to continuing to build upon this strong foundation and to creating enduring experiences for our guests and employees alike.”

Recognising that different Hyatt hotels face unique environmental and operational challenges, Kredner and his team have implemented specific measures and projects tailored to enhance hotel performance and make a positive impact.

Care to the highest degree Hyatt Regency Hong Kong, Tsim Sha Tsui, strategically located in the bustling Tsim Sha Tsui business and tourist district with direct access to MTR stations, targets well-traveled, creative, and sophisticated leisure guests, offering authentic experiences to cater to their needs.

BEST CITY HOTEL PHILOSOPHY

FAST FACTS

Discover the perfect balance of comfort and convenience at Hyatt Regency Hong Kong, Tsim Sha Tsui

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The hotel uses Hyatt EcoTrack to track sustainability metrics including greenhouse gas emissions, energy, water, waste, and recycling.

Hyatt’s Food. Thoughtfully Sourced. Carefully Served. philosophy guides the hotel in how they select ingredients that are better for people, communities and the planet.

Situated in the heart of the business and tourism district in Tsim Sha Tsui, Hyatt Regency Hong Kong, Tsim Sha Tsui offers direct access to two MTR (Mass Transit Railway) stations, allowing guests to stay conveniently connected with the city.

This page: Hotel lobby (top left), Regency Suite (top right), Digital newspaper (bottom left), Herb Garden (bottom right) Opposite page: Per Kredner, General Manager, Hyatt Regency Hong Kong, Tsim Sha Tsui

The hotel uses Hyatt EcoTrack to track sustainability metrics, which tracks sustainability metrics such as greenhouse gas emissions, energy consumption, water usage, waste management, and recycling. This data collection provides crucial insights for improving efficiency and reducing environmental impact.

The hotel’s restaurants have also adopted sustainable menus, prioritising locally sourced ingredients and sustainable produce to support local businesses. Additionally, the hotel uses an onsite food waste digester to manage food waste more effectively, ensuring that no more food waste ends up in landfills. The implementation of Lumitics, a food waste tracker, further enhances waste management efforts.

In the realm of waste reduction and circularity, the hotel has phased out plastic takeaway packaging, opting for paper-based containers and fiber-based straws upon request. It has also replaced single-use small-bottle bathroom amenities with large-format bottles to reduce plastic waste. The hotel partners with nonprofit organisation SoapCycling to ensure proper recycling of used bottles.

To minimise physical waste, the hotel explores contactless cards instead of brochures and pamphlets, offering guests access to digital newspapers and magazines through partnerships with PressReader.

The hotel’s European Restaurant, Hugo’s, serves filtered still and sparkling water by Life Solutions in reusable glass bottle to reduce waste of single-use glass bottle. During Hyatt Global Wellbeing Week, the hotel

organises mental and physical activities, offers free Chinese medical consultations, hosts wellness bazaars, and provides free massages.

Daily wellbeing specials are available in the associate canteen.

Hyatt Regency Hong Kong, Tsim Sha Tsui, also actively participates in Pride Month celebrations, featuring vibrant installations and pride-inspired food and beverage offerings.

Inclusivity is embedded in its actions, policies, workplace environment, and culture.

The hotel’s dining outlets, Hugo’s and The Chinese Restaurant, support Zero Foodprint Asia, pledging 1% to assist farmers in transitioning to climate-friendly practices through the Restore with ZFPA program. This initiative catalyses efforts to enhance soil health and sequester atmospheric carbon.

To ensure the highest standards of these projects and initiatives, Hyatt Regency Hong Kong, Tsim Sha Tsui, adheres to a code of business conduct and ethics that guides its decision-making and demonstrates integrity in all endeavours The hotel’s success has been widely recognized, earning it the prestigious Best City Hotel award in the High Flyers Awards 2023, presented by Hong Kong Business to honor the region’s most exceptional companies. This accolade reflects the hotel’s commitment to innovative products and exceptional services while setting a remarkable example in sustainable hospitality.

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MAYER & ASSOCIÉS

CORPORATE PRACTICE IN THE TIMES OF STRICTER COMPLIANCE

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n the legal industry, 2023 has seen significant developments. As Mainland China reopens, many entrepreneurs and businesses are looking to expand internationally, often starting from Hong Kong.

This dynamic landscape presents opportunities for firms to excel and provide exceptional services.

In Hong Kong’s challenging legal market, French law firm Mayer & Associés has seized these opportunities to offer top-notch services to its clients. Their success over the past year has earned them the prestigious High Flyers Award in the Law Firm category from Hong Kong Business.

Established in 2001, Mayer & Associés offers expert legal advice across various practice areas. Their specialisation lies in facilitating the economic migration of companies between China and international markets through Hong Kong, leveraging their deep understanding of these markets and legal frameworks.

The Man Behind the Success Eric Mayer, founder of Mayer & Associés, brings over 29 years of legal experience to his practice, advising European and Chinese clients on various aspects of international business law. His expertise spans international business law, cross-border M&A, joint ventures, corporate and commercial law, international tax law, commercial

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litigation, real estate law, and immigration law.

Most of Mayer’s clients were mostly foreigners leveraging Hong Kong’s international status to invest in Mainland China and beyond, but are now increasingly Mainland China investors using Hong Kong as a hub to invest internationally. Beyond his legal practice, Mayer also dedicates his time to charitable work and cultural projects in a remote Mongolian community called Burentogtoh.

A Look into Mayer’s Corporate Practice Mayer & Associés operates as a boutique law firm, boasting a team of experienced lawyers who collaborate seamlessly. Mayer values a tight-knit, expert, and professional team that works cohesively.

Whilst the firm serves mainland Chinese clients using Hong Kong as a platform for international business, it also caters to foreign businesses establishing themselves in Hong Kong.

Mayer emphasises that as long as there are business dealings involving China, there will be opportunities in Hong Kong. Many organisations opt for Hong Kong limited companies to facilitate overseas investments due to Hong Kong’s flexible legal system and taxation policies.

These businesses seek to develop their international operations whilst keeping their assets connected to Hong Kong’s safe and efficient business

LAW FIRM

PHILOSOPHY Integrity, good governance, a responsible attitude, and a relationship with clients built on trust without compromising our independence are the values that guide us in all our actions.

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MA has strong expertise in French Law and Hong Kong corporate matters with a solid team of company secretaries.

Eric Mayer is the Legal Adviser to the Consulate General of France in Hong Kong.

MA is situated in the heart of the bustling district in Central (Kinwick Centre, 32 Hollywood Road).

www.mayer.hk This Page (left): Legal Team of MA This Page (below): Eric Mayer

environment. This model has been pivotal in expanding the firm’s client base.

Hong Kong, as a thriving global business hub, experiences frequent market shifts. Mayer & Associés proactively monitors new legislation to keep both staff and clients informed. Mayer’s goal is to provide highquality corporate services, and this includes promptly informing clients of any regulatory changes.

He remains adaptable, proactive, and flexible in interacting with clients and managing their cases. The firm actively utilises electronic signatures to streamline document execution, especially for clients at a distance. In the past year, Mayer & Associés has encountered new clients from mainland China eager to invest in French-speaking African countries. This aligns with Mayer’s expertise as a French law practitioner and opens up fresh opportunities for the firm in Hong Kong.

compliance’s importance.

Eric Mayer underscores the key to growth as a relentless focus on high-quality services, enabling firms to maintain value, even in challenging times. Winning the High Flyers Award has motivated Mayer & Associés to excel further, demonstrating their resilience and commitment amidst fewer foreign clients.

An Evolving Practice In the evolving legal market, compliance, client due diligence, and antimoney laundering measures have gained prominence. Law firms must conduct background checks and ensure client compliance, a shift from the past. Mayer & Associés proactively addresses these challenges, emphasising compliance and risk indicators to clients. Whilst these processes may seem demanding, they aim to build trust and highlight HONG KONG BUSINESS | Q1 2024

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PARAGON TRADING ASIA LTD

A SUSTAINABLE CORE TO HYDRATION

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he growing calls for sustainability rings necessary to one of the world’s most basic necessities: water. People are now expected to effectively manage their water resources without compromising the future and taking better care of the environment in the process.

For Paragon Trading Asia, the region’s leader in the premium production and distribution of an eclectic range of wines and spirits, consistently producing quality products does not only mean being the best with the production but also exemplifying the sustainability agenda and thinking of its impact on the future.

CEO and Chairman Christopher Liang continues to thrust the team into success by leveraging his skill and experience in production, capturing opportunities that can be explored or maximised. Through such visionary leadership, Paragon Trading Asia has become one of Hong Kong’s most promising companies this year as it clinches the coveted High Flyers Awards, an accolade presented by Hong Kong Business to the region’s most remarkable companies for the year, under the Outstanding Beverage Distributor category.

One of the company’s main highlight products that is tied to its sustainability initiatives is beWater™, its environmentally friendly 90

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alternative to plastic-bottled water which was created to help eliminate single-use plastics and reduce the impact of table water.

Increasing brand awareness beWater is produced in partnership with the world’s biggest aluminium canning company Ball Corporation. The factory for the product is based in Ho Chi Minh City, which the company uses to its advantage being the wholly owned entity in Vietnam with a licence to distill water.

Currently, Paragon Trading Asia has partnered with conglomerates to further optimise the product packaging and has also embarked on recycling campaigns amongst its clients. 95% of the materials can now be recycled, helping reduce carbon emissions worldwide.

This homegrown, eco-friendly water now serves as a new benchmark for sustainability in terms of water management with its unique selling point of being packaged through aluminium cans. This is why the product has been picked up already and forged partnerships with some of the world’s biggest hotels, which includes the Intercontinental Hotel Group and the ConradHilton Group.

Whilst the production facility is situated in Vietnam, Paragon Trading Asia

ESG WATER PHILOSOPHY

FAST FACTS

beWater™ Phenomenal is the only plastic-free water brand available now

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Working with Ball Corporation, we provide can crushing stations and easy collection of empty beWater™ and other aluminium cans, allowing cans to be back on shelf in 60 days.

90% of all our cans are collected and recycled. beWater™ is proud to be the official water of Vietnam’s Ministry Of Natural Resources And Environment as we support the Anti-Plastic Waste Alliance and Longacy Movement to eliminate single use plastics.

This page: beWater™ is an eco-friendly, socially sustainable, and convenient alternative to singleplastic bottled water Opposite page: Christopher Liang, CEO and chairman of Paragon Trading Asia

is utilising its business operations in Hong Kong as a gateway to other APEC nations. The company believes the region is a good place to settle trade transactions due to its low taxes for water and wine, and with the Hong Kong dollar being pegged to the US dollar.

Aside from being available in Hong Kong, beWater™ is also for sale in Singapore and in the Maldives and has also now become the ‘best’ water in Vietnam, becoming recognised as the official water of the Vietnam government. This is further solidified by the fact that there is an expected mandate from them by 2025 to ban the use of single-use plastic bottles.

This year, Paragon Trading Asia’s primary marketing focus has been to make sure that the beWater brand makes a name in the market despite being relatively new – being conceived only in late 2021. The company did a lot of promotions through charity events, and cross-over collaborations.

World-class beverages Aside from the phenomenal beWater brand, Paragon Trading Asia also distributes a wide range of liquors, including the Silkie Whisky and the Gladstone Wine – both of which have also been widely recognised and a huge market success.

The Silkie Whisky line distinguishes itself with its tiny releases finished in different casks that make up its unique flavour profile and core blend taste to tell rich stories, or sometimes, just for the devilment. The product line hails from Paragon Trading Asia’s own distillery at Carrick, Ireland.

Offerings under this product line—The Legendary Silkie Irish Whiskey, Dark Silkie Whiskey, and Red Silkie Whiskey—pay homage to the country

of Donegal’s rich folklore and culture.

Meanwhile, the Gladstone Wine comes from the company’s vineyard located in the Wairarapa wine region in New Zealand. Established in 1986, this product line has long been recognised as a pioneering wine producer.

The products are a true expression of the region’s people, place and time.

The product line contains five offerings unique from each other to create a distinct flavour. Wines such as Pinot Noir and Pinot Gris show the quality and dedication that the company has put into improving the brand. The Gladstone Wine products also include Viognier Rose, Sauvignon Blanc, and the Dakins Road Pinot Noir.

Going into the future Given the recent return to normalcy for almost all logistical operations, Paragon Trading Asia is keenly focused on expanding its product worldwide. As current markets open and restrictions ease, the company aims to maximise this opportunity to feature the product and become a winner in the industry.

“I think everything is moving in the right [direction], trying to become a market player in Asia Pacific. At this moment, you know, we were very convinced that our packaging and consistency of high-quality water would [already] be a market winner,” he said.

Paragon Trading Asia believes that the High Flyers Award is a testament to their success and accomplishments, and is going to be a great boost for the company’s growth – particularly in its endeavour in further develop a marketing and sales region coverage.

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PRIMECREDIT LIMITED

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BEING A RELIABLE LIFELONG FINANCIAL PARTNER

n recent years, the significance of customer engagement and experience has surged, thanks to increased connectivity and process efficiency.

Customers now demand user-friendly interfaces and seamless processes.

Building customer loyalty has become a pivotal factor for business development.

Simultaneously, the data-driven economy is on the rise, compelling companies to establish robust Big Data capabilities to track, analyse, and derive business value from data. PrimeCredit, a veteran in financial services with more than 40 years of experience, is at the forefront of this transformation.

Whilst they have already achieved success in implementing data-driven strategies, they acknowledge the vast potential of Big Data. Their future focus includes bolstering Big Data capabilities and integrating AI and machine learning. This commitment aligns with their mission to provide high-quality customer service, professional consultation, and tailored solutions. PrimeCredit also emphasises ongoing staff training and deep customer understanding to deliver a comprehensive range of services.

Since its establishment, the firm has been striving to be “your most reliable lifelong financial partner” with three service commitments to customers: available, affordable, and accessible. PrimeCredit has always upheld these values in all its product offerings to customers. This capability is also enabled by its Chief Executive Officer Beril Shen.

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With over 20 years in banking and finance, Shen possesses extensive experience driving strategic business development in consumer finance and retail banking. Whether creating new customer-centric products, collaborating with partners for customized solutions, or assisting individuals in achieving their financial goals, she deeply engages with customers, impacting their lives in significant ways.

“It has not been easy running a business in consumer finance combating the fierce market competition and navigating through economic ups and downs, but I believe it is stimulating and rewarding, and drives me to keep exploring and moving forward, especially on creating and enhancing products and services to meet customers’ financial needs,” Shen said.

Side by side with customers Shen and PrimeCredit consistently demonstrate professionalism and resilience, even in uncertain times, to support customers and stand out from competitors. The company reinforces its supportive brand image through key features like fast signature services, instant cash loans, professional financial consultations, and tailored repayment solutions.

Additionally, they have introduced the WeWa Club, to extend fun and excitement experience to cardholders and non-cardholders, including a successful music event in October 2023 with over 100,000 attendees and there was an exclusive benefit to WeWa Club members

OUTSTANDING FINANCE COMPANY PHILOSOPHY With over 40 years experiences in offering financial products and services, PrimeCredit is committed to providing high-quality customer service, professional consultation and tailormade solutions. Whilst ensuring all their staff are well trained with a high standard of product knowledge, PrimeCredit also emphasizes its understanding of what the customers feel, think and wish, in order to provide them with a comprehensive range of all-round, customer-centric and value-added services.

to attend the award ceremony.

PrimeCredit has also introduced a dedicated hotline with a simplified process for customers seeking small loans, featuring document waiver, instant loan approval, and quick disbursement. They have also improved their online platform, enabling a 24/7 easy borrowing experience where loan applications can be completed in minutes, and customers receive funds instantly in their bank account. To facilitate this, PrimeCredit has implemented AI-based eKYC technology for efficient ID authentication and facial recognition.

Shen recognises the shift in customer behaviour and financial needs, particularly towards online channels in recent years, accelerated by the pandemic. To meet these changes, PrimeCredit has undertaken substantial digitalisation efforts to provide customers with seamless digital experiences. Leveraging Fintech advancements, Shen highlights PrimeCredit’s commitment to further innovation, aiming to offer enhanced digital experiences, swift and convenient services, and engaging customer interactions.

“PrimeCredit is committed to providing high-quality customer service, professional financial consultation and tailor-made solutions.

We always strive to support customers in both good times and tough times, with an understanding of what they feel, think and wish, to provide them with a comprehensive range of all-round, customercentric and value-added services,” Shen said.

She added that such initiatives that relied on digital transformation have been the key milestone to keep PrimeCredit competitive and maintain its market position.

Meanwhile, PrimeCredit’s loan service campaign aims to enhance customer perception of reliability and strengthen engagement, emphasising a speedy, effortless, and certain borrowing experience. Additionally, the company has been offering Balance Transfer consultation services for over a decade and recently introduced online consultation services. This service helps customers with high-interest card debt by guiding on managing it, ultimately easing their repayment burden, reducing interest expenses, and promoting better financial management and improved credit scores.

PrimeCredit’s successful year has been recognised by the Hong Kong Business magazine, as the company bags the Outstanding Finance Company trophy in the High Flyers Awards, an annual accolade given to the region’s most remarkable companies that have showcased innovative products and exceptional services to improve the region’s capabilities.

“I am very proud and excited to represent PrimeCredit to receive this award and very remarkable as this is the 7th year to receive the Outstanding Finance Company Award. It is a big recognition to PrimeCredit and all of our staff for their continual effort to deliver the best quality products and services to our customers,” Shen said.

She added that with the New Year coming, they can now put the worries behind them and act bullish.

Warning: You have to repay your loans.

Don’t pay any intermediaries.

Enquiry and Complaint Hotline: 2111 2999 Money Lenders’ Licence Number:759/2023 HONG KONG BUSINESS | Q1 2024

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RAFAELLO INVESTMENT

RAFFAELLO DRIVES EXCELLENCE WITH VISIONARY LEADERSHIP IN INVESTMENT MANAGEMENT

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n the fast-paced world of investment management, success is not merely measured by financial gains but by the ability to forge lasting relationships, prioritise security, and deliver consistent results.

Elvis Lam, Managing Director of RaffAello Investment Management (HK) Limited, has distinguished himself through a career marked by a dedication to client relationships and strategic financial practices.

Lam started his career in investment management in 2016, laying the foundation for a professional journey characterised by expertise and steadfast commitment. Upon assuming the role of Managing Director at RaffAello Investment Management, Lam directed his efforts towards fortifying client relationships and driving mutually beneficial outcomes.

RaffAello’s Three Pillars RaffAello Investment Management (HK) Limited’s success lies in its three key strengths, according to Lam: High security, good networking, and good investment disciplines.

The company’s commitment to security is a fundamental strength within the investment industry. In his capacity as Managing Director, Lam implemented rigorous security measures to protect client investments,

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cultivating trust and confidence. This focus on security has contributed to RaffAello’s standing as a reputable investment firm.

In addition to security, Lam underscores the importance of cultivating strong networks in the investment industry. Actively fostering relationships with industry professionals, potential investors, and strategic partners, Lam has helped expand RaffAello’s network, unlocking new opportunities and gaining valuable market insights.

The company’s adherence to robust investment disciplines, overseen by a proficient team of financial analysts and investment managers, also ensures strategies are grounded in sound data and analysis. “This commitment to disciplined practices enables us to make informed investment decisions and maximise returns for our clients,” Lam explained.

Unique approach to investment management RaffAello’s boutique status, with fewer than 10 employees, offers inherent advantages such as agile decision-making, flexibility, and a customercentric focus. In the competitive landscape of investment management, these factors enable the firm to respond promptly to changes and provide

INVESTMENT MANAGEMENT PHILOSOPHY

FAST FACTS

Our company prioritises effective client relationship management in China and Hong Kong, leveraging our strong reputation in the industry

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RaffAello Investment Management (HK) Limited’s success lies in its three key strengths: High security, good networking, and good investment disciplines.

RaffAello’s boutique status, with fewer than 10 employees, offers inherent advantages such as agile decision-making, flexibility, and a customer-centric focus

Opposite Page: Elvis Lam, Managing Director of RaffAello Investment Management (HK) Limited This Page: RaffAello Investment Management (HK) Limited

exceptional value to its clients.

Cost efficiency and risk management are the current priorities for RaffAello. The firm now aims to achieve a strong portfolio whilst minimising expenses and potential risks. To mitigate risks in volatile financial markets, the company conducts thorough research, diversifies portfolios, and actively monitors and manages investments to safeguard client assets.

“Our company prioritises effective client relationship management in China and Hong Kong, leveraging our strong reputation in the industry. We adopt a personalised approach, understanding our clients’ unique needs and preferences, and maintaining open and transparent communication,” Lam said.

Client-Centric Strategy and Data Excellence Drive Success Nurturing relationships with High Net Worth individuals and institutional clients is crucial for the success of an investment firm. Lam recognises the importance of meeting their specific needs, prioritising security, limiting risk, and maximising returns. This approach allows the firm to strategically allocate funds and pursue investment opportunities for sustained growth.

RaffAello’s competitive edge further lies in its highly monitored data system, maintained by top-tier financial analysts and investment managers.

This system provides accurate and reliable data, enabling the company to make informed decisions and stay ahead in the fast-paced financial landscape. Leveraging this data system, RaffAello offers comprehensive

insights and drives successful investment strategies for its clients.

It is through his dedication and strategic practices that Lam won the HKB High Flyers Award 2024, under the Investment Management category.

The HKB High Flyers Award 2024 holds significant importance for RaffAello and Elvis Lam, acknowledging the company’s past achievements and symbolising its potential future success. “It serves as a milestone in our journey, reminding us of the hard work, sacrifices, and resilience it took to get here,” said Lam. Building a Visionary Future of Excellence and Impact Looking ahead, Lam envisions a future where RaffAello Investment Management (HK) Limited continues to leave a greater impact on the lives of clients and the communities they serve.

“We are committed to leveraging this recognition to further elevate our services, enhance our offerings, and provide even more value to our clients,” Lam stressed.

With leaders like Lam at the helm, RaffAello Investment Management is positioned for sustained excellence and innovation in investment management.

The High Flyers Awards is presented by the Hong Kong Business Magazine. It acknowledges outstanding businesses across various sectors such as legal services, banking and finance, logistics, insurance, and hospitality, amongst others.

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RHENUS WAREHOUSING SOLUTIONS HK

RHENUS WAREHOUSING SOLUTIONS HK PIONEERS EXCELLENCE IN AUTOMATION

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n the intricate world of logistics, efficiency and innovation are key factors, serving as the foundations that propel the industry forward. Streamlining operations and adopting cutting-edge technologies not only enhance the speed and accuracy of processes but also enable companies to stay agile and responsive to the evolving demands of a dynamic market.

Rhenus Warehousing Solutions HK has emerged as a trailblazer in this landscape, securing the prestigious Automation - Logistics category award at the High Flyers Awards 2024. This accolade not only recognises their commitment to customer-centric solutions but also highlights their groundbreaking initiatives in digital transformation and automation.

For Rhenus Warehousing Solutions Hong Kong operation, they currently have 3 locations and 2 warehouses. “Our philosophy is always to prioritise our customers’ interests. We embrace new technologies to streamline processes and maximise operational efficiency. Thus, we ensure that our customers experience enhanced productivity and satisfaction,” said Dennis Mak, Director of Rhenus Warehousing Solutions HK.

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Extensive network, custom solutions, and cutting-edge technology Rhenus Warehousing Solutions HK stands tall on three key strengths that position it as a formidable force in the logistics industry. Firstly, it has a robust background, coupled with a dense network of strategic locations, which forms the backbone of its status as a global logistics empire.

Additionally, the company’s unwavering commitment to crafting tailormade logistics solutions is evident in its approach, ensuring that each client’s unique needs and challenges are not just met but exceeded.

More importantly, Rhenus sets itself apart by embracing cuttingedge technologies, fostering an environment of constant innovation.

This dedication ensures the company stays ahead of the curve, consistently adopting future-oriented approaches to warehousing processes and automation innovations.

By integrating these strengths seamlessly, Rhenus Warehousing Solutions HK not only navigates the complexities of the present logistics landscape but actively shapes the industry’s future trajectory.

AUTOMATION - LOGISTICS PHILOSOPHY

FAST FACTS

Over 110 years of Rhenus: we combine traditions with forward-looking ideas because we have our roots in inland waterway shipping and now focus on logistics solutions backed by digital solutions. The needs of our customers are our top priority at all times

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With an annual turnover of EUR 8.6 billion, the Rhenus Group is one of the leading global logistics service providers Rhenus has 39,000 employees across 1,120 sites The Rhenus Group offers solutions for a wide range of industries along the entire supply chain, including multimodal transport, warehousing, customs clearance and innovative valueadded services

This Page: Goods-to-Person (GTP) Solution Opposite Page: Dennis Mak, Director, Warehousing Solutions & Distribution - Greater China Rhenus Logistics

Differentiation and attraction In a dynamic market where differentiation is essential, Rhenus took a significant step forward last year with the introduction of its second smart warehouse solution project in RIH. The Goods-to-Person RobotShuttle (GRS) solution marked a milestone, making Rhenus the first warehouse in Hong Kong to deploy three different models of picking robots (Geek+ P800, RS5-DA, and P40) in live operations. This project not only showcased innovation but also garnered attention from the community.

Key attributes associated with Rhenus Warehousing Solutions HK’s brand identity include customer-centricity, innovation, and operational efficiency. Their winning project, the deployment of multi-AMR in Yuen Long, serves as a testament to the success and uniqueness of their offerings. The solution went live in June 2023, and the seamless migration of an existing fashion customer to the new system underscored the company’s ability to deliver impactful solutions.

Digital transformation as a process Digital transformation is at the core of Rhenus Warehousing Solutions HK’s strategy. The Rhenus Innovation Hub exemplifies their commitment to incorporating technologies into their warehousing solutions.

“Digitalisation is not a project but a process, and we are committed to incorporate technologies into our warehousing solutions. Through

the Rhenus Innovation Hub, we hope to connect the world through logistics,” Mak stressed.

Driving innovation with agility The adaptation to ever-evolving market dynamics is a continuous learning process and Rhenus Warehousing Solutions HK envisions incorporating these learnings into their operations. The ongoing changes in the business environment will likely drive further innovation, ensuring the company remains agile and responsive to emerging trends.

Securing the Automation - Logistics category award at the High Flyers Awards 2024 is a significant achievement for Rhenus Warehousing Solutions HK. The honour symbolises recognition for their commitment to customer needs and their role as innovators in the logistics industry.

Looking ahead, the company’s main mission is clear – to continue pushing boundaries, exploring new frontiers, and maintaining a steadfast commitment to growth and excellence on an international scale.

Rhenus Warehousing Solutions HK’s triumph at the High Flyers Awards 2024 is a testament to its unwavering dedication to excellence and innovation in the logistics sector. As they continue to evolve and shape the future of warehousing solutions, their story serves as an inspiration for industry peers and an example of success in a rapidly changing business landscape.

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ROTARY CLUB OF HOMANTIN HILL

CELEBRATING THE EXTRAORDINARY WITHIN THE ORDINARY

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ith over 200 international NGOs covering a wide range of issues, from the environment to animal rights, Hong Kong boasts more than 15,000 registered charities.

In a landscape filled with goodwill ambassadors and unsung heroes, whether addressing the needs of marginalised individuals, supporting poverty alleviation, providing humanitarian relief, or leveraging the soft power of arts, culture, and sports to foster friendships, all contributions, big and small, hold significance. So, what sets the Rotary Club of Homantin Hill apart?

Concrete Recognition The Rotary Club of Homantin Hill (fondly known as RCHH) has achieved the status of being a charitable institution of public character, exempt from tax under section #88 of the Inland Revenue Ordinance. With sponsorship from the YMCA, they have long been acknowledged as a Caring Company, and subsequently, an environmentally friendly Green Club. The Club has a clear direction and follows a distinct path.

Member Focus Whilst the majority of charities have noble intentions, making admirable contributions to society, there are undoubtedly some with hidden 98

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agendas. Common issues include using the club as a sales platform, building connections, seeking tax write-offs, spreading religious and political messages, and some, initially with good intentions, eventually get entangled in cumbersome protocols or power games, losing sight of their original purpose.

RCHH operates without unnecessary regimentation or frivolity and focuses on the core mission.

Services Big & Small RCHH members engage in community services characterised by practical assistance, such as visiting the elderly and homeless; distributing goodie bags to the needy; collecting unsold bread from shops for redistribution; repainting government units for the disabled; eliminating bed bugs in substandard living quarters through professional fumigation; organising outings and educational experiences for marginalised children. Heartfelt actions, genuine impact.

Fun Fellowship RCHH consists of unassuming senior executives, professionals, and entrepreneurs with busy lives and schedules. They contribute without seeking recognition or accolades, fostering a sense of camaraderie. They

THE MOST DISTINGUISHED CLUB FOR FELLOWSHIP & COMMUNITY SERVICES PHILOSOPHY

FAST FACTS

Excellence consists not in doing extraordinary things, but in doing ordinary things extraordinarily well.

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Clubs are divided by geographical districts. Hong Kong, Macau and Mongolia together form District 3450, with 107 clubs, 2600 members and lots of exciting inter-club activities.

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The Rotary Club of Homantin Hill was chartered on 20th March 2017 – UN’s International Day of Happiness. As such, rendering meaningful services, bringing a little happiness to the sick, the poor & the needy remains the ultimate raison d’etre of our club.

Opp Page: The RCHH Board of Directors, (L to R): HENRY NG – Environment & Youth Dir. (MD,GreenoMarket) ADA TSE – Image Dir/ Club Magazine. (Investment Mgr).

MICHELLE YEUNG – Fellowship Dir. (Veterinarian) GILLIAN KEW – President Elect (Academic Editor) S.K.TANG – President (Airline Captain, Cathay Pacific) MEI LING NG – Charter President, (MD, HK Matchmakers) MARTINA ING – Club Secretary, (Design Consultant) SAMMIE LAM – Service Dir, (Project Executive) (not in the picture) HALIM BASYARUDDIN – Lawyer (Partner, Wong & Tang So.) This Page: Community Services, Homantillians in Action; Fun Fellowships; “Hey Big Spender!” (A fund-raising show).

work, play and travel the world together, always inclusive, welcoming families, friends, and members from other clubs to join them.

Fun Magazines Most club magazines tend to be dull, but RCHH’s publications are an exception. Each issue features an original theme and showcases member photos with wit and humour. Club events are well-presented, and the content tells a story without excessive self promotion. The photographs are remarkable, the captions are humorous, and the editorials are consistently well-written, candid, and engaging, often containing subtle messages that keep readers intrigued.

for the legendary song “獅子山下” (Below the Lion Rock Mountain) won First Prize in a New York competition organised by the Chinese community in the USA. She generously donated her entire prize money to support RCHH service projects.

Fundraising RCHH members host an annual show where they sing and dance, and the proceeds from ticket sales fund the service projects of the following year.

Despite the club members being amateurs with full-time jobs and working on a limited budget, the performances are of first-class quality. The stage lighting, sound, choreography, and video walls meet nearly professional standards. Truly commendable.

Standing Tall In 2019, Hong Kong faced numerous challenges. When half of their members asked Mei Ling to take a stand, she did so unequivocally, leading to their departure. Undaunted, the Club carried on. When asked about the club’s stance, “Isn’t Rotary supposed to be nonreligious and non-political?” Mei Ling responded succinctly, “ When one’s ideological position is challenged by divergent political cultures, antagonistic attitudes are possible. However, physical and verbal attacks on their government, country, and people are no longer ideological orientations. It becomes a matter of order versus anarchy, right versus wrong. “ The club has moved beyond empty rhetoric to shared cognition, effectively communicating its vision and values, establishing a shared sense of purpose, and adhering to its principles unwaveringly.

Original Lyrics The club boasts a pool of talented individuals who continually impress with their skills, and the selection of songs performed by the members is invariably excellent. Lyrics unsuitable for fund-raising events were rewritten by Mei Ling, the club’s Charter President. Her English lyrics

The Rotary Club of Homantin Hill is a club with clarity of purpose, effective in its actions, creative in its execution, genuine in its friendships, and resolute in its principles. They find the extraordinary in the ordinary and the magic in the mundane.

We salute the Rotary Club of Homantin Hill!

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24

SOTERIA TRUSTS

SOTERIA TRUSTS SAFEGUARDS LEGACY FOR FUTURE GENERATIONS

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he modern business landscape is characterised by rapid changes and evolving market dynamics. Success in such an environment hinges on the ability to adapt swiftly, identify emerging opportunities, and adjust strategies accordingly. This adaptability is crucial, especially in the realm of trust management and fiduciary services, where businesses like Soteria Trusts have not only thrived but also excelled in providing exceptional service.

Established in March 2016 under Hong Kong’s domestic Trust regulations, Soteria Trusts has been at the forefront of delivering retirement, tax, and fiduciary solutions to clients of diverse nationalities and residences.

As client wealth expanded, so did the need for safeguarding assets from taxes and creditors. Soteria Trusts aimed to offer precisely that, underpinned by trust, transparency, and reliability.

Key services provided by Soteria Trusts encompass estate planning, inheritance tax planning, and tax-efficient retirement planning, extending their expertise to both individuals and businesses.

Strengths That Define Success Soteria Trusts’ rise to prominence can be attributed to its strengths. Their team of professionals boasts extensive experience in the UK-related wealth management and taxation, trust and fiduciary services, and reclaimingof the overpaid stamp duty tax. The company places a strong emphasis 100

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on hiring the right talent, continual training, and fostering a culture of excellence.

Recognising each client’s uniqueness, Soteria Trusts tailors its services to individual needs, successfully serving high-net-worth individuals, family offices, and corporate entities. Trust is paramount in the fiduciary services industry, and Soteria Trusts has focused on building trust by delivering on promises and ensuring high client satisfaction.

Under the guidance of Chief Distribution Officer (CDO) Mark Kirkham, Soteria Trusts has forged strong partnerships and introduced innovative solutions. Kirkham’s role necessitates a keen understanding of the ever-evolving trust regulations, financial markets, and tax legislation. He maintains a deep understanding of the global economic environment to offer innovative wealth protection and growth solutions to clients.

Kirkham’s philosophy emphasises adaptability and continuous improvement, with an open mind as a cornerstone for success.

“Throughout my professional career, I have learned that success stems from an open mind, a commitment to personal and corporate improvement, and the ability to adapt to changing market forces,” he said.

Providing Initiatives for Client Satisfaction Over the past year, Soteria Trusts has set itself apart through various initiatives. They host bi-monthly seminars on estate planning and

TRUST AND FIDUCIARY SERVICES PHILOSOPHY

FAST FACTS

Soteria was the Greek goddess of safety and security, and we believe these attributes are the essential elements in structuring your Estate Plan.

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Soteria Trusts – Established in 2016 as an answer to help existing Business Class Group’s clients structure their investments tax-efficiently Key Services – Estate Planning, Inheritance Tax Planning, TaxEfficient Retirement Planning Key Personnel – Mark Kirkham, CDO Soteria Trust Monthly UK Property & Tax Seminars Tax-Efficient Retirement plans for individuals, businesses and companies

This page: Estate Planning Benefits, Pension Solution Opposite page: Mark Kirkham, Chief Distribution Officer at Soteria Trusts

inheritance tax mitigation, a unique educational opportunity in their market. The company provides free guides on estate planning, UK property taxation, and inheritance tax mitigation, along with free tax assessments.

Clients have expressed satisfaction with Soteria Trusts’ services, with notable successes such as their Stamp Duty Reclaim Service. They’ve helped clients reclaim overpaid Stamp Duty Land Tax, with remarkable results. For example, a client who purchased a London property worth £3.2 million reclaimed £148,250 from their original payment of £297,750 in UK Stamp Duty Land Tax. Their Free Will Review and Will Writing Service have gained popularity, meeting the growing demand for ensuring assets are distributed according to clients’ wishes, even across international borders. Additionally, their UK Inheritance Tax Planning Service remains sought after, enabling significant tax savings for clients.

A Commitment to Values Soteria Trusts’ brand identity is rooted in safety, protection, and deliverance, mirroring the Greek goddess that inspired its name. Their team of professionals is committed to delivering personalised services informed by market insights and best practices. Kirkham summarised their values, stating, “Our values are centred on transparency, professionalism, and exceptional service. We believe in working closely with our clients to understand their unique needs, and to develop tailored solutions that meet those needs. We operate with the highest level of integrity, and strive to exceed our clients’ expectations every step of the way.”

Hong Kong serves as the headquarters of Soteria Trusts’ operations in the Asia Pacific region. Their team of six highly skilled professionals

oversees daily activities, working closely with clients to provide bespoke structures. Dedicated teams are also present in Thailand and the UK with plans to expand to the non-European markets to meet growing demand.

Acknowledging Excellence Soteria Trusts’ success over the past year earned them recognition in the Trust and Fiduciary Services category of the High Flyers Awards by Hong Kong Business magazine. “I am proud to have received this award as an acknowledgment of the Business Class Group’s and Soteria Trusts’ commitment to excellence for the 10th consecutive year. Our goal in the coming years is to continue offering innovative solutions tailored specifically for each individual’s needs while continuing to deliver highquality service,” Kirkham said.

The High Flyers Awards program acknowledges enterprises offering innovative products and exceptional services. For Soteria Trusts, this means providing counsel and sustainable solutions in estate planning, financial management, tax strategies, and trust administration. Their continuous investment in digital solutions aims to deliver the best possible service, regardless of client location.

In conclusion, Kirkham is confident in Soteria Trusts’ ability to thrive in the evolving business landscape. Their agility, technological investments, and client-centric approach position them for sustained success. As they continue to offer innovative, high-quality services, Soteria Trusts exemplifies excellence in trust and fiduciary services.

“I welcome everyone who requires such services to speak with us and sample the experience the team at Soteria Trusts possess”, Kirkham added.

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STANDARD CHARTERED BANK HONG KONG

STANDARD CHARTERED: BETTER TOGETHER

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hree years since the onset of the COVID-19 pandemic, Hong Kong has reopened itself to the world. Leading international cross-border bank Standard Chartered has been sending a strong message to the world in this regard that Hong Kong has made a solid return to the global stage as an international financial centre.

The bank has made significant strides in attracting enterprises, investment and talent as well as in leveraging its unique network spanning across the GBA, ASEAN and the Middle East to build a more vibrant economy in the city. This has been achieved through exploring business opportunities with the Mainland and the global markets, implementing digital transformation initiatives and focusing on talent development.

Bridging the Mainland and the global markets With deep roots in Mainland China, Hong Kong and the Middle East, as well as being the only international bank that has a presence in all the 10 ASEAN countries, Standard Chartered is poised to engage clients in exploring huge opportunities for growth and success as it continues to support the role of Hong Kong as a super-connector.

In December 2023, it became the first and only foreign bank in the offshore market to provide cross-border Renminbi (RMB) clearing services as a direct participant in Mainland China’s Cross-border 102

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Interbank Payment System (CIPS) - significantly improving the convenience and security of crossborder RMB transactions in extended trading hours. It has supported multiple corporate clients to complete cross-border RMB transactions since the service was launched.

“The achievement not only demonstrates our commitment to promoting the internationalisation of the RMB but also strengthens Hong Kong’s position as an international financial centre and a superconnector between Mainland China and overseas markets, while further promoting the development of the GBA,” said Mary Huen, CEO, Hong Kong at Standard Chartered. As a key player, Standard Chartered has also participated in the launch of the Northbound Trading of Swap Connect in May 2023, supporting international investors to access Mainland China’s interbank interest rate swap market.

With the increasing connectivity between China, ASEAN regions and the Middle East, the bank has signed multiple MOUs with companies in Mainland China and Hong Kong, as well as a Corporate Agreement with Dubai Department of Economy and Tourism to jointly pursue business opportunities between these markets.

Leading the way in digital transformation Meanwhile, Standard Chartered has also been selected to participate in the Hong Kong Monetary Authority’s e-Hong Kong Dollar (e-HKD) Pilot

BANK OF THE YEAR PHILOSOPHY

FAST FACTS

We’ve built a bank like no other, with a deep history, diverse capabilities and unique perspectives that sets us apart. We are here for good, to unlock potential for our clients, communities and the world.

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Standard Chartered is a leading international banking group, with a presence in 52 of the world’s most dynamic markets and serving clients in a further 64.

The history of Standard Chartered in Hong Kong dates back to 1859. It is currently one of the Hong Kong SAR’s three noteissuing banks.

Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges.

This page: Standard Chartered completes the commencement of the bank’s direct participation in CIPS, the e-HKD Pilot Programme offline payment trials and the “Bring Your Kids to Work” initiative.

Opposite page: Mary Huen, CEO HK l Cluster CEO (HK, Taiwan, Macau) l Group Management Team, Standard Chartered Bank

Programme in May 2023.

The bank conducted trials between May and October 2023 to explore how a hypothetical e-HKD might support payment use cases, focusing on its inclusiveness, security, and reliability, especially for payments in areas without an internet connection or a stable power supply. Close to 80% of consumer participants in the pilot see that the hypothetical e-HKD could potentially address their current payment needs, whilst merchants also found the offline payment solution user-friendly and a complement to existing digital payment methods.

“I am delighted that Standard Chartered has completed our e-HKD Pilot Programme offline payment trials in a range of real-life scenarios with 200 individuals and more than 10 merchants and organisations from various sectors,” Huen said. Insights gained through the pilot programme about the importance of the interoperability and offline capability of hypothetical e-HKD have laid a solid foundation for the bank’s future studies.

In connection to this, Standard Chartered and PwC China have jointly launched a new whitepaper in June 2023 to illustrate the significant opportunities that central bank digital currencies (CBDCs) present to deliver innovative new services for both individuals and corporates in banking and other industries. It also not only explores the commercial applications of CBDCs but also looks into the next steps for CBDC development and the value that they could bring to digital payments.

Focusing on talent development As Standard Chartered is committed to cultivating young talents for the industry, it has welcomed students from the University of Hong Kong for a two-month summer internship for the third consecutive year. The initiative,

which is supported by the bank’s 150th Anniversary Community Foundation, provides interns with valuable hands-on experience in data analysis and the latest financial technology in the bank’s different departments.

The bank has also restarted its “Bring Your Kids to Work” event in August 2023, which has been suspended for three years due to COVID-19.

Employees brought their children to visit the offices to learn more about their parents’ work and engage in a variety of fun activities.

Moreover, Standard Chartered has extended the fully paid paternity leave and adoption leave for its employees since September 2023, from two weeks to 20 weeks, aligning with the duration of its fully paid maternity leave.

“At Standard Chartered, people are our greatest asset. We have long been committed to creating a people-oriented culture that embraces diversity and inclusion, promotes work-life balance and helps our employees achieve their professional goals whilst taking care of their families. We believe that promoting a family-friendly and inclusive work environment is essential for attracting and retaining exceptional talent,” Huen said.

With the capability to unlock potential for clients, communities, and the world, the bank has become a support for stakeholders to meet their ambitions and serve businesses that are the engines of prosperity and growth.

The success of Standard Chartered has been recognised by the Hong Kong Business magazine as the former received the Bank of the Year accolade in recognition of its innovative products and exceptional services. The distinction is given to the region’s most successful companies in 2023.

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Index

HONG KONG’S HIGH FLYERS Outstanding Enterprises 2023 Archikris Design Group

74

AXA Hong Kong & Macau

76

AXA Hong Kong & Macau

78

Fidelity International

80

Hang Seng Bank

82

Hastens Store HK

84

Hyatt Regency Hong Kong, Tsim Sha Tsui

86

Mayer & Associés

88

Paragon Trading Asia Ltd

90

PrimeCredit Limited

92

Rafaello Investment

94

Rhenus Warehousing Solutions HK

96

Rotary Club of Homantin Hill

98

Soteria Trust

100

Standard Chartered Bank

102

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HONG KONG BUSINESS | Q1 2024

MULTI-GENERATIONAL ESTATE PLANNING ARE YOU LEAVING A LEGACY OR A TAX BURDEN FOR YOUR LOVED ONES? British Nationals are exposed to IHT on worldwide assets and could be taxed at 40%*.

All Nationalities with UK assets are subject to IHT on death**.

£

£ PROPERTY

INVEST MENTS

Soteria Trusts utilise bespoke solutions to protect your wealth and legacy, such as: Trusts Accounts International Retirement Planning

STOCKS

ART

CASH

Contact us for a FREE Tax Review www.soteriatrusts.com

Stamp Duty Land Tax Refunds * ** Subject to individual domicile and marital status.

IHT is charged at 40% on net estate value above the Nil Rate Bands of £325k & £650k for singles and couples.

www.soteriatrusts.com | Tel: +852 2168 0626 | enquiries@soteriatusts.com HONG KONG BUSINESS | Q1 2024

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