HOW GOVERNMENT SUPPORT IS FUELLING UNIVERSITY-LED STARTUP GROWTH
TOP FOREIGN TALENT STILL JOBLESS IN HONG KONG AFTER TWO YEARS
KAI TAK SPORTS PARK STRUGGLES: BOLD EVENTS NEEDED
RETAILERS TO CASH IN ON COST WRITE-OFF REINSTATEMENT
US PORT FEES COULD DROWN OUT SHIP REGISTRY REFUNDS
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Startups in Hong Kong are shifting from the traditional business model, with universitybacked ventures taking centre stage. This trend is reflected in this year’s Hottest Startups list, which includes university-born ventures like Allegrow and Stellerus. See the full list on pages 22 to 24.
Sector-wise, healthcare, biotech, and life sciences shine as bright spots for innovation, according to analysts. Experts from venture capital firms also name the underserved industries which need more attention from founders and investors. Find out more on pages 20 to 21.
Funding activity is also picking up, especially at the early-stage level. But VCs are treading carefully—opting out of big-ticket investments. What does this mean for founders? We explore this on pages 12 to 13.
In parallel, Hong Kong’s education sector is undergoing a transformation. Traditional programmes are seeing fewer enrolments due to a mismatch with today’s skill demands. Check out the full MBA survey on page 28 to 29.
Nevertheless, MBA providers are capitalising on emerging trends—revealed in detail on page 26.
Amongst them, PolyU Business School stands out for its focus on leadership development, earning honours at the Hong Kong Business High Flyers Awards 2025. For the full list of winners, turn to pages 46 to 49. The annual Greater Bay Enterprise Awards and Management Excellence Awards also recognises companies that promote collaboration, investment, and development within the region. Check out the winners on pages 56 to 57.
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International F&B companies are opening up branches in Hong Kong amidst falling rents and retail sales that have been declining for eight straight months. Food and beverage remained the predominant trade of foreign retailers that have entered the city to date, accounting for 71% of the total, according to JLL.
Wise has launched its international business account in Hong Kong, aimed at enabling small and medium enterprises (SMEs) to pay, get paid globally, and access over 40 currencies. The account has no minimum balance requirements and no monthly subscription fees, according to a press release.
Overall salaries in Hong Kong are projected to increase by 4% across all industries in 2025, according to a Mercer survey. The survey also found that 50% of organisations are planning to maintain their current headcount. The technology industry is forecasting the highest increase at 4.2%, the report said.
Hong Kong’s hospitality sector saw a 31% surge in visitor numbers in 2024 with 44.5 million tourists, Colliers said. The majority or 34 million people arrived from China, whilst 10.5 million came from other regions. Despite this influx, the city’s hotel industry struggled converting these arrivals into higher revenue.
The property market is set for a strong recovery in 2025, with residential prices projected to rise by 3% and retail sales value expected to grow by 5%, according to a report by CGS International. The hike will be driven by lower interest rates, increased demand, and a rebound in tourism, the report stated.
Cathay Pacific is amongst the top leaders in international seat capacity, according to OAG’s latest Asia-Pacific Aviation report. The airline carried over 28 million passengers, reflecting a 30.7% year-on-year growth. Its lowcost subsidiary, HK Express, increased its flight operations by 46% and emerged as the fastest-growing airline.
‘Top talent’ lured by Hong Kong still can’t find jobs two years on
Only a little over half of the best and brightest immigrants lured by Hong Kong’s top talent programme have found jobs in the past two years, putting into question the soundness of a labour policy that is meant to solve the city’s worsening brain-drain crisis.
These workers have mainly taken up managerial and professional jobs with median monthly earnings of about $50,000, Labour and Welfare Secretary Chris Sun told the city’s Legislative Council in January. A quarter of the talents earn $100,000 or more.
Almost 20% of their spouses have also found high-skilled jobs, he added.
Launched in 2022, the top talent pass scheme (TTPS) is part of Hong Kong’s broader strategy to develop its “eight centres” including finance, trade, shipping, aviation, and legal services by attracting elite professionals to the city.
The programme targets graduates from the world’s top universities and people who earn more than $2.5m yearly, letting them enter
Hong Kong without a job offer.
“Unlike the quality migrant admission scheme, TTPS is a more inclusive scheme and does not restrict or prioritise certain expertise or industries, but focus more on the applicant’s academic qualifications and ability to earn a high income,” Cynthia Chung, corporate commercial partner at law firm Deacons, told Hong Kong Business in an interview.
The rise of flexible working spaces in Hong Kong has made it easier for foreign talent to establish themselves in the region, said Eugene Cheung, managing director at flexible workspace provider IWG Hong Kong & GBA.
“We do see a lot of top talent, new entrants, and new businesses coming to Hong Kong using our offices as the first stop, as the first solution, because we offer a plug-and-play
setup,” the managing director said.
“When they want to start their business tomorrow, we can provide them with an office. As long as they sign the contract and pay, they will have an address. It’s a very easy solution for them,” he told the magazine.
Lawmakers have amended the programme by adding 13 universities to the list and extending the visas of enrolled participants. However, the top talent programme may need further changes, with some critics saying it is too broad and lacks diversity.
The Labour and Welfare Bureau had received more than 116,000 applications as of December 2024, approving about 92,000 of them. More than 75,000 applicants arrived in Hong Kong with their families.
More than 90% of approved applicants are from Mainland China, according to Singapore-based Globevisa Group.
Despite government optimism, the Labour and Welfare Bureau said few visa extension applications have been processed so far. The programme typically grants a two-year visa initially, which may be renewed based on continued employment and income.
Chung noted that to balance opportunities for Hong Kong citizens, employers who wish to hire non-TTPS workers are still required to justify why they were chosen over locals.
Cheung said workers in the city have diverse skills, with many working in the finance, trade, shipping, aviation, legal, and technology sectors. “Of course, Hong Kong is still quite finance-driven, so you will naturally see more bias towards the finance sector.”
The financial service sector is one of Hong Kong’s four pillar industries along with tourism, trading and logistics, and professional services. These generated $1.5b in value-added in 2022 for a 56% share in economic output, according to government data.
These sectors employed 1.448 million people or 40% of the total jobs.
Eunice Wu, a corporate commercial associate at Deacons, noted that the government appears to be doing everything it can to help top foreign talent find career opportunities in Hong Kong.
“However, whether the government will implement additional measures to further enhance the infrastructure and services of the city in an increasingly competitive environment remains to be seen,” she added.
Hong Kong is still quite finance-driven, so you will naturally see more bias towards the finance sector
Hong Kong should offer more “exciting” events at the 28-hectare Kai Tak Sports Park to maximise revenue from sports and music tourism, which is expected to skyrocket to a $11.7t (US$1.5t) industry by 2032, analysts said.
The city’s largest stadium, which opened on 1 March after delays and cost $30b to build, has only booked six events as of 16 April, including the Rugby Sevens and a Coldplay concert, according to the Kai Tak Sports Park website.
Andrew Kinloch, managing director of Logie Group Limited, proposed an ice skating
show at the 10,000-seat Kai Tak Arena.
“Is it possible to do something completely new that other existing, albeit older venues, have never been able to offer?” he told Hong Kong Business in an interview. “I don’t know the answer to that, but someone needs to be out there thinking about how to bring in new, exciting, different events that people will want to come in.”
Kinloch, who offers specialist advice on infrastructure finance in Asia, said there has been a commitment to host at least 40 sports events at the 50,000-seater stadium and 76 events at the arena yearly.
Chinese food and beverage companies (F&B) are going public in Hong Kong as part of their global expansion push, in line with a resurgence in initial public offerings (IPO) within the city's stock exchange and the bigger Asian region.
In Southeast Asia alone, Chinese F&B brands have opened more than 6,100 stores from 2021 to 2023, according to data from Singapore-based research firm Momentum Works.
Companies like Cha Bai Dao and Xiaocaiyuan used their IPO funding to fasttrack franchise expansion. Cha Bai Dao, a bubble tea brand that operates more than 8,000 ChaPanda stores, raised $331.7m in its IPO. Meanwhile, Xiaocaiyuan, which operates more than 600 restaurants, raised $110m from its IPO.
“Once they build a solid base of traffic and establish consumer habits, they want
to go public to get further investment for future expansion,” said Gary Wong, director for China food service at market research firm Circana, Inc.
Several upcoming IPOs reinforce the view that investors are still interested in Chinese F&B. Guming, Home Original Chicken, Green Tea, and Mixue Ice Cream & Tea are amongst the latest Chinese QSR brands preparing to list in Hong Kong, signalling strong investor interest in the sector, Wong said.
Overseas expansions
Chinese QSRs are benefiting from the market’s renewed focus on affordable and solo dining, Wong said. Coffee shops and drink stations have been among the fastest-growing segments, he added, citing Chinese coffee chain Luckin Coffee, Inc.’s expansion to more than 20,000 stores in China as of July.
Possible events and partnerships
To be commercially viable, Kai Tak Sports Park must host 100 to 150 large events across its three venues, each with reasonably priced tickets, Dan Voellm, CEO and founder of AP Hospitality Advisors, said.
He said the government and private sector should evaluate how much revenue it should target from both locals and tourists. “One thing the government can probably do is step back a bit and give events a wider berth, so to speak, in terms of what can take place. That is really the opportunity I think we have here.”
The sports and music tourism industry is forecast to become an $11.7t industry in seven years, according to Collinson International Ltd., which owns Priority Pass and LoungeKey airport lounges around the world.
Hong Kong should consider hosting a cricket event at the stadium given its popularity, the two experts said. “Cricket is something that Hong Kong currently doesn’t cater to with a good facility," Voellm said.
Last year, the Hong Kong Sixes took place at the Mission Road Ground in Mong Kok, a smaller venue with a capacity of just 3,500 seats. The Kai Tak stadium is as big as the Ajinomoto Stadium in Japan and Incheon Munhak Stadium in South Korea, according to Prudence Lai, a consultant at data analytics firm Euromonitor International.
Voellm also said that Kai Tak Sports Park could consider hosting motorsport events such as Monster Truck shows, the Race of Champions, or Supercross races.
"Extreme sport festivals such as XGames Asia may be another option," he added.
Language teachers from more than 50 universities worldwide no longer have to spend two hours daily checking students’ writing tests, thanks to a Hong Kong startup that has cut the process to as little as 10 minutes.
Founded in 2022, Cathoven AI has built a grading tool that evaluates writing tests based on the International English Language Testing System (IELTS). Its clients include Columbia University and University of California, Berkeley.
“Teachers often lack the time to provide detailed feedback and reports,” Guanjiao Long, co-founder and chief marketing officer at Cathoven AI, told Hong Kong Business. “Sometimes, the best you can expect would be like one to two sentences or three sentences maximum.”
“As a result, students might wait for one to three days for the feedback. But language learning relies heavily on repetition and instant feedback,” she pointed out.
Writing tests uploaded on the Cathoven AI platform are assigned a band score, the same rating system used to assess IELTS takers’ English proficiency.
Cathoven AI’s tool not only provides a band score for writing tests but also offers tailored feedback to help learners advance. For instance, if a learner scores 6.5, the feedback will focus on helping them get a 7 instead of aiming for the highest score.
By grading tests in line with IELTS standards, Cathoven AI ensures superior scoring accuracy over its competitors, Long said. Existing tools on the market are also limited to analysing vocabulary difficulty and can’t review sentence-level complexity.
Further plans
Cathoven AI aims to extend its accuracy to more features, including speaking tasks by refining its artificial intelligence models using feedback from teachers. Its team of linguists, language teachers, and AI experts are now training its proprietary AI model.
The startup’s IELTS grading system has helped it gain traction on social media, boasting 60,000 followers and attracting investors. As of January 2025, the startup had raised $7.8m, which the chief marketing executive said would be used for further development.
Cathoven AI would remain focused on a single niche now — assessment and evaluation — but has not ruled out revisiting lesson planning, which was the company’s original focus, Long told Hong Kong Business."We want a whole package that teachers can use."
Users can subscribe to Cathoven AI’s platform for $101 a month with a single licence, which lets teachers upload and grade one student test at a time. The startup also offers tailored business plans for teachers who need bulk uploads.
Primus Labs seeks to help more developers build engaging Web3 platforms and apps using tools that bridge Web2 data with the blockchain-powered internet.
Developers need Web2 data since Web3 primarily offers transaction data, limiting app development to areas such as decentralised finance, Xiang Xie, cofounder and CEO at Primus Labs, told Hong Kong Business
“The first step is that we have to build trust, and we have to make sure that all the data from Web2 can be verified at the source in a smart contract,” he said.
Cryptographic technology
The fintech startup's software development kits (SDK) make the transition to Web3 — a decentralised internet where users own and control their data through blockchain technology — much easier for developers.
The platform has more than 20 partners, including FractionAI, Phala Network, Artela, Unipay, and EthSign, said Vicky Zhang, co-founder at Primus Labs. This year, the startup expects the tie-ups to rise to 80, she added.
Primus Labs’ tool kits use a cryptographic technology called zeroknowledge transport layer security (zkTLS) protocol or “web proofs” — a
way to access private data whilst keeping sensitive information secure.
Cryptographic proofs like zkTLS ensure that Web2 data such as product prices from Amazon are real. Smart contracts check the data validity before allowing their use in Web3 apps.
Using zkTLS, data authenticity can be verified from sources like Amazon or Google without their cooperation or modifying their Web2 servers, Xie said. He added that zkTLS supports data monetisation by letting traders verify activity from Web2 platforms.
For instance, decentralised exchanges could offer perks to traders with more than $78,000 (US$10,000) activity, with zkTLS ensuring secure proof without disclosing sensitive details. The tech can also be used to verify that an action was performed by artificial intelligence (AI) rather than a human pretending to be one.
Eat100, which sells surplus food from restaurants at a discount, aims to expand its network of partners to boost its core mission of reducing food waste.
Since launching its app in 2023, the company has saved 3,160 kilos of food waste. This year, it aims to save 62,400 kilos by selling surplus food at up to 50% off in “surprise bags.”
Anson Wong, co-founder at Eat100, said the startup plans to reach 80 partner restaurants by year-end from 15 now. Restaurants don’t need to pay a fee to list, and the app only earns from a 10% charge on items sold through the platform.
“They have no downside to joining us because if they don’t sell anything, they don’t pay anything,” Wong said in an exclusive interview with Hong Kong Business. “They can even treat it as free promotion or marketing.”
The floor plan allows people to participate in different conversations, especially with senior colleagues.
Sinclair has set up an office with an open-space design at Sheung Wan in northwest Hong Kong to encourage teams at the public relations firm to work together
“We didn’t want lots of small desks and tables. Instead, we opted for long tables where teams can work together along the length of the space," Kiri Sinclair, founder and CEO of Sinclair, told Hong Kong Business
The CEO, who has been running communication agencies for two decades, said most people in their business learn by listening and being around more senior colleagues.
The office layout features three divisible meeting rooms and focuses on sustainability. “We were told that moving our furniture would be more expensive than buying new.
In the end, we kept about 80% to 85% of our furniture and fittings," she told the publication.
Despite being 5% smaller than their previous office, the design creates a more spacious feel.
“Removing the drop ceiling and exposing the structure above creates a much more open, expansive feel,” Sinclair said.
With windows on all four sides, natural light floods the office, creating a bright and airy environment.
Serving as the daily workspace for local and regional teams, the office has become a place where employees are eager to work. “Whilst employees are welcome to work from home one day a week, many don’t take it, which I think speaks well for our office environment,” Sinclair added.
Sinclair opted for an open ceiling design to create a more spacious feel.
1 Sinclair designed its new office to feel more spacious despite being 5% smaller. 4 The meeting rooms can be combined to accommodate larger gatherings. 2 The new office has a co-working layout to enhance communication.
The office features three divisible meeting rooms.
Indoor plants were added to balance the natural and industrial design.
Wherever and whenever you take a LINDOR moment, it just seems to make life feel so much more sublime.
When you unwrap LINDOR and break its delicate chocolate shell, the irresistibly smooth filling starts to melt, gently carrying you away in a moment of bliss.
LINDOR, created by the Lindt Master Chocolatiers. Passion and love for chocolate since 1845.
Early-stage startups in Hong Kong have raised $23.3m this year.
Venture capitalists (VC) have become more riskaverse to big-ticket deals and are investing most of their funds in early-stage startups, where the funding market is expected to recover this year after a 36.81% decline in 2024, analysts said.
“Investors have significant uninvested funds but are focusing their capital towards early-stage companies with strong fundamentals and clear value propositions,” Neha Singh, chairperson and managing director at company tracker Tracxn, told Hong Kong Business
“Investors are becoming more cautious and prioritising profitability over rapid growth, resulting in a valuation adjustment [for late-stage startups] after a pandemic-driven boom,” she said in an exclusive interview.
Early-stage tech startups in Hong Kong have attracted $23.3m (US$3m) in investments as of 23 January, according to data from Tracxn. Funding for their category rose 84.44% last year to $2.4b (US$310m) from a year earlier, Singh said. She attributed the increase to HashKey Group, a Hong Kong-based cryptocurrency trading and exchange platform that secured $777.1m (US$100m) in a Series A funding at a valuation of $7.8b (US$1b).
KPay Merchant Service Limited, an app-based point-ofsale system solution for businesses, also contributed to the increase by raising $427.4m (US$55m) in a Series A round.
Bhavik Vashi, managing director for Asia Pacific & Middle East at San Francisco-based tech company Carta, Inc., is anticipating a “tremendous amount of early stage activity” in Singapore this year.
“When you think about early-stage investing, the check
You’re making kind of a binary “zero or one” bet when you make an early stage investment
size is small, and the valuation, though pretty resilient, is still palatable,” he told the magazine. “Fundamentally, you’re making kind of a binary “zero or one” bet when you make an early stage investment.”
“Early-stage investing will still be the most popular and the highest-volume funding stage [this year],” he added.
Other early-stage Hong Kong-based startups that obtained Series A funding last year include Crowd Education Limited (Mocaverse) which raised $77.7m (US$10m) and RD Holdings (Hong Kong) Ltd. which took up $60.6m (US$7.8m).
To date, four early-stage companies in Hong Kong have reached valuations above $7.8b (US$1b), including HashKey and Humanity Protocol, a platform designed to bridge online and offline identities.
“This trend implies the potential of companies to reach higher valuations at an early stage if they can identify the gaps in the market and attract investor interest,” Singh said.
As venture capitalists focused on early-stage startups, latestage funding in Hong Kong dropped 66% year on year to $2.5b (US$320m) in 2024, the lowest in seven years.
Singh said late-stage funding in Hong Kong hit its peak in 2021 when $18.7b (US$2.4b) was raised. “After that, there has been a noticeable decline in late-stage funding.”
Despite this trend, a few late-stage Hong Kong-based startups managed to raise funds last year, such as online video streaming platform Viu International Ltd., which got $777m (US$100m) in a Series E funding round.
Low late-stage funding in Singapore and Asia is largely due to the limited involvement of local capitalists, according to Vashi. “A lot of companies that reach the growth or late stage often have to go to global funds to
Funding trend for the last 12 months
raise capital,” he said. “For Series C or D rounds, you typically see US or European investors either leading or participating significantly in those rounds.”
He added that late-stage or growth companies in Hong Kong are in a better position than their Singaporean counterparts, thanks to the China factor. “More investors are willing to provide growth capital in Hong Kong because China is such a big market.”
Late-stage recovery
Singh is optimistic about a potential recovery in late-stage funding in Hong Kong this year. As of 23 January, late-stage funding had reached $5.4b (US$690m), close to the 2024 total of $23.3m (US$3m).
Singh expects late-stage startups “with strong unit economics and profitability” to continue attracting investor interest and boost their valuations. “Sectors like blockchain and artificial intelligence (AI) are expected to receive increased funding owing to the recent growth trend in funding in these segments.”
Blockchain technology Hong Kong startups, especially those in the early stages of funding, have been a key focus for venture capitalists, Singh and Vashi said.
In 2024, they secured $940.3m (US$121m) in seed-stage funding, 35% higher than a year earlier, Singh said. The funding was led by HashKey with $777m (US$100m) and Mocaverse with $77.7m (US$10m).
Blockchain technology was second to fintech, which topped Hong Kong’s verticals in 2024 by raising $1.5b (US$190m), a 35% yearly increase.
Top early-stage-funded companies in the fintech space were HashKey with $777.1 (US$100m) and KPay which raised $427.4m (US$55m), Singh said.
Fintech and blockchain were followed by the energy tech sector, which raised $505.1m (US$65m) in early-stage rounds in 2024, 27% higher than a year earlier. Ampd Energy, a battery energy storage system solution provider, led early-stage funding with $212.2m (US$27.3m).
Funding for the health tech sector increased more than fourfold to $209.8m (US$27m), whilst environmental tech posted an almost fivefold increase to $295.3m (US$38m).
Vashi, for his part, cited ESG (environmental, social and governance) initiatives and cleantech as emerging sectors in Hong Kong.
More investors are willing to provide growth capital in Hong Kong because China is such a big market
Lawyers, surveyors, and engineers with claims experience will be in demand.
Hong Kong may need to hire more adjudicators in six months, when a measure that seeks to fast-track the process of resolving payment disputes in the construction industry takes effect on 28 August, according to legal experts.
The government might have to widen eligibility for the job and take in foreigners in case of a shortage, Donovan Ferguson, a partner at international law firm King & Wood Mallesons, told Hong Kong Business
“Conflict of interest and availability issues may prevent a lot of adjudicators from taking up this work because of the intensive 55 working days needed to deliver a decision,” he pointed out.
“It will be incumbent on the nominating bodies to secure a sufficient number of qualified adjudicators who are willing and able to take up appointments as they arise,” the partner added.
The city’s Legislative Council in December passed a bill that would cut down the resolution period for payment-related claims in the building industry to 55 working days. It normally takes years to resolve these disputes.
The change is meant to minimise delays to construction projects, said Stanley Lo, a lawyer at Deacons.
Hong Kong’s construction industry
is expected to slow from an estimated growth of 4% last year to 0.7% in 2025 due to headwinds such as high interest rates, geopolitical tensions, a slump in the property sector, and rising budget deficits, according to London-based GlobalData Plc.
At present, contractors and subcontractors can only refer a dispute to arbitration or litigation once a project is completed, which could take three to five years after signing a contract, Ferguson said. “With the new security of payment framework, this changes completely because they now have a monthly right to refer matters to adjudication.”
With an adjudication process in place, Ferguson expects more adjudicators in Hong Kong by the end of 2025 and through 2026.
Data from the Hong Kong International Arbitration Centre’s (HKIAC) website showed that Hong Kong has 76 adjudicators.
‘Ramp-up period’ Ferguson, who adjudicated many cases in Queensland, Australia, said about 100 adjudicators might suffice for the next year or two since the new law only applies to contracts that are entered into after August, but more may be needed in the years to come.
“There will be a ramp-up period over a number of years as the number
of contracts that the ordinance applies to gradually increases,” he said. “More and more contractors and subcontractors will pursue adjudication under the ordinance during that ramp-up period as that option becomes available to them.”
At present, there are four registered bodies in Hong Kong that nominate adjudicators — the HKIAC, Hong Kong Institute of Surveyors, Hong Kong Institution of Engineers, and Hong Kong Institute of Architects, Lo said. “These adjudicator-nominating bodies are responsible for ensuring that adjudicators are registered, trained, and ready to handle adjudication cases by the 28th of August.”
Updated framework details
Construction adjudicators are typically lawyers, surveyors, and architects with a proven track record in handling construction claims, according to UK-based law firm Thomson Snell & Passmore.
Lo said Hong Kong should start a training programme and an awareness campaign to encourage professionals to become adjudicators. He expects adjudication claims to rise three to six months after the ordinance takes effect.
Under the new law, relevant main contractors, subcontractors, consultants, and suppliers can dispute payment amounts monthly, with an independent adjudicator resolving the issues, Lo told the magazine.
Ferguson said main contractors are likely to receive the most payment claims. He cited the need for proper record-keeping, whilst Lo said parties should review contracts to ensure these comply with the new law.
Most construction contracts contain a “pay when paid” clause, which means a subcontractor will only get paid by the prime contractor once the latter gets paid by the project owner. This is now void, Ferguson pointed out, noting that prime contractors must pay subcontractors regardless of client payments.
Lo noted that since adjudication claims have tight timelines, stakeholders should upgrade their document management systems, whilst project owners and developers set up efficient payment schedules.
The ordinance aligns Hong Kong with countries like Australia, England, New Zealand, and Singapore.
Retailers that often have to relocate, upsize, or downsize leased spaces are set to benefit from a Hong Kong measure that lets lessees deduct reinstatement costs from their taxable income.
“There are many operators and businesses in Hong Kong that are on leases and there tends to be a fair amount of movement in the leases in the retail and commercial spaces,” Timothy Loh, founder and managing partner at law firm Timothy Loh LLP, told Hong Kong Business
“Operators of retail shops, perhaps medium-sized enterprises, will definitely get the most benefit from the tax relief under this amendment,” the managing partner added.
Leasing volume in Hong Kong’s retail segment reached 1.1 million square feet in 2024, according to CBRE Group, Inc. data.
Carol Lam, director and head of tax at BDO Hong Kong, noted that retail outlets such as restaurants often relocate when market conditions fluctuate, which means they have
to bear reinstatement costs — the amount needed to restore a rented property to its original condition at the end of a lease.
"The reinstatement cost could be a big burden. With the amendments, they are allowed to claim the tax deduction on the reinstatement costs incurred, and could somehow relieve part of their burden," Lam stated.
The average reinstatement cost was $194 (US$25) per square foot as of 2023, according to estimates by SAVVI Limited, an off-market office rental platform.
Lam cited the need for documentation so retail outlets, whose number stood at 63,754 in September 2024 based on data from the Census and Statistics Department, would be eligible for the tax relief.
“They may need to keep documentation such as invoices, and bank statements,” the director and head of tax said. “They may also have the contractors provide them with the quotation with a breakdown.”
Loh said companies must prove
that they have “an actual legally binding reinstatement obligation and that the costs incurred are reasonable.”
"The more obligations that you have for reinstatement, the more you're going to benefit from the tax relief. So to the extent that you're an operator of a business that has a large number of retail outlets, you have leases on these retail outlets, and you have reinstatement obligations, you're going to benefit a lot more from that," Loh said.
Meanwhile, Loh expects buyers to benefit from another change introduced by the Inland Revenue Department that allows them to claim a depreciation allowance on the full purchase price of old commercial and industrial buildings, even if the socalled usage period has expired.
In the past, buyers could only claim depreciation on the remaining value of the property with a remaining usage period.
For example, if someone buys a building built in 2014 for $1m in 2024, with a 50-year usage period, and the seller has claimed $400,000 in depreciation over 10 years, the buyer could only claim depreciation on the remaining $600,000.
With the amendment, buyers can now claim a depreciation allowance on the full purchase price of the property until the entire amount is claimed, even if the usage period has expired, the law stated.
Loh said this change addresses the issue of fairness whilst also encouraging deals involving old buildings. “Buyers of older buildings can now benefit from depreciation allowances, which they otherwise might not have been able to claim.”
Despite the incentives, both Loh and Lam do not expect major movement in the real estate market.
“I don't think the main driver for someone moving premises is the tax benefit,” Loh said. “The main driver is still the cost. So, I don't see this causing a significant amount of additional movement in the marketplace.”
“It's a nice incentive to have, and it might be a small factor, but no one's going to move just because of a tax deduction,” he added.
A more lenient entry policy is benefiting tourism-related sectors.
Chinese easing of visa restrictions for Shenzhen residents visiting Hong Kong is boosting retail demand in the city, with some businesses already reporting double-digit sales growth.
“The resumption of multiple-entry visas for Shenzhen residents has breathed new life into Hong Kong's dining and retail sectors, particularly following a period of subdued activity,” Javier Calvar, group service line head at Ipsos Hong Kong, told Hong Kong Business in an exclusive interview.
More direct sales
The policy, which took effect on 1 December 2024, and other measures such as higher duty-free allowance for mainland visitors are boosting tourism, he said.
The more lenient entry policy is benefiting tourism-related sectors such as retail and catering, with more than 10 million residents now eligible. China earlier reinstated the multipleentry policy from 2009, which was tightened in 2015 when Shenzhen residents were only allowed to go Hong Kong once a week.
The restriction was meant to quell anger over traders making trips up to several times a day to take advantage of lower taxes by buying goods for resale in Mainland China.
The easing coincided with the Christmas and New Year holidays, boosting Hong Kong’s consumer economy. Retailers particularly those in high-traffic areas have seen an uptick in footfall from tourists who hail from Shenzhen.
Hong Kong posted 4.74 million visitor arrivals in January, a 24% increase from last year and driven by the Chinese New Year celebrations, according to the Hong Kong Tourism Board. Mainland visitors hit 3.73 million, up 25% from a year earlier.
Lucia Leung, director of research and consultancy at Knight Frank LLP, noted that despite the positive signals, the latest retail sales data showed mixed results. For instance, fastfood outlets posted a 7.2% increase
Mainland Chinese visitors have consistently been the strong backbone of Hong Kong’s retail market and tourism sector
in receipts in 2024, but restaurants experienced a 0.1% dip, she said, citing December data from the Census and Statistics Department.
“The effects of this scheme will necessitate an extended observation period,” she told Hong Kong Business
Retail sales fell 9.7% to $32.8b in December from a year earlier, partly reflecting the impact of residents' increased outbound trips during the holidays, the Census and Statistics Department said in a 6 February report. Full-year sales fell 7.3% to $376.8b.
Tourism blueprint
Calvar expects a turnaround in the coming months, with mainland tourists likely to drive growth particularly for luxury brands, cosmetics, and pharmacies.
“The increased foot traffic from Shenzhen is providing a welcome boost to retailers and restaurants, many of whom had been struggling with reduced tourist numbers in the post-pandemic period,” he added.
Calvar said many visitors prioritise sightseeing over shopping, which has affected retail sales and complicates tourism’s effects on prices and supply.
Paris-based market researcher Ipsos Group S.A. in a report last year said 73% of mainland consumers would pay more for better service, compared
with 58% of Hong Kong citizens. Mainland visitors, especially those from Guangdong province account for the biggest share of Hong Kong’s tourism market.
“Mainland Chinese visitors have consistently been the strong backbone of Hong Kong’s retail market and tourism sector,” Leung said. “Even though consumption and shopping patterns have changed significantly in the post-pandemic era, mainland visitors still account for 77% of the total visitors to Hong Kong.”
Declining local spending as residents travel more, a strong Hong Kong dollar that raises prices for tourists, and a shift to e-commerce is compounded by expensive retail rent and increased competition from Mainland China, where goods are often cheaper, according to Calvar.
Meanwhile, Leung said the luxury sector is struggling as mainland Chinese tourists prefer experiences over material goods.
Retailers should create unique in-store experiences and enhance their e-commerce and social media presence, Calvar said. Leung, meanwhile, said they should compete in the bigger Greater Bay Area, not just in Hong Kong.
Hong Kong is poised to witness a surge in startups emerging from universitybased research and development leads, spurred by strong support from the government, according to venture capital analysts.
“What’s unique about Hong Kong is that its universities have not just their investment arm, but they also have support from the government,” Vincent So, founder of startup venture builder Inspect Element, told Hong Kong Business.
“The private sector can invest in university projects and have the government subsidise these,” he said.
One state initiative is the $10b Research, Academic and Industry Sectors One-plus (RAISe+), which offers funding to eight Hong Kong universities, said Floria Chan, senior vice president at Beyond Ventures.
One of this year’s most promising startups, Stellerus, came from Hong Kong University of Science and Technology (HKUST), one of the eight beneficiaries.
Albert Wong, CEO at Hong Kong Science & Technology Parks Corporation (HKSTP), said many of the city’s exceptional research talents lack the business acumen to
commercialise their innovations.
The agency has launched codevelopment, upskilling, training, market expansion, and collaborative exchanges between startups.
HKSTP will roll out the second edition of its Global Booster Programme this year, offering 10 startups a six-month program on training, business development, and fundraising.
The project helps startups build a strong presence in North America and other global markets, whilst securing financial backing from investors and strategic partners, Wong said.
Chan said startups likely to attract funding this year because of these programmes include those in artificial intelligence (AI) applications, hardcore tech, life sciences, and clean energy. "The government typically supports startups in these sectors, and consequently, venture capital funds are likely to follow suit," she said. she said.
The magazine’s Hottest Startup list this year includes two life science sector startups — GUTolution Ltd. and Allegrow Biotech Ltd. There are about 300 life science startups under HKSTP’s ecosystem.
Wong cited a state measure that lets unprofitable biotech companies list on the Hong Kong stock exchange, giving them funding opportunities at various stages of development.
Adrian Lo, partner, Strategy3, at Ipsos in Hong Kong, expects more biotech, health, and life sciences startups in Hong Kong, targeting China and regional markets, given the support of HKTSP, Cyberport, and the Hong Kong-Shenzhen Innovation and Technology Park (HSITP).
Ron Levin, managing partner at Alumni Ventures, said life sciences will be the sector where AI would have the greatest impact.
“When AI and machine learning are combined with advancements in fields such as genetics and synthetic biology, we believe the pace of advancement in diagnostics and drug discovery will be truly unprecedented,” he told Hong Kong Business in an interview.
Bioscience is amongst the top three sectors where Hong Kong excels, alongside supply chain and logistics and financial technology (fintech), according to Startup Genome.
Blockchain, decentralised finance
InvestHK said fintech continues to dominate HK’s startup ecosystem, with 619 ventures as of 2024.
Amit Chu, a partner at Verda Ventures, said more institutions have been adopting blockchain-based financial products in Hong Kong.
Blockchain funding increased 17 times from 2020 to 2024, according to JF Gauthier, CEO at Startup Genome. “Blockchain and decentralised finance will pay off well for Hong Kong,” he said.
According to Chu, decentralised financial infrastructure, AI-driven financial automation, and embedded finance are fintech areas that are poised for rapid expansion.
One of the fintech startups featured in this year’s Hottest Startup list is Primus Labs. Another awardee, The Z Label, is using blockchain technology in its operations.
“Lower barriers to entry, combined with the integration of AI and blockchain in financial services, will drive efficiency gains and unlock new business models, fuelling strong investment activity.” Chu said.
He also expects growth in Web 3
and digital assets given Hong Kong's crypto-friendly regulatory framework and support from Cyberport, the city's digital technology flagship and entrepreneurship incubator.
“Hong Kong has doubled down on institutional crypto and Web3, supported by its virtual asset service provider licensing framework, which has attracted global players,” Chu said. “The Cyberport Venture Capital Forum, for example, was a great demonstration in bringing global stakeholders together.”
So pointed out that Hong Kong is in a unique position to become a strong financial center for cryptocurrencies, unlike China, which has restricted the use of cryptocurrencies, cracking down on crypto trading and mining since 2021.
So said Hong Kong recently approved four cryptocurrency exchanges — Accumulus GBA Technology (Hongkong) Co., DFX Labs Company, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI).
Lo said many in the industry see Hong Kong’s crypto policies as "a signal that the city could spearhead China-related Web3 innovation."
Hong Kong is also focusing on becoming a global leader in green technology and finance.
HKSTP’s GreenTech Hub, which pushes innovation and growth in the green technology sector, brings together more than 200 greentech companies. The hub has 16 partners from business and finance, industry associations, and top local universities.
Partner universities offer talent training, testing, and application scenarios for greentech solutions to fast-track R&D commercialisation, according to Wong.
In 2024, green startups in Hong Kong increased 82% to 244 from a year earlier, according to InvestHK. Startups in health and medical technology rose 54% to 275, helping the city achieve a record 4,694 ventures.
Wong expects the city's startup economy to keep booming.
Chu also expects funding to pick up for startups, especially those with “clear user demand, strong revenue pathways, and regulatory alignment.”
Which underserved industries need more attention from founders and
COCKS
Co-founder and partner
Velocity Ventures
Startups developing solutions such as carbon offset technology, eco-conscious accommodations, and AIdriven energy management systems may find growth opportunities. The experience economy—innovative leisure and wellness travel concepts—is also underfunded. Additionally, digital infrastructure for the hospitality industry, including automation, AI-powered analytics, and next-generation booking platforms, could present investment opportunities.
RON LEVIN
Managing partner Alumni Ventures
We see many opportunities to deploy capital in areas such as longevity, quantum computing, cybersecurity, and clean energy, among others. Many investors stay away from hardware, but we believe that not all problems can be solved by software alone and there are big businesses to be created by actually designing and manufacturing things that will benefit society in all sorts of ways that are just beginning to become apparent.
HARNAL
Managing partner 500 Global
Singapore is emerging as a significant player in the healthspan sector, driven by consumer demand, government interest, and AI. However, the sector remains underfunded. The intersection of AI and longevity, has significant potential to improve the quality, accessibility, and affordability of healthcare. There is growing interest in cognitive health and addressing cognitive decline.
JUSSI SALOVAARA Co-founder and managing partner Antler
Underfunded and overlooked industries with significant potential include eldercare technology, alternative materials innovation, and ocean-based sustainability solutions. These are ripe for transformation but have yet to capture widespread investor attention despite their longterm impact.
FLORIA CHAN Senior Vice President
Beyond Ventures
Culture-related industries, including gaming, social media, and movies, hold significant potential. China boasts a wealth of worldclass talent and technology. Examples demonstrating the immense potential of these sectors include the action role-playing game Black Myth: Wukong, The RedNote, Korean pop culture, and the popularity of Labubu. These examples highlight the vast opportunities available in these areas. Hong Kong is well-positioned to capitalise on this potential.
POWERS
Founding managing partner 1982 Ventures
Many countries face infrastructure gaps, particularly in transportation, energy, and water systems. Underinvestment in infrastructure can hinder economic growth, reduce quality of life, and worsen inequalities. Modernising infrastructure with smart and sustainable technologies is key for building efficient systems that can support future needs.
Partner Verda Ventures
Quantum computing could revolutionise encryption, logistics, and materials science, whilst synthetic biology holds promise for sustainable materials, precision medicine, and food security. Financial inclusion in emerging markets is also a sector that has massive potential to expand access to financial services and drive economic growth, yet it remains overlooked due to regulatory complexities and perceived lower returns.
MELISA IRENE Partner East Ventures
Healthcare innovations, climate technology, and consumer technology remain underfunded, with numerous pressing challenges yet to be addressed. These sectors present significant opportunities for impactful solutions, transformative growth, and long-term societal and economical benefits.
The healthcare sector tops the Hottest Startups list with three entries, aligning with forecasts that Hong Kong would see a rise in health-focused startups. The retail sector follows, with two startups making the cut.
This year’s list includes startups that have amassed large funding, alongside those recommended by venture capital firms such as Beyond Ventures and startup analytics platform Tracxn Technologies.
Here are this year’s Hottest Startups, sorted by year from the most recent.
Founders: Laurence Lau, PhD and Ying Chau, PhD
Total Funding: $10 (US$1.3m)
Founding Year: 2023
Allegrow Biotech pioneers artificial cell technology that dramatically accelerates immune cell expansion, significantly enhancing the efficacy of advanced cell therapies. By precisely mimicking the immunological synapse, their proprietary platform generates superior-quality immune cells optimised for treating a wide spectrum of challenging diseases. A spin-off from HKUST, Allegrow has shown remarkable clinical potential, consistently achieving significantly higher and better cell yields than conventional methods. Raising $15m, they advance towards clinical-grade products to revolutionise treatments for cancer, autoimmune disorders, transplant rejection, amongst others.
Founders: Xiang Xie and Vicky Zhang
Total Funding: $50.55m (US$6.5m)
Founding Year: 2023
Primus Labs connects Web2 and Web3, enabling developers to integrate real-world data into blockchain applications. Its software development kits use zero-knowledge transport layer security to verify Web2 data, ensuring authenticity and privacy. This allows Web3 app development beyond DeFi, into e-commerce, AI validation, and identity. By providing cryptographic tools that enable data transitions, the startup empowers developers to create engaging, trust-based Web3 platforms, driving the evolution of a decentralised internet where users own and control their data. With over 20 partners, including FractionAI, Phala Network, and Unipay, Primus Labs expects to grow its network to 80 partners this year.
Founders: Wayne Chan Cheuk-lap and Wilson Chang
Total Funding: $3.9m (US$500,000)
Founding Year: 2023
GUTolution revolutionises healthspan extension by addressing chronic illnesses through personalised microbiome health solutions. Specialising in at-home health tests, precision supplements, and microbiome medicine, GUTolution combines next-gen sequencing with its patent-pending artificial intelligence platform to deliver tailored interventions based on individual gut microbiomes. It has established research partnerships with universities and business collaborations with listed healthcare companies to achieve rapid sales growth and is expanding overseas into the Greater Bay Area, Southeast Asia, and the Middle East. Currently, the company is seeking seed/Pre-A funding to fuel further growth.
Founders: Hui Su, Limin Zhang, and Jeffrey Xu
Total Funding: $6.5m (US$838,000)
Founding Year: 2023
Stellerus Technology aids governments and industries in managing high-value assets against extreme weather and climate risks, utilising AI and satellite tech. Their solutions assess typhoons, floods, and landslides, providing insights for infrastructure resilience, insurance pricing, and regulatory compliance. Analysing data from 100+ satellites, their platform provides real-time hazard evaluation and long-term climate risk assessments. Clients include governments and firms in HK, China, and Belt and Road countries. Co-founded by experts from HKUST, the startup is raising $10m–$20m for expansion in SEA and the ME. Stellerus also plans a space-based greenhouse gas observatory for carbon monitoring.
Founders: Camroo Ahmed
Total Funding: $1m (US$128,593)
Founding Year: 2022
Braillic revolutionises surgery with AR and AI, enabling surgeons to visualise a patient's internal anatomy non-invasively. Its flagship product, Augmented Reality Guided Surgical Navigation (ArNav), provides a holographic 3D view of the surgical area, enhancing precision and reducing the need for large incisions. With an accuracy range of five to seven millimetres, ArNav improves safety and efficiency while minimising surgical errors. Initially focused on neurosurgery, Braillic is expanding into spinal and orthopaedic procedures. They seek another US$1m for FDA and CE certifications, an AI surgical assistant, and a training platform. Braillic aims to globally democratize advanced surgical navigation, making complex procedures safer and more accessible.
Founders: Calvin Wong and Kim Wong
Total Funding: Undisclosed (Seed)
Founding Year: 2022
Code-Create is transforming fashion design with AiDA 3.0, an AI-powered tool that enables designers to generate original, customisable collections in minutes without violating artistic rights. Developed over five years, AiDA 3.0 speeds up the design process by over 60%, allowing users to input keywords and receive editable sketches, fabric patterns, and colour suggestions. Designers can protect their intellectual property whilst benefiting from a growing design community. With over 200 subscribers and 3,000 trial users, the platform ensures compliance with copyright laws by sourcing data from open-source and paid materials. Code-Create plans to expand its AI offerings with SARA, an assistant for styling and retail. The startup intends to scale its influence within the fashion industry.
Founders: Guanjiao Long, Mingxi Liang, Erdi Tac
Total Funding: $7.8m (US$1m)
Founding Year: 2022
Cathoven supports learners from foundational practice to highstakes exam prep like IELTS by delivering instant scoring, targeted feedback, and progress tracking aligned with CEFR levels and exam rubrics. Trusted by over 40,000 educators and used by more than 50 top institutions—including Columbia, UC Berkeley, and Cambridge—as well as major US publishers like Renaissance Learning. What sets Cathoven apart is its accurate and consistent scoring engine, coupled with feedback specifically designed to challenge students incrementally without overwhelming them. With ongoing collaboration with linguists and educators, Cathoven is expanding its partnerships with universities, publishers, and language learning EdTech companies in 2025.
Founders: Fioni Fong, Alvin Fong
Total Funding: Undisclosed (Seed)
Founding Year: 2022
nop gives new life to expiring and "ugly" fruits, creating sustainable, natural products beyond just powders. They promote healthy living and reduce food waste through innovative solutions. Using freeze-drying, they retain 95%-97% of fruit nutrition, offering convenient options for busy individuals. nop breaks the food waste cycle, reducing CO2 emissions and nourishing the planet. Their system helps partnered groceries and fruit bars manage "ugly" fruit inventory efficiently, leveraging computer-vision technology to analyse quality. They also collaborate with diverse partners, including cafés, hotels, fitness studios, corporations, and NGOs. They are looking to expand to Southeast Asia as it seeks to double its more than 20 business-to-business (B2B) partners this year.
Founders: Ruby Cheng and Rebecca Leung
Total Funding: $88.7m (US$11.4m)
Founding Year: 2022
The Z Label is a venture-building group focused on developing next-generation products for Gen Z consumers by leveraging AI, big data, blockchain, and spatial computing. By partnering with supply chains, universities, and distribution networks, it accelerates product innovation and market expansion. Backed by US$11.4m in seed funding from Beyond Ventures and the Innovation and Technology Venture Fund (ITVF), the startup is scaling its portfolio of in-house brands and co-incubated businesses. “The Z Label has a clear worldview of the latest consumer trends and new technologies. Its global network and growth engine can bring new demands and product ideas to shine on the international stage, and inject new energy into Hong Kong’s startup ecosystem,” said Beyond Ventures.
Founders: Ashutosh Goel and Supreet Kaur
Total Funding: Undisclosed (Seed)
Founding Year: 2022
Xalts is a fintech platform building vertical AI agents and bank connectivity network for treasury & finance teams. Treasury & finance teams can scale and achieve efficiency by leveraging Xalts' AI agents to perform financial operations based on internal processes and policies, and their proprietary bank connectivity network to automate end-to-end processes. Their task-specific AI agents can be chained together to automate treasury and trade finance processes, helping finance teams unlock immediate financial gains without overhauling their existing systems and platforms. Xalts is trusted by leading Fortune 500 companies and backed by Accel, Citi Ventures, Bangkok Bank, and CTBC Capital, reinforcing their leadership in AI-powered finance automation and operations.
At RGA, we live on the boundary of what’s possible. We’ve broken ground as the only reinsurance company to focus on life- and health-related services, ensuring that financial protection is accessible to those who need it most.
There have been more female and overseas applicants in Hong Kong.
Master of Business Administration (MBA) enrollments in Hong Kong fell by a fifth last year, reflecting a mismatch between traditional programmes and demand for skills to lead and manage tech-driven industries.
“Students are increasingly focused on emerging sectors such as technology and sustainability, indicating a desire to align their careers with contemporary challenges and innovations,” Justin Law, a senior lecturer at Hong Kong Polytechnic University (PolyU), told Hong Kong Business.
Top schools
MBA providers also reported rising interest in nontraditional sectors such as media, fashion, and education, along with stronger demand for specialised, career-focused learning, according to the latest Hong Kong Business MBA survey.
Enrollment at the six MBA providers that participated in the annual survey dropped 21% to 1,214 from a year earlier.
Employment vacancies in education, retail trade, and the arts, entertainment, and recreation fell 26%, 30%, and 29%, respectively, last year, according to the Census and Statistics Department.
University of Hong Kong
(HKU) led the MBA survey with 708 enrollments, followed by the Chinese University of Hong Kong (CUHK) with 223 students and Hong Kong Management Association with 156 students.
Hong Kong Baptist University (HKBU) had 127 students and Hong Kong Polytechnic University had 65. Also on the list is the University of Manchester-East Asia Centre, whose part-time MBA programme runs for two to five years.
For the 2022-2023 school year, 93% of MBA graduates from HKU got employed, with 97% finding jobs in the Asia-Pacific region. Nearly half (43%) of these graduates joined the financial sector, according to the university's latest career report.
At the Chinese University of Hong Kong, 92% of full-time MBA graduates got employed within three months of graduation at firms such as Accenture, Deloitte, Visa, and Volkswagen, based on its 2022 graduate employment report.
MBA applications in the AsiaPacific region rose 26% last year, spurred by a 40% surge in domestic applications, according to the US-based Graduate Management Admission Council (GMAC).
The Hong Kong Polytechnic University reported increased interest in leadership development and global learning opportunities.
PolyU has increasingly accommodated professionals from diverse backgrounds beyond traditional business sectors, with enrollees coming from fields such as fashion, media, education, IT, and healthcare.
“This variety enriches classroom discussions and fosters a collaborative learning environment, allowing students to share unique perspectives from their respective industries,” Law said.
According to Law, more MBA students seek accelerated and customisable programmes. “They want to complete their degrees in shorter time frames to quickly adapt to changing job markets.”
At University of Manchester-East Asia Centre, the focus is on flexibility and market relevance.
“Recently adding one more core course brings the total to seven,” Olivia Chan, director of the East Asia Centre at the university, told Hong Kong Business. MBA providers also cited more female and overseas applicants.
“This shift has resulted in a more varied and inclusive student body of the CUHK MBA programme, promoting cross-cultural exchanges and preparing our students to navigate the complexities of the global business landscape,” said Angie So, acting assistant director of communications, students, and stakeholders team at CUHK.
CUHK regularly updates its MBA curriculum to ensure relevance, said Albert Yip, head of marketing and admissions at CUHK.
Meanwhile, University of Manchester-East Asia Centre has maintained consistent interest from at least 15 nationalities and 20 industries.
“International expats based in the East Asia region have been the main drivers of our student body, followed by managerial executives seeking knowledge to expand their company’s or business’ scope to a wider and more sustainable regional base,” Chan concluded.
The company also seeks underwriters fluent in the language of renewable energy.
Corporate and specialty insurer HDI Global SE is forming a dedicated global team that will also offer a one-stop-shop solution to clients in the booming conventional and renewable energy (RE) sector in Greater China and South Korea.
The Germany-based insurer’s energy team is made up of specialists across first-party, third-party, and specialty insurance lines.
Initially, the new energy team will merge only the property and engineering teams, focusing on first-party lines, newly appointed CEO for Hong Kong Michael Ahn told Hong Kong Business in an interview.
“Instead of talking to multiple departments, you have a single window to actually respond to the client's needs across the whole energy segment.”
The renewable energy sector is a significant segment for HDI Global given the rapid developments in the industry, particularly in the offshore wind sector, he pointed out.
Renewable energy insurance can help protect investments in renewable energy projects from risks such as contractual disagreements, supply chain issues, and construction problems.
There is a global push for clean energy including in China, the world’s largest producer of solar panels, wind turbines, and batteries. Japan and South Korea, which are leaders in hydrogen energy and nuclear innovation, see these technologies as key solutions for energy security, climate change, and economic growth.
If Hong Kong achieves 100% renewable energy by 2050, offshore wind would account for 35% of its total energy mix, according to German online data platform Statista.
“The technology is moving so fast,” Ahn said. “For example, turbine development. You have turbines with blades that go up to 250 meters in diameter.”
To keep up with these tech developments, HDI Global is hiring talent who can “speak the same language” as their clients in the RE sector, the CEO said.
The company could move beyond standard products and provide customised solutions by having experienced industry professionals as underwriters, Ahn said. “Eventually, we will be able to assess and underwrite these risks properly locally,” he added. “For now, as a partner in transformation to our clients, we work closely with our global network to service specific client needs from Singapore as the hub for our region.”
The global clean energy push and the Hong Kong government’s drive for sustainable business practices have also fuelled the growing demand for ESG (environmental, social and governance) liability coverage in Hong Kong, Ahn said.
ESG liability will be a key focus for HDI Global under Ahn, who assumed the role in November 2024.
”We have been offering more ‘E’ part of the coverage, environmental liability in the past, and we've added the social and governance part to provide a comprehensive cover,” he said. As the first insurer to introduce a comprehensive ESG liability product to the market, HDI Global rolled out its ESG liability coverage in November.
The insurer will concentrate on growing its ESG liability coverage globally, including APAC in 2026. It aims to secure at least 5% market share in all the major regions spanning an anticipated thousands of clients within the next five years.
Another priority for the insurer is corporate captives or self-insurance entities formed by large corporations to cover their own risks.
In his 2024-2025 budget speech, Financial Secretary Paul Chan said Hong Kong wants mainland and international companies to set up captive insurers in the city.
Ahn said HDI Global would play an advisory role for companies establishing corporate captives whilst also partnering with them as they assume greater risk retention over time.
HDI Global currently manages over 100 captive clients across more than 150 programmes, with its captive portfolio experiencing double-digit growth in recent years.
Eventually, we will be able to assess and underwrite these risks properly locally
Whilst the APAC region currently represents only 5-6% of the global captive market, HDI Global sees substantial growth opportunities driven by rising domestic consumption and increasing sophistication in risk management approaches.
“Our established global expertise and comprehensive network capabilities position us ideally to capture the emerging opportunities in the APAC captive market”, said Ahn.
The company's AI Quick Quote Vehicle Body Repair Quotation Services addresses complex processes resulting in extended quotation turnaround times.
Automobile distributor Inchcape
Hong Kong Limited brought home
the AI - Automotive & Transport System category win at the prestigious HKB Technology Excellence Awards 2024 for its Artificial Intelligence (AI) “AI Quick Quote” Vehicle Body Repair Quotation Services that streamlines the quote-to-deal process, increases operational efficiency, develops a new repair revenue stream, and enhances the customer journey.
In the ever-evolving world of automotive services, the introduction of AI-powered solutions for car body repair quotations is a game-changer. This innovative approach addresses several longstanding issues faced by both car owners and service centres, revolutionising the traditional methods of obtaining repair estimates.
The solution, initiated by Inchcape, extends a helping hand to car owners of all brands who need car body repair.
Their strategy has been to develop a user-friendly portal for customers to input car details and damage for instant ballpark quotes through AI algorithms.
This comes amidst key challenges on complex processes resulting in extended quotation turnaround times, and agents
spending 70% of their time on manual tasks with limited customer service time.
Inchcape’s ‘Icy’ AI assistant
To successfully execute the solution, the company introduced AI assistant “Icy” to provide a friendly and personalised customer experience. It is integrated in mobile application WhatsApp to allow for easy customer access, interactive communication with step-by-step guidance, and AI-powered error reduction and accuracy.
Customers are now able to start a chat, upload car photos with guidance, and quickly receive quotes with 96% accuracy in vehicle damage detection with the execution of the AI solution in WhatsApp. It has also provided services personalisation to tailor interactions, marketing automation for targeted customer communications, and real-time analytics for continuous improvements.
The AI Smart Quote-to-Deal Assistant has made significant impact for the company’s operations, with the quotation generation time being reduced from two to three working days to five to ten minutes. This has led to the initiation of over 1,000 chatbot sessions and a 4x increase in repair leads generated, resulting in a 70% increase in repair revenue for Inchcape Hong Kong.
The solution has proven to be a highly innovative and effective initiative that tackled key challenges, enhanced customer experiences, and drove significant business results. Its thoughtful strategy, creative execution, and measurable outcomes demonstrate best practices in AI-powered customer engagement.
The HKB Technology Excellence Awards celebrates innovation and excellence in Hong Kong's dynamic tech landscape, highlighting companies that lead the way in technological disruptions within their industries.
The solution extends a helping hand to car owners of all brands who need car body repair
Cameras with vlogging functions are in demand, according to its CEO.
Canon Hong Kong is banking on content creators to snap up more customers as tech continues to blur the lines between smartphones and professional digital cameras, according to its newly appointed CEO.
“There is an increasing demand for video functions that facilitate content creation for social media,” CEO Gary Lee said in an interview with Hong Kong Business “YouTubers and vloggers are seeking cameras with interchangeable lenses and accessories suitable for various scenarios such as travel and telephoto.”
Last month, the company launched the tiny Canon EOS R50 V, a vlogging-focused variant of the company's 24-megapixel APS-C mirrorless camera. Key features include a livestream button, a movie recording button on the camera front, and a tripod screw hole for vertical shooting.
Some content creators and general consumers prefer a compact solution with limited zoom but need strong autofocus and low-light performance, Lee pointed out. For this segment, Canon offers the PowerShot V1, which was announced alongside the R50 V and features eye detection autofocus, he added.
Lee expects consumer demand for new features to fuel digital camera sales, which grew 10% in 2024 to 8.49 million units, according to the Camera & Imaging Products Association (CIPA). The Tokyo-based group expects unit sales to rise 1.1% to 8.58 million this year.
Hong Kong’s digital camera market is expected to generate $612m (US$78.9m) in sales this year, with units sold projected to hit 221,100 by 2029, according to German data portal Statista. Hong Kong's tech-savvy population has fueled a surge in demand for high-end digital cameras, making it a lucrative market for camera makers, it added.
“Nowadays, we take many more photos than we did before smartphones became popular,” Lee said. “Canon continuously launches new products with enhanced functions and features to meet the new demands of our customers.”
Canon Hong Kong is also zooming in on photography hobbyists by offering photography workshops or interest classes with different themes.
“We offer portrait photography in street or travel settings, especially with various lightings and sceneries,” Lee shared with the publication. “We also offer some exclusive workshops, including how to capture the aurora borealis, meteor showers, and idol photoshoots at concerts.”
Canon is also working on other aspects of imaging, including printing. “We are supporting our printing customers and digitalising their production lines to enable them to accept any job in any size and in a more cost-efficient and flexible manner,” Lee said.
Printing led Canon Global’s business segments with 2.5 million units sold in 2024, a 7.5% increase from a year earlier.
For this segment, Canon released the PIXMA TR160, a compact wireless printer aimed at mobile professionals who need to print high-quality and glossy client documents without a laptop in approximately 9.0 images per minute (ipm), and approximately 5.5 ipm in colour. In addition, the SELPHY QX20 is for hobbyists who want to print card-sized and square-format photos directly from their phone.
Canon Hong Kong aims to “achieve steady business growth” in 2025, its CEO said.
Last year, net income at Canon Global fell 39.5% to $8.66b (¥160b) from a year earlier. Sales increased 7.9% to $244b (¥4.5t), with growth across business segments including imaging, where digital cameras fall under.
There is an increasing demand for video functions that facilitate content creation for social media
Canon also plans to target the growing smart office market, which set for strong growth between 2024 and 2029 and a CAGR of 10.5%, according to Mordor Intelligence. The company plans to bank on its facial and smile recognition technology in offering multiple smart workspace solutions, including access control, visitor management, room and office desk booking, and secure printing control.
‘Ding
and more frequently
Tram ridership is still 15% below 2018 levels, according to its operator.
Hong Kong Tramways Ltd. should lobby for its “right of way” to increase service frequency and boost the speeds of its tram system to sustain ridership amidst its fare increase, analysts said.
“The only reason why people don't use trams is because they are slower,” Alok Jain, CEO at management consulting firm Trans-Consult Ltd., told Hong Kong Business in an interview. “If you have more vehicles and more speed on the road, then certainly, the usage of trams will go up.”
The trams, affectionately known by locals as Ding Dings, are affected by traffic congestion in Hong Kong, particularly at junctions, due to the growing number of cars and buses in the city, he pointed out.
Ridership on Ding Dings, which have been carrying people on Hong Kong Island for more than a century, increased only 3.2% to 50,474 in 2024 from a year earlier, according to data posted by the Hong Kong Transport Department on its website.
Tram ridership is still 15% below 2018 levels, Hong Kong Tramways, which is owned by RATP Dev Group, said in an interview. It did not provide the exact figures.
RATP Dev, which operates
Hong Kong Tramways, announced a proposed fare increase on 11 February. Adult fares will rise to $3.30 from $3, whilst children aged 3 to 12 and senior citizens will have to pay 10 cents and 20 cents more at $1.60 and $1.50, respectively. Monthly pass prices will stay the same.
The fare increase has been approved by the Legislative Council and will take effect on 12 May.
The fare increase would not drastically affect ridership, but the tram system should run more frequently to help passengers see greater value in the fare hike, Jain said in an exclusive interview.
“One of the things that the tram should lobby with the government is to at least protect their right of way in the busy parts of Hong Kong so they can maintain the speed,” he said.
Vera Wing-han Yuen, an economics lecturer at the University of Hong Kong Business School, said artificial intelligence (AI) could help Hong Kong Tramways streamline operations, enhance route planning, and ease delays.
“Instead of maintaining an even schedule from the starting station, AI could help adjust schedules based on current traffic conditions,” she said. “This could ensure a smoother
and more evenly distributed service throughout the entire route, not just at the starting point.”
AI could help minimise delays caused by traffic congestion, making the trams more reliable and efficient and encouraging more people to use it despite the fare increase, she added.
Hong Kong Tramways runs 165 double-decker trams from 5:30 a.m. to 12:30 a.m. the next day, covering six routes from Shau Kei Wan to Kennedy Town, also covering Happy Valley. Trams leave every one-and-ahalf minutes during peak hours.
Its access to Happy Valley, an area not easily reached by the mass transit railway (MTR), is one of the tram’s unique advantages, Yuen said.
Lawrence Lu, executive director at public policy think tank Civic Exchange, said the trams ran 384,000 kilometres in December 2024, a 4.3% increase from a year earlier.
These have also been upgraded to improve passenger experience, he added, citing better payment systems and the use of QR (quick response) codes for real-time arrival tracking.
Jain said Hong Kong Tramways should maximise its appeal as the city’s “party vehicles” and focus on nonfare revenue, since the fare hike is unlikely to yield a significant revenue boost. Back in 2018, Hong Kong Tramways launched The Circus Tram, a mobile social club.
“A lot of people rent open trams for their birthday parties and events, and that is an area that can be explored more,” he said. “You can charge whatever you want, based on the season, based on the clients, or based on the demand.”
“These adjustments are much more flexible than the fare increases,” the CEO told Hong Kong Business. Hong Kong Tramways should enhance integration with other transport operators, Jain said, citing a 2016 setup that allowed free transfers from long-distance buses to trams.
“If long-distance buses stop earlier to reduce traffic and passengers transfer to trams, which operate on dedicated tracks, it could be an efficient transport arrangement,” he said. “It has been tried, but I don’t think it has been given the full support it deserves.”
The fees may have implications for Hong Kong-flagged container vessels.
AHong Kong push to make its shipping industry more attractive by offering refunds for block ship registrations is unlikely to lure more shippers as the US plans fresh port fees of as much as $11.7m (US$1.5m) per call on vessels connected to China, according to an analyst.
“A particular risk that is being considered at present is the reported plan by the U.S. to impose tariffs on Chinese-linked vessels,” Oliver Miloschewsky, head of Shipping for Asia at global professional service firm Aon, told Hong Kong Business.
“This could have potential implications for Hong Kong-flagged vessels as well,” he said.
The Trump administration is planning to impose new port fees on vessels connected to China, whether by ownership, flag, or place of construction, as part of a broader strategy to cut reliance on Chinese maritime infrastructure.
If enforced, the fees could increase port call costs for affected vessels by as much as 3,000%, potentially reshaping global shipping dynamics, according to marinetraffic.com.
The incentive in isolation is unlikely to increase the number of vessels flying the Hong
It noted that while only 22% of container ships calling at US ports are Chinese-built, more than 11% fly Chinese or Hong Kong flags — more than any other segment. Reflagging may be a quick fix for some operators, it added.
“The incentive in isolation is unlikely to increase the number of vessels flying the Hong Kong flag,” Miloschewsky said, referring to Hong Kong’s block registration incentives that took effect on 14 February.
Hong Kong had 2,322 registered ships at the end of 2024, with the gross tonnage increasing by 2.8% to 131.8 million from a year earlier, according to Captain Nittin Hanada, director for regulatory affairs at the Hong Kong Shipowners Association.
For ships with a gross tonnage of more than 500, the registration fee is $15,000, and the annual tonnage fee for those exceeding 24,000 net tonnage is $77,500, he told Hong Kong Business magazine.
“We believe that the ship registration fee and the annual tonnage charge of the Hong Kong Shipping Registry are highly competitive among other major ship
registries,” he added. Hong Kong is offering refunds of ship registration fees and the first-year annual tonnage charge if multiple eligible ships are registered within 24 months.
Each application can also cover ships with different owners and may be submitted by a shipowner, ship manager, or ship agent, according to the Marine Department.
“While the scheme alone is unlikely to boost ship registrations in Hong Kong, it remains important for Hong Kong as the maritime sector continues to be a cornerstone of Hong Kong’s economy,” Miloschewsky said.
The trading and logistics sector is 20% of the city’s economic output, with the maritime industry contributing $30b to the economy through more than 900 shippingrelated companies, he said.
“Strategically, Hong Kong is an important maritime gateway in the Belt and Road Initiative.”
Port development strategy
Hanada said the scheme and other measures under the Action Plan on Maritime and Port Development Strategy will further strengthen Hong Kong’s "competitiveness and fostering Hong Kong’s leading position among ship registries in the world."
Hanada said Hong Kong has implemented several measures to boost its maritime competitiveness, including tax concessions for the shipping industry since 2020.
These include a 0% profits tax for ship leasing, an 8.25% halfrate profits tax for ship leasing managers, marine insurance, and shipping commercial principals. The government is also planning to introduce commodity trading businesses and measures to attract their presence in Hong Kong, said Hanada.
"This will bring new growth potential to our maritime service clusters and would help to attract more ships to register in Hong Kong," he said.
In addition, the government is injecting $215m to install a smart port community system. It is currently identifying logistics sites, with the first batch located in the vicinity of the Kwai Tsing Container Terminals.
firms may use buyback stocks to fund investments and capital needs.
Accounting and law firms are expected to benefit from increased demand for professional advice from listed companies seeking to take advantage of a Hong Kong bill that lets them hold on to repurchased stocks.
“The bill should increase appetite for using Hong Kong-incorporated companies as listing vehicles, which would in turn increase the demand for the professional service sector in Hong Kong,” Chistopher Ma, a partner for Corporate and Commercial at law firm Simmons & Simmons, told Hong Kong Business. Changes to the Companies (Amendment) Ordinance 2025 took effect on 17 April.
Although the stock market reform applies to few listed companies in the city, Claudia Yiu, a partner at the same law firm, expects it to "bolster Hong Kong’s appeal as a listing venue.”
Only 8% of issuers in Hong
Kong are barred from holding on to repurchased or treasury shares under the old law, she said, citing data from Hong Kong Exchanges and Clearing Ltd. The rest were incorporated in territories that allow them to hold treasury stocks.
The bill aligns Hong Kong with other jurisdictions, including Bermuda, the Cayman Islands, and China, Ma told the magazine.
A publicly listed company usually buys back shares to increase the value of existing shareholders' stock by lowering the total share count, or to take advantage of an undervalued stock price. A share buyback programme can also prevent hostile takeovers by reducing the number of outstanding shares.
Before the amendment, listed companies incorporated in Hong Kong must cancel the nonvoting stocks. Now, they can hold and resell these later to fund investment and
Only
capital needs.
“Listed companies may resell their treasury shares for cash in small lots on the market at full market price as an alternative fundraising means to place new shares, which are typically at a discount to market price,”
Ronny Chow, a partner and head of Corporate Finance Practice Group at law firm Deacons, told Hong Kong Business in an interview.
“Treasury shares may also be transferred as consideration for satisfying employees’ share schemes, or upon conversion of convertible securities,” he added.
Yiu anticipates that the stock exchange will allow companies use treasury shares as a form of currency for mergers and acquisitions or as a security for debt financing.
Aside from treasury share reforms, the bill also allows Hong Kongincorporated companies to spread corporate communications through a website without shareholder consent.
“If the articles of association of a company contain a provision to the effect that the company may disseminate corporate communication via website, the company may do so without having to seek prior consent from each shareholder,” Chow clarified.
“An unlisted company will not be required to send separate notifications to its shareholders if they have given one-off prior express consent not to receive such notifications,” Chow said, adding that paperless announcements could cut costs and boost efficiency.
However, companies must first send a one-time notification informing shareholders of the electronic dissemination arrangements.
The change will “enhance costeffectiveness and operational efficiency across companies,” said Chow.
He said listed companies should check their incorporation articles to see whether changes are needed.
Ma added that issuers should familiarise themselves with the changes, associated risks, and ways to comply.
They should expect a salary hike of as much as 15%.
Insurance workers in Hong Kong looking to change employers should expect higher salaries this year as companies scramble to fill vacancies amidst a talent shortage, according to headhunting experts.
Existing insurance workers should expect a 3% to 4% pay increase, whilst those changing employers could negotiate as much as a 15% hike, Dutch human resource (HR) consulting firm Randstad NV said in a job market outlook and salary guide released in January.
“Salary increments [in most industries] typically fall within the 3% to 5% range due to a conservative approach to compensation management,” Demi Poon, principal consultant of Insurance at Randstad Hong Kong, told Hong Kong Business in an exclusive interview.
“However, when you switch employers, you enter a more competitive job market where companies are eager to attract skilled workers. This is often why they offer higher starting salaries to bring in talent,” the consultant added.
Hong Kong salaries are expected to rise 4% across all industries in 2025, whilst half of the organisations polled plan to keep their headcount, New York-based HR consulting firm Mercer said in a January report.
Inflation and cost-of-living adjustments dictate salary increases for existing employees, whilst competition for talent drives up the compensation for new hires, Gary Chin, head of Rewards at Mercer Hong Kong, told the magazine.
“Such competition can lead to higher salary increases for job changers as firms seek to fill vacancies quickly,” he said. “Industries such as the financial and insurance sectors in Hong Kong are amongst those that experience talent shortages.”
“This scarcity drives companies to offer better pay to appeal to new talent, resulting in more significant
increases for job changers,” he added.
The insurance industry is expected to keep steady hiring activity in 2025 despite a sluggish economy, according to the Mercer report. It expects insurers to replace lost headcount and fill in new roles in distribution and operations, with broker and agent jobs driving growth.
'Crucial bridge' Insurers seek middle to senior managers with experience for agents who will serve Chinese visitors from the mainland, Mercer said. Randstad said there is also interest in hiring assistant and junior managers.
“Employers are taking a more flexible approach to hiring and are open to accepting candidates who may not have a lot of insurance expertise but who have strong networks in mainland China, a solid foundation understanding of insurance products, and a willingness to learn,” according to the Randstad report.
British recruitment company Hays in January said 38% of businesses in Hong Kong plan to expand their workforce in 2025. The job of an insurance business analyst was the
third-most in demand in its report.
“The insurance business analyst serves as a crucial bridge between the business and information technology functions by aligning expectations, providing valuable suggestions and enhancements to product development and operational processes,” Freeman Pang, manager of Insurance at Hays Hong Kong, told Hong Kong Business
Analysts who specialise in underwriting or claims can command higher salaries, he said, adding that people who have worked on automation projects are well-suited for the job. People with strong technical and communication skills may find it easier to transition to a product ownership or project management role.
Randstad expects 34% of Hong Kong employers to expand their sales and business development teams, 22% to target technology roles, and 16% to prioritise digital transformation and artificial intelligence (AI) positions.
“AI and generative AI will have a transformational impact on insurers, and many players are prioritising their efforts in this area,” Henrik Naujoks, head of Asia-Pacific financial services practice at Bain & Co., told the magazine.
“However, most insurers haven’t deployed it at scale. One of the biggest challenges is the capability topic,” Naujoks added.
Travel, food and beverage, and fashion can also benefit from a little bit of excitement.
Asurge in shoppers seeking to relieve stress is fuelling increased blind box sales in Hong Kong, prompting non-toy retailers to adopt the hype.
“Blind boxes offer an escape via the element of surprise and excitement, allowing consumers to momentarily shift their focus onto other things rather than their careers,” Clifton Chiu, a senior analyst at Euromonitor International, told Hong Kong Business
London-based market research firm Mintel Group Ltd. expects the trend to continue as brands explore new ways to engage consumers through surprise and adventure. It noted that 66% of Hong Kong consumers enjoy trying new experiences.
The blind box format can also be adopted by non-toy retailers including those in travel, food and beverage (F&B), and fashion, Chiu said, adding that the concept has expanded into digital formats.
Blind boxes offer an escape via the element of surprise and excitement, allowing consumers to momentarily shift their focus onto other things rather than their careers
“This trend has already evolved into digital collectibles and nonfungible tokens, with many industries and companies entering the space,” he said. “One of the most prominent examples is the Pokemon Trading Card Game Pocket app, which has generated over $3.1b (US$400m) as of January 6.”
Retail brands such as Alibaba’s Tmall have also embraced digital collectibles, offering them as giveaways through its mobile app. These virtual collectibles feature collaborations with brands like Adidas Neo, Burberry, and PUMA.
“Pop Mart’s initial IPO (initial public offering) in Hong Kong in 2020 was a landmark moment for blind boxes, turning these into a mainstream phenomenon rather than a fad,” Chiu said.
He attributed Pop Mart's popularity to international events such as Milan Fashion Week and publicity from K-pop stars like BlackPink's Lisa.
“Pop Mart's sustained success
has earned it approximately 0.5% market share in the dolls and accessories market, a significant achievement considering it competes in the same space as Barbie,” he pointed out.
With an average price of $80, blind boxes have contributed to the trend of “affordable luxury” since being rare enhances their value.
The global blind box toy market was valued at $14.3b in 2024 and is projected to grow 6% annually to $21.4b through 2031, according to India-based Cognitive Market Research. Whilst North America dominates the blind box toy business, the Asia-Pacific region is expected to post the biggest growth due to growing interest in collector toys among children and adults.
“The region's rich toy culture, driven by both local trends and global franchises, drives up demand for one-of-a-kind and limited-edition releases,” it said in a December 2024 report.
Sales of action figures, construction toys, and dolls and accessories rose 2% to 5% in Hong Kong last year, signaling a change in the demographic for the market as a whole, Chiu said.
“A large proportion of blind box consumers value the experience,” he said. “According to Euromonitor’s Consumer Lifestyle Survey 2024, one-third of global consumers are experience seekers who value the process of purchase more than the actual purchase itself.”
Chiu said companies should use blind boxes to boost revenue, as well as for marketing.
“The long-term value blind boxes bring to companies is their ability to build brand loyalty, create engaging customer experiences, and serve as a platform for product and IP (intellectual property) development,” he added.
SPEAK TO OUR TEAM
Last September, sensitive data breaches highlighted vulnerabilities in Hong Kong's data privacy landscape. Cyberport reported a major hack exposing staff details and credit card records. Coupled with the new Data Security Law in Mainland China, data protection has become a critical priority for businesses operating across both regions.
As a prominent real estate and retail conglomerate in Hong Kong, our client faced significant challenges:
Frequent data breaches threatening brand reputation
Evolving regulations with limited legal expertise
Complex cross-border data transfer compliance
Difficulty in tracking regulatory updates
Established robust data security frameworks Streamlined crossborder data processes Mitigated legal risks and regulatory penalties
LexisNexis has significantly alleviated the burden of our data compliance management while enhancing our reporting and communication with headquarters.
- A local retail and real estate conglomerate
Our client turned to LexisNexis for comprehensive legal and compliance support:
✔ Data Security Framework
Established a robust knowledge framework using LexisNexis’ Practical Guidance Data Protection module.
✔ Compliance Checklists
Conducted self-assessments to ensure adherence to data protection standards.
✔ Standardised Contracts
Developed compliant templates for cross-border transfers.
✔ Regulatory
Utilised smart alerts for timely updates from Lexis China Compliance Intelligence on industry changes and penalties.
The company is powering Hong Kong’s green future through EV innovation and collaboration.
Hong Kong is accelerating towards a sustainable future, with around 110,000 electric vehicles (EVs) on the roads as of December 2024, making up 12.2% of all vehicles. Leveraging its power expertise, CLP Power Hong Kong Limited (CLP Power) is dedicated to orchestrating the development of the local EV ecosystem. Through strategic initiatives and technological applications, CLP Power is accelerating electrification in the city, supporting Hong Kong achieve its goal of zero vehicular emissions by 2050.
Mr Simon Lam, Director of the eMobility Team at CLP Power, said: “At CLP Power, we strive to promote the city’s transition to a new era of eMobility, accelerating transport electrification to make Hong Kong a greener and smarter city. Our commitment to innovative technologies and solutions, grid readiness, as well as collaboration with industry partners ensures that we are wellequipped to support the city’s continuous development of green transportation.”
Innovative technologies for a green future
In the face of rapid technological advancements, CLP Power recognises the importance of embracing innovative
technologies. To support the expansion of EV charging network, CLP Power has developed the eMobility Grid Management Platform (eGMP). By integrating EV charging data, this cutting-edge platform analyses the utilisation and patterns of charging stations across Hong Kong, optimising grid planning and resource allocation more effectively.
Building on these innovative technologies, CLP Power is also focussed on ensuring grid readiness to support the widespread adoption of EVs. A robust and reliable power grid is essential for the growth of the EV charging network. CLP Power continuously enhances its grid performance to ensure a stable power supply for EV charging. “To meet market demands, CLP Power plans the grid by considering the growth of EVs, regularly assessing and forecasting electricity needs for the next five to ten years. This proactive approach strengthens the grid to accommodate the increasing demand for EV charging,” said Lam.
Innovative power supply solutions
With a well-planned power grid, CLP Power
‘CLP Power is ahead of the curve in supporting EV infrastructure by introducing innovative power supply solutions tailored to Hong Kong’s unique environment’
is ahead of the curve in supporting EV infrastructure by introducing innovative power supply solutions tailored to Hong Kong’s unique environment. In addition to the conventional indoor substation, CLP Power provides various power supply solutions to support the expansion of the EV charging network for electric commercial vehicles (ECVs), including Low-voltage (LV) cables, pole-mounted transformers, and outdoor substations. For mega outdoor EV fast charging hubs, a composite design with an HV pillar and outdoor transformer compound has been introduced, helping customers shorten construction time and reduce costs.
To drive the widespread adoption of EVs, collaboration across various sectors is not just beneficial - it's essential. By working together, industry partners can create a robust and supportive ecosystem that accelerates the transition to green transportation. The eMobility Network, a cross-sector partnership formed by CLP Power and 15 like-minded businesses and organisations, including ECV manufacturers and operators, charging service providers, and a bank offering green finance services, offers a platform to foster technology exchange and promote wider use of ECVs. The collaborative effort is vital in supporting Hong Kong on its journey to a low-carbon future.
As a public utility, Towngas has always been closely linked with the public’s daily life. Fulfilling our corporate social responsibility is an indispensable part of our corporate philosophy – that is why in addition to providing a safe and reliable energy supply, we proactively engage with society and cater for people in need. Besides leveraging innovative technologies to improve people’s lives, Towngas also gets out in the field to connect with people through campaigns like distributing festive food to the underprivileged during the holiday season. Since its establishment in 1999, our Towngas Volunteer Service Team has contributed over one million service hours to the community over the years. Going forward, Towngas will continue to make a positive impact on society and strive towards a brighter future for all.
Innovation remains at the heart of today's business world, with companies continuously redefining industry standards and meeting evolving consumer demands. From state-of-the-art technology solutions to unparalleled customer experiences, businesses are not just adapting—they are pioneering the future of their industries.
The prestigious Hong Kong Business High Flyers Awards 2025 once again honoured those at the forefront of innovation, celebrating exceptional achievements across Hong Kong’s diverse business landscape. Held at the Hyatt Regency Hong Kong on 21 January
Hong Kong Business congratulates the following winners:
AXA Hong Kong & Macau
• Cloud - Insurance
• Big Data - Insurance
• Generative AI Solution - Insurance
Fidelity International
• Financial Services
FSE Lifestyle Services Limited
• Conglomerates
Hang Seng Bank
• Global Banking
Hyatt Regency Hong Kong, Tsim Sha Tsui
• Best City Hotel
Lifestyle Insurance
• Insurance Brokerage Services
Lindt & Sprüngli (Asia-Pacific) Limited
• Premium Chocolatier
PolyU Business School
• Excellence in MBA Student Leadership Development
PrimeCredit Limited
• Outstanding Finance Company
Prudential Hong Kong Limited
• AI - Insurance
Standard Chartered Bank (Hong Kong) Limited
• Bank of the Year
Sun Life Hong Kong Ltd
• Best Insurance Company
2025, this highly anticipated event gathered industry leaders, visionaries, and top-tier entrepreneurs to recognise the exceptional contributions that have reshaped the region’s business environment.
The event was a resounding success, attracting industry leaders, entrepreneurs, and innovators across various sectors.
Join Hong Kong Business in applauding these trailblazing companies that continue to set new benchmarks for excellence, innovation, and competitiveness.
Congratulations to all the winners!
he big data industry in Hong Kong continues to establish itself as a cornerstone of the digital economy for 2025. Given its positioning as a global financial hub with a robust digital infrastructure, the region has become a ground for the growth of data-driven innovation.
Moreover, other rapidly advancing technologies have significantly amplified the potential of big data in the region. Hong Kong now emerges as a leader in this market amidst the increasing number of businesses tapping into vast datasets to gain insights and drive decision-making. Big data is no longer just a tool for businesses but is now a powerful driver of economic growth.
One of its main riders is leading insurer AXA Hong Kong & Macau, whose recent strategic focus has been on leveraging big data to drive digital transformation and innovation in customer service and operational efficiency. As part of its commitment to utilising data analytics to enhance customer interactions, it aims to improve customer interactions through personalised experiences and predictive insights into customer needs.
Over the past year, AXA Hong Kong & Macau has set itself apart by implementing big data-driven solutions, such as gathering data from various sources to integrate it into a unified system for analysis, employing statistical analysis, predictive modelling, and machine learning algorithms to uncover patterns and trends within the data that can inform business strategies. These solutions are also able to gain a deeper understanding of customer
preferences, behaviours, and needs, allowing for personalised marketing, product offerings, and customer service, elevating customer interactions through immediate, personalised support.
The Voicebot
Amongst these initiatives is The Voicebot, which has emerged as a standout success in its service offerings, showcasing how big data can enhance customer interactions. It uses advanced natural language processing to provide personalised and detailed responses to customer inquiries.
At the same time, it offers 24/7 support with no waiting time, delivering instant and accurate answers that greatly enhance customer satisfaction. Additionally, the Voicebot can detect customer emotions, respect individual preferences, and allow users to switch seamlessly between human and robotic support, all of which help to build trust and loyalty amongst customers. By analysing customer inquiries and preferences, the Voicebot provides instant responses and tailored support.
A recent success story of the solution has involved a client who utilised the Voicebot to resolve a complex policy inquiry quickly. Statistics also suggest that the Voicebot has settled around 40,000 calls per month. The personalised assistance received has not only satisfied the client but has also highlighted how its big data capabilities enable the company to deliver exceptional service experiences.
We are moving forward every day, guided by our four core values: Customer First, Integrity, Courage and One AXA.
• AXA Hong Kong and Macau is a member of the AXA Group, a leading global insurer with presence in 51 markets and serving 94 million customers worldwide.
• Our purpose is to act for human progress by protecting what matters.
• As one of the most diversified insurers in Hong Kong, we offer integrated solutions across Life, Health and General Insurance. We are the largest General Insurance provider and a major Health and Employee Benefits provider.
These transformative projects enable AXA Hong Kong & Macau to efficiently respond to inquiries and utilise data as a feedback loop to continuously shape its strategic priorities.
Individuals are drawn to the company because of its dedication to innovation and delivery of exceptional service experiences, underscoring its commitment to leveraging big data in impactful ways.
“The Voicebot project serves as a key use case for demonstrating how we leverage big data to improve customer engagement. By integrating advanced analytics, we can understand customer behaviours and preferences, and knowing the customers’ preferences allows us to deliver experiences that feel tailored, increasing loyalty and trust,” David Ng, Deputy CEO, AXA Hong Kong & Macau, said.
Meanwhile, key insights from its big data analytics reveal a growing customer demand for personalised and immediate responses.
AXA Hong Kong & Macau intends to capitalise on these insights by enhancing the capabilities of its Voicebot and other customer service initiatives to proactively anticipate client needs.
Through in-depth analysis of customer interactions and preferences, the company’s objective is to continuously refine its services and ensure that its operations remain agile in response to evolving market demands.
“This ecosystem enables our organisation to effectively gather, analyse, and utilise data to drive decision-making and enhance customer experiences.
This page: AXA is redefining customer engagement with personalisation and efficiency
Opposite page: David Ng, Deputy CEO, AXA Hong Kong & Macau, said.
This way, we are poised to secure a long-term goal of effectively meeting customer needs at every stage of their journey,” Ng said.
The company’s success in exemplifying its manner of utilising data analytics to deliver personalised, efficient, and empathetic interactions towards clients has been lauded by the coveted High Flyers Awards, with AXA Hong Kong & Macau being recognised as the recipient of the Big DataInsurance category win. “Winning the award for our big data initiatives is a significant recognition of our commitment to innovation and excellence in customer service. Looking ahead, our primary objective will be to expand the capabilities of the Voicebot to address more intricate inquiries and to further elevate our data analytics framework, delivering even greater personalisation and efficiency in customer interactions,” Ng said.
As the company continues to evolve in this digital age, its commitment to leveraging big data and emerging technologies is expected to drive its growth and enhance its service delivery. It remains excited about the future and believes that its ongoing initiatives are not only going to meet, but also exceed the expectations of clients, solidifying AXA Hong Kong & Macau as a leader in the insurance industry. The Hong Kong Business High Flyers Awards celebrates Hong Kong’s most outstanding leaders and innovative companies, lauding their exceptional products and services and setting new benchmarks, shaping the future of the region. The winners of this year's awards programme were honoured at an Awards Dinner at the Hyatt Regency Hong Kong on 21 January 2025
n 2025, the Hong Kong insurance industry will be increasingly shaped by digital transformation, customer-centricity, and sustainability. Whilst these trends have been evolving over the past few years, technological advances, shifts in consumer behaviour, and rising ESG demands have accelerated the pace of change, positioning companies like AXA Hong Kong & Macau as key players in this new era.
As one of the largest insurers in the region, AXA continues to strengthen its market position by harnessing cutting-edge technology, such as generative AI, big data analytics, and cloud computing. The company’s innovative "insurance-as-a-service" model, powered by cloud infrastructure, enables it to deliver personalised and efficient services whilst also enhancing internal operations for both employees and customers.
Its strategic use of AI and big data allows the company to rapidly adapt to shifting market dynamics and evolving customer needs. By integrating data across business lines, AXA Hong Kong & Macau not only improves service delivery but also ensures a seamless experience for both customers and staff. The company’s digital transformation strategy is central to its ongoing efforts to provide value in a competitive market.
“We focus on leveraging cutting-edge technology such as public cloud, generative AI and data analytics to enhance customer interactions and uplift operational efficiency which are key objectives of the market
nowadays,” said David Ng, Deputy CEO, AXA Hong Kong & Macau. This commitment to innovation has attracted both talent and clients, as people are drawn to the company’s focus on modernising the insurance experience.
Amongst its standout offerings in the last year is the ACE Portal, which has been designed to streamline the application process for personal vehicle policies and enhance the overall experience for intermediaries and internal users. The portal supports online applications for new businesses, renewals, endorsements, cancellations, and reinstatements, significantly reducing the reliance on manual processes and paper forms.
A notable success story involves the implementation of the ACE Portal, which has already led to improved operational efficiency and faster turnaround times for clients seeking to submit applications. One intermediary has reported that using the ACE Portal allowed them to process applications much more quickly, leading to higher customer satisfaction and increased digital adoption rates. This positive feedback underscores how the portal enhances the user experience and aligns with AXA Hong Kong & Macau's digital ambition to improve service quality and operational efficiency across the insurance journey.
Meanwhile, the company’s ability to effectively manage cloud insurance also comes from its digital modernisation strategy, which focusses on application programming interface (API)-led connectivity and
As one of the leading insurers in Hong Kong and Macau, our purpose is to act for human progress by protecting what matters.
• Throughout the years, AXA Hong Kong and Macau has been offering a wide range of life, health, property and casualty protection, as well as wealth management and retirement solutions to help customers achieve stability and prosperity.
• Today, over 1.76 million customers in Hong Kong and Macau, from individuals to established businesses, count on AXA Hong Kong and Macau to financially protect them, their loved ones and their future.
a multi-cloud approach. It utilises a model to standardise data exchange and communication between different systems and organisations, as its API design framework enables the company to adapt quickly to changing business needs. Through such a model, AXA Hong Kong & Macau optimises entitlement management and boosts customer engagement.
With a firm commitment to its “Customer First” philosophy, AXA Hong Kong & Macau is also redefining what it means to be an industry leader, setting the stage for even greater growth and innovation.
“At AXA Hong Kong & Macau, we are committed to leveraging emerging technologies like AI and cloud computing to redefine the insurance experience. Our focus on digital transformation not only enhances operational efficiencies but also empowers our customers with personalised solutions. Together, we are shaping a future where innovation and customer-centricity drive every aspect of our business," Ng added.
This determination ensures that its operations remain agile and responsive, aligning closely with the needs of clients in today’s fastpaced environment. AXA Hong Kong & Macau’s success has not gone unnoticed. The company’s successful harnessing of advanced technologies to deliver a seamless experience has been recognised by
This page: AXA's Cloud & Digital Modernization Strategy
Opposite page: AXA Hong Kong & Macau at the HKB High Flyers Awards 2025
the prestigious High Flyers Awards, with the company bringing home the Cloud - Insurance category win. “Winning this award is a testament to the success of our comprehensive digital transformation strategy and the innovative initiatives we have implemented,” Ng said. “We will ensure to adapt our offerings to meet evolving client needs and stay at the forefront of the dynamic digital landscape.”
With its future digital strategy centred on its digital infrastructure and nurturing a culture of continuous innovation, the company’s key goals in the near future include expanding the "insurance-as-a-service" model and enhancing its digital infrastructure further by integrating more advanced AI capabilities and expanding cloud adoption.
“This strong foundation empowers AXA to drive sustained growth, operational efficiency, and deliver exceptional customer service, solidifying our position as a leader in the insurance landscape,” Ng added.
These strategic initiatives serve as the company’s cornerstone for its ability to navigate change, scale effectively, and distinguish itself in the competitive market. As the industry continues to adapt and grow, 2025 marks the beginning of a new era—one where innovation, customercentricity, and sustainability will be at the forefront of success.
n its four decades of outstanding work, financial services company
PrimeCredit remains committed to providing high-quality customer service, professional consultation and tailor-made solutions — a mission born out of its deeper understanding of valued customers.
The company embodies its vision of being the “most reliable financial partner for life” with its three “A” service commitments to customers: available, affordable, and accessible. In its reflection of the past year, the financial services firm has observed that customer behaviour and financial needs changed from offline to online, especially since the pandemic. It has since then implemented massive digitalisation efforts in different dimensions to empower customers with a convenient and hassle-free experience.
“We keep exploring the opportunities and ways to engage customers with advanced product features and services and always strive to think outside the box, innovate, and create excitement to betterment the customer experience,” said CEO Beril Shen.
Shen, who has been working in the banking and finance industry for over 20 years, is PrimeCredit’s backbone, driving success for the company with her experience in strategic business developments on consumer finance and retail banking, which covers channels, segments, and business planning.
Under her guidance and leadership, PrimeCredit has excellently served its clients, whether through creating new products or services, collaborating with business partners, or working directly with individuals to help them solve financial problems or meet their financial goals.
A year of emerging technologies
PrimeCredit has upheld its brand promise of standing side by side with customers. For 2024, digital transformation has become the key milestone to keep itself competitive and maintain its leadership position. The company has taken customer needs and experiences as the key considerations for business development. Both customers’ behaviour change and industry trends have directed the company to massive digitalisation.
On the aspect of product innovation, PrimeCredit has enhanced the customer experience with various functions via the mobile app. For example, just at their fingertips, customers can operate their revolving loan account and receive money instantly, anytime and anywhere, without time or location boundaries.
The company is also amongst the early adopters of the Faster Payment System in Hong Kong, allowing customers to enjoy instant cash disbursements upon the availability of the service. Credit card customers can also grab instant rewards either before or after their card spending, whilst promotions have also become interesting gamification.
In terms of convenience, PrimeCredit has enabled online channels from loan applications to drawdown or instant virtual card usage. Fast and convenient defines the service that is treasured by customers. Whilst on operation efficiency, it has enabled various robotic applications in the processing centres to minimise manual work and shorten turnaround time.
The financial services firm has also employed a variety of methods to bolster its proficiency in emerging technologies. This includes delving into
Our commitment to pursuing P.R.I.M.E (i.e., People, Responsibility, Insights, Merits, and Excellence) is at the core of our comprehensive range of loans and credit card offerings, catering to our valued customers' diverse needs, and to be their most reliable financial partner for life.
diverse domains, engaging in activities hosted by various cloud providers, attending tech company seminars across different locales, and advancing numerous artificial intelligence (AI) projects.
Strategic partnerships have also been solidified with renowned blockchain suppliers to utilise blockchain technology for validating crossboundary data authenticity.
PrimeCredit has also reinforced and sustained a supportive brand image through its impactful products and services.
Amongst its most availed services is its loan service campaign, which aims to strengthen customers’ perceptions towards reliability and deepen their engagement with the company. Rather than focussing solely on product features, PrimeCredit prioritises the borrowing experience. It has also uplifted its services with omnichannel support, allowing customers to access services 24/7 with speedy, effortless responses.
In addition to offering instant approval on the loan amount and tenor requested by customers, it has also provided tailored recommendations based on each customer’s financial status for their consideration.
Recently, the company has also introduced online balance transfer consultation services to assist customers who may be aware of high credit card interest rates but unsure of how to manage their card debt. Customers can reach out to their Balance Transfer Consultant, who, in turn, is going to understand the customer’s financial condition, analyse and consolidate their outstanding debts, and formulate a plan to help the customer settle the debits in phases. This is not only going to ease the customers’ repayment burden and reduce interest expenses, but it is also going to help improve their credit scores in the future.
Meanwhile, PrimeCredit is always strives to keep bringing fresh and exciting experiences to customers which is also the success of their WeWa credit card. They have introduced the first-ever “Lying Flat Challenge” in
Hong Kong. It is an innovative campaign that reframes a demotivated attitude as a symbol of positive empowerment. The campaign involves an exclusive physical challenge game that acts as a platform for the audience to complete a trivial task in a serious manner in competition against others for a chance to win rewards. This has humorously brought the "do less, get more" concept to life and has generated substantial PR value.
Customer engagement and experience have now become more important in the finance industry, as they now expect user-friendly interfaces and processes. PrimeCredit’s capability to meet their needs effortlessly has earned them the Outstanding Finance Company category win at the coveted HKB High Flyers Awards.
“I am very proud and excited to represent PrimeCredit to receive this award and very remarkable as this is the eighth year of receiving 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.
Reflecting on the company’s win and looking ahead, Shen believes that 2025 is going to be a year when the perseverance and hard work of Hong Kong people will get rewarded. Moreover, the CEO has also stated that, amidst the formation of a data-driven economy, establishing big data capability and applying AI and machine learning technologies are going to be amongst their key focus in the coming years.
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Hong Kong and Macau’s business environment continues to play a pivotal role in shaping the region's economic landscape and fostering sustainable growth.
The HKB Greater Bay Area Enterprise Awards and HKB Management Excellence Awards once again recognised exceptional companies, innovators, and initiatives driving this success.
Presented by Hong Kong Business, winning companies were honoured at the prestigious Awards Ceremony held on 20 February 2025, which took place at the Hotel ICON, Hong Kong.
The HKB Greater Bay Area Enterprise Awards recognises the remarkable contributions of Hong Kong and Macau-based companies to the Greater Bay Area’s development that promote
Hong Kong Business congratulates the following winners: HKB GREATER BAYAREA ENTERPRISE AWARDS 2025WINNERS
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• Hospitality
China Ltd.
• Entertainment Experience
Visa Hong Kong
• Payments
HKB MANAGEMENT EXCELLENCEAWARDS
Executive of the Year
• Technology - Sharon Tse, Pictureworks
Innovator of the Year
• Banking - Ant Bank (Hong Kong) Limited
Diversity and Inclusion Initiative of the Year
• Health Products & Services - Diestel & Partners (Dental Surgeons) Ltd
• Life Insurance - Reinsurance Group of America
CSR Initiative of the Year
• Hospitality & Leisure - W Macau - Studio City
• Life Insurance - Reinsurance Group of America
Employee Engagement of the Year
• Hospitality & Leisure - W Macau - Studio City
collaboration, investment, and development within the region.
Meanwhile, the HKB Management Excellence Awards honours the most distinguished leaders, innovators, and teams who demonstrated excellence in leadership and strategic management, contributing to their companies' success and the broader economic landscape.
The esteemed panel of judges for this year’s HKB Management Excellence Awards includes Ivan Chan, Partner, Audit & Head of Financial Advisory, Forvis Mazars in Hong Kong; Gloria So, Partner, Advisory Services, SW Hong Kong; and German Chung, Partner, Assurance, Ernst & Young, Hong Kong.
Congratulations to all the winners!
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Traditionally, investment objectives primarily motivated transactions and heavily focused on capital growth and yield. Investors typically sought properties that promised substantial financial returns. Caution prevailed amongst investors regarding commercial property investments because of high interest rates and economic uncertainty.
Market observations
Recent market trends illustrate a growing inclination among end-users to acquire properties en bloc, such as hotels and office spaces. Earlier this month, Hong Kong Financial Secretary Paul Chan Mo-po urged universities to make better use of their funds, with media revealing that their financial reserves had risen to roughly $140b, 11% up from 2022-23.
Notable transactions include the Airport Authority Hong Kong's acquisition of Winland 800 Hotel, 1 Tsing Yi Road, for self-use in February; City University of Hong Kong’s purchase of Inter-Continental Plaza, 94 Granville Road, for self-use in December 2024; and Hong Kong Metropolitan University’s acquisition of One Harbourgate Chueng Kei Centre East Tower, 18 Hung Luen Road, for self-use in November 2024. Additionally, this evolving trend has been encouraged by various government initiatives aimed at bolstering tourism and the education sectors.
Government initiatives
The Hong Kong government has launched several initiatives to enhance the local business landscape locally and internationally.
Key initiatives include implementing tourism measures such as the Night Vibes and Hello Hong Kong campaigns to attract tourists and boost the economy. To further support the tourism sector, $1.09b has been allocated in the 2024-25 Budget, with monthly fireworks displays and drone performances planned to enhance visitor experiences. Additionally, Hong Kong is focusing on developing an international hub for post-secondary education by leveraging its strong educational infrastructure and increasing enrolment of non-local students. This includes establishing the “Study in Hong Kong” brand through international conferences and scholarships, particularly targeting students from ASEAN and Belt and Road countries.
To address growing accommodation needs, a pilot scheme will be introduced in the second half of 2025 to streamline the conversion of commercial properties into student hostels. Furthermore, more than 80 hectares of land in the Northern Metropolis will be developed into a university town, promoting collaboration between local and international institutions whilst providing additional student housing.
This trend of strategic property acquisitions underscores the initiatives of various organisations to expand their facilities and enhance operational capabilities. With substantial financial resources, many
ERIC TSANG Acting Head of Valuation & Advisory Services Colliers Hong Kong
businesses are well-positioned to capitalise on opportunities within a market facing downward pressure, often resulting in distress sales.
Well-capitalised entities are leveraging their financial strength to identify and secure prime assets that align with their strategic objectives. This environment allows organisations to acquire assets that may have previously been deemed unattainable, further solidifying their role in the real estate sector.
This shift in focus necessitates a reevaluation of conventional real estate valuation metrics. Whilst traditional measures such as rate of return remain important, a property’s suitability, applicability, and potential have become equally significant. It is essential to assess how well a property aligns with the operational requirements of potential investors and its adaptability to future needs.
For example, when seeking student accommodation, educational entities prefer assets close to their institutions and transport links rather than rental returns and potential asset value increase. Educational institutes have the funds to spend without having to factor in expensive loans and the speed of the city’s economic recovery.
In addition, investors see the potential of providing private accommodation to post-graduate students using similar parameters.
Distressed sales have significantly affected Hong Kong, allowing buyers to attain quality assets in prime locations at more affordable prices. Despite the revival in tourism, many hotels are not seeing guests returning to pre-COVID-19 numbers.
Operational requirements are taking precedence over traditional considerations such as return on investment, highlighting the growing importance of aligning property acquisitions with the end user’s specific functional needs and strategic goals.
This broadened perspective on valuation reflects a deeper understanding of the market, recognising that the long-term viability of an asset is increasingly tied to its functional relevance.
As such, there will be an inevitable trend towards incorporating these considerations into real estate evaluations.
The growing emphasis on end-users within Hong Kong’s real estate market signifies a broader transformation. As various organisations emerge as pivotal end-users, the landscape of property valuation is evolving to encompass a wider array of considerations beyond traditional investment metrics.
As the market continues to navigate downward trends, the strategic property acquisitions by these entities highlight a promising shift that could redefine the future of real estate in Hong Kong.
We expect to see more similar transactions as businesses seek properties that meet their specific operational needs. This trend will likely foster greater stakeholder collaboration and lead to a more dynamic real estate ecosystem.
With continuous growth of licensed vehicles, changes in travel demands, patterns and behaviours, and closer connections with the Greater Bay Area, there is a need for more innovative and efficient transport solutions to optimise the transport capacity and address the evolving needs of residents and visitors.
In response to these pressing issues, the Hong Kong SAR Government launched the "Smart Mobility Roadmap" in 2019, aiming to enhance urban mobility through innovative technologies and systems. This includes the implementation of various traffic control systems that utilise sensing technologies such as thermal detection, LiDAR, optical imaging and radar sensors. These technologies enable real-time monitoring of traffic and pedestrian volumes, helping to alleviate congestion during peak hours. Additionally, the launch of the "HKeMobility" mobile app provides users with real-time, multi-modal transport information, making journey planning more efficient and convenient.
Despite the efforts and progress made in advancing Hong Kong’s smart mobility journey, there are still gaps that need to be addressed in order to achieve a smoother and more integrated mobility experience. A key element in this is data integration and analysis.
Currently, available datasets are fragmented, making it difficult to consolidate them for better insights. However, data is crucial to develop a comprehensive transport overview. With over 11.5 million trips made daily, around 90% of which are via public transport, Hong Kong’s public transport usage is amongst the highest in the world.
Improved data collection and analysis are essential for monitoring traffic patterns and making informed decisions regarding infrastructure development and traffic management.
Whilst privacy concerns over data sharing remain a significant barrier, establishing secure, compatible and up-to-date data systems is vital in improving the planning and operation of Hong Kong’s transport system. The government and relevant stakeholders must go the extra mile to collect and contribute data, creating a safe and protected platform that consolidates usable, effective and interoperable travel data to generate holistic insights and develop smarter mobility solutions.
For example, the Transport for London has successfully integrated multi-modal travel information and user-centric services, leveraging data integration and public engagement.
Similarly, Hangzhou’s "City Brain" initiative adopts AI technology to analyse big data and optimise the city’s traffic flow, providing valuable lessons for enhancing urban transport systems.
A few years ago, a study was initiated in partnership with a local university, various transport operators, and e-payment platforms to explore citizens’ travel behaviours. This initiative aimed to create a framework for understanding the motivations behind data sharing and
CLEMENT HO Director Arup
the methods utilised. During the research, a data hashing algorithm was developed to safeguard travellers’ identities, and a consensus-driven data-sharing framework for stakeholders was established.
The findings highlighted key travel patterns, such as how citizens switch between different modes of transportation at important facilities. The study illustrated how government departments, transport operators, and other relevant entities can work together to enhance interchange environments, improve route and service planning, and optimise existing public transport services.
Looking ahead, the future of smart transport will focus on integrating advanced technologies into existing systems whilst tackling urban mobility challenges. Rather than placing all the responsibility on the government, the private sector can play an important role at various levels. We are actively collaborating with transport operators and e-payment providers to integrate datasets, aiming to uncover deeper insights into travel behaviours, identify clear patterns of travel and interchange.
Hong Kong stands at a pivotal moment in its pursuit of smarter transport solutions. By leveraging advanced technologies such as big data analytics and intelligent transport systems, Hong Kong will excel in building a more efficient and sustainable transportation network that meets the evolving needs of citizens and visitors. Ongoing data-sharing collaboration amongst government entities, private companies, academia, and citizens is crucial for harnessing data effectively and advancing these initiatives.
