51 minute read
Green Monday NEAT
Green Monday pushes for sustainable living across Asia
Providing a ‘Neat’ solution in international trading
Green Monday Group aims to encourage sustainable living
In a time when the world is facing climate change, food insecurity, public health issues, and population explosion,firm action is needed to avoid an eventual global catastrophe.
This is the mission of the Green Monday Group, a multi-pronged, mission-driven venture that aims to shift the public towards sustainable living. It’s a movement, a new lifestyle, and mindset that has spread to more than 30 countries to date.
Established in 2015, the group comprises of five distinct entitites. They are the investment arm which focuses on supporting the growth of like-minded entrepreneurs and startups globally. Green Monday Foundation, the nonprofit arm which advocates sustainable living through community initiatives. Green Monday Holdings, the operational arm under which OmniFoods and Green Common produce and distribute plant-based food products.
OmniFoods is a food tech company that creates a range of alternative protein food products for both commercial and consumer markets, including OmniPork, OmniPork Luncheon, OmniPork Strip, and OmniEat.
Meanwhile, Green Common is a onestop, plant-based platform that combines retail, distribution, and dining services in more than 10 markets.
Treating the creation of a “flexitarian” population as the high priority, the Green Monday movement believes that people don’t need to be a full vegan. It will take sustainability education, trendy lifestyle creation and product innovation to make change happen, and the group has already proven that in Hong Kong and in other parts of Asia.
In Hong Kong alone, Green Monday has teamed up with over 1,800 restaurants to include plant-based options on their offerings.
Institutions such as HSBC, Google, Sands, and MGM as well as celebrities have also joined in the movement.
“We are extremely delighted to partner with investors like TPG and Swire and looking forward to work with more missionaligned partners who share the same goal to strive for genuine impact, channel their power to make further good to the world, and overcome the planet’s most imminent challenges,” Green Monday said in an interview with Hong Kong Business magazine.
In the following months, Green Monday aims to expand its presence to more than 20 markets across Asia, EMEA, and North America. It also plans to increase point of sale operations to over 40,000 worldwide. Green Common flagship stores will also be launched in strategic locations in China in Singapore.
As we continue to expand our distribution network across the region and globally, we are seeing a much better economy of scale in terms of ingredient sourcing, production, logistics, and partnerships. We will see continuous drop in cost and price in the upcoming 9-10 months,” the group added.
David Rosa, Co-founder and CEO, Neat
Frustrated with the state of IT systems in the traditional financial institutions, businessman David Rosa used his savings and decided to create a better and more accessible financial platform for entrepreneurs around the world.
That platform is now called Neat. And Rosa is the CEO and co-founder.
“The name came to me on a sleepless night, at 3:00 am. It resonated well as it was short; the relevant web domain was available and encapsulated the essence of what we wanted to bring to market,” Rosa told Hong Kong Business on why he chose Neat as the name of the company.
The problems with international trading are the endless paperworks, bureaucracy, and long waiting.
Rosa wanted Neat to be a solution to these problems. He said it would only take a short time to set up a Neat account that comes with various perks.
An online incorporation takes about 15 minutes, guaranteed or you get your money back.
With a Neat account, a company can now receive payments in USD, EUR, GBP, and HKD; make transfers to 35 countries at competitive foreign exchange rates; integrate with the Xero accounting software platform; and issue corporate expense cards to their employees.
They make profit based on transfers and FX fees along with margins on interchange that the card payment network pays Neat for using their network.
“One of our strengths as a company is our solid connection between Asia and Europe. We opened an office in London earlier this year and will continue to develop our team there. We’re also investing into business development resources for South East Asia. Combined with our multi-currency capabilities, this ultimately opens more doors for our customers to do business more smoothly in more places,” Rosa added.
A Neat future
Much more seems to be in store for neat as last April they’ve raised a total of US$15m in funding with investments led by the Pacific Century Group and other marquee investors like VISA and MassMutual Ventures.
To date, they have a total of $155m (US$20m).
With the recent fundings, Neat will utilise their new resources into further improving customer support experience and the launching of Neat Visa cards.
“Neat is constantly working to expand its incorporation and account services to more countries. After opening our London office last year, our next step is to launch in Singapore. Our goal in the next 5 years is to be the #1 Fintech platform for import-export businesses worldwide,” said Rosa.
We’ve made an effort to support our brands and merchants through this difficult period in a bid to turn the “danger” into “opportunity” for SMEs to prepare for the future.
Lynn Dong General Manager of Global Business Development Tmall Import and Export 14 HONG KONG BUSINESS | DECEMBER 2020Alibaba Group
INTERVIEW How Alibaba is helping international merchants to break into the China market
The e-commerce giants have rolled out English-language customer-service and a self-service registration system in recent months.
With people pushed to stay at home amidst What strategies have you adopted to respond to the the pandemic, e-commerce businesses have resulting shift in consumer demand? seen a significant surge in demand. Alibaba As China and many other countries have experienced or in particular saw a 43% YoY rise in orders for imported continue to be in a state of lockdown, we observed more products in their Tmall Global platform, which is dedicated consumers turning to e-commerce as a substitute for their to overseas brands and retailers, during the 618 Mid-Year usual shopping at physical stores to buy daily necessities, Shopping festival this year. However, facing this growing medical and personal hygiene supplies, and other day-todemand could prove challenging for merchants that are day needs. We have also seen a growing trend of “revenge keen on diversifying beyond their home markets but are buying” in recent months, as Chinese consumers indulge in dealing with tight budgets and limited knowledge of the spending sprees to make up for time lost in lockdown. China market. We have redirected and redoubled our efforts accordingly
Reaching out to these merchants, Tmall Global rolled to speed up our merchant recruitment and product out several initiatives involving the waiving or reduction of sourcing processes, creating opportunities for more offline service fees, logistics costs and agency service fees, as well brands and merchants from around the world to go online as an English-language customer-service and self-service and satisfy the demand we have seen. registration system for brands. We also leveraged the recent 618 Mid-Year Shopping
In an exclusive interview with Retail Asia, Alibaba’s general Festival to create more accessibility to the China market manager of global business development and key accounts for overseas brands and merchants. We brought together for Tmall Import and Export, Lynn Dong discussed more more than 25,000 overseas brands to take part in the sale, about these initiatives, as well as some recent developments launching a total of more than 400,000 new products. We in China’s and Asia-Pacific’s e-commerce scene. saw this as a strong opportunity to tap on China’s online consumption rebound to boost these global brands’ Can you describe the trends in China’s and Asia- exposure and to catalyse their sales.
Pacific’s e-commerce landscape for the past three to six months. What has changed in your operations since the What initiatives have you launched to reach out to COVID-19 pandemic emerged? businesses during the pandemic? What pain points are
The e-commerce landscape in China and Asia Pacific has you trying to address? definitely changed quite a bit as a result of the COVID-19 The pandemic has understandably affected supply chains pandemic. Over the past six months or so, we have seen a and businesses’ ability to operate as per normal, and our boom in demand on Alibaba’s platforms for daily necessities brands and merchants have been visibly and similarly such as groceries, and medical and personal hygiene supplies affected too. As a platform operator that strives to foster such as face masks and hand sanitisers. More recently, as a healthy business environment, we’ve made an effort to Chinese people become more health-conscious as a result support our brands and merchants through this difficult of the pandemic, many have also turned to e-commerce period in a bid to turn the “danger” brought about by the for a range of health-related products, from hula hoops to pandemic into “opportunity” for SMEs to prepare for the treadmills, gluten-free starches and health supplements. future through digital transformation.
According to data from our recent 618 Mid-Year One of the measures is to speed up the onboarding process Shopping Festival, imported goods were particularly in for the brands and merchants through Tmall Global’s high demand in the Chinese market. During the sale, the brand-incubation programme announced in April this year. total value of orders for imported products on Tmall Global Under this programme, we rolled out an English-language settled through Alipay increased by 43% from last year, customer-service and self-service registration system for whilst the total value of imported products shipped through brands, and a process to ensure new online storefronts will the [consignment solution] Tmall Overseas Fulfillment be operational within 30 days of registration. We also offer programme (TOF) tripled (199% growth). newly-joined brands and merchants incentives to hit pre-
As many brands and merchants’ physical and offline sales agreed targets, which motivates them to grow and flourish have been affected during this period, digital commerce on our platform. is set to play an increasingly important role in business We have also announced a comprehensive set of measures recovery around the world post-COVID-19. to support brands and merchants on Tmall Global during
We have made it our priority to onboard even more the COVID-19 outbreak. Among other measures, we have international brands and merchants to increase the diversity waived their platform service fee for the first half of this of our offerings, and provide these brands with an effective year, and reduced their other operating expenses such as online channel to connect with consumers there. logistics costs and agency service fees.
Alibaba Group’s corporate campus in Hangzhou, China
As a whole, Alibaba Group mobilised our various business units to lend help to businesses around the world through our Spring Thunder initiative, which capitalises on the expertise and know-how of the Alibaba ecosystem to enable SMEs to stay afloat. We also introduced a similar initiative in Singapore, known as the Sprout Up initiative, to support local exporters in their plans to reach the overseas market through our B2B platform Alibaba.com.
How have these measures helped your merchants cope with the crisis?
Here’s an example. The COVID-19 outbreak has stalled sales from offline retail channels for many overseas brands, pushing them into dire distress. Nevertheless, Korean SME cosmetics brand JungSaemMool continued to thrive on the Tmall Overseas Fulfillment (TOF) model despite the crisis. While offline duty-free shops and department stores were hit hard in South Korea, JungSaemMool, which opted into TOF via the programme’s Korean warehouse in April 2019, made up for the sales it lost in its home market through the 618 Mid-Year Shopping Festival. The brand’s sales during the 618 campaign this year even grew 50 times compared with the same period last year. JungSaemMool has gained significant brand recognition among Chinese consumers after about a year of adopting the TOF model, and has recently expanded its collaboration with Tmall Global with the launch of its own flagship store on the platform–which signifies its official market entry in China.
How do you see the e-commerce landscape shifting in China and Asia Pacific as a whole after COVID-19?
The shift towards e-commerce is going to be the reality of retail, and not a trend. What the pandemic has done is to accelerate this journey, and give brands more confidence that online commerce is not only viable, but a viable sales channel that should complement their offline retail presence. Consumers at the same time are also gaining confidence in shopping online during the pandemic, especially given the convenience and sheer variety easily available through online retail.
Diversification of online retail strategies will only seek to
Alibaba aims to bring 1,000 new international brands to China through its Tmall Global platform in the coming year.
grow, such as the use of gamification and livestreaming in e-commerce shopping. During our 618 mid-year sale, sales of 1,700 different agricultural products doubled year-onyear through gamification engagements. Apart from pentup demand, Tmall also made its 3D shopping technology widely available to brands during 618, which helped the stores using the new feature attract five million visitors and quintupled their average conversion rates of consumers in just three days. These online avenues will only gain more interest in the future as we continue to reinvent digital technologies and digital retail penetration.
What are your future plans? What’s in store for Alibaba?
We want to continue our commitment and existing efforts in supporting businesses through the pandemic and beyond, and stay true to our mission—to make it easy to do business anywhere.
SMEs are a vital part of any economy, and need help in navigating cross-border challenges and actually securing the opportunities available in other markets. During the past few months, our cross-border commerce units such as Tmall Global and Kaola have devised three new strategies to work towards helping them overcome this, and to meet the growing Chinese consumer demand for international products and brands. These strategies are to focus on new brands, new categories and new products.
For brands without a physical presence in China, we have been working with them to set up a flagship store on Tmall Global, or leverage the TOF model which provides overseas brands and merchants the opportunity to test the Chinese market at a lower cost and risk.
Another concept we have been working on is launching joint promotions with domestic and overseas influencers via Taobao Live. Especially in China, influencer-led engagement with shoppers is extremely effective but may not be a familiar mechanic with overseas brands, and we hope to help brands explore doing so.
Our aim is to bring 1,000 new international brands to China through our Tmall Global platform in the coming year and support more brands and merchants during and beyond this pandemic.
How do you see the digital retailing landscape at the moment? What trends have arisen as a result of current market conditions?
We are starting to see business recovery take-off in recent months, as consumers in China have begun to spend more than before the early stage of the pandemic.
We are determined to continue our focus on enlarging our product selections and offering brands more innovative tools and technologies to accelerate their digital transformations and empower them to forge deeper engagements with their customers.
More importantly, we have seen that brands who took the opportunity to go all-in on digital and online platforms are emerging stronger. While the road to a post-pandemic recovery is challenging and long, we hope to provide SMEs around the world with learnings based on the experience of their successful counterparts in China, and help them regain their momentum.
Lamborghini Huracán EVO RWD makes its official Hong Kong debut Its Rear-Wheel Drive puts the car in the driver’s hands Steering (LDS) is tuned specifically changes, with launch control for maximum acceleration from a standing start, whilst the 19” Kari rims with specially developed Pirelli P Zero tires are fitted with ventilated and cross-drilled steel brakes. As an option 20” rims and carbo-ceramic brakes are
The Huracán EVO RWD, unveiled in a striking Blue Eleos, metallic blue paint
The new Huracán EVO Rear -Wheel Drive developed together with dedicated sportive (RWD) makes its highly-anticipated leather in orange and black for the interior debut in Hong Kong, putting the driver trim, matching the new exterior paint. at the center of the driving experience, the The V10 engine delivers more than just driver in total control of sheer driving fun. power to the rear-wheel drive set-up. The
Automobili Lamborghini announces the new Performance Traction Control System Huracán EVO RWD—a visceral driving (P-TCS) is calibrated specifically for the machine, delivering 610 hp of power at rear-wheel drive Huracán EVO, selected 8,000 rpm, and 560 Nm of torque at 6,500 via the steering wheel’s Adaptive Network rpm to a lightweight car with rear-wheel Intelligent Management (ANIMA) button. drive and dynamic steering. Weighing just In Strada, the P-TCS minimizes rear wheel 1,389 kg, the Huracán EVO RWD has a top slippage to ensure stability and safety in all speed of 325 km/h and accelerates from 0 conditions, with a more proactive strategy to 100 km/h in 3.3 seconds. P-TCS manages torque delivery on low-
“We are delighted to officially launch the adhesion surfaces. Huracán EVO Rear -Wheel Drive in Hong In SPORT mode, the P-TCS maximizes the Kong. The Huracán EVO Rear-Wheel Drive fun-to-drive experience. The rear wheels puts the car in the driver’s hands—the can slide and skate during acceleration, for driving experience is delivered by the easy drifting without compromising safety. hardware,”said Albert Wong, Director of The system recognizes conditions where Lamborghini Hong Kong. the angle of oversteer increases rapidly and
“The Huracán EVO RWD performance limits torque delivery to the rear wheels. relies on the harmony between man and In CORSA, the P-TCS is calibrated to machine—driving skills and its mechanics— achieve the rear-wheel slip that optimizes to deliver perfectly balanced dynamics, the car’s traction and agility when exiting physical feedback, and pure performance.” a corner. The P-TCS improves smoothness
He added that the Huracán EVO RWD of intervention by 30% compared to the enhances the V10 Huracán line -up with a previous Huracán RWD model. model appealing to brand newcomers as Furthermore, the electro-mechanical, well as those seeking sublime driving fun. servo-assisted Lamborghini Dynamic available.
Engineered for driving fun for the Huracán EVO RWD, ensuring The Huracán EVO RWD, unveiled in a striking maximum feedback. The seven-speed dual Blue Eleos (metallic blue) paint, has been clutch gearbox ensures the fastest gear
Fresh design for pure performance The Huracán EVO RWD continues the V10 Lamborghini’s powerful design with new front and rear features. It is characterized by a sculpted, purposeful person a, complemented by a new front splitter and vertical fins within the larger, framed front air intakes. The rear bumper in high gloss black incorporates a new diffuser unique to the Huracán EVO RWD.
Inside, the cockpit features a HMI 8.4” touchscreen in the center console of the car controlling all aspects of the car’s functions as well as managing full connectivity such as telephone calls, internet access, and including Apple CarPlay.
Both inside and out, Lamborhini’s Ad Personam program provides unsurpassed options for color and trim personalization, allowing owners of the Huracán EVO RWD to impose their individual style and personality on their new Lamborghini driving machine.
Its V10 engine delivers more than just power to the rear-wheel drive set-up
Togher Group to change clients’ perspective on global real estate investment
Its investment arm aims to support clients throughout every stage of the investment process.
MayCor Developments specialises in investment opportunities within Ireland.
Steve Togher first came to Hong Kong Irish professionals choosing Hong Kong in 2013 and hasn’t looked back since. as a destination to further their careers. He currently resides in Sai Kung With Hong Kong being a multinational city, along with his wife, Joanne and their two Togher’s companies alone employ people daughters. The family came from County from Ireland, the UK and from APAC and Mayo in the North West of Ireland but are SEA. now well and truly immersed into Hong Kong A strong ethos of MayCor Developments life. is to change the way the people of Hong
In 2017, Steve established Togher Kong view global real estate investment— Group and since has incorporated MayCor especially in Europe. Developments Limited, a firm solely “We pride ourselves with offering focused on supporting clients throughout guidance to our clients at every step of their every stage of the investment process, investment journey, from our first meeting under Togher Group. MayCor is said to be until long after the completion of purchase,” a way for Steve to bring a slice of home to Steve added. Hong Kong, with the company specialising in WE PRIDE OURSELVES WITH
OFFERING GUIDANCE TO
OUR CLIENTS AT EVERY STEP OF THEIR INVESTMENT JOURNEY investment opportunities within Ireland.
“We are able to offer opportunities across Mainland Europe and having lived in the United Kingdom for 20 years we present opportunities across the UK but I must admit I take a real pride in building the relationship between Ireland and China,” said Steve.
The relationship between Ireland and China is assisted by the high number of
Life in a post-COVID world Like many businesses, life in a ‘postCOVID19’ world is expected to be challenging. However, Togher seems to think it’s not going to impact MayCor Developments in their goal to positively change and influence the way people of Hong Kong view global real estate investment.
“Much like our investment mindset, we pride ourselves in sustainability and safe returns, although the pandemic has presented many challenges we as a business have been able to adapt quickly and actually feel that we can offer some unparalleled opportunities for our clients within the European investment space,” said Steve.
He added that BREXIT alone has furthered Ireland’s position as the top destination for foreign direct investments (FDI) within Europe. In addition, the stability offered by multinational corporations and companies, as well as finance Leaders relocating their headquarters to Ireland has really positioned the nation well for the future.
“We pride ourselves in remaining versatile within dynamic market conditions allowing us to represent our clients interests by capitalizing on our ability to adapt to the markets in both Asia and Europe,” he added.
Togher believes that the trend is bright as they are able to provide choices to fit
their clients’ needs, whether it may be a city
centre apartment or a large scale housing development.
Furthermore, he believes that not only will the investment into real estate, such as new builds, will increase in the coming years, but also the speed at which Hong Kong will be able to recover from COVID-19, providing Hong Kongers a chance to experience above market yields with a considerably lower risk profile.
High yield opportunities Despite tough times, MayCor Developments, along with the Togher Group, are still launching new projects and developments in Europe. With multiple economic developments coming in particularly within The Greater Bay Area, the Togher Group now have their eyes set on their expansion in Mainland China.
“Every opportunity we represent is a reflection of who we are as a company and therefore our clients also,” said Steve. We work carefully with community stakeholders across all projects to ensure our client’s values are reflected and upheld whether that be in regards to sustainable building practices or supporting local communities.”
The company is also working with the government of Ireland and world renowned companies like Apple, Google, and Facebook in setting up leases to provide secure investments.
The coming decade is expected to be an exciting time for both opportunity and growth between Europe and Asia, as the group plans to further expand its reach across the UK and Mainland Europe.
The group aims to continue building these relationships not only with its Hong Kong based clientele, but also across the Greater Bay area and the other growing regions of China.
“WE WERE ABLE TO
ADAPT QUICKLY AND
OFFER UNPARALLELED
OPPORTUNITIES FOR
OUR CLIENTS WITHIN THE
EUROPEAN INVESTMENT SPACE”
Steve Togher, Managing Director of Togher Group
Real estate investments to increase in the following years
The group ensures clients’ values are reflected on their projects
The bank’s slogan of co-creation belies a strong charm offensive of attractive deposit rates.
The first half of 2020 saw the dawn of a new era ZA Bank of banking in Hong Kong, with the city’s virtual- introduced only lenders kicking off operations. The recent Hong Kong’s lockdown resulting from precautions amidst the first-ever pandemic outbreak only further fueled digital banking “30 Minutes takeup. In fact, a survey by the Finastra expects that Pledge” for its almost a third or 28% of Hong Kong’s adult population loan service. will own a digital bank by 2025. For Finastra, whoever emerges on top will depend on which would be the quickest to establish operations in Hong Kong.
But Hong Kong’s first virtual bank to launch, ZA Bank, has no plans to focus on cooperation rather than competition—point that is well-reflected in its slogan ‘“Be Different, Together.”
“ZA Bank does not see other virtual banks as competitors. On the contrary, we hope to promote financial inclusion together with them, to foster the development and innovation of the banking industry,” Rockson Hsu, CEO of ZA Bank, told Hong Kong Business magazine.
As every business man knows, it’s the silent competitor that often proves to be the most deadly, and ZA Bank has definitely launched a strong charm offensive. In January, the bank offered a competitive introductory rate of 6% for deposits capped at $200,000, over 3 percentage points more than established banks. Currently, ZA Bank offers a savings rate of 1% for a deposit value of up to $500,000, compared to the 0.001% general savings deposit rate.
Hong Kong Business caught up with ZA Bank CEO Rockson Hsu to learn more about ZA Bank, it’s goals, and it’s outlook for Hong Kong’s virtual banks.
Tell us more about ZA Bank. What have you been up to since you first launched? What are your thoughts on being one of Hong Kong’s first virtual-only banks? Unlike traditional banks, ZA Bank provides users with a full suite of services, 24/7. These services include efficient mobile banking facilities, such as remote account opening, multicurrency savings accounts, time deposits, local transfers, and e-statements
ZA Bank does not have any physical branches. Users can enjoy convenient banking services without leaving their homes. Due to an efficient operating model and lower operating cost, we can provide attractive pricing to our customers. For example, savings products with attractive interest rates. Because of our commitment to financial inclusion, we do not impose a minimum savings balance requirement or maintenance charges.
With its community-driven approach, ZA Bank has prioritised the rapid launch of its innovative
Rockson Hsu, CEO, ZA Bank
capabilities that align with customers’ changing lifestyles. In March 2019, a community known as ZA Fam was established by ZA International, in which members are invited to participate in ZA Bank’s product development and design processes, thus guiding ZA Bank to create innovative products and services to better serve the needs of Hong Kong users.
Tell us more about your products and services. Who is your target customer base? What services does ZA Bank offer, or plan to? For individual customers, we provide savings deposits, time deposits, loans and transfers. We launched ZA Savings Go, a flagship savings product on 24 March. With ZA Savings Go, we offer a savings rate of 1% for deposit balances at $500,000 or below, whilst base interest rate will be applied to deposit balances exceeding $500,000 .
Time deposits offer multicurrency deposits, including HKD, RMB and USD. Minimum time deposits start at just $1 and the range of tenors is flexible from one month to one year.
We also introduced Hong Kong’s first-ever 30 Minutes Pledge for our loan service. From submitting the complete set of information and documents to receiving the application results, the whole process will be within 30 minutes. Should any applicant have to wait for more than 30 minutes, we will provide a cash rebate of $10 for every minute of overtime until the application result is provided to the applicant, with an upper limit of $500. There will also be a seven-day cooling-off period for ZA Personal Loan,
ZA Bank’s website interface
during which users may choose to repay early without incurring any early repayment charge.
Regarding fund transfers, the Faster Payment System (FPS) offers round-the-clock instant fund transfers with no service fee. With just a mobile number, email or QR code, users can transfer HKD and RMB. The system also supports the “five seconds recall” in case users transfer into the wrong account. Users can also transfer USD to other local banks through “CHATS”.
Can you give us an estimate of when you believe you will start making a profit? We have set a “Five-year Plan” for our future development, one of the targets is to break even within the period. As an important initiative of the fintech reform and innovation in Hong Kong, virtual banks aim to lower the entry barrier of banking services by fintech, to cover more people with different financial needs. We remain confident in the future development of virtual banks in Hong Kong.
How has ZA Bank been received by the public so far? ZA Bank has been well received since our official launch on 24 March. A month after our official launch on 24 March, we published the data of our first batch of customers. Surprisingly, our youngest and oldest customers are 18-year-olds and 87-yearolds, respectively. As of the end of May this year, the oldest customer we have is 93 years old. This interesting data showcases that virtual banks could be an emerging service that brings innovative user experiences to different age groups. On the gender perspective, we found that the ratio of men to women is about two to one.
Has the pandemic affected your operations, or led ZA Bank to reangle its strategies and goals? If so, how? As a virtual bank, ZA Bank has no physical branches and can open accounts and conduct transactions online. Therefore, pandemic or not, our users can always use the banking service on their phones,
without ever having to leave the house.
Since the beginning of this year, we began to conduct risk assessments and prepare contingency plans to minimise the impact of the epidemic. Right after the Chinese New Year holiday, we asked all employees to work from home, even after the public holidays. At the same time, we already made a good deployment of hardware, so that every colleague can work remotely through the intranet and their laptops at home. ZA Bank operates as usual during the epidemic period, to provide customers with 24/7 banking services.
If possible, can you share with us your future projects and plans you have in store in the coming year? Currently, we are still focusing on the Hong Kong market. We are putting customers at the heart of our product design to solve their pain points and allow users to enjoy offerings that break the boundaries of time and conventions. One example of this is our full suite of 24/7 services, available in our one-stop mobile app.
Our ultimate goal is to make banking and financial services more user-friendly and support Hong Kong’s underserved population, which will in turn accelerate fintech innovation in the city and, at the same time, encourage traditional banks to up their game in Hong Kong, which will ultimately benefit all of the city’s residents and consumers.
What is your outlook on Hong Kong’s virtual banks for the next few years? Hong Kong’s fintech sector is growing fast. With the full launch of other virtual banks in Hong Kong this year, as well as traditional banks beginning to embrace AI and cloud technology, fintechs are set to disrupt the traditional model of financial services and blur the lines between different sectors. At the same time, traditional banks are expected to adopt more technology-based solutions to manage costs and resources, and achieve operational efficiency amidst a rapidly evolving and increasingly competitive industry landscape.
As we look to the financial industry’s future, one thing is certain: change will be the only constant. The broad themes we are predicting are around the changing nature of risk, a more competitive environment and increasing digital transformation, all underpinned by a focus on data.
The development of virtual banks in Hong Kong will promote fintech application and innovation, enabling the expansion of banking services to people with different financial needs, to foster financial inclusion. This was also the original intention behind establishing ZA Bank. Meanwhile, traditional banks will speed up the innovation of services, which leads to industry transformation. The action will eventually benefit end-users and the market itself.
ANALYSIS: RESIDENTIAL PROPERTY Luxury deals ride the pandemic wave
The volatility in the wider economy has been clearly visible in the luxury property sector throughout 2020
Luxury home transactions have been scattered during 2020, with investor sentiment seemingly tied to changing levels of public confidence amid the COVID-19 pandemic. New research from Savills has found that total market activity in this sector has been on par with previous years, but that there have been pockets of concentration in certain months.
Simon Smith, Senior Director for Savills in Asia Pacific, says there has been increasing interest away from new developments (to the secondary market), but the volatility is likely to continue into at least the fourth quarter of 2020.
The following excerpts are taken from the Market in Minutes report by Savills Research, published in October, 2020.
Luxury volume volatile despite mega deal being done
Luxury volumes have been volatile over the past few months with the buoyant mood in July quickly dissipating due to a third wave of virus infections and heightened social tensions. Total luxury volume (HK$20 million +) surged to 282 in July, the highest in 2020, before falling back to 153 in August.
The combined number of transactions for the two months (435) was still slightly ahead of the 419 transactions completed in April and May, though.
The sale of 37 Shouson Hill Road in Southside for HK$2.5 billion to Hang Lung Properties was the most significant deal of the quarter, with the developer planning to redevelop the former US consular staff quarters into super luxury detached houses, targeting completion in 2024.
282 luxury transactions were completed in July, compared with 153 in August as a third wave of virus infections hit Hong Kong
Elsewhere, two other house sites were sold to investors / individuals eyeing redevelopment, reflecting a firm appetite for developable sites at the top end of the market.
Though market sentiment was mixed at best, luxury prices on Hong Kong Island and in Kowloon declined marginally by 0.1% and 0.5% respectively in Q3, as only a handful of distressed assets changed hands.
New Territories houses highlysought after
The New Territories market, in particular houses, continued to attract buyers, given the appeal of low density living, ample outdoor space and the availability of parking, and luxury prices rebounded for a second consecutive quarter by 2.6% as a result.
A quick comparison of average house prices by district reveals the substantial price differential between the Peak (with an indicative price range of HK$55,000 to HK$105,000
per sqft) compared with Sai Kung (where typical average prices range from HK$11,800 to HK$17,500 per sqft), the latter less exclusive region almost one-fifth of the former.
This phenomenon adds to the appeal of New Territories houses to potential buyers, especially for those who did not need to commute to the CBD frequently.
Mass market supported by secondary market rival
The mass market was in a buoyant mood with reviving interest in the secondary market due partly to lower down payment requirements from Mortgage Insurance Programme. The secondary transaction volume totalled 25,327 over the first seven months in 2020, a 1.4% rebound from the same period last year.
The primary market saw fewer transactions as developers held back project launches due to the uncertain environment, while some were more focused on clearing backlog units with more aggressive incentives.
From 2016 to 2018, developers were aggressive in primary launches with the number of primary unit launches (averaging around 20,000 per annum) consistently higher than the number of units being sold (averaging around 17,000 per annum). 2019 saw this trend reverse for the first time and this remained the case over the first eight months of 2020 with only 6,500 primary units launched but more than 9,000 primary units sold, representing a change in launch strategies by developers over the past 18 months when market sentiment has become more subdued.
The proposed vacancy tax will likely prompt developers to speed up sales of luxury units
Luxury home transaction volumes tied to changing levels of public confidence
Market outlook
The potential reintroduction of the vacancy tax could see further changes to primary launch strategies in the near future.
Assuming the proposed vacancy tax to be effective from 2021 onwards, as many as 8,600 completed but not yet sold units would be subject to the 5% levy on sales price on an annual basis, which would most likely prompt developers to speed up sales of such units. Adding another 54,000 units under construction (construction which began in 2019 or before) but not yet sold or launched, the primary launch pipeline in 2021 could be substantial, in particularly given the cautious launch programmes witnessed this year.
Looking ahead, the full impact of COVID-19 may be felt towards the end of the year if government tapers subsidies and we see more corporate layoff s pushing unemployment rates to new highs.
The unemployment rate currently stands at 6.1%. With uncertain economic prospects and a volatile stock market, residential volumes and prices may have to endure a bumpy ride to the end of this year.
Luxury apartment prices on Hong Kong Island have fallen by 8.6% from their previous peak in Q2/2019 and are expected to slip by a further 3% to 5% towards the end of this year given the uncertain environment.
Looking into 2021, with economic growth expected to remain weak, unemployment expected to hit new highs and developers likely to accelerate launches, luxury prices may come under further pressure, possibly declining by another 5% to 10%. Low interest rates and ample liquidity will provide some market support, however. Difficult variables to predict include the containment of COVID-19, future US-China relations, and the possibility of resurgent social tensions.
Luxury Transactions over $200m in Q3 Luxury Transaction Volumes, January to August 2020
ANALYSIS: COMMERCIAL PROPERTY Domestic demand powers a slight postpandemic rebound
Hong Kongers have looked inwards to maintain commercial property prices and rates in 2020
It has been a difficult year for real continued to perform well and The outlook • While high-end retail continued estate in Hong Kong, but the attracted some investment interest,” going into 2021 to suffer, retailers in the F&B, latest research indicates a growing he said. remains positive mid-priced cosmetics, and health market and the return of optimism Other notable insights from the for investors products segments have taken across the commercial and retail October report on office and retail and real estate up prime street shops they could sectors. The latest market update from investment include: trusts never have afforded a few years Savills shows there have been some • While interest rates were at ago. important transactions in the later part record lows, banks’ prudent The following excerpts are taken of the year, even in spite of continuing mortgage policies hindered from the Market in Minutes report commercial restrictions related to the potential investors, especially by Savills Research, published in COVID-19 pandemic. the cash-strapped, or those October, 2020.
Simon Smith, Senior Director for without a long-standing banking Savills in Asia Pacific, says this the relationship, from re-entering real En-bloc volumes rebound with Covid-19 pandemic did have some estate markets. both local and mainland investors significant impact in the early part of • More end users were evident in returning the year, and pushed back an expected the Grade A office market on En-bloc commercial volumes staged recovery from last year’s weaker Hong Kong Island but most were a modest rebound in Q3 with seven market. But the outlook going into still looking for discounted stock, transactions registered totalling 2021 remains positive for investors with only a few vendors facing around HK$4 billion, as both local and real estate trusts. financial difficulties willing to and Mainland investors returned
“The rebound in COVID cases has entertain offers. The Kowloon for either high-yielding properties delayed the anticipated recovery in office market saw comparatively or older buildings with notable the commercial investment market, very few deals concluded with redevelopment potential. with the retail sector again bearing corporate solvency a major The most eye-catching deal was the brunt, though suburban retail concern in the area. the sale of Peak Castle, a refurbished
office building in Cheung Sha Wan, by Hanison (a local company) and PAG (an investment fund) to a Mainland investor for HK$1.8 billion yielding around 3%.
The shift to staycations and the rising numbers of local guests meant a rebound in hotel performance given the strict border controls: the latest hotel occupancy, though still hovering around 50% in July, was already sharply up from 30% in February / March, while the yearon-year decline in room rates also slowed from around 40% in March / April to around 22% in July. With hotel performance showing signs of stabilising, and with more landlords willing to offload their holdings, investors rediscovered their appetite for this segment with two boutique hotels sold over the quarter, one to a Mainland company and the other to a local investor.
Stratified commercial volumes rebound despite a worsening virus situation and more prudent bank mortgage policies
Strata-title sentiment was again subdued with the third wave of COVID cases delaying the anticipated recovery in the economy as well as the commercial investment market. Despite the setbacks, commercial (office and retail) transaction volumes actually rebounded slightly in July and August (261 transactions, compared with 237 transactions registered from April to June), with more vendors willing to accept price reductions.
While the US Fed announced its intention to keep interest rates at current levels in its latest FOMC
Hotel performances have stabilised, thanks to rising numbers of local guests enjoying “staycations
Commercial Transaction Volumes by Price Range
These are fast times for Hong Kong’s office market
meeting, the recent relaxation of the commercial mortgage LTV from 40% to 50% by the HKMA was thought to be a major catalyst behind the revival of the commercial market. Nevertheless, even with higher LTVs, most banks took a prudent attitude towards commercial mortgage lending, mainly reflecting their conservative valuations, which were usually 10% to 30% below proposed transaction prices, thereby eliminating any potential upside from the new policy. As such, cashstrapped investors, or those without a long-standing banking relationship, were hindered from re-entering the commercial market even in an era of ultra-low interest rates.
North Point office premises attract interest
More end users were evident in the Grade A office market on Hong Kong island but most were still looking for discounted stock, with the few vendors facing financial difficulties prepared to entertain offers. Examples include a mid-floor unit in Shun Tak Centre which sold for HK$20,500 per sqft, and another low-floor unit in Bank of America Tower sold for HK$27,000 per sqft, both hitting their respective recent lows. Another deal involving a share transfer between JV partners saw a portion of a mid-floor in The Center selling for HK$27,000 per sq ft.
Interest in Island East offices gathered pace with an improving business environment and discounted pricing compared to other business districts on Hong Kong Island. Two whole floors in SUP Tower in North Point were sold for HK$12,000 and HK$13,000 per sqft to two end users, market levels in the area but some 30% lower than, for example, Grade B offices in Wanchai: a high floor in Sun’s Group Building in Wanchai was sold for HK$133 million to an investor (average price of around HK$18,000 per sqft). The Kowloon office market saw very few deals concluded with corporate solvency becoming a major concern in the area. With many retail operators residing across the harbour, Kowloon East in particular, the abysmal retail performance saw many of them closing shops and shedding staff , thereby reducing their demand for office space. With vacancy in the area rising gradually from 5.1% in Q2/2018 to 10.9% in Q3/2020, and with over 2 million sqft net of new office supply coming on stream over the next three years, many investors remained on the side lines with rental returns looking set to diminish further.
Suburban retail gaining in popularity
While high-end retail continued to suffer, retailers in the F&B, mid-priced cosmetics and health products segments have taken prime street shops on Kai Chiu Road in Causeway Bay, Wellington Street in Central and Haiphong Road in TsimShaTsui. These were deals they could not have afforded a few years ago, but were made possible in recent months by core retail landlords slashing their asking rents by as much as 50%.
This is said to be the most technologically advanced motor car Rolls-Royce has ever produced yet
The new marque is said to be the most technologically advanced Rolls-Royce yet
In 2009, Rolls-Royce announced a new minimalism. addition to its portfolio that offered The only components that Rolls-Royce something entirely different to its carried over from the first Goodwood Ghost flagship, Phantom. were the Spirit of Ecstasy and umbrellas.
“The first Goodwood Ghost was a Everything else was designed, crafted response to a whole new generation of and engineered from the ground up. The clients, both in age and attitude. These result is the most technologically advanced users asked us for a slightly smaller, less Rolls-Royce yet, which distils the pillars of ostentatious means to own a Rolls-Royce,” the brand into a beautiful, minimalist, yet said Torsten Müller-Ötvös, Chief Executive highly complex product that is perfectly Officer of Rolls-Royce Motor Cars. in harmony with the clients’ needs and perfectly in tune with the times. It is a motor car precisely tailored to its clients, IT IS A MOTOR CAR PRECISELY TAILORED TO ITS appearing to be perfect in its simplicity that makes it less but better.
CLIENTS, APPEARING TO BE PERFECT IN ITS SIMPLICITY, Proprietary aluminium space frame architecture
MAKING IT LESS BUT The spaceframe’s flexibility and scalability BETTER freed the marque to serve the unique aesthetic and mechanical demands of the new Ghost.
Over its ten-year lifespan, Ghost has In its most pared back form, the Rollsbecome the most successful model in the Royce architecture is based around four marque’s 116-year history. fixed points, one at each corner of the motor
However, in order to create a new product car. The moveable aluminium bulkhead, that would resonate with its clients for the floor, crossmembers, and sill panels were next ten years, Rolls-Royce has set new positioned specifically to ensure that the standards in customer centricity by creating new Ghost meets client expectations as a a completely new motor car for a unique motor car that is equally enjoyable to drive group of its clients—business leaders and as it is to be driven in. entrepreneurs—who require a new type Two of the cast suspension mounting of super-luxury saloon that is dynamic, assemblies were pushed to the very front, serenely comfortable, and perfect in its placing its 6.75-litre V12 behind the front
axle to achieve an optimum 50/50 weight distribution. Significant changes were also made to the double-skinned bulkhead and floor structure packaging to incorporate an all-wheel drivetrain, all-wheel steering, and completely redesigned Planar Suspension System.
Further capitalising on the marque’s aluminium expertise, its metal superstructure is also 100% made of the material. The car’s outer body is rendered as one clean, expansive piece, flowing seamlessly from the A-pillar, over the roof and backwards to the rear of the car, recalling the seemingly one-piece coachbuilt Silver Dawn and Silver Cloud models.
In addition, 100% aluminium, laserwelded doors were used, which not only offers weight benefits and remarkable 40,000Nm/deg stiffness, but also provide a lower acoustic impedance than steel, thus improving cabin ambience.
Planar Suspension System The marque’s hallmark Magic Carpet Ride has also evolved for the new Ghost, with engineering specialists redesigning the motor car’s suspension to deliver what is called the Planar Suspension System.
Created through physical engineering developments, as well as sophisticated scanning and software technology, the system incorporates a world-first Upper Wishbone Damper unit above the front suspension assembly, for an even more stable and effortless ride.
This works alongside the Flagbearer system, which uses cameras to read the road ahead and prepare the suspension system for any changes in road surface, as well as the marque’s Satellite Aided Transmission.
Moreover, the five-link rear axle benefits from the same self-levelling high-volume air suspension technology, governing its chassis technologies, including the all-wheel drive, all-wheel steering, stability control and self-drying braking systems, to ensure the motor car is reacting as one to changes in surfaces or grip levels, whilst also maintaining a spirited, dynamic personality.
The Planar software also manages information that requires new Ghost to
proactively adapt to intrusions in the road ahead. The first of these technologies is the marque’s Flagbearer system, which consists of a stereo camera system integrated in the windscreen, adjusting suspension proactively rather than reactively up to 100km/h.
The second is Rolls-Royce’s Satellite Aided Transmission system, which draws GPS data to pre-select the optimum gear for upcoming corners. The result is unprecedented levels of ride comfort and control for a motor car. Illuminated Fascia For the new Ghost, the marque’s Bespoke Collective of designers, engineers, and craftspeople created Illuminated Fascia—a world-first innovation that subtly echoes the Starlight Headliner, which has become as much a part of Rolls-Royce iconography as the Spirit of Ecstasy, Pantheon Grille and ‘Double R’ monogram.
Developed over the course of two years, this remarkable piece brings an ethereal glowing Ghost nameplate into the interior suite of the motor car. Located on the passenger side of the dashboard, the constellation and wordmark are completely invisible when the interior lights are not in operation.
Perfectly attuned to the new Ghost’s post opulent design treatment, the Bespoke Collective embarked on creating a highly complex and true luxury innovation. The illumination itself comes from 152 LEDs mounted above and beneath the fascia, each meticulously colour matched to the cabin’s clock and instrument dial lighting.
To ensure the Ghost wordmark is lit evenly, a 2mm-thick light guide is used, featuring more than 90,000 laser-etched dots across the surface. This not only disperses the light evenly but creates a twinkling effect as the eye moves across the fascia, echoing the subtle sparkle of the Starlight Headliner.
Extensive engineering work was also undertaken to ensure the Illuminated Fascia remains completely invisible whilst not operational. The most technologically advanced RollsRoyce The new Ghost is perfect in its simplicity, but creating it was said to be one of the greatest challenges in the marque’s history. Indeed, the new Ghost is the most technologically advanced motor car Rolls-Royce has ever produced yet.
The marque’s engineers elected to further develop its hallmark technology of selfclosing doors so clients can now also open the doors with power assistance.
The new Ghost also benefits from a new Micro-Environment Purification System (MEPS). Highly sensitive impurity detection sensors were introduced to detect ambient air quality, automatically switching fresh air intakes to recirculation
The Illuminated Fascia brings an ethereal glowing Ghost nameplate into the interior suite of the motor car.
MARQUE’S HISTORY mode if unacceptable levels of airborne contaminants are present. This channels all cabin air through a nanofleece filter, which is capable of removing nearly all ultrafine particles from Rolls-Royce’s microenvironment in less than two minutes.
Furthermore, it includes LED and laser headlights with more than 600m of illuminated range, vision assist, including day-and night-time wildlife and pedestrian warning; alertness assistant; a fourcamera system with panoramic view, all-round visibility and helicopter view; active cruise control; collision warning; cross-traffic warning; lane departure and lane change warning; an industry-leading 7x3 high-resolution head-up display; Wi-Fi hotspot; self-park; and the very latest navigation and entertainment systems.
Aria: A Contemporary Expression of Authentic Italian Cuisine
Its executive chef Andrea Zamboni brings 20 years of experience to Aria’s kitchen
Aria offers a unique modern twist to family-style Italian cuisine
Inspired by the beauty of opera and the from all the places I have visited and show-stopping flavours of artisanal people I’ve met to create food that is both produce, Aria brings a contemporary satisfyingly familiar yet truly global,” he rendition of authentic Italian cuisine to the added. heart of Lan Kwai Fong. Renowned for his meticulous attention
Accompanied by panoramic views to detail, the chef’s gastronomic style also of the city from its 24th-floor perch draws strongly from the enviable line-up atop California Tower, this gastronomic of virtuoso chefs he has worked with over symphony is conducted with finesse and the years, both in Italy and in Asia, including élan by executive chef Andrea Zamboni, who cooking alongside Michelin two-starred chef brings 20 years of Michelin-rated restaurant Oliver Glowig at the Capri Palace Hotel in experience to Aria’s open kitchen. Napoli and Michelin one-starred chef Luca
Showcasing seasonal ingredients flown Marchini at the Ristorante L’Erba del Are in in weekly from sought-after producers in Modena, as well as stints at three-MichelinItaly and around the world, Aria offers a starred restaurants da Vittorio in Bergamo unique modern twist to family-style Italian and Otto e Mezzo Bombana in Hong Kong. cuisine, elevating traditional classics and Chef Andrea’s greatest inspiration, secret family recipes through high-quality however, is the legendary Gualtiero ingredients and innovative culinary accents Marchesi – widely regarded as the father from all over the world. of modern Italian cuisine and the first chef The Chef and his Culinary Philosophy stars – who he had the opportunity to learn Despite being born and raised at Bergamo from at the Ristorante Teatro alla Scala in northern Italy, Chef Andrea spent the il Marchesino in Milan. Indeed, the late early part of his career working in the master chef’s motto, “Leading by example country’s central and southern regions. is the highest form of teaching”, can be seen This is evidenced by the strong influence of written in Italian on the tiles of Aria’s show Mediterranean cuisine on his cooking. kitchen.
“My cooking is a representation of my
in the country to receive three Michelin life experiences,” says Chef Andrea, who The Food speaks fluent Mandarin from his time on Featuring classic family recipes and the mainland. “At its heart, it is proudly and seasonal specialities enhanced by Chef authentically Italian, but it is infused with Andrea’s inimitable style, Aria’s menu the flavours, techniques and inspirations showcases exquisitely presented meats,
jet-fresh seafood and masterfully executed pizzas and pastas elevated by premium produce from specialist suppliers in Italy and around the world. Many of the ingredients that Chef Andrea uses to create his inventive flavour combinations can’t be found elsewhere in Hong Kong.
Among the highlights are Tagliatelle with Zarda Spicy Tomato Sauce, Blue Lobster and Bagna-cauda Fondue for $268, Foie Gras e Scampi, Traditional Baked Eggplant Parmigiana with Basil, Parmesan Cheese and Fior di Latte priced at $148, Italian Milk-fed Veal Cutlet Milanese Style with Tomatoes, Celery Relish and Sicilian Lemon which can be bought for $428, and Roasted Cherry Tomatoes, Apulian Burrata and Basil valued at $108.
In addition to the à la carte menu, Chef Andrea gives full rein to his culinary creativity through Aria’s exclusive chef’s table, where he delights guests with an omakase-style menu of his favourite offmenu dishes that changes weekly based on seasonal ingredients flown in from around the world. For $2,000 and an additional service charge per person, Chef Andrea will keep his specialties coming until guests can’t eat anymore.
Aria also provides a unique Italian wine cellar, focusing on rare Italian wines by the glass, whilst maintaining a number of both new and old world wines. Some examples of such rare wines by the glass are Refosco, made with a very rare ancient nutty grape and an Aria top seller. Another rare wine by the glass is, Nireddu, a very light bodied Scilian wine with beautiful tannins whose vineyard is 900 metres above sea level. Aria’s team are as passionate about the wines as the food and will gladly recommend the perfect drop to complement Chef Andrea’s wonderful kitchen creations.
LKF Chef Kits For times when guests want to bring the Aria experience home, Chef Andrea has created chef kits that combine everything you need to cook up your favourites at home, whether for yourself or your family.
As with all of LKFE’s restaurants, Aria wants people to enjoy the best quality Italian food at reasonable pricing. The new
ready-to-make food kits include stepby-step instructions and all the essential ingredients, sauces, condiments and spices, so that every budding chef can create the perfect Italian meal at home, including dishes such as: A Taste of Italy Eggplant Parmigiana, for two persons worth $338; An Italian Journey Open Ravioli for one person priced at $228; and Fantasy Millefoglie for one person valued at $198. To celebrate the launch of the Chef Kits, guests can also enjoy 30% off for the time being when they visit the restaurant.
Interiors and Aria Lounge Aria draws its design inspiration from the interiors of classic opera houses and features an eclectic collection of furniture that recalls family heirlooms that have been passed down through the ages by different owners.
It also boasts a stunning outdoor terrace where guests can enjoy cigars, cocktails and digestifs, as well as an extensive wine list featuring over 150 bottles from Italy and around the world, including many that can be enjoyed by the glass over jaw-dropping views of the city. The terrace also features panoramic views of the city from the 24th floor of California Tower in the heart of Central.
Once social distancing restrictions are lifted, Aria will be transforming into a lively lounge after dinner service on Thursdays, Fridays and Saturdays, with a DJ spinning classic tracks from the 80s and 90s until 2am.
Aria’s Executive Chef Andrea Zamboni
Scampi with Foie Gras
Italian Milk-fed Veal Cutlet Milanese Style
