Hong Kong Business (January - March 2023)

The Fidelity SmartRetire mobile app makes setting up your TVC account easier and quicker. Upon successful application, you can save up to HK$10,2001 on contributions yearly. Download SmartRetire now to set up your TVC account or make additional TVC contributions!

3 key benefits of managing TVC via the SmartRetire mobile app

Streamlined and convenient process

The entire online application process can be completed in 15 minutes! Best yet, you can conveniently make contributions by selecting various payment methods including Faster Payment System for instant online payment.

Debut launch of remote identity verification capability

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

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

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

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

Established 1982

Editorial Enquiries:

Charlton Media Group Hong Kong Ltd Room 1006, 10th Floor, 299 QRC, 287-299 Queen’s Road Central, Hong Kong | +852 3972 7166

2023 is predicted to be a year of hope and prosperity. As we look forward to the abundant offerings of the New Year, we give you eight investment ideas from Hong Kong’s financial experts to achieve affluence in the Year of the Water Rabbit.

Hong Kong’s roster of exceptional professionals has made the city an irreplaceable hub for businesses and high-profile individuals from the Mainland and other parts of the world. This year, Hong Kong Business recognises the 10 most influential lawyers under 40 who have raised the bar for legal professionals across all fields. Meanwhile, life insurance providers dominate the top 50 insurers in the Hong Kong Business Insurance Rankings.

ADVERTISING CONTACTS

Louis Shek +852 6099 9768 louis@hongkongbusiness.hk Aileen Cruz aileen@charltonmediamail.com Reiniela Hernandez reiniela@charltonmediamail.com

ADMINISTRATION ACCOUNTS DEPARTMENT

accounts@charltonmediamail.com

ADVERTISING advertising@charltonmediamail.com EDITORIAL editorial@hongkongbusiness.hk

Last but not the least, Hong Kong Business honoured the most notable technology firms with the best and most unique initiatives and solutions that helped enhance their business in Hong Kong in this year’s Hong Kong Business Technology Excellence Awards and National Business Awards. See the list of winners on page 34.

Read on and enjoy.

PRINTING

Gear Printing Limited Flat A, 15/F Sing Teck Fty. Bldg., 44 Wong Chuk Hang Road, Aberdeen, Hong Kong

Can we help?

Editorial Enquiries: If you have a story idea or press release, please email our news editor at editorial@hongkongbusiness.hk. To send a personal message to the editor, include the word “Tim” in the subject line.

Media Partnerships: Please email editorial@hongkongbusiness.hk with “Partnership” in the subject line.

Subscriptions: Please email subscriptions@charltonmedia.com. Hong Kong Business is published by Charlton Media Group. All editorial is copyright and may not be reproduced without consent. Contributions are invited but copies of all work should be kept as Hong Kong Business can accept no responsibility for loss. We will however take the gains.

Sold on newstands in Hong Kong, Macau, Singapore, London, and New York.

*If you’re reading the small print you may be missing the big picture 

Tim Charlton

Daily news from Hong Kong

MOST READ

In 2022, Hong Kong has slowly regained its attractiveness as a property investment destination, and amongst to thank are the city’s realtors who were determined to end the city’s downcycle. In recognition of their hard work, HKB listed 17 realtors under 40 who displayed leadership in their respective communities.

Why is Hong Kong robust in the energy war?

Unlike the rest of the world, Hong Kong has a more secure and diverse energy supply, making it resilient to brownout threats and reducing exposure to the highest energy costs seen in many countries at this time. For example, the nuclear electricity supply from Daya Bay Nuclear Power Station is extended up until 2034.

No spacious homes for Hong Kong’s poor anytime soon

Hong Kong’s poorest families hoping to live in more spacious houses can bid their dreams goodbye because the per capita living space issue in the city will not be resolved anytime soon, especially after the average waiting time for public housing was extended to a record-breaking 6.1 years by end of March 2022.

Why tax deduction on domestic rents is not really a win for tenants

When the legislation allowing tax deduction on domestic rents was passed by the Legislative Council, it was called an “ease to the burden” of taxpayers who are renting; however, a law expert argues that the bill is not necessarily a win for tenants. “The reality is that only a small proportion will reap the full benefit.”

Here are five bad habits in insurance according to HK’s insurance regulator

For a market ranking first globally in insurance penetration according to research firm Swiss Re Institute, it is surprising that Hong Kong’s insurance literacy rate stood only at 52%. “There was a general understanding about policyholders’ rights, insurance principles and product features, but limited knowledge of risk exposure.”

Achieving board diversity is more than giving additional seats to women

Contrary to what most headlines say, achieving board diversity is not a numbers game of how many seats should be given to women or the young, but rather a fight to eliminate a “groupthink” mindset. Based on a Heidrick and Struggles study, only 30% of board seats are given to women in Hong Kong.

Hong Kong’s most notable real estate agents under 40

COMMERCIAL PROPERTY

RESIDENTIAL PROPERTY

ENERGY & OFFSHORE

FINANCIAL SERVICES

RESIDENTIAL PROPERTY

HR & EDUCATION

Hong Kong aims to become premier green, sustainable finance hub

Hong Kong is planning to become a “premier centre” for green and sustainable finance globally in line with the global trend to peak greenhouse gas emissions, and the market’s target to reach carbon neutrality by 2050.

Financial Secretary Paul Chan said at the Global Financial Leaders’ Investment Summit that the potential and opportunities of Hong Kong as an international financial centre (IFC) are “boundless.”

“We are determined to excel in many areas. Among them, our fundraising platforms, our role in Renminbi’s internationalisation, the unique Connect Schemes with the Mainland, asset and wealth management, centre for risk and corporate treasury management and much more,” he said.

Chan noted the National 14th Five Year Plan supports Hong Kong’s development as a green financial centre, particularly its positions in the Guangdong-Hong KongMacau Greater Bay Area.

“Adherence to high international standards is also why we have good prospects to succeed. We have reporting and disclosure standards that align with international best

practices. We are seeking to adopt a green classification framework along the Common Ground Taxonomy. Green bonds issued in Hong Kong are trusted by global investors,” the financial secretary said.

The Hong Kong government has been issuing green bonds since 2018, with the green and sustainable debts issued or arranged in the market reaching over US$56b in 2021, increasing four times from 2020 and being the top in Asia.

“To encourage the development of green finance, we continue to provide expense subsidies for eligible issuers and borrowers for their borrowings in Hong Kong,” Chan said.

Some of its initiatives in becoming a green financial hub include its issuance of 30-year and 20-year green bonds denominated in US dollars and Euros, respectively, last year. It is the first Asian government to do so, and bonds were the longest tenor of Asian government bonds at the time.

Other projects

Other developments include support from Mainland provincial and municipal governments such as Shenxzhen’s issuance of their first-ever offshore RMB green bonds worth RMB3.9b in Hong Kong last year, and Hainan’s issuance of blue and sustainable bonds worth RMB5b in Hong Kong for marine and sustainable projects, amongst others.

“In May this year, we issued the inaugural retail green bonds of US$2.5 billion, which was also the largest globally. The costs are slightly more expensive and administration a little more burdensome. But it will reinforce our residents’ sense of ownership of our green vision and help us achieve financial inclusion goals,” Chan added.

For the Fintech sector, Chan said that Hong Kong has an extensive presence of top global financial institutions in the market, adding that it is now home to over 800 companies, up from less than 180 five years ago. Many of the fintech firms were founded by entrepreneurs from Mainland, France, Isra and the UK amongst others.

Chan said Hong Kong is also adopting a “multi-pronged approach” to develop the fintech sector which includes the Fintech 2025 strategy, and the linking up of sandboxes of all financial regulators to facilitate development across the sector.

Hong Kong also aims to encourage innovation, and develop essential infrastructure such as a faster payment system to connect all bank accounts and electronic wallets for individuals, leveraging on Hong Kong’s “super-connector” role to facilitate cross-boundary collaboration for fintech solutions development. The government also aims to build the capacity and nurture the ecosystem.

“But we do not stop here. The virtual asset policy statement mentioned earlier sets out our vision, regulations, thoughts on investor protection and attempts in emerging areas such as NFT (non-fungible token), tokenisation, and eHKD,” Chan said.

“As an IFC, Hong Kong is open and inclusive towards global innovators. We are working with the financial regulators towards providing a facilitating environment for the sustainable and responsible development of the virtual asset sector in Hong Kong,” he added.

The National 14th Five Year Plan supports Hong Kong’s development as a financial centre (Photo: Two IFC by s.yume on Flickr)

To encourage the development of green finance, we continue to provide expense subsidies for eligible issuers and borrowers in Hong Kong

GREEN FINANCE

Why

Sustainable and luxury are probably two words that aren’t often seen together but Paragon Trading Asia made it happen by spearheading a different kind of sustainability: one in luxury lifestyle quintessentials.

Established in 2021, Paragon Trading Asia stands on four pillars that most would attribute to wealth: wine, water, whisky, watches, in all of which the company consciously applies sustainability practices.

CEO Christopher Liang, having been an avid collector of the finer things, had the “good opportunity back in 2018, to be part of a corporate finance takeover with an Australian family office to take control of the vineyard which now produces some of the best wines from New Zealand.” This opportunity gave birth to Gladstone Vineyard wines. Established in 1986, the wine label is recognised as a pioneer wine producer in New Zealand and today produces Viognier, PInot Gris, Rose, Pinot Noir, Sauvignon Blanc varieties.

SUSTAINABILITY IN A BOTTLE

The limited production and application of organic principles hugely contribute to the sustainable business.

“We actually produce in boutique volumes every year. And it doesn’t stop us from getting a very good quality rating,” Liang proudly says, after Gladstone Vineyard wines garnered a minimum of 90 points from wine experts Rebecca Gibbs and Robert Parker.

Aside from these, Paragon Trading also boasts to ship wines overseas in 80% recycled, lightweight bottles which reduces the amount of fuel during transport. Across the business, the company also uses recycled office paper, recyclable toners and printer consumables; reuse wine boxes, case dividers, glass, plastic, paper, tins and cardboard in packaging; using environment-friendly cleaning products; and source from local and environment-friendly suppliers where possible. Even the winery’s design maximizes natural lighting as a source of daytime light to reduce energy consumption.

The company is also trying to become a member of as group that supports organic winemaking and organic wine packaging. “We bottle all of our premiere crus with 100% organic cork, and use recyclable or biodegradable glass for a sleek and ESG conscious package” said Liang.

“Regarding the gins and whiskies from Ireland, we are making a move to reduce the use of paper by etching the logos of different

products directly onto the glass of our bottles.” Liang added. Today, Paragon Trading distributes its wine and whiskey through renowned distributors in Asia. including Watson’s wine in Hong Kong, distributors with sector expertise in Europe and the US, and Magnums in Singapore.

PHENOMENAL-BEWATER

Another one of Paragon Trading’s product, an environmentally friendly alternative to plasticbottled water, beWater™, was created to help eliminate single-use plastics and reduce the impact of table water.

a visit to some of these venues every week to talk to them about collecting the used cans, which could be recycled for a nominal sum and benefit from government subsidies,” Liang said.

CIEL WATCHES: THE SKY’S THE LIMIT

Ciel is Liang’s private-label Swiss watch brand and a homage to his passion for the finer and enduring things.

“This is a labour of love and is made up to Swiss horological association standards. I’m trying to promote this amongst a certain segment of the demographic simply because I want to see this memory kept as a collectible,” Liang said.

Ciel, which means ‘sky’ in French, features a moon-shaped second hand, sapphire crystal mechanism with stainless steel case, and highprecision Swiss movement. Only 500 pieces of this limited edition brand circulate worldwide, each uniquely numbered, sold on consignment and upon special dispensation. The natural jewels and authentic Swiss parts are rare even on the high-end market, he claims.

Customers who buy a Ciel watch will receive a “certificate that allows any of our clients who experience technical problems with the watch, to bring it into a Ronda time centre,” two of which are in Switzerland and one in Hong Kong. As the market opens up following COVID-19 restrictions, “We are happy to start promoting select batches of the watch through several multibrand jewelry and watch shops.

BETTER WITH AGE

Catering to an exclusive market will ensure that his products maintain their enduring and high quality, and Liang foresees his products penetrating the upper crust of the Asia Pacific.

“I hope we could improve the connection between different markets so that my stock of very fine wine and spirits could be enjoyed throughout the region.”

“We had created this new concept around 2020, whereby we advocated for the use of aluminium cans rather than plastic bottles as the packaging of choice for the new generation of waters. We managed to get the patent from Ball, a Fortune 500 company that are supportive of our mission and vision. They gave us exclusive rights to package water using aluminium packaging for the next five years in Asia Pacific. This is a big, unique selling point for our waters,” Liang relates.

“Our team of canister collectors would pay

The next phase of marketing involves charitable events and wine tastings in Thailand, Hong Kong, Malaysia, the Philippines, and even Taiwan, supported by a chamber of commerce for wine in Hong Kong, where he sits as chairman.

“It will be nice to host these educational events from time to time as an opportunity for people to mingle and to try our latest vintages, but also to become a loyal member of Paragon Liquors.” Liang said in closing. “The good news is, I’ve got time on my side. I’ve got products that only get better with age.”

PROPERTY RISKS MANAGEABLE FOR HONG KONG BANKS

PROPERTY

Hong Kong banks’ profitability will be supported by strong net interest margins in 2023, whilst property-related risks should be manageable, according to S&P Global Ratings’ latest 2023 global banking outlook report.

Stronger net interest margins should support bank profitability, carrying forward the benefits from the several rounds of monetary policy tightening.

One downside for Hong Kong banks is the ongoing uncertainty around border restrictions with Mainland China, which could subdue wealth management and bancassurance activity. This in turn could limit fee income growth next year, said Shinoy Varghese, Primary credit Analyst for Hong Kong, S&P Global Ratings.

On a more positive note, Varghese said that credit cost could improve to about 25 bps in 2023 from an estimated 35 bps in 2022.

Real estate outlook

Real estate risks from China should also remain manageable. This is thanks to Hong Kong banks having built sizeable provisions for exposure to the sector beginning the second half of 2021. The property sector is also benefiting from policy support measures in Mainland China.

According to S&P Global Ratings, Hong Kong banks have moderate exposure to China commercial real estate at an estimated 5% to 10% of the total consolidated loan book on an average. A sharp correction in the property market is also unlikely, Varghese said.

“Rising interest rates and protracted migration have dampened property buying and caused moderate downward price adjustment by about 8% YTD from a higher base. A structural housing shortage will continue to anchor Hong Kong’s residential prices,” he noted.

HK to regain top luxury shopping hub status

The expected return of international tourism as inbound restrictions ease is expected to boost the luxury retail sector in Hong Kong as the city is set to regain its status as a key global centre for luxury shopping before the pandemic, Fitch Solutions said.

Hong Kong’s retail market has traditionally been supported by high household incomes and spending, with spending by tourists, particularly from Mainland China, playing a large role in the luxury end of the retail market, the report noted.

“The luxury market is particularly important in Hong Kong, with a large number of global luxury retailers present in the market to take advantage of Hong Kong’s status as a global financial centre as well as highspending Mainland Chinese and other international tourists,” Fitch said.

Over the medium term, clothing and footwear spending is projected to grow by an annual average of 6.7% to $260.3b (US$33.5b). Compared to overall household spending, clothing

and footwear spending is expected to outperform total household spending growth, indicating a refocus on fashion spending in Hong Kong over the medium term, Fitch said.

“Whilst mainstream Mainland Chinese tourism to the special administrative region has not yet fully recovered, Hong Kong has eased restrictions for incoming international tourists and will likely join the majority of Asian markets in continuing the easing of restrictions,” the report stated.

Retail recovery

In the short term, Fitch noted that clothing and footwear sales in Hong Kong have been one of the hardest hit consumer categories during the pandemic years. Many consumers either reprioritised spending away from the category or moved down price points, decreasing their nominal spend for the same number of items, Fitch said.

“As a result, the category has been slow to recover in value terms. Over 2022, Hong Kong has embarked on a cautious easing of domestic social restrictions and as of September 2022, has begun relaxing requirements on international arrivals,” the report stated.

Still, the return to work and greater levels of socialising is expected to drive short-term growth in clothing and footwear spending in Hong Kong, and to remain sustained over the medium term, covering until 2026.

“Players are already capitalising on the return to normalcy and economic activity,” Fitch said.

“Singapore-based Love Bonito, a female office-wear and lifestyle fashion brand, expanded their presence in the city after the company opened their Hong Kong flagship store in July 2022 after entering the market in 2019 with a pop-up store and a localised online store in 2021.”

Over the medium term, Fitch expects clothing and footwear spending to grow by an annual average of 6.7% to $260.3b (US$33.5b), underpinned by the easing of the city’s border rules.

“Hong Kong’s retail market has traditionally been supported by high household incomes and spending, with spending by tourists,” Fitch said.

“Hong Kong has eased restrictions for incoming international tourists and will likely join the majority of Asian markets in continuing the easing of restrictions,” Fitch added.

A large number of global luxury retailers present in the Hong Kong market (Photo by Kent Wang)

[Industry] players are already capitalising on the return to normalcy and economic activity

RETAIL

COMMERCIAL

New license for virtual asset providers to rock HK’s fintechs

Hong Kong’s fintech industry can face a new licensing regime and relaxed listing requirements in 2023, according to the latest fintech legal outlook released by the law firm Linklaters.

Linklaters highlighted three key developments in Hong Kong’s fintech space in the next 12 months: a new virtual assets service providers licensing regime; expected widened access to virtual assets for retail investors; and the possible relaxation of listing requirements in the future.

In 2023, there will be a new regime to license virtual asset service

providers or VASPs, as set out by the revised guidelines under the AntiMoney Laundering and CounterTerrorist Financing (Amendment) Bill passed in 2022.

Under the new bill, anyone operating a business providing a virtual asset service (VA service) in Hong Kong, or holding themselves out as doing so, will need to be licensed as a VASP by the local Securities and Futures Commission.

“We are waiting for the SFC consultation on the regime details which will seek feedback on whether retail investors should be permitted

With China easing its COVID-19 rules and travel restrictions in December and the recent stock market rebound, retailers are anticipating the opening of the borders between Hong Kong and China that could lend some support to the declining commercial real estate market, a recent report by CBRE reveals.

However, the analyst warns that interest rate hikes will still continue to weigh heavily on investment markets. This means the commercial real estate market is expected to receive a low volume of investments.

In CBRE’s report, investors are offloading their assets to pile up capital. An example of this is CSI Properties which sold its 17,230 square feet retail podium in Tuen Mun, COO Residence, for $440m or $25,537 per sq ft.

Citing news reports, CBRE said COO

Residence generates $1.4m rental income per month, representing an initial yield of 3.7%.

This is seen as investors trying to wait for better deals and other opportunities before re-entering the real estate market.

Meanwhile, some asset owners who are facing some financial difficulties have actively disposed of their commercial assets like the recent sale of Stan Group/Tang family selling a 12,030 sq. ft. strata unit at Vigor Industrial Building, Tsing Yi for $74 million.

The group recorded a loss of $13 million or 15% compared to the property’s purchase price back in 2017.

“Higher cost of capital has begun to trigger more distressed sales from financially troubled vendors. The capital value of commercial assets is likely to continue on a decline mode with further cap rate expansion,” CBRE said.

to access these exchanges. This is a major change in approach, as previous proposals restricted the exchanges to ‘professional investors’ only,” Linklaters noted in their report.

More developments

Another major change that will shake the fintech industry is that of retail investors slowly being permitted more access to VAs, Linklaters noted.

“The SFC is cautious – at the beginning of 2022 retail investors were restricted to a limited suite of VA-related derivatives traded on conventional exchanges. However, in October 2022, the SFC announced it will consider applications to authorise some ETFs tracking VA futures, and therefore be offered to retail investors,” the law firm said, adding that the SFC also promised a circular on a security token offerings regime, which will allow retail investor access for some offerings where there are proper safeguards.

These developments mark a shift from the start of 2022 when traditional financial firms were given guidance by the SFC and the HKMA in a joint circular on how they should carry out VA-related activities, Linklaters said.

A new listing regime might also be introduced over the next 12 months as Hong Kong continues to aim to be an attractive place for tech listings. The Hong Kong Stock Exchanged had launched a consultation for a listing regime for specialist technology companies.

RECOVERY

ANALYST WARY FOR HONG KONG’S COMMERCIAL REAL ESTATE MARKET

In 2023, there will be a new regime to license virtual asset service providers or VASPs

This is a major change in approach; previous proposals restricted the exchanges to professional investors only

FINTECH

Higher cost of capital has triggered more distressed sales from financially troubled vendors (Photo by Trey Ratcliff on Flickr)

Firms retain older workers with improved benefits as youth seek opportunities abroad

Companies should consider giving their seasoned staffers financial literacy training, Randstad said.

After many young employees emigrated from Hong Kong, local firms had to shift their focus on what was left of their talent pool: the older workforce.

To retain their older employees, companies would usually offer benefits such as flexible work schedules, training and education, and healthcare. But according to HR experts, companies can do more than just these. Firms, for example, can consider providing their employees with financial literacy benefits.

“A study conducted by St. James Place revealed that more than one in two middle-aged Hongkongers has not started planning for their retirement. Their deterrence could be due to the lack of awareness and comprehension of the retirement financial instruments and services available to them,” Leslie Tang, Head of Client SolutionsSearch & Selection at Randstad Greater China, told Hong Kong Business.

“Whilst this may be concerning, Hongkongers are very receptive to receiving professional financial advice. This could be an opportunity for companies to provide seasoned employees with financial literacy assistance and training to improve overall retention,” he added.

Ashley Palmer, Head of Wealth Solutions for AsiaPacific at Aon, advised companies to regularly review their Mandatory Provident Fund (MPF) providers to ensure that their retirement plans remain competitive and deliver sustained good performance.

“There is a clear water between good, bad, and ugly MPF funds. What we typically see are vendors with high fees where the employer has not undertaken a MPF review for many years. High fees mean eroding retirement savings of employees,” Palmer said.

Another way companies can help employees with their future retirement planning is to have early conversations with them about it. Palmer said good companies would start this discussion with employees in their 50s. This can also open doors to enable more gender balance in leadership positions.

Also having an effective policy on employment contracts is important.

“Ensure your employees are aware of how their contracts might be continued. From our study, we see there’s quite a lot of practices around typically offering fixed term contracts to employees once they reach contractual retirement age, so that process needs to be seamless,” he said.

Pros and cons of an older workforce

Whilst younger employees seem more energetic and enthusiastic to drive change, Tang said an experienced talent has “accumulated a rich base of experience to make wellinformed decisions.”

The professional network of older employees is something that companies can leverage, added Tang.

As mature employees already have institutional knowledge and skills in the organisations, retaining them will be great for succession planning, said Palmer.

Tang, however, underscored that since older employees have more expensive healthcare coverage for age-related illnesses and retirement, companies might end up looking for a new hire instead.

This is why Tang advised companies to maintain a diverse workforce for different generations to collaborate.

“In a diverse workforce, employers will have the opportunity to create mentorship opportunities, which is critical for career development and success in the workplace. Experienced employees can coach younger employees in developing their soft and leadership skills which will help them thrive professionally within the organisation,” Tang said.

Palmer had a similar sentiment, saying that intergenerational collaboration in the workplace will be beneficial to both employees and the company.

Tang said intergenerational collaboration can be done through mentoring and reverse mentoring programmes.

“A young professional could be partnered up with a mature and seasoned worker to foster understanding and collaboration between each other. The success of such programmes depends on the willingness to accept different opinions and perspectives, which is often driven by a natural curiosity and motivation to learn,” he said.

Making the young stay

Having a diverse workforce means retaining not just the old, but younger employees.

A way to do this is by “creating a positive employee experience,” said Tang.

“In Hong Kong SAR, 90% of workers find companies that can provide a good work-life balance attractive to work for. Hongkongers view work-life balance as having enough personal time to spend with the people they care about,” he said.

“People want to be empowered with the flexibility to work anytime and anywhere, as it gives them the autonomy to incorporate work into their plans for their life and family. They also wish to work for an employer that can fairly support a manageable workload so that they don’t have to work overtime unnecessarily,” he added.

Hongkongers are very receptive to receiving professional financial advice

Companies must maintain a diverse workforce for different generations to collaborate

Leslie Tang

Ashley Palmer

Specialist tech firms to gain major boost in HK thanks to proposed listing rules

The new regime exempts firms from existing financial eligibility tests under the Listing Rules.

Innovative technology companies in need of funding would often turn away from Hong Kong due to its high-profit threshold for listing and opt for other markets instead. This has affected the city’s competitiveness as a listing venue of choice for these high-growth firms.

To regain its attractiveness and improve fundraising activities, Hong Kong has proposed a new regime where innovative or specialist technology companies will be exempt from existing financial eligibility tests under the Listing Rules.

According to Claudia Yiu, Partner, Corporate & Commercial, at Simmons & Simmons Hong Kong, specialist tech firms include those involved in next-generation information technology, advanced hardware, advanced materials, new energy and environmental protection, and new food and agriculture technologies, amongst others.

Under the new regime, specialist tech firms are categorised into two using a commercial revenue threshold of $250m. Companies that meet the threshold will fall under the “commercial” category, whilst firms that fail to do so will be identified as “pre-commercial” or those which have yet to generate meaningful revenue.

“Commercial companies are those specialist technology companies that have achieved meaningful commercialisation of their products; whereas precommercial companies are those that are primarily engaged in R&D to bring their products to commercialisation,” Louis Lau, Partner at KPMG China’s Capital Markets Advisory Group, told Hong Kong Business.

Stringent requirements

Since pre-commercial specialist technology firms do not meet the threshold, they will be subjected to more stringent requirements like higher minimum expected market capitalisation at listing of $15b. To compare, firms categorised as commercial’s minimum expected market capitalisation at listing is only $8b.

Pre-commercial firms will also need to meet a higher proportion of operating expenditure in research and development (R&D) of 50% of total operating expenditure, rather than 15%. “Pre-commercial specialist technology companies are also required to, amongst other things, demonstrate a credible path to commercialisation, and after listing, to comply with enhanced continuing obligations that are consistent with those imposed on biotech company listings under Chapter 18A,” added Christopher Ma, Partner, Corporate & Commercial, at Simmons & Simmons Hong Kong.

Lau said additional or more stringent requirements are applied to pre-commercial companies due to the higher risks associated with it. Whilst there are differences, there are a number of requirements imposed on both types of specialist technology companies.

The first of these common requirements is that they should “fall within the definition of specialist technology company as defined by the Hong Kong Exchanges and

This will enhance the competitiveness of HK as a listing venue

Clearing (HKEX) from time to time.” Ma said external validation in the form of meaningful third-party investment is also required for both company types.

An example of a meaningful investment is funding from an asset management firm with assets under management (AUM) of at least $15b or key players in upstream or downstream industries.

“There is also an additional free float requirement at listing, which stipulates a minimum market capitalisation of $600m to be free from any disposal restrictions, contractual or otherwise,” said Ma.

Enhanced disclosure requirements and a more robust price discovery process are also imposed on both commercial and pre-commercial companies.

“In particular, the initial allocation and clawback mechanism mandate a higher level of participation from institutional investors as compared with normal listings, with a corresponding reduction in retail participation, with a minimum of 20% retail allocation upon oversubscription of 50 times or more in the public subscription tranche,” Yiu explained.

Enhancing competitiveness

The flexibility offered by the proposed listing rules will allow capital markets to channel much-needed funds into innovative technology companies, according to Lau.

“By expanding the range of companies that can access Hong Kong’s deep, liquid, international markets, this will also offer more investment options for investors, enhancing the competitiveness of the Hong Kong market as a listing venue of choice for innovative companies,” Lau added.

Simmons & Simmons’ Ma had a similar sentiment, saying that increasing the number of innovative companies listed in Hong Kong would help diversify and expand the market offering and present more choices for investment, and would also increase the fundraising activities and trading volume on the Stock Exchange of Hong Kong.

The flexibility offered by the proposed listing rules will allow capital markets to channel funds into innovative technology companies

Claudia Yiu

Louis Lau

Christopher Ma

Startup helps prevent revenue losses with collaborative inbox

Enterprises that used the chat management platform imBee saw a 25% increase in sales and 25% more customer engagement.

Entrepreneur Ken Chu observed that businesses that run on multiple platforms often have miscommunication, data loss, and delays between teams handling the different channels because they are unable to manage them well, and when this happens gains can quickly turn into losses.

This is why, in 2019, Chu cocreated imBee, a platform where data from multiple channels can be stored in one place for all teams to access.

“I discovered the demand for a smoother and more direct medium for business communications. That was my inspiration for creating imBee, an all-in-one messaging platform,” Chu said.

A single inbox

What imBee does is consolidate different messaging channels into one single inbox, allowing multiple teams to access client information in one platform.

“Our team collaborative inbox creates a one-chat experience, where a representative from any company can seamlessly share information

imBee’s uniqueness is our focus on helping enterprises cater to their customers in an efficient, scalable, and compliant manner

between internal teams and a current customer or prospect on major instant messaging platforms including WhatsApp, WeChat, Facebook, and Instagram,” Chu told Hong Kong Business.

“We provide skill-based routing that can route inquiries to the most suitable representatives. We have an Internal Team Chat that allows discussion amongst internal teams in one consolidated location,” added Chu. imBee integrates more than 300 applications including, Salesforce, HubSpot, and Shopify.

Apart from integration, the platform also has productivity and analytic tools which can help

top management oversee their business performance. “imBee’s uniqueness is our focus on helping enterprises cater to their customers in an efficient, scalable, and compliant manner. Whilst most of our competitors focus on SMEs, imBee enables large-scale team collaboration and automation that helps enterprises to work effectively,” Chu said.

More importantly, Chu said imBee has security and compliance features in line with regulatory requirements.

A BEE-g impact

Managing multiple channels in one platform has proven to help businesses do better in their operations. According to Chu, users of the platform have seen an average of 25% increase in sales, a 30% reduction in customer service costs, and 25% more engagement.

“We helped one of Hong Kong’s top luxury retail brands create seasonal campaigns to boost sales by sending out thousands of personalised promotional messages to specific recipients with segmentation and broadcasting functions,” Chu shared.

“The results were extremely promising with an open rate of 2.3 times that of emails and a 20% increase in sales activities,” he added.

To help more businesses, Chu plans to achieve the next round of Series B funding and expand his team into the APAC region.

He also said his team at imBee is working on new product features to improve user experience.

In its Series A funding in October 2022, imBee raised US$5m. Its funding was led by DCM, a global venture capital firm.

imBee consolidates different messaging channels into one single inbox (Photo from imBee.io)

Ken Chu

imBee’s collaborative inbox helps companies share information seamlessly on major platforms including WhatsApp, WeChat, and Instagram

CONCEPT WATCH

Citi entices Hong Kong’s ultra-wealthy with first-ever Global Wealth Centre

Citi is ramping up its global wealth strategy with the launch of its very first Global Wealth Centre in Hong Kong: a curated space aimed at serving the bank’s affluent and ultra-high net worth clientele in Asia.

The 10,000-square-foot space in Tsim Sha Tsui features meeting rooms and seating areas for the exclusive use of the bank’s Citigold Private Client and Citi Private Bank customers in Hong Kong. The space is staffed by senior bankers and industry specialists.

“As part of this signature experience, every client is served by a team of relevant experts – a designated Banker, Portfolio Counselor, and a team of Specialists who take a holistic approach to a client’s portfolio and needs. The centre also supports banking services including non-cash transactions and account opening,” said Vicky Kong, Consumer Business Manager for Citibank Hong Kong.

The Global Wealth Centre clients will also enjoy a variety of privileges in partnership with lifestyle brand operator K11 group. The centre’s clients can enjoy a complimentary afternoon tea set at the K11 Musea Artisan Lounge, with food made of sustainable ingredients. Clients will also receive a complimentary gift set from the K11 MUSEA 181 at Fortnum & Mason.

In the future, GWC clients will also enjoy exclusive K11 Lifestyle Passport privileges ranging from gourmet to beauty collections.

The bank’s renewed efforts to better serve its affluent customers in the region stems from Asia contributing 34% of Citi Global Wealth’s overall revenue of US$7.5m in 2021. Alongside the launch of the global centre, Citi also unveiled an equivalent space to meet their ultrawealthy clients’ financial needs–this time within the metaverse.

“A first for Citi in Hong Kong, we simultaneously launched the Centre’s digital twin – Citi Digital

Wealth Centre – in the metaverse, incorporating interactive and engaging experiences, and capabilities including making appointment bookings, streaming live webinars and offering seamless offline and online client experience,” Kong said in an interview with Hong Kong Business

In the metaverse, clients will be able to make appointment bookings, live stream webinars, and access both offline and online client services, Kong added.

Looking ahead, Citi committed to focusing on building its core capabilities and strengths, especially in Hong Kong, said Angel Ng, Head of Asia Pacific Global Wealth Management.

“This includes strengthening our various propositions across the wealth continuum whether by building new capabilities or leveraging existing ones to make them relevant to clients across more than one segment or proposition,” Ng said.

Inaugural launch of Citi Global Wealth Centre in Hong Kong (Photo courtesy of Citi)

As part of this signature experience, every client is served by a team of relevant experts who take a holistic approach to a client’s portfolio and needs

Vicky Kong

Talent Drives Growth

Sourcing talent can be a slow and costly process, but working with a talent partner can act as a catalyst to securing business-critical talent.

Phaidon International is the parent company of 6 leading specialist recruitment agencies. For more than 15 years, we have provided clients and candidates the peace of mind that their recruitment process is in expert hands.

Scan to learn more about the services we offer, the industries we cover and let us know of your hiring challenges.

CASE STUDY

DBS HK introduces fully digital card loans for instant cash

Users and even non-current customers just need to scan their HKID to get both cash and a digital card in a single application.

Hong Kong citizens strapped for cash but unwilling to undertake the lengthy loan process or turned off by highinterest rates offered by non-bank lenders now have a new path to get their much-needed money. DBS Hong Kong has recently unveiled its first fully digitalised Card Loans experience, offering application, approval, and disbursement in as fast as just minutes.

“We found that many customers who had immediate financial needs took a long time to prepare supporting documents to apply for a loan,” Emily Ip, Executive Director, Head of Cards & Unsecured Lending, Consumer Banking Group & Wealth Management, DBS Bank (Hong Kong) Limited told Hong Kong Business.

With the new digital card loan application journey, even noncurrent customers of DBS could walk away with both cash and a credit card. They only need to

present two things: the DBS Card+ app, and their HKID.

Customers need only to scan their HKID on the app, and immediately after signing up, they just may be touting a new digital credit card and an approved loan.

“The card application is submitted via customers’ smartphone which we ensure the DBS Card+ app runs on a secure device, moreover, all personal particulars and HKID images are encrypted to ensure data security,” Emily said.

Most importantly, thanks to the use of HKID, customers no longer need to submit any other additional documents before getting their credit card lines approved, although there are some cases when the bank may request additional documents such as address and income proof, depending on the individual.

DBS Hong Kong shared that the solution has led to a 10% increase in its card loan sales since launching in August 2022.

DBS’ revamped digital ecosystem

The instant credit card and loan approval services were just some of the improvements that DBS Hong Kong has introduced to its Card+ app over the past year. In light of the rise of buy now pay later services in the city, DBS also rolled out improvements to its Flexi Shopping options.

Chief amongst this is an expanded repayment tenor period, wherein customers can choose to pay back their purchases from a period of between 3 months to up to 60 months. Prior to the revamp, DBS conducted research in order to obtain the necessary data and insights to support the update.

“More than 50% YoY sales incremental has since been achieved since the relaunch, making DBS’ Flexi Shopping services one of the best in the field,” Emily shared.

Customers can also regulate their shopping through the “limit retail spending” function, which allows them to set a monthly limit to retail spending on their principal and supplementary cards. This is instantly effective and will not impact their credit limit, according to DBS.

“Credit cards are undoubtedly a blessing to many of us because of their convenience. However, because of how convenient it is to pay with credit cards, it has become easier for people to overspend or be scammed whilst shopping online. All these caused worry and stress amongst our customers, and we strive to offer them the same convenience, but with better control and protection over their spending,” Emily said, regarding the limit retail spending option. They are also given the freedom to turn on and off specific transaction types, such as online spending, local spending or overseas spending, for safety reasons.

“Once disabled, that spending type will be declined immediately. It is instantly effective and valid until change is requested from the customer, and DBS Card+ App will send out push notifications if a disabled transaction type has been attempted to maximise security,” Emily explained.

DBS HK’s first fully digitalised Card Loans experience has led to a 10% increase in card loan sales (Photo from DBS.com)

We strive to offer them the same convenience, but with better control and protection over their spending

BNPL regulations toughen debt prevention and financial literacy in APAC

Unlike Hong Kong and Singapore, underbanked markets are more vulnerable to risks of credit products.

As the buy now, pay later (BNPL) payment scheme is growing in popularity in the Asia Pacific markets, regulators are working to prevent accrued debts and educate consumers on how to manage their finances, Euromonitor International said. It urged markets, such as the Philippines, Vietnam, and Indonesia, to work closely with those in more experienced markets like Singapore and Australia, to strike the balance between allowing companies to operate whilst also keeping consumer debt at a manageable level.

Herbert Yum, Euromonitor International’s Research Manager in APAC, said the regulations revolve around “the risk of putting consumers overly in debt when using BNPL products are well under control, consumers having a good understanding of contractual terms of BNPL products, and the ability for BNPL providers to conduct a thorough assessment of consumers’ creditworthiness.”

According to Yum, markets can better manage their financial health after having been exposed to credit products earlier than others in the region. In Hong Kong, for instance, some consumers try not to use credit cards to ensure that they are not heavily hurt by debt because of the misuse of those consumer credit products.

“In Hong Kong and Singapore, consumers are relatively knowledgeable and educated in terms of the risks and the value associated with the consumer credit product,” said Yum in an interview with Hong Kong Business

But the Philippines, Vietnam, and Indonesia have low exposure to financial technology services, said Yum. A Euromonitor, Bain & Company, Temasek, and Google joint study showed that most underbanked populations are in Vietnam (79%), the Philippines (78%), and Indonesia (77%).

Euromonitor’s Consumer Finance data showed that the transaction size of BNPL is still low in the APAC region against other payment methods such as credit and cash payment despite BNPL’s growth seen over the past year. Yum said this is because the payment platform is still in the early stages of development.

Hong Kong’s BNPL accounts for 0.3% of the other personal loans market. BNPL penetration of other personal loan markets is 1.9% in Indonesia, 0.5% in Malaysia, 6.8% in the Philippines, and 3% in Singapore, respectively, in 2022.

Best practices

Australia started requiring members of the Australian Finance Industry Association to impose limits on how much can be paid in late fees. One of the BNPL platforms in Australia is Afterpay, founded in Sydney in 2014.

The BNPL providers must also think of an internal dispute resolution process to ensure customers can be assisted when they have difficulty repaying the instalments, Yum said.

Despite being the early adopter of BNPL solutions in the region, its government is still considering feedback on the future regulatory framework for BNPL products due to the gaps in BNPL regulation under Australia’s laws.

According to Australia’s treasury government, the

exemptions create “potential for consumer harm due to the absence of key protections” such as responsible lending standards or other requirements of the Credit Act.

In Singapore, a US financial technology firm, FIS, reported that the BNPL market is expected to grow at a compound annual growth rate of 40% through 2025. This makes it the fastest-growing online payment method in the Lion City.

As this happened, the Singapore FinTech Association put up a BNPL Working Group and created a code of conduct for BNPL providers that was launched in October 2022.

Yum said the BNPL providers will self-regulate to help consumers spend their money wisely. To do so, a cap of SG$2,000 (US$1,503) was imposed. BNPL providers should also suspend a customer’s access to its services if the consumer fails to comply with payment obligations.

For Hong Kong’s central bank, it enforced seven consumer protection measures on BNPL products, which seek to educate consumers to have a clear understanding of the contractual terms of BNPL products.

“To ensure BNPL products are well regulated or monitored in HK, it is essential for such measures to be imposed on both bank and non-bank product and services providers,” said Yum.

Building confidence Yum said regulations will increase customer confidence in BNPL and there will be a “healthy growth of BNPL transactions.”

Specifically, in Singapore, Anton Ruddenklau, Partner and Head of Financial Services in KPMG, consumer trust will be raised knowing that their BNPL provider is following the measures that are meant to guide them in spending and avoid accruing debts.

“It gives you comfort when you’re dealing with an industry that has got some rules,” said Ruddenklau.

HK and Singapore consumers are knowledgeable and educated in terms of the risks and the value associated with consumer credit product

Herbert Yum

Anton Ruddenklau

BNPL regulators must educate consumers on how to manage their finances

INDUSTRY INSIGHT: LEGAL

Mainland firms’ influx spurs new business for local lawyers

GBA development allows qualified legal professionals in Hong Kong to practise domestic law within the area.

related litigation, said Jong.

China’s impact on Hong Kong’s legal market was not only seen in terms of practices but also in the workforce. According to Stranger, firms are significantly growing their business service teams to support China’s growth strategy.

Firms are also looking to grow at the “partner level” around their sector focus strategy.

In 2022, Jong said there had been visible “partner lateral movement” in the market. “It is more likely that the majority, not all, of such movement is due to the partner choosing to leave for another country or having to leave as opposed to being actively recruited,” Jong said.

In 2022, Hong Kong’s legal industry saw a growing number of Mainland firms setting up operations in the city. Rather than perceiving this as a threat, local firms saw it as chance to increase collaboration with firms in the Mainland which will be beneficial to them given the improvements in the Greater Bay Area (GBA).

Recent developments in the GBA that have brought local industry opportunities is the Qianhai Cooperation Zone in Shenzhen, Guangdong which allowed whollyowned Hong Kong enterprises to adopt Hong Kong law when entering into civil and commercial contracts in the free trade zone.

“The government explored ways to enable wholly owned Hong Kong businesses in Qianhai to adopt Hong Kong law and arbitration for their commercial contracts,” HFW Hong Kong Head Peter Murphy told Hong Kong Business

The entry of more Mainland firms is also beneficial to Hong Kong given that the city has been transitioning to primarily being a China-focused finance centre, added Stephenson Harwood Greater China Office Managing Partner Jamie Stranger

The GBA is an example of how Hong Kong’s economy is more integrated with that of Mainland China

The GBA has allowed Stephenson Harwood’s Hong Kong-qualified lawyers to practice domestic and Peoples’ Republic of China (PRC) law within the megalopolis.

Whilst Hong Kong’s linkage to the Mainland has its advantages, it also has drawbacks.

“The GBA is an example of how Hong Kong’s economy is more integrated with that of Mainland China. They are inextricably linked,” Denise Jong, Partner at Reed Smith Richards Butler, said, noting that the reduced economic activity due to COVID restrictions “has negatively impacted transactional practices in Greater China.”

Jong, however, said litigation practices remained strong.

Shift in workforce

Since China has slowly relaxed its restrictions, Hong Kong’s business environment also began improving, said Stranger.

Given this development, Murphy saw increasing demand for international arbitration and commercial litigation expertise during the year.

Regulatory and compliance practices were also in demand during this year, particularly on crypto-

Jong also noted that there had been “redundancies” amongst international law firms with offices in Hong Kong. Job portal Indeed defines redundancy as the “process when employers have to let go of one or more employees due to circumstances unrelated to job performance or behaviour.”

A year of rebound

Whilst there was still a talent movement in Hong Kong, Stranger believes that the legal workforce had already steadied after two years of “strategic contraction.”

During the two years, firms also changed their way of working. Stephenson Harwood, for example, has adopted a 60% office and 40% work-from-home setup. HFW has likewise adopted flexibility.

“[We have] been giving all employees the flexibility to work from remote locations, whether in or outside Hong Kong, during the darkest days of Covid,” Murphy said. “At HFW, we strive to create a flexible, inclusive, and engaging work environment for all of our staff,” Murphy added.

After a year of “staying lean,” Jong said the industry will rebound in 2023. Stranger is also positive about this year, expecting an “opening-up” between Hong Kong and China regarding COVID restrictions.

“2023 will be the year of reconnection for the legal industry,” Stranger said.

The entry of more Mainland firms is beneficial as Hong Kong has been transitioning to primarily being a China-focused finance hub

Peter Murphy

Jamie Stranger

LEGAL LUMINARIES

HK’s 10 most influential lawyers under 40

Hong Kong’s roster of exceptional lawyers has made the city an irreplaceable legal hub for businesses and high-profile individuals from the Mainland and other parts of the world.

Hong Kong Business recognises 10 young lawyers who have raised the bar for legal professionals across all fields in 2022.

The 2022 awardees came from Hong Kong’s well-known firms like Stephenson Harwood, HFW, Reed Smith Richards Butler LLP, Skadden, Arps, Slate, Meagher & Flom, and Simmons & Simmons. They were nominated by their respective firms.

Lawyers on the list advised their clients on matters such as IPOs, capital market, transactions related to the People’s Republic of China (PRC), asset preservation, investment funds, financial regulation and compliance, commercial banking, international trade finance, and new areas like data privacy and cybersecurity.

They also served high-profile clients in and outside Hong Kong like Xiaomi Corporation,  WM Motors,  Tarena International, DIDI global, the government of HKSAR, and Junior Police Officers’ Association.

Apart from courts, Hong Kong Business’ 2022 legal luminaries also showed off their law expertise in different stages, with some delivering workshops and training sessions to non-legal professionals in multiple sectors like financial services. Meet this year’s awardees, from the youngest to oldest:

Anna Kwong is a banking and finance partner who specialises in international trade finance and commercial banking. She regularly advises financial institutions, fintech companies, credit insurers and trading companies on issues involving trade finance products, such as letters of credit, documentary collections, receivables financing and supply chain solutions, financial regulations and compliance and anti-money laundering amongst others. Having a solid focus on PRC cross-border loan transactions, Anna also regularly advises financial institutions and corporates on PRC-related transactions and matters linked to PRC regulations.

With a decade of legal experience, Layton Z. Niu is an Asia Pacific Counsel who advises public and private firms, private equity funds and major financial institutions on mergers, acquisitions, investments, disposals, and other corporate matters. He is also experienced in Rule 144A and Regulation

S private placements, SEC-registered securities offerings and private investment fund formation. He has advised on notable transactions for leading Chinese companies such as Baidu, Inc. Bitauto Holdings Ltd., Trip.com, JD.com, NIO, Inc, Pinduoduo and Sina Group.

As a partner with extensive experience in arbitration proceedings, Donald Sham also has extensive experience in arbitration-related court proceedings including asset preservation measures, disclosure orders, and antisuit injunction. He also offers expertise in various other areas including shipping disputes, commercial litigation, and insolvency matters. He is involved in high-profile matters such as the Lamma Island ferry collision, the SANCHI oil tanker collision, and proceedings arising from the liquidation of the OW Bunker group.

With over 11 years of legal experience, Jacqueline Arena is a competition attorney based in Hong Kong. As Asia Pacific Counsel, she advises companies across the APAC region on merger transactions and antitrust investigations in Asia and in Europe. She has been recognized as a Rising Star for Competition and Antitrust by IFLR1000

2022

2 Layton Niu 34, Skadden, Arps, Slate, Meagher & Flom

Expert Guides in 2021 and

and also has been repeatedly recognised for her pro bono work by the Law Society of Hong Kong. Jacqueline is an active member of Skadden’s women’s network and is the Vice-Chair of Women in Law Hong Kong. She joined Skadden in 2017 and was promoted to Asia Pacific Counsel in 2022.

1 Anna Kwong 33, Stephenson Harwood 3 Donald Sham 35, Reed Smith Richards Butler LLP 4 Jacqueline Arena 35, Skadden, Arps, Slate, Meagher & Flom

Amongst the awardees is a lawyer offering legal assistance in Justice Without Borders.

LEGAL LUMINARIES

Martina joined Skadden in 2017 and has been involved in the Hong Kong corporate practice’s most significant transactions since then. She represents multinational clients across different industry sectors in China and Hong Kong in their initial public offerings. She offers corporate advice on the structuring and implementation of corporate transactions to various Hong Kong-listed companies. To further enhance her expertise in Hong Kong listings, Martina spent nine months as a secondee to the Listing Department of the Hong Kong Exchanges and Clearing Ltd, from March 2019 to December 2019.

Yilin is a registered foreign lawyer in Skadden’s corporate practice. He focuses on listings, mergers and acquisitions, private equity investments and other corporate matters. He has advised over 30 Chinese companies from the internet, consumer, health care, fintech, education and renewable energy sectors, on their U.S. or Hong Kong IPOs, as well as other significant securities offerings. He has also advised on high profile M&A transactions, such as HUYA’s US$10 billion proposed merger with DouYu, Meilishuo’s US$2.4 billion acquisition by Mogujie, and 58.com’s US$9 billion strategic transactions with the parent company of Ganji.com.

Wendy Wong is a highly experienced employment lawyer in Hong Kong, having worked with major financial institutions, asset managers, investment funds, tech companies, luxury retailers, and multinational firms for nearly 10 years. She provides employmentrelated training, writes articles on topical employment-related issues, and advocates for diversity and inclusion in the workplace. Whilst working at Simmons & Simmons, Wendy did projects for Justice Without Borders where she assisted domestic helpers in lodging complaints and/or formal claims against their employers where there were grounds for the domestic helpers to claim compensation or other remedies from the employers.

Karen’s practice covers a broad spectrum, ranging from complex cross-border corporate and commercial litigation, whitecollar crime, regulatory matters, shareholders disputes, shipping law, employment law, land disputes to judicial review. Apart from advising SOEs and multi-national clients, she also advises high net worth individuals and families in Hong Kong and China on a wide range of disputes, including contentious probate litigation and matrimonial proceedings. Since 2018, Karen has also been serving as chairman of the youth committee of the Hong Kong and Mainland Legal Profession Association.

As a partner in HFW’s commercial disputes practice, Kevin Warburton focuses on arbitration, litigation, regulatory and internal investigations, and privacy and cyber-related matters. He advises clients on high-value and complex cross-border matters. Kevin also offers clients strategic advice on data breaches and cybersecurity issues. Amongst his recent notable work is advising a global pharmaceutical firm in an HKIAC arbitration involving a multi-million US-dollar damages claim. He is also a member of relevant networks for arbitration practitioners such as the Chartered Institute of Arbitrators.

Ben Bury is a partner with calibre and experience in international construction arbitration. He offered services on arbitrations seated in numerous jurisdictions and subject to the laws of ICC, SIAC, HKIAC, and LCIA, as well as ad hoc arbitrations subject to the UNCITRAL rules. He advised a heavy lifting and transport contractor in a contractual interpretation case before the Hong Kong courts commenced against the client by its JV partners for alleged breach of their joint venture agreement in the context of development work at the Hong Kong International Airport.

8 investment ideas to achieve affluence in the year of prosperity

Financial experts said active portfolio management is crucial amidst economic uncertainties.

Feng shui experts predict that 2023 will be a year of hope and prosperity; however, financial experts warned that familiar foes like inflation and geopolitics like the rivalry between the G2 powers of China and the US will continue to haunt investors during the year.

Stefanie Holtze-Jen, APAC Chief Investment Officer of Deutsche Bank International Private Bank, shared eight investment ideas that can help investors to navigate systemic risks.

Liquid and investment-grade bonds from the US and Europe

According to Holtze-Jen, yields and quality are now no longer mutually exclusive. “European bank bonds, for example, would seem to be worth greater consideration because underlying capital adequacy and credit risk data have improved substantially in recent years,” she said. Standard Chartered reported that the 10-year US government bond

yield is expected to rise towards 3.75% to 4.0% in the first quarter of 2023 given that the Federal Reserve is maintaining “tight financial conditions for now.”

Speaking of bonds, Holtze-Jen said active bond portfolio management will remain the watchword in 2023. She said adding floaters, or bonds with variable returns, to the portfolio might be helpful to investors.

Commodity currencies

Europe and the US are expected to see economic recovery in 2023 following their “shallow recession path,” supporting most commodities.

“As the US Dollar turns around, the currencies of commodityexporting countries such as Australia, Canada, and Norway seem to have catch-up potential,” Holtze-Jen said.

Within emerging markets, Holtze-Jen said countries like Brazil, Chile, and Peru or “the ones that are profiting from high commodity

As the USD turns around, the currencies of commodityexporting countries have catch-up potential

prices” look good for FX exposure.

“South America’s central banks were also quick to start raising their base rates which support their currencies,” she added.

Cyclical, cheaper stocks

Investors were advised to look at stocks from sectors that are more cyclical and cheaper in valuation.

For cyclical stocks, Holtze-Jen picked financials, materials like chemicals, and energy stocks since they trade at depressed valuation levels on a historical comparison.

Those wanting to position themselves more defensively must consider stocks from cheaper sectors such as healthcare.

“The sector offers above-average earnings growth supported by strong secular trends at a reasonable price,” the expert said.

Those investing in stocks must also buy from companies with a strong price-setting power, advised

A strategically well-diversified portfolio is crucial to achieving prosperity in 2023

Holtze-Jen, adding that these firms are “likely to be able to pass rising costs on to consumers and thus sustain their margins in prolonged inflationary periods.”

“Stocks, unlike bonds, could show rising nominal returns during inflationary phases,” she added.

Europe

In terms of location, Asian investors should look into Europe, given the acuity valuation discounts in the region seem to be “disproportionately high” despite the economic and geopolitical risks.

“Extensive fiscal programmes and high levels of savings should buoy private consumption and expected stronger Chinese growth will be important to many European companies,” Holtze-Jen commented.

Standard Chartered advised investors eyeing investments in Europe to look into “financials given inexpensive valuations and improving earnings on the back of higher interest rates.

“We also prefer the energy sector, given the still significant sector discount, compared with history,” the financial services company said.

Asian markets

Amongst emerging economies, Holtze-Jen said Asian markets remain the most attractive, particularly countries in the northern markets like South Korea, Taiwan, and China which saw strong declines in valuations in 2022.

“The average drop in these equity markets was around 20%, a trend that has now been partially reversed. These markets may make a comeback when the macroeconomic environment and investor sentiment improves,” she said.

In China, Standard Chartered said it would buy the communication services and consumer discretionary sectors, which it expects “to benefit from increasingly supportive policies and reduced mobility restrictions.”

Apart from the northern Asia markets, Holtze-Jen said India and Japan can also “outperform” in 2023.

”India is currently expanding its manufacturing on a massive scale and launched a major infrastructure investment programme in early 2022 to encourage foreign company offshoots,” she said.

“The Japanese government is banking on comprehensive fiscal support to alleviate the energy crisis for its domestic businesses,” Holtze-Jen added. In India, Standard Chartered would buy the financial, industrial, and consumer staples sectors, saying these will benefit from domestic demand.

Alternative investments

Alternative investments are key to investors seeking a yield in excess of the market return. Examples of this are actively managed illiquid investments such as private equity, private debt (non-bank corporate financing), venture capital, and infrastructure investments.

Standard Chartered said the illiquidity of private assets can “reduce price volatility, helping smoothen portfolio returns.”

Citibank also reported that private equity remains the asset class with the highest Strategic Return Estimates (SRE) at 18.6%.

ESG strategy

Holtze-Jen said an environmental, social, and governance (ESG) strategy may improve the portfolio risk/ return and at the same time should facilitate the achievement of certain desired investment goals under certain circumstances.

It may also reduce the risk of stranded assets or investments in sectors or companies that could lose substantial value due to regulatory restrictions or a switch to new renewable, energy transition, or other technologies.

“Infrastructure is the backbone to sustainably growing economies. Climate change and the energy crisis require huge public and private investments, in particular new, economy (digitalisation, e-mobility) and old economy (grids, transport) investments,” she said.

Gold

Like what the saying “old, but gold” implies, gold remains relevant as ever to investors seeking to diversify their portfolio over the longer term.

Holtze-Jen, however, warned that rising real yields and USD strength could prove to be near-term headwinds to the asset class.

Standard Chartered echoed this in its recent report saying that on a

three-month horizon, the precious metal is expected to initially remain under pressure “as inflation slows ahead of nominal interest rates, keeping real (net of inflation) yields supported in Q1 2023.”

Over the next 12 months, Standard Chartered expects gold to rise as the “Fed rate-hiking cycle pauses and the focus shifts to rate cuts amidst rising recession risks.”

Keys to prosperity

Overall, Holtze-Jen said active portfolio management and a strategically well-diversified portfolio are equally crucial to achieving “prosperity” in the year 2023.

“Whilst the familiar foes, the known unknowns, will continue to challenge investors: inflation, geopolitics, the fight for global technology leadership, the COVID-19 pandemic, China’s ailing real estate market and a sell-off 2.0 in the bond market, the unprecedented economic environment we’re in, navigating the risks of the unknown unknowns or systemic risks will also be equally crucial,” she said.

Stocks,

The financial expert said investors must also keep in mind that frequent portfolio adjustments to rapidly changing macro factors are necessary.

More importantly, Holtze-Jen said investors should stay wary of the fact that pursuing cautious investment strategies does not necessarily lead to better results than a more aggressive, equity-focused approach.

Gold remains relevant to investors seeking to diversify their portfolio over the longer term

unlike bonds, could show rising nominal returns during inflationary phases

Stefanie Holtze-Jen

GBA after-sales service centres to boost health and motor insurance sales

The proposal is part of Hong Kong government's Insurance Connect initiative in the Greater Bay Area.

When Hong Kong Chief Executive John Lee Ka-chiu expressed that the government is keen on building after-sales services centres on the Mainland, insurance experts interviewed by Hong Kong Business unanimously welcomed the idea. They all agreed that both Hong Kong insurers and China Mainland policyholders will benefit from a more convenient premium settlement and claim filing process.

The Hong Kong government’s proposal to build after-sales service centres in Nansha and Qianhai is part of the Insurance Connect initiative in the Greater Bay Area (GBA). This makes it easier for China Mainland policyholders to make claims. In its initial phase, Insurance Connect first allowed the direct settlement of health claims at a public hospital in Shenzhen with Hong Kong and Macau insurers. It

also enables Hong Kong insurers to establish customer service centres in the GBA.

In an exclusive interview with Hong Kong Business, Sravani Ampabathina, Insurance Analyst at GlobalData said that whilst the initial focus is on after-sales support, the role of these centres is expected to increase gradually.

“Insurers are hopeful that the service centres will be able to conduct offshore product promotion during the development phases.

Hong Kong insurers rely heavily on Mainland Chinese Visitors (MCVs) for the purchase of life insurance policies. Due to the high rate of returns offered on insurance in Hong Kong, MCVs favour Hong Kong insurers,” Sravani said.

GlobalData’s research said that MCVs account for 41.8% of the life insurance industry’s new business in Q4 in 2018. However, China limited

cross-border sales to stop capital outflow, which led MCVs to travel to Hong Kong to get insurance, lowering their participation to 25% in 2019. The COVID-19 travel restrictions decreased MCVs contribution to the life insurance segment’s new business, dropping it to 0.4% in Q4 2020.

GlobalData's Sravani predicts that after this, insurers from China and Hong Kong will soon launch cross-boundary life, health, and motor policies, along with other innovative insurance products, if they have not already.

“Permitting insurers to sell and service policies in GBA would steeply boost Hong Kong life insurers’ sales. This would also enable Hong Kong insurers to use consumer relationships developed via the sale of health or motor insurance to promote higher-margin offshore products to

Hong Kong insurers rely heavily on Mainland Chinese Visitors for the purchase of life insurance policies

The GBA offers insurers a huge and largely untapped market for growth

MCVs,” Sravani said.

Insurers and regulators react “With a population of 86 million people and a very low insurance penetration rate compared to Hong Kong, the GBA offers insurers a huge and largely untapped market for growth. The population in the GBA has a higher standard of living and awareness, which is expected to drive demand for life insurance products. Simultaneously, the development of the GBA and its vulnerability to property damage due to floods and other natural disasters will create a new business opportunity for general insurers and reinsurers,” Sravani said.

Chief Strategy Officer of Manulife Hong Kong Carrie Tong hopes that the scheme and the mutual access of insurance markets in the GBA will be implemented soon.

“[I] believe these service centres will enable Hong Kong insurance companies to provide Mainland residents holding Hong Kong policies with a range of after-sales services such as premium renewal, claims, and policy enquiry in the GBA. These service centres will also help attract more Mainland visitors to Hong Kong to purchase insurance products and open new opportunities for the development of Hong Kong's insurance industry,”

INDUSTRY INSIGHT: INSURANCE

insurers to 100% own their company in Mainland China.

Meanwhile, the Hong Kong Insurance Authority (IA) also welcomed the developments in the 2022 Policy Address and said they “strongly support the measures therein facilitating the development of Hong Kong’s insurance industry, strengthening its role as a global risk management centre and regional insurance and reinsurance hub.”

“The Policy Address is fully aligned with the National 14th Five Year Plan and the strategy of domestic and international dual circulation, leveraging Hong Kong’s crucial function as a super-connector. We welcome the Government’s formulation of policies to introduce proactive measures to attract overseas talent to Hong Kong, injecting impetus into our economic recovery,” said Stephen Yiu, Chairman of the IA.

Manulife's Carrie said.

According to the Manulife Macau Head, buying insurance was the second reason most GBA residents visit Hong Kong.

Carrie also said that Manulife has continued to enhance the competitiveness of its products by recruiting professionals and non-local graduates with GBA connections to join its agency force and opening high-end customer service centres to further enhance its customer service experience.

Meanwhile, HSBC Life Hong Kong CEO Edward Moncreiffe believes that Hong Kong is an international insurance hub and is ideally placed to act as the risk management centre for Greater China.

“We believe Chinese customers continue to look favourably at offshore insurance capacity and capability in Hong Kong, and HSBC Life thus strongly welcomes the policy proposals to facilitate cross-border insurance in the GBA,” Edward told Hong Kong Business Edward said they see huge opportunities in the GBA by using Hong Kong as their hub. They are currently prepared to pounce on the opportunities that the establishment of these service centres will provide as one of Hong Kong’s first licensed

The IA said it is actively liaising with Mainland regulators and other relevant authorities on a number of market development initiatives highlighted in the Policy Address, including the setting up of after-sales service centres and the introduction of innovative crossborder motor insurance products, to benefit Mainland and Hong Kong residents who are frequent travellers within the Greater Bay Area as soon as possible.

Carrie Tong, Chief Strategy Officer of Manulife Hong Kong and Macau and Head of Macau Branch (Photo from Manulife)

Edward Moncreiffe, Chief Executive Officer, HSBC Life Hong Kong (Photo from HSBC Life Hong Kong)

Permitting insurers to sell and service policies in GBA would steeply boost Hong Kong life insurers’ sales

Sravani Ampabathina

INSURANCE RANKING

Life insurers take the lead in latest Hong Kong Business Insurance Rankings

Some life insurers saw their assets surge by as much as 44% in 2021.

Inflation and consumer cutbacks

Inflation continues to pose challenges for both insurers and consumers.

For life and retirement insurers, this means increasing rates which can reduce reinvestment risk and make rate guarantees more cost-effective from an economic perspective, according to Billy Wong, Insurance Leader at PwC Hong Kong.

However, too sharp a rise in rates could introduce disintermediation risk, negatively impacting balance sheets. To mitigate this risk, insurers may need to frequently reset rate guarantees and pricing to respond to market pressure on book value guarantees.

Hong Kong’s insurance industry is undergoing a significant shift as the Hong Kong Business Insurance Rankings reveal a trend towards more life insurers joining the list of the top 50 insurers. This shift can be attributed to the opportunity in the Mainland China insurance market.

According to a report by GlobalData, despite the decline in demand from Mainland visitors in 2021 due to travel restrictions, a significant proportion of whole life insurance premiums came from Chinese visitors who purchased their policies from Hong Kong prior to the pandemic due to favourable terms and greater flexibility offered to them as compared to policies sold in China.

For the most recent rankings, a total of 30 life insurers made it onto the top 50 list, higher compared to 20 general insurers. This is different from the previous rankings when the top 50 list had an equal number of life and general insurers.

The Hong Kong Business Insurance Rankings is an annual list of the top 50 insurers in Hong Kong. It is based on data from the Insurance Authority’s statistics, with the most recent rankings using data from 2021 and comparing them to the 2020 data.

The goal for 2023 and beyond should be to better optimise the benefits of technology investments

The rankings revealed that the total assets of the top 50 insurers surged by 1.13% reaching $717b in 2021 compared to $706b in 2020. This is comparatively lower than the 9.75% increase last year, however, the increase in 2021 is due to a lower base caused by lockdowns during the early days of the COVID-19 pandemic.

Holding the number one spot is AIA International, which saw its 2021 assets climb by 2.38% to $129b compared to $126b in 2020. Manulife (Intl) leapt from fourth to claim the second spot as its assets surged by 44.44% to $91b in 2021 compared to $63b in 2020.

Prudential (HK) Life, meanwhile fell to the third rank after its 2021 assets declined to $87b from $92b in 2020. China Life also went down one place as its assets decreased to $62b from $67b.

HSBC Life retained its spot at number five but saw its assets climb to $56b from $54b.

Out of all general insurers, BOC Group Insurance saw the biggest asset increase to $18b in 2021 from $4b in 2020. It also saw its rank rise from 23rd to 12th for this year’s rankings. Meanwhile, the list also saw newcomers to the top 50, with AIA Everest leading the way at $6b, ranking 16th amongst the top 50.

Higher interest rates may also make certain product types less appealing to consumers, Wong warned. A report by YouGov found that 14% of Asia Pacific consumers would cut back on insurance first when household budgets are tight. In Hong Kong, 16% said they would reduce spending on insurance.

Higher interest rates coupled with fluctuating equity markets may also make certain product types less attractive. Wong advised insurers to consider rebalancing portfolios, possibly moving back to more traditional investments and relying less on alternative asset classes.

Return of MCVs

The opening of borders in 2022 also saw the return of Mainland Chinese Visitors (MCVs). Most Hong Kong insurers rely on MCVs for the purchase of life insurance policies.

In the latest survey by the Insurance Authority, 81% of Hong Kong’s visitors from January to September 2022 were comprised of MCVs, leading to a 150% increase in new business premiums in H1 2022.

“Overall, GlobalData estimates Life GWP to grow by 4.5% in 2022. With Greater Bay Area (GBA) initiatives gaining momentum, higher M&A activity was seen in 2022. Insurers view GBA as a gateway to Hong Kong and China and will

AIA International is the top insurer for the 2023 Insurance Rankings (Photo from AIAInternational.org)

utilise this opportunity to expand their customer base. The inclusion of preferential treatment as part of Mainland-based insurers’ solvency regulation will encourage them to expand their business and cede more to Hong Kong-based reinsurers due to the availability of greater capacity. And this in turn will further develop Hong Kong as a reinsurance hub,” GlobalData Insurance Analyst Sravani Ampabathina said.

After-sales service centres

In 2022, the government of Hong Kong announced its decision to strengthen its status as a financial hub, including the insurance industry. One of the ways proposed to achieve this goal is by leveraging its status as part of the Greater Bay Area (GBA).

Given that most insurers in Hong Kong rely on MCVs, the government announced plans to build aftersales service centres in Nansha and Qianhai as part of the Insurance Connect initiative in the GBA. This makes it easier for Mainland China policyholders to make claims. In its initial phase, Insurance Connect first allowed the direct settlement of health claims at public hospitals in Shenzhen with Hong Kong and Macau insurers. It also enables Hong Kong insurers to establish customer service centres in the GBA.

PwC’s Billy Wong said that the establishment of insurance aftersales service centres in the GBA will greatly enhance Hong Kong insurers’ ability to service policyholders who live on the mainland.

“This would also be a significant milestone in the overall insurance development as set out in the GBA Outline Development Plan and for wider and deeper collaboration among the insurance players in the GBA,” he added.

Meanwhile, Erik Bleekrode, Head of Insurance at KPMG China & Asia Pacific, has a more restrained view of these centres as he believes it is still difficult to judge the impact of these centres until the Hong Kong regulators issue the next round of regulations and guidelines.

“Some insurers in Hong Kong without a China license had hoped that this would allow greater access to sell insurance in the mainland in the long term but that is not the case under current regulation,” Erik said.

Creating opportunities

Different challenges offered insurers a chance to innovate and adapt. According to Cecilia Chang, CEO of Generali Life Hong Kong and General Manager of Assicurazioni Generali S.p.A. Hong Kong, one of the most significant changes they went through was the severe drop in face-to-face interactions beyond the household.

Generali leaned on partnerships to continue to remain profitable, such as their bancassurance partnership with virtual bank, ZA Bank - a first of its kind in Hong Kong.

“Generali products and offerings were integrated into the ZA Bank app, streamlining a wide range of processes, from product discovery to contacting our insurance

INSURANCE RANKING

advisors. All contact points and queries could be managed within the app in just a few clicks, making our services accessible to customers anytime, anywhere, and in a way that best suits them. Through this partnership, we have been able to empower our customers to make decisions concerning their health and protection, at their own time and convenience,” Chang said.

“In Hong Kong, there has been an accelerated adoption of digital channels among customers, who are growing more comfortable looking online or to virtual platforms for solutions. This continues to be perpetuated given prevailing concerns around COVID-19 and social distancing measures, which have changed people’s daily habits and lifestyles,” Chang said.

2023 focus

With all these trends and predictions, what should insurers focus on next year?

Joanna Wong: Customer-centric technology transformation - The goal for 2023 and beyond should be to better optimize the benefits of technology investments to enable insurers, particularly in this part of the world where we have observed varying degrees of maturity and digital adoption of increasingly agile, innovative, and customercentric solutions.

Insurers must set their sights beyond compliance concerns to make ESG a competitive differentiator.

Leslie Foo: Insurers have to reinvent their human capital strategy to nurture a digital, innovative, yet diverse and inclusive culture that attracts and retains talent.

From a pricing perspective, one key focus of insurers is to embed the longer-term market trends into the generally shorter-term nature of the products

Erik Bleekrode (Asia view): Companies should focus on customers, customer experiences, and propositions. There will be a need to understand how ESG will change the way insurers are run and managed. Insurers should also look to develop their health and well-being propositions. Finally, insurers should also look to develop their affinity and partnership networks to create an ecosystem that will give them access that will give them access to greater customer numbers and make them more accessible to customers.

Billy Wong

Erik Bleekrode

Cecilia Chang

Leslie Foo

Joanna Wong

Life insurers dominate the top 50 Insurance Rankings

2022 Rankings

Insurance Company

2021 Rankings

Classification

2021 total Assets (HK$)

2020 total assets (HK$)

AIA International 1 Long term or life business $129b $126b 2 Manulife (Int'l) 4 Long term or life business $91b $63b 3 Prudential (HK) Life 2 Long term or life business $87b $92b 4 China Life 3 Long term or life business $62b $67b 5 HSBC Life 5 Long term or life business $56b $54b 6 FWD Life (Bermuda) 9 Long term or life business $47b $28b 7 BOC LIFE 6 Long term or life business $37b $39b 8 AXA China (Bermuda) 8 Long term or life business $34b $30b 9 TPLHK 10 Long term or life business $23b $20b 10 Hang Seng Insurance 11 Long term or life business $21b $18b 11 Sun Life Hong Kong 7 Long term or life business $19b $32b 12 BOC Group Insurance 23 General Business $18b $4b 13 FTLife 12 Long term or life business $14b $13b 14 YF LIFE 13 Long term or life business $9b $10b 15 Bupa 14 General Business $6b $10b 16 AIA Everest* - Long term or life business $6b17 AXA General 15 General Business $5b $9b 18 Chubb Life 20 Long term or life business $5b $4b 19 AXA China (HK) 22 Long term or life business $4b $4b 20 HKMC Annuity 32 Long term or life business $3b $3b 21 Hong Kong Life 19 Long term or life business $3b $4b 22 AIA International 21 General Business $3b $4b 23 CTPI(HK) 17 General Business $2b $6b 24 Blue 40 Long term or life business $2b $2b 25 FWD Life (HK) 18 Long term or life business $2b $4b 26 Blue Cross 34 General Business $2b $3b 27 Quilter International* - Long term or life business $2b28 Generali 24 General Business $2b $3b 29 Zurich Insurance 27 General Business $2b $3b 30 CIGNA Worldwide General 33 General Business $2b $3b 31 Swiss Re (Asia) 25 General Business $1b $3b 32 Zurich International 44 Long term or life business $1b $2b 33 Liberty Int'l 34 General Business $1b $3b 34 AXA China (HK) 35 General Business $1b $2b

1

Aviation industry set for takeoff as key players drive innovation and growth

HKIA has projects like SKYCITY to support the aviation industry’s recovery.

Whilst reports say that Hong Kong has lost its aviation hub status, key players in the city remained confident in the future of the industry. What gave Cathay Pacific, Hong Kong’s flag carrier, “great confidence for the long-term future” of the industry is the HKSAR government’s removal of the hotel quarantine arrangement for locally based aircrew and travellers.

“These adjustments will help boost sentiment for travel, thereby facilitating the gradual resumption of travel activities and strengthening of network connectivity to, from, and through the Hong Kong aviation hub,” the airlines said.

“As such, we are now projecting by the end of the year to be able to operate about one-third of our pre-pandemic passenger flight capacity—about double the passenger flight capacity we operated in August—and about two-thirds of our pre-pandemic cargo flight capacity,” a spokesperson from the airlines told Hong Kong Business

In August, the airline saw an 87.6% year-on-year increase in its total number of passengers and a 82.7% YoY jump in its revenue passenger kilometres (RPKs).

In a previous statement, Cathay’s Chief Customer and Commercial Officer Ronald Lam said adjustments made to quarantine measures boosted inbound traffic to its home hub.

“This was particularly so for longhaul traffic from the US, Canada, and Europe,” Lam said.

Confidence boost

Apart from the lifting of hotel quarantine measures, the airlines said the recent commencement of flight operations on the Third Runway at Hong Kong International Airport (HKIA) also gave the industry a confidence boost.

“Under the National 14th Five-Year Plan, Hong Kong has an important role to play in the overall development of the country. Notably, it reinforces the importance

The efficient air cargo community has worked together to raise the capacity to cater to demand

of strengthening the Hong Kong international aviation hub. The recent commencement of flight operations on the Third Runway at Hong Kong International Airport gives us great confidence for the long-term future of the hub,” the airlines stated.

The airlines’ high hopes for Hong Kong’s aviation industry were shared by HKIA. “Despite the challenges posed by the pandemic, Airport Authority Hong Kong (AAHK) is confident in the long-term development of the aviation industry and the hub function of HKIA,” a spokesperson from the HKIA told Hong Kong Business. Apart from the Three-runway System project, HKIA said it also has a myriad of development projects lined up to support the aviation industry’s recovery. These projects include SKYCITY, which houses offices, hotels, Hong Kong’s largest retail, dining, and entertainment complex. Through these development projects, HKIA aims to raise its capacity and enhance its functionality, and eventually transform itself from a city airport to an airport city.

E-commerce lifts aviation Whilst passenger traffic is still on its path to recovery, HKIA said it is being supported by high demand for e-commerce and transportation of medical supplies.

“The efficient air cargo community has worked together to raise the capacity to cater to the demand, so as to consolidate our leadership position in a challenging environment,” the spokesperson said.

In 2021, HKIA saw a throughput of 5 million tonnes, making it the busiest airport in cargo operations in the world.

HKIA, however, underscored that it had already seen a gradual increase in passenger traffic following the government’s relaxation of the quarantine requirements for inbound travellers.

In August, HKIA welcomed a total of 479,000 passengers, representing a growth of 116.3% YoY. Combining the first eight months of 2022, the airport handled 1.7 million passengers, a 141.5% YoY jump.

On a 12-month rolling basis, the airport handled 2 million passengers, marking 121.9% yearon-year growth.

In response to the increase, HKIA said the AAHK has begun working with its partners to prepare for the recovery of flights and passengers.

Cathay, for its part, has started a comprehensive recruitment plan to meet its operational needs over the next 18 to 24 months.

The airline announced that it will hire more than 4,000 front-line employees, including some 2,000 cabin crew.

One of HKIA’s projects to boost industry recovery is SKYCITY (Photo from SkyCityHongKong.com)

Ronald Lam

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

Being innovative in both technological and internal strategies to embrace digital transformation is crucial for businesses to continue standing out in the industry despite the massive effect of the COVID-19 pandemic. Many have leveraged different strategies and launched outstanding projects in order to provide quality services to their clients and grow their businesses.

Hong Kong Business aims to honour these companies with the HKB Technology Excellence Awards and HKB National Business Awards. The HKB Technology Excellence Awards lauds firms that provided innovative technological contributions and solutions for business especially during this digital era, whilst the HKB National Business Awards recognises local businesses that stand out for their excellent strategies and services that have provided a great contribution to Hong Kong’s economy.

The awards programmes crowned the most notable firms with the best and unique initiatives and solutions that helped enhance their business in Hong Kong. Companies were awarded via virtual presentations in September 2022 and were also interviewed to share

their thoughts about their award-winning projects.

The panel of judges who evaluated this year’s entries for the HKB Technology Excellence Awards include Wilson Chow, the Global Technology, Media, and Telecommunications Industry Leader for PwC China; Joanna Wong, Partner, Consulting Insurance leader, Hong Kong for Deloitte China; Gaurav Mehra, Partner & Head of Transformation – FS for EY; Jason Yau, Regional Leader for the Asia Pacific and Partner of Technology & Management Consulting for RSM; and Adele Yim, Partner and Head of Risk Advisory Services for Mazars in Hong Kong.

Meanwhile, HKB National Business Awards 2022 nominations were evaluated by Charbon Lo, Partner at Crowe (HK) CPA Limited; Eugene Liu, Managing Partner at RSM Hong Kong; and Andy Wong, IPO leader and PRC-HK Business Coordination Partner at SHINEWING (HK) CPA Limited.

Congratulations to all the winners!

Hong

Hong

Hong

Infosys

MyDoc

PJF

Ground

TK

JCDecaux

Jebsen

JobsDB

KBQuest

Lenovo

Hong

AISL Harrow Schools

Fidelity International Hang Seng Bank Limited

Harvest Elite International Limited Hong Kong Productivity Council

Hong Kong Design Centre HK Express

InSilico Medicine Hong Kong Limited Chinachem Group

Jebsen Group

PJF Wines (HK) Limited

JobsDB Hong Kong Lenovo Hong Kong Manulife (International) Limited Meta

LexisNexis Risk Solutions

Meltwater

Lenovo Hong Kong

Ground Transportation Systems (Hong Kong) Limited Hong Kong International School

CITIC Telecom International CPC Limited

Gammon Construction Limited

Chevalier’s dedication and capability commended at the HKB Technology Excellence Awards

Advancements in technology have created an instant-on culture in the past decade. Starting from our business environment, this expectation of immediate results is increasingly invading our homes and personal lives, bringing efficiency, speed, and convenience to our lives through the Internet of Things, cashless e-payments, and even virtual customer services, to name a few.

One shining example of how modern technology has impacted home life is InnoCell, a smart living and co-creation space located in the Hong Kong Science & Technology Parks (HKSTP). The property is dedicated to founders and employees of the parks’ companies, as well as for visiting academics, scientists, and technology professionals.

Whilst it may seem like InnoCell is your normal rental apartment, it distinguishes itself as a smart space equipped with the latest technologies that make any living space convenient. Construction of InnoCell began in early 2019 and was opened for admission in 2021. To implement the management’s dream of creating personalised experiences for and collaboration amongst its residents, Chevalier (Network Solutions) Limited (CNK) was awarded as the smart system provider of the project in January 2020, to create the InnoCell Smart Living Solution.

“When we met our client 3 years ago, we realised that they were not planning to run a traditional hotel just for staying,” said C L Lau, Senior Manager of Chevalier’s System Integration Division. “Instead, InnoCell is a co-working and co-living place for people

to collaborate, share ideas, and inspire innovation. It also offers a unique smart living experience to the residents, who are mostly IT professionals working in the park.

“The client wanted to explore how technology can refine IT solutions to achieve their goals at InnoCell. So, standard IT deployment is not enough,” C L Lau added.

as one integrated, seamless system through a multilevel application programming interface.

From Check-in to Check-out

The result of this close collaboration with vendors is a cutting-edge, end-to-end solution which applied to the entire spectrum of property management processes. From the moment a resident or guest is admitted through the web-based system, to checking in and finally to checking out, the convenience of this smart living experience is enjoyed by both the resident and the property operator.

Smart Living, Smooth Management

As a smart system provider, Chevalier was not only tasked with creating a smart living environment for the residents, but also developing an effective facilities management system for the property’s operator.

The scope covered the design and development of mobile applications and other software, as well as the implementation of the hardware for a gamut of functions. This included the hotel property management system (PMS), admission system, facial recognition access control, CCTV system, an e-payment gateway, home automation, IoT integration, and ICT installation.

To add to the challenge, Chevalier had to ensure that all these digital functions worked

The InnoCell Smart Living Solution features an intelligent admission system that “scores” the applications according to predefined criteria. Once approved, the successful applicant will be notified by email to make the initial e-payment and reserve a room through the property management system.

Following the InnoCell Living APP account activation, applicants are then given access to the self-check-in, face recognition, lift control, home automation control, wifi, and e-wallet with minimal manual intervention.

Residents will also be able to book InnoCell facilities, including the function hall, meeting room, music room, game zone, yoga place, and BBQ site, amongst others.

For housekeeping and maintenance jobs placed in the InnoCell Living APP, the duty manager can assign and dispatch jobs to the frontline worker, who receives, performs, and reports on their status through the Staff App.

Work automation has brought not only enhanced operational efficiency but also savings in the resources required. To date, InnoCell requires only 17 staff to operate the property.

“Chevalier’s performance has fulfilled our expectations,” said Mr Felix Tang, Director of the Project & Development Division at Hong Kong Science & Technology Parks.

“They were experienced and proactive to deliver in collaboration with the employer, consultants and main contractor whilst maintaining good quality and innovative solutions within the required timeframe.” “They have demonstrated their strong commitment, professionalism, and capability to craft the smart system for this sophisticated project. The dedicated efforts of Chevalier are remarkable and highly commended,” Mr Felix Tang concluded.

It has helped its client, InnoCell, offer a unique smart living experience to its residents.

CHEVALIER HAS DEMONSTRATED THEIR STRONG COMMITMENT, PROFESSIONALISM, AND CAPABILITY TO CRAFT THE SMART SYSTEM FOR THIS SOPHISTICATED PROJECT

InnoCell achieves smart living with Chevalier’s innovative technology

The firm was recognised with the Smart City - IT Services award at the HKB Technology Excellence Awards 2022.

and monthly rental fees by electronic direct debit authorisation (EDDA) or tokenised autopay. The solution is proven safe and reliable by deploying under those financial institutions’ guidelines and compliances. Residents just need a few steps in the InnoCell Living APP to activate the service and then settle rental fees periodically. Nevertheless, they can use the same way to top-up their E-wallet for daily consumption at InnoCell.

As a co-living space, InnoCell is equipped with ancillary facilities including a function hall, meeting rooms, music rooms, game zones, a yoga place and a BBQ site, etc. Residents are encouraged to use these facilities by making the reservation and payment through the InnoCell Living APP conveniently. The booking system integrates with an access control system, allowing only the resident with a valid reservation to access and control the equipment like AV system, lighting and air-conditioning system on a centralised control pad.

Smart Living is one of the major elements emphasised in the Smart City Blueprint for Hong Kong 2.0 which aims at improving people’s lives through innovation and technology. Chevalier (Network Solutions) Limited, a system integrator with over 30 years of experience specialised in digital solutions and ICT implementation, presented a successful implementation of Smart Living technology at InnoCell – a smart serviced apartment in Hong Kong Science and Technology Park launched in mid-2021.

InnoCell is not only a traditional apartment for staying, but also a co-working and co-living place for people to collaborate, share ideas, and inspire innovation.

It offers a unique smart living experience to the residents, who are mostly IT professionals working in the park, visiting academics, scientists, and technology talents.

Chevalier’s team identified the situation and started to explore how technology can refine IT solutions to achieve the property owner’s goals in early 2019 and was finally awarded as the Smart System Provider of the project in January 2020. It is more than creating a smart living environment for the residents, but also developing an effective facilities management system for the property operator. The scope covered the development

of mobile applications and smart system software, as well as the ICT implementation and installation, which included the Hotel Property Management System (PMS), Admission System, E-payment Solution, Facial Recognition Access Control, CCTV system, Home Automation, and IoT integration.

Integrated digital functions

To provide an end-to-end solution to enhance residents’ experience and operation efficiency, Chevalier has to ensure that all these digital functions worked as one integrated.

To add to the challenge, there is usually no common language amongst the mentioned systems, thus application programming interface (API) development is so important and critical in this project. Chevalier developed a “Smart Hub” which supports different programme languages and provides a secure and stable platform for the dataflow amongst those systems.

Fintech is also made a key element in this project. Traditional properties require employees to manually handle rental collections. However, at InnoCell, Chevalier delivered a secure e-payment solution which linked with global financial institutions such as HSBC, Global Payment, Visa and Mastercard. This allows the operator to collect deposits

For the job orders of housekeeping and maintenance placed in the InnoCell Living APP, they will be sent to the Administration Portal in which the duty manager can assign and dispatch the jobs to the frontline workers. Worker who receives the order will perform the job, and then report the status through the Staff APP.

InnoCell has obtained the BEAM Plus certification which encourages an environment-friendly and low-carbon lifestyle. Chevalier contributed to this aspect by installing various IoT sensors and integrating them into a monitoring system. After the one-and-a-half-year development and nursing period, Chevalier rolled out the system successfully in mid-2021. Residents enjoy living in InnoCell with keyless access, cashless payment, and more smart services with the InnoCell Living APP. On the operation side, the E-payment System has processed over 350 EDDA transactions for rental payments every month, the team benefits from saving the workforce with this system automation. In fact, there is only 17 staff serving the apartment with 500-bed spaces. This is not the end but another new start –Chevalier is keen to replicate this successful solution in its future projects and also will continue to enhance the system for the coming smart living era.

IN ITS FUTURE PROJECTS AND ALSO WILL CONTINUE TO ENHANCE THE SYSTEM FOR THE COMING SMART LIVING ERA

InnoCell, a smart serviced apartment in HKSTP

Chinachem Group and Urban Renewal Authority wins at HKB Technology Excellence Awards 2022

Property developer Chinachem Group and the Urban Renewal Authority (URA) won the PropTech - Real Estate category at the recently-held Hong Kong Business (HKB) Technology Excellence Awards 2022 for their redevelopment at Tonkin Street.

Their Tonkin Street redevelopment project is the first private residential project built by Modular Integrated Construction (MiC) by a private developer in Hong Kong.

It is a composite development comprising one private residential tower, a retail podium, landscaped staircase, an urban plaza, clubhouse, and sky garden.

Chinachem Group has combined property technology with humanistic design, aiming to create a better community and bring positive impact through their shared corporate philosophies.

MiC has an unprecedented advantage over conventional construction methods

in that waste generated during the construction process can be substantially reduced. Since the majority of formation work is carried out in factories, pollution at the site and disturbance to the neighbourhood are also minimised.

nuisance caused to the communities.

Future residents at the Tonkin Street redevelopment will be encouraged to lead an inspirational and sustainable lifestyle, including green living, healthy eating, and a smoke-free environment. Post-occupancy evaluation will be conducted to ascertain user satisfaction, the effectiveness of sustainable measures, and possible improvements to promote sustainable policies and wider engagement.

The redevelopment project exemplifies Chinachem Group’s commitments to providing healthy, smart and green living properties in compliance with the WELL Building Standard and the Building Environmental Assessment Method Plus Certification requirements, as well as building a more liveable city

The project is estimated to achieve a 68% cut in construction waste, a 75% reduction in noise pollution and a reduction in carbon emissions, thereby reducing any

The HKB Technology Excellence Awards honour companies that have made exceptional contributions in the pursuit of technological innovation in Hong Kong.

Joint Tonkin Street project is

set to become

the first private residential development built by MiC by a Hong Kong private developer.

Artist impression: Tokin Street Redevelopment “shaping liveability”

Donald Choi, Executive Director and CEO, Chinachem Group

Chinachem Group has combined property technology with humanistic design, aiming to create a better community and bring positive impact through their shared corporate philosophies

Creat ing pl aces wi t h h ear t

We are a property developer uniquely dedicated to the wellbeing of people and our planet. By doing those two things well, prosperity blossoms. That’s why we believe in the “3 Ps”: People, Prosperity and Planet With this social mission, we channel profits from our work back to the communities of Hong Kong, creating places with heart, and filling them with inspiration and creativity.

The competitive landscape for hotels has shifted significantly in the last decades. With the vast number of third-party Online Travel Agents (OTAs) continuing to dominate the online booking landscape, the growth of bookings on OTAs and the subsequent commissions charged is an everpresent challenge for all hoteliers. Finding ways to win back direct guest acquisition has become the most significant priority for almost all hotels. It is critical for hotels to equip themselves with the right solutions and marketing strategies to compete in this dynamic digital environment and win customers back.

Being acknowledged by Hong Kong Business with the Technology Excellence Award in E-Commerce - Business Services, Harvest Elite International Limited (Harvest Elite) is a leading integrated Smart System Solution company that specialises in the hospitality industry. Their ace system – VHSHUB is a holistic technology solution for hotels to bridge the digital gap and make a direct connection.

Ms Sharon Tam, Co-founder and Chief Operating Officer of Harvest Elite, said “The recognition from the Hong Kong Business Magazine is a true testament to all the hard work and effort put into our products by our Hong Kong and overseas teams and their overall dedication to helping our clients. This is also a great follow-up since being selected by Tencent as a Strategic Partner in Smart Hotel Solution. “

Holistic solutions for the hospitality sector

VHSHUB is a well-rounded technology solution for hotels to re-establish their routes

to the direct booking journey, helping them bridge the digital gap and directly re-engage clients through the social platform they prefer. VHSHUB is currently available on WeChat, with a direct connection to the Chinese market.

“China is the largest outbound tourism market in Asia and the second largest in the world. Over the years, many hotels tried to tap into the Chinese market, however, deterred by numerous obstacles such as its intricate internet censorship and complicated cross-border payment issues. Hence, albeit at exorbitant commission rates, many hotels still depend on OTAs. This prompted us to develop

The VHSHUB includes hospitality service tools such as accommodation bookings, F&B reservations, e-Shop, CRM membership system, and social media marketing management along with cross-border payment solutions, enabling hotels to seize direct engagement opportunities. Through VHSHUB, hotels can directly offer clients deeper discounts, exclusive incentives, and customised promotional activities without paying excessive commissions or going through a third-party platform. They can also adjust these promotional offers and activities flexibly according to clients’ responses and engagements.

VHSHUB, a holistic technological solution to address the specific challenges hotels have been experiencing.” Sharon added.

WeChat is known as China’s number one “super-app”. It is well-penetrated in the Chinese population, with nearly 1.3 billion monthly active users, of which over 900 million use WeChat Pay. Harvest Elite’s VHSHUB enables hotels to build their own customer portals on WeChat and integrate them with their existing hotel systems, in order to own their own distribution channel to engage with both their existing and potential customer directly through WeChat.

For hotels that have limited technology, financial, and manpower resources to focus on developing a new platform, VHSHUB is the optimal solution. The system is designed to seamlessly integrate into the hotels’ existing infrastructures to act as an extension of hotels’ systems upon deployment. More importantly, all data generated from VHSHUB is owned by the hotels, empowering hotels to build and deliver their key brand messages directly to their target audience and understand the voice of customers, previously unattainable via third-party platforms.

The VHSHUB team also provides comprehensive marketing support and member management tools to help drive direct client engagement for both new and repeat clients.

Looking forward, Harvest Elite will continue to develop the VHSHUB product offering and expand the solutions to multiple social platforms. VHSHUB on LINE is targeted to be launched by the end of the year, with WhatsApp to follow. The overall growth strategy encompasses expansions into new geographic locations with multiple social platforms, as well as services to be offered to both the domestic and international tourist markets.

The company was recognised at the HKB Technology Excellence Awards 2022 with the E-CommerceBusiness Services trophy.

Keeping up with the evolving media landscape through Meltwater’s Media Intelligence Capabilities

Over the past 24 months, the media landscape has changed forever.

The latest figures from Hootsuite’s WeAreSocial 2021 Study show that Hong Kong’s netizens spend seven hours a day online and two hours of that is dedicated to time on social media. We have become digital-first media consumers. “The question Hong Kong’s business owners and managers have to ask themselves is what are those internet users saying, seeing and sharing about their brands whilst they are online,” says Ewan Ross, Vice President, North Asia, Meltwater, a global media monitoring and social media listening firm with a big presence in Hong Kong.

“Where are we having those conversations? The data tells us 84.3% of Hong Kong’s consumers are using WhatsApp, 83.7% are using Facebook, 65.6% Instagram, and 55.2% WeChat. Forums like LIHKG and HKGolden are also becoming havens for consumer conversations. If those conversations are happening online, then it’s vital businesses are listening online.”

Improving brand reputation

Understanding consumer behaviour, Ross says, is key to the way brands and marketers plan their strategies — and listening in provides excellent actionable insights.

“For example, by examining the online shopping habits of the people of Hong Kong we know that brand names matter to us. More than half of shoppers look for brand recognition before making a purchasing decision. That tells retailers that brand reputation matters, and they should do everything they can to protect it.”

It’s the ability to produce insights like this that has Meltwater garnering serious attention. In September 2022, the

company won in the “Software – Marketing Technology” category at the Hong Kong Business Technology Excellence Awards. The awards honour outstanding companies that have made exceptional contributions to the pursuit of technological innovation in Hong Kong. Meltwater won for its ability to help clients “improve their analytics capabilities by staying on top of millions of social and news data to drive actionable insights”.

Meltwater was founded in Norway in 2001, quickly expanding to become more than just a global media monitoring company. Its services now include social listening

Helping clients make informed decisions

and intelligence, media relations and even key opinion leader (KOL) relationship management. Meltwater has more than 27,000 clients globally, including some of the world’s biggest and best-loved brands, like Coca-Cola, AstraZeneca, and Google. Closer to home it works with 370 Hong Kong-based corporations, including Mentholatum, Hong Kong University and Cyberport.

“Our suite of products can turn messy, unstructured data into tangible, valuable insights that allow businesses to make important strategic changes, to support their teams and departments in analysing trends, to measure the success or otherwise of their efforts, and to amplify their message across paid, earned, and owned media channels,” Ross said. “That is an incredibly powerful tool.”

By examining examining millions of posts each day from social media platforms, blogs, and news sites, Meltwater helps companies make better, more informed decisions. Local brands are also turning to Meltwater to make major decisions around influencer marketing campaigns, including choosing which KOLs to work with and tracking the return on investment of their campaigns.

“These direct relationships between brands and KOLs signal a huge shift in content creation away from traditional media towards individuals using social media platforms to build their own brands,” Ross said. “Content has been decentralised and this appearance of new kinds of storytelling, and a captive consumer audience, provides a chance for brands to work with creators to co-create a brand narrative.”

Ross said many Hong Kong businesses had adapted “spectacularly” to fulfil consumers’ needs and wants, so he was “not surprised that so many business leaders have quickly grasped the potential impact of digital and how they can gain critical insights from platforms like Meltwater to seek out and create opportunities, and even to improve business operations”.

“With such a competitive business landscape in Hong Kong, brands need every possible advantage to stay one step ahead of competitors and reach their audience in ways that are genuine and delightful, and that prompt an online conversation,” he said. “We’ve really solved the problems associated with a fragmented martech stack and created a hub that allows all units across a business to access rich media data, audience insights, and owned channel performance indicators.”

The firm was recognised with the Software - Marketing Technology trophy at the HKB Technology Excellence Awards 2022.

MELTWATER HELPS COMPANIES MAKE BETTER, MORE INFORMED DECISIONS

Meltwater Team

Ewan Ross, Vice President, North Asia, Meltwater

Meltwater provides social and media intelligence. By examining millions of posts each day from social media platforms, blogs and news sites, Meltwater helps companies make better, more informed decisions on insight from the outside. The company was founded in Oslo, Norway, in 2001 and is headquartered in San Francisco, California, with 50 offices across six continents. The company has 2,300 employees and 27,000 corporate customers, including industry leaders in several sectors. Learn more at meltwater.com.

Meltwater provides social and media intelligence. By examining millions of posts each day from social media platforms, blogs and news sites, Meltwater helps companies make better, more informed decisions based on insight from the outside. The company was founded in Oslo, Norway, in 2001 and is headquartered in San Francisco, California, with 50 offices across six continents. The company has 2,300 employees and 27,000 corporate customers, including industry leaders in several sectors. Learn more at meltwater.com.

16/F, YF Life Tower, 33 Lockhart Road, Wanchai, Hong Kong +852 2143-2937 meltwater.com/en/request-demo hongkong@meltwater.com

16/F, YF Life Tower, 33 Lockhart Road, Wanchai, Hong Kong +852 2143-2937 meltwater.com/en/request-demo hongkong@meltwater.com

Lenovo’s

Well-known around the world for their products ranging from personal computers to software, Lenovo continues to develop innovative ways to make life easier with their latest product, the Lenovo Scan-&-Go and Self-Service Kiosk, turnkey point of sale (POS) solutions for retailers.

Pandemic and Lenovo’s drive to success

The COVID-19 pandemic disrupted many industry practices across many markets around the world, with retail bearing the brunt of the impact of health and safety measures put in place to combat the crisis as well as the uninspiring economic situation at the height of it. With many retailers taking up digital transformation initiatives to address the new

building a better and

demands and needs of the new normal, Lenovo saw an opportunity to seize.

Success in retail has been redefined by the COVID-19 crisis, as the integration of technology to ensure a safe, secure, and hassle-free experience for shoppers has become the top priority for retail industry players.

Lenovo’s suite of retail solutions for businesses aims to deliver complete solutions for retail companies that integrate the power of hardware, software, and services to get the best results.

Since 1995, Lenovo has been at the forefront of technological advancements. Currently, their advantage rests on cuttingedge technology such as augmented and virtual reality (AR/VR), commercial Internet

of Things (IoT) as well as smart infrastructure data centre solutions.

Lenovo sought to address the shortage of in-store staff shortages and a surge in demand for daily groceries stemming from the growing number of confirmed cases and social distancing measures.

Hong Kong retailers such as supermarkets and megastores decided to take the direction of transforming their operations and enhancing customer experience by swinging towards SelfService Kiosk solutions as opposed to manual processes that involve cashiers.

After collaborating with consumers and businesses to bridge operational and experience gaps with Lenovo’s technology, the company released the Scan-&-Go and its Self-Service Kiosk, a ready-to-use solution that addresses retailer problems in meeting the demands of a new market condition.

Making self-service easier for both customers and retailers

Scan-&-Go turning retail problems into retail opportunities

Supermarkets adopting the new POS system from Lenovo had to first upgrade their packing and delivery management systems and capabilities in order to maximise the benefits that the new POS system will offer.

Through these upgrades, customers were able to pick up items for their shopping in a touchless experience, as they can now simply walk out of the stores and have the store directly deliver their carts to them, all whilst supermarket staff use PDAs to complete the picking, checking, and delivery processes more efficiently. Given these advancements, retailers have experienced the operational efficiency of their stores skyrocketing as they are now able to handle and fulfil more orders compared to traditionally manual processes, with the time spent on each order being cut down to just 5 minutes on average.

The fulfilment rate has increased by 40% for retailers, whilst accuracy rests at 99% across more than 500+ retail stores and 2000+ retail chains that have installed Lenovo’s revolutionary POS system. Retail staff has also been better equipped and trained thanks to the efforts needed to maximise the POS system’s benefits.

Lenovo also released a kiosk with Scan&-Go integrated to aid the retail sector at a time when workforce shortages in order to turn their operations self-sufficient and automated to handle sudden increases in customer traffic. From an operational standpoint, retailers can take advantage of this development to further boost efficiency without compromising on service quality.

The autonomous checkout, Scan&Go order

verification, and membership identification have helped retailers cut down on queues and optimise labour costs by reallocating retail staff to other higher-value tasks.

Self-payments have increased by 30% around Hong Kong thanks to Lenovo’s installation of kiosks around many retail stores and chains whilst the cost of data input equipment has been reduced by over half. Synchronising marketing data with electronic sales labels has also been made easier thanks to the kiosks.

Supermarkets that have had Lenovo’s POS system installed, along with the kiosks, have reported that it has increased their ability to handle more than a thousand orders per day in every store, resulting in a 90% increase in terms of operational efficiency.

Bringing in a better future for businesses with Lenovo

With their suite of retail solutions, Lenovo’s products offer retailers the advantage of increasing their store efficiencies as they fully integrate the tech whilst also helping them to address gaps in offline and online sales. Optimising in-store operations with a mobile-first approach with technology enables faster and more efficient transactions whilst minimising friction across touchpoints.

Deployment of the innovations is made hassle-free for retailers, as the solutions have been tested, validated, and deployed by Lenovo’s team of experts. The interoperability of hardware, software and services also allows for easier streamlining of operations, where businesses can gain more accurate insights from data generated by platforms, datasets and functions.

A supermarket in Hong Kong has reported that they have experienced no downtime and zero failure rate whilst using Lenovo’s retail solutions during the tests for product scanning and data processing. From this, the supermarket and its management were able to build confidence in handling the number of shoppers during peak hours without compromising on customer experience and satisfaction.

Lenovo Retail Solutions has also enabled the supermarket to enhance their services without the need for additional manpower, ensuring cost optimisation and guaranteeing the lack of queues for customers to enjoy. This service essentially transforms the shopping experience for customers and equips retailers with data-driven business results, all from disparate data collated and analysed by Lenovo’s technology.

Retailers now have the ability to empower themselves by growing beyond siloed digital point tools to unlock data and insights provided by Lenovo’s technology, as well as reducing hardware footprint and expense through the available Self-Service Kiosk solutions. It comes as no surprise that businesses in Hong Kong have taken up and celebrated Lenovo’s state-of-the-art solution, bringing in fresh opportunities amidst the challenges in a post-COVID market.

The Scan-&-Go Self-Service Kiosks have been recognised by prestigious awards, winning the 2022 German Red Dot Design Award and the Smart Technology - Retail Award at the Hong Kong Business Technology Excellence Awards 2022.

Lawrence Yu, Executive Director, General Manager of Lenovo Retail Solutions

Building a more sustainable future together with

Lenovo has established themselves as an industry leader and innovator for the past few decades, with product offerings ranging from PCs, servers, and solutions along with services.

In order to spearhead the industry’s drive towards a sustainable future, Lenovo launched their CO2 offset service, a first of its kind that aims to emphasise the company’s commitment to providing solutions to offset carbon emissions for the past 16 years and give customers an active part in this effort.

First launched in the Nordic region back in 2020, the CO2 offset services have proven to be successful and were subsequently rolled out Europe, Middle East, Africa, Asia Pacific, and North America.

Carbon offsets present a new path towards a more sustainable procurement, providing companies with a new model to follow in future corporate actions that are aimed to align with their ESG goals.

Customers now have also formed more opinions when it comes to supporting sustainable businesses, with 57% of consumers willing to change their

purchasing habits to reduce negative environmental impact. Over 70% of customers are willing to pay a premium if they can trace or be guaranteed that a business’s operations are sustainable and environmentally responsible, which is also important for them.

Customers are given the option of offsetting carbon emissions when they buy Lenovo’s products or services, as well as existing customers who have already bought devices not more than three years ago. The goal is to make offsetting carbon emissions simple and more accessible to consumers whilst giving them full control on this decision.

Businesses can easily offset their global carbon footprint with the CO2 offset service, aided by certified providers partnered with Lenovo.

Carbon emissions offsetting made easy with Lenovo

With just an action as simple as a click of a button, businesses can conveniently get Lenovo’s CO2 offset service and set the cost of carbon offset that helps

support the establishment or expansion of numerous initiatives such as the use of windmills, solar cells, and biomass energy.

The company also works with United Nations-vetted climate change projects, Companies can be rest assured that their carbon offsets are being met, as Lenovo remains the only vendor that provides solid proof of compensating for CO2 and the first electronics manufacturer to be DEKRA verified when it comes to this type of service.

Offsets are calculated by basing the CO2 compensation on accurate and realistic emission by-products starting from production, shipment, and up to a typical usage cycle of four years.

Through this, the CO2 offsets compensate for the environmental impact a business’ operations may produce, as well as supporting the initiative on reducing the total CO2 emitted into the atmosphere. Additionally, Lenovo collaborates with an environmental partner to compensate for the CO2 emissions associated with devices purchased, providing peace of mind for

The company’s unique CO2 offset service enables consumers to have an active role in creating a more sustainable tomorrow.

Lenovo

Lenovo helps in carbon emissions offsetting

LENOVO AIMS TO ERADICATE 1,000,000 GREENHOUSE GAS EMISSIONS FROM THEIR SUPPLY CHAINS, ALONG WITH RENEWABLE ENERGY POWERING OVER 90% OF THEIR GLOBAL OPERATIONS

with Lenovo’s CO2 offset service.

Lenovo’s support coming from their offset service has gone on and aided many projects across the world, such as windmill farms in Chile that magnifies the share of renewable energy in Chile whilst diversifying their energy sources. Another wind-power-based project supported by Lenovo is located in Mexico, where a 137 MW wind farm in the municipality of Unión Hidalgo, Oaxaca State helps reduce fossil fuel dependence in the power generation industry of Mexico.

A supported biomass utilisation initiative in China has turned rice straw, wheat straw, and wood residues into power generation fuel whilst also creating jobs for the locals. By utilising biomass, a lot of the usual greenhouse gases emitted by traditional fossil fuels in power generation are avoided.

customers who seek tangible results from their carbon offset contributions. This offset information can also be tracked and confirmed simply by using the associated device’s serial number.

The way the carbon emissions offset service works starts with the customer adding the CO2 offset service whenever a customer purchases an eligible device from Lenovo. The service is integrated into the serial number both for security and transparency.

Once the products have been shipped, Lenovo reports to the official CO2 offset partner, where they finalise the transaction and issue a unique proof of offset with specific HW serial number(s) that are then made available to the customer. These also provide a unique CSR action, as the offsets done are directly linked to the product themselves, not on generic or broad categories for emissions.

This whole process is very easy to implement due to the fact that it is already integrated within hardware transactions for the users’ convenience.

A guaranteed sustainability solution from Lenovo

Thanks to the partnerships that Lenovo is managing with industry-leading providers of CO2 offset services, the service that the company provides is now backed up by concrete evidence as an unquestionable mark of its legitimacy.

One such company collaborating with Lenovo is ClimeCo, which was founded in 2009 and is currently one of the largest providers of U.S. voluntary carbon credits under the Climate Action Reserve.

Results have already spoken for themselves, as a leading Hong Kong financial services institution was able to offset CO2 production by 1,000 tons of CO2 after picking up Lenovo’s first-ofits-kind service. Another organisation, a Macau education institution, was able to offset their carbon emissions footprint by 500 tonnes.

A utility company in Hong Kong has also taken a more sustainable path, offsetting CO2 emissions by 367 tons as they take carbon emission more seriously into their operations

The Global Climate Action under the United Nations Climate Change is also a supported partner of Lenovo, with revenue coming in from customers with the CO2 offset service helping reward approved projects located in developing countries and further encourage the development of new projects, all whilst bringing everyone closer to the achievement of the UN Sustainable Development Goals (SDGs).

Projects supported by Lenovo and Global Climate Action help bring sustainable development benefits into communities, such as improved air and water quality, improved income, improved health, and reduced energy consumption.

Carbon emissions offsets are not the only aspect in which Lenovo has excelled. As a leader in sustainable packaging, Lenovo has long used biobased material to reduce the plastic and carbon footprint of new technology. This, in return, helps reduce CO2 emissions during shipping, with improvements in both product and packaging design that further incorporates sustainability into new technology.

Through the combined efforts of Lenovo and their customers, the company aims to eradicate 1,000,000 greenhouse gas emissions from their supply chains, along with renewable energy powering over 90% of their global operations.

Stefan Larsen, Global Head of Sustainability Services, Lenovo Global Services

Driving Towards a Fintech Future

BySandyTan,HeadofEcosystems,InstitutionalBankingGroup(DBSBankHongKong)

If

I asked you to list the key differences between a bank and a fintech, what would they be? Whilst banks have more resources than fintechs, fintechs are frequently able to innovate more easily and with fewer constraints – such as legacy infrastructure or banking regulations. Conversely, whilst fintechs may be more agile, they may lack the extensive network, funding and long-held trust that banks possess.

At DBS, we aim to become less like a bank, and more like a tech company – both in terms of providing innovative and digitalfirst solutions to our customers, as well as transforming the way we work. It is therefore a great honour that our bank’s alternative data-empowered lending solution was recognised by the HKB Technology Excellence Awards in the Fintech – Banking category. This represents our continuous efforts to deliver innovative offerings and enhance financial inclusion for SMEs.

Since the onset of COVID-19 in 2020, there has been significant growth in SMEs’ need for digital services. After speaking to our merchant clients in the e-commerce sector, we identified an increased demand for working capital solutions to support their continued business development. DBS, therefore, sought out partnerships with logistics arms of China’s leading e-commerce platforms – JD Logistics and Cainiao – to create a collaborative ecosystem solution that leveraged our bank’s world-class digital capabilities, and SMEs’ alternative data to

enable our partners to provide value-added services to their clients.

In 2019, we at DBS identified digital ecosystem partnerships as key to creating a superior customer journey for our corporate clients. By embedding our offerings into our partners’ supply chains and ecosystems, we could create seamless digital solutions for both new and existing DBS customers.

Leverages alternative data

Together with JD Logistics and Cainiao, DBS leverages alternative data sources to provide SME e-commerce merchants with working capital and enhanced financing solutions. As a result, the bank can rely on more current statistics to assess the business and enhance financial inclusion for newer businesses.

Traditionally, payment terms with overseas suppliers are mostly on a cash-on-delivery or advanced payment basis. As goods usually take months to be transported and distributed, the solution has hence greatly improved the efficiency of the supply chain for imported products and merchants’ cash flow which they need to finance their ongoing business operations by re-imagining the customer journey for our SME customers.

By seamlessly integrating our banking services into JD Logistics and Cainiao’s platforms, we have been able to provide SME merchants with a one-stop shop for their financing needs. Once JDL and Cainiao’s merchants have opened a DBS bank account, they do not need to leave their e-commerce

or supply chain to apply for financing from DBS. With our digital capabilities and API connectivity, fund disbursals can be completed in as little as 15 minutes.

Supporting businesses

Since launching our alternative dataenabled lending solution with JD Logistics and Cainiao, DBS has been able to support the business growth and development of numerous e-commerce merchants. In June 2022, the bank successfully launched its newest partnership with GS1 Hong Kong. SME suppliers on GS1 Hong Kong’s ezTRADE platform can now leverage their trade data to access financing from DBS in a digital and straight-through manner – as opposed to the previously manual process of needing to submit hundreds of invoices every month. By leveraging alternative data, DBS and GS1 Hong Kong have been able to redefine the trade financing transaction journey for SMEs, whilst also providing a streamlined credit assessment process.

Following the launch of the Hong Kong Monetary Authority’s Commercial Data Interchange (CDI) in October 2022, DBS and GS1 Hong Kong announced a plan to further enhance the innovative SME trade financing solution with the Hong Kong Monetary Authority’s CDI platform. Our bank remains committed to taking an active role in further developing and growing Hong Kong’s robust fintech ecosystem and we look forward to bringing our solutions to the next level of customer experience.

How DBS Bank provides its SME customers with seamless and invisible banking solutions

Sandy Tan, Head of Ecosystems, Institutional Banking Group (DBS Bank Hong Kong)

JobsDB by SEEK introduces solutions to promote effective hiring to combat employment challenges

Recruiting in this day and age is a challenge. Getting ahead of unfolding developments in the market is essential for hirers who are looking for the right talent and a stable candidate pool. JobsDB by SEEK, the leading employment platform in Hong Kong, has always been dedicated to helping people to thrive in their career paths and workplaces, as well as helping organisations to succeed.

What makes JobsDB go above and beyond a job portal, is the innovative solutions which enable hirers to explore hassle-free ways of hiring and communication, whilst providing candidates with seamless job-seeking experiences and opportunities.

Bill Lee, JobsDB Hong Kong Managing Director, said that the company is committed to helping employees find their dream jobs and for employers to find the right talent.

Over the last 20 years of operation, the portal has matched 36 million candidates and services over a million employers.

Lee said that in its next digital transformation journey, it seeks to reach the benchmark of 500 million job seekers and 5 million employers in Asia.

The thriving job market in Hong Kong Pivoting from the pandemic, the employment

market in Hong Kong is an ongoing topic and the demand for jobs is higher than ever.

According to Lee, three things stand out in recent years. First, market uncertainty remains, whether it be on the labour side or the opposite. Second, there is an accelerating need for digital talent in Hong Kong. Third is that there is a large mismatch in skills, leading to a discrepancy as to what employers want and what employees can provide.

In summary, the current situation shows that the supply is not catching up as the demand for newer technology and more skilled employees rise. On the other hand, Lee sees a silver lining in the employment market in Hong Kong. Primarily through the company’s jobs portal, its unification project provides a possible solution to the aforementioned problems.

“Such that when someone from Singapore looks for a job in Hong Kong, they can use the same app. Imagine a future where people across APAC can go to one place to find their dream job or best candidate; a future where it takes days or weeks, not months or years to innovate for customers; a future where our world-class technology, our people, and local know-how allow us to blow away global competitors. That’s what we’re working towards.” Lee explained. The talent shortage

is not just a consideration across all jobs, but with HR functions as well.

For Lee, the question for employers is how they can continue to hire strong employees. In turn, the role of JobsDB is to discover possible solutions to that question. With all these considerations in mind and with a positive look at the general condition of the market, Lee said that he feels that the employment market in Hong Kong will remain strong.

Flexi Ad Budget Model

The newly introduced Ad Budget model provides hirers with the flexibility and control to choose ad types for individual listings, as opposed to the current system of fixed costs for specific ad types. This serves as a solution to not only encourage hirers to plan and utilise their budgets more effectively, but also aid organisations such as small-medium enterprises and startups, that might have tight hiring budgets to win in the hiring market.

“This new commercial model brings flexibility and control, fair pricing, and valuable solutions to our hirers which is absolutely needed in our current environment,” Lee explained.

In developing and leading the company

Empower employers with integrated recruitment solutions including A.I technology and flexi Ad budget model to win in the talent war.

Bill Lee, Managing Director of JobsDB Hong Kong

in this newer direction, JobsDB also put emphasis on having a lot of value-added solutions. Lee explained that HR has developed to be more modern and allrounded, and this includes being more complex and being able to expand overseas.

As economics and the employment market are kicking back into gear, employers are rebuilding their workforces, generating a demand for talent who are more adept in an increasingly digital world. To come to grips with the growing talent shortage, a few cited examples from JobsDB introduced are applicant tracking, payroll and HR management, learning and development platforms and candidate assessment as an enhanced service package for hirers.

A unified experience with A.I. What made a significant difference, however, was the introduction of Artificial Intelligence (A.I.) into the portal.

“[We invested] in A.I. A lot of competition out there have search functions but not AI search functions,” Lee said.

This A.I.-powered portal brought better service to its users and in turn produced good results for the portal’s performance.

Usage was up by 20%, primarily attributed to being able to provide more relevant and accurate searches to all users.

Accurate searches are considered important as it improves the overall experience of browsing through thousands of jobs in the job portal. Another reason is that it brings more value to applicants and hirers.

Another interesting outcome of this transformation was in the job search itself. The A.I. was shown to be able to recommend similar job results which the applicant did not originally intend to search

for. This expands the reach of employers who have posted various openings on the portal and likewise benefits employees as it shows other parallel roles or jobs that match their current skills and background.

A growing investment

Compared to other job portals in Asia, JobsDB stands out mainly because of its services. Lee said that the company continues to make a lot of investments and commitments in the market.

“We have invested over AU$125m and we will continue to make that investment as a sign of commitment. We are also in every local market that we operate in, understanding every need and requirement of the highest-end candidates in the market,” said Lee.

The company’s current commitment is to expand on technology. Integrating A.I. into the job portal is only one of its plans that have grown into fruition.

Tying up the interview after zeroing in on this tech, he said “It’s what’s gonna make a difference for us and it already is [doing that.] It will make a difference for us and in the coming many years and decades ahead.”

For this milestone, JobsDB Hong Kong was well recognised in the recently concluded Hong Kong Business Technology Excellence Awards.

The awards programme recognises outstanding companies that made exceptional contributions in pursuit of

technological innovation. The programme crowns the best first-rate firms with the most innovative and unique IT initiatives and solutions that helped enhance their company’s business in Hong Kong.

It was given the A.I. - Human Resources Consulting award for championing the development of its job portal. This transformation is considered an important growth in the industry and will help as well in the improvement of the job market situation in Hong Kong.

JobsDB is the leading employment platform in Hong Kong and Thailand, helping people live more fulfilling and productive working lives and helping organisations succeed. It is a subsidiary of SEEK, a diverse group of companies comprised of a strong portfolio of online employment, educational, commercial and volunteer businesses.

SEEK is listed on the Australian Securities Exchange and has a strong presence across the APAC region, including six Asian markets – Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, and Thailand – through the JobStreet and JobsDB brands. SEEK attracts over 500 million visits a year in Asia.

SEEK currently has a global reach of approximately 55 million candidate relationships, approximately 400k hirer relationships, and approximately 900 million population exposure.

JOBSDB IS THE LEADING EMPLOYMENT PLATFORM IN HONG KONG AND THAILAND, HELPING PEOPLE LIVE MORE FULFILLING AND PRODUCTIVE WORKING LIVES AND HELPING ORGANISATIONS SUCCEED

“Forward Together - Soar towards the Future of Hiring” event

Today, the world is undergoing rapid changes due to technological advances.

The COVID-19 pandemic has further accelerated the shift to a digital-first world. Therefore, a seamless and customised experience must be provided through digital and physical models to grow and thrive in today’s economy. As consumers increasingly demand more engaging experiences, it is paramount that brands are able to deliver compelling content at the right time, on the channel of choice, for the right customers. Upgrading business operations and decisionmaking processes by harnessing technology is the key to creating a connected customer experience with consistency and quality.

A design-led approach to business transformation

Inspired by the customer-first transformation, Deloitte Digital has crafted a solution governed by the ecosystem business model design, with New World Development (NWD) being the pioneer company. The common challenges faced by companies include low data connectivity across different business units, a fragmented operations platform and inflexible system support. On top of this, customer data can become stagnant in the system, sometimes prompting companies to switch vendors, which results in high operation and maintenance costs.

As a leading conglomerate in Hong Kong, NWD has recognised the need to interact with customers at every touchpoint of their journey, with flexibility, capability and scalability.

As a trusted digital partner of NWD, Deloitte Digital embeds design thinking methods and CRM software to produce an integrated ecosystem offering that will create new value pools for the business.

“Customers now demand that organisations

provide them with an integrated experience, and through our alliance with Deloitte Digital, we are able to innovate at scale and develop cross-sectoral user experience across all of our business units with a deeper understanding of our customers,” said Paul Sin, Director of Technology and Transformation at New World Development.

One of the project goals is to provide a top-class customer experience to NWD’s customers by staying connected with all bespoke members, customer engagement staff, and retail tenants. NWD will be able to deliver higher synergies and crossbusiness unit innovation across Hong Kong and Mainland China regions, facilitating cross-selling that otherwise would not have been achieved.

“Our services cover the entire digital spectrum, from strategy to design to enablement and operations with an ecosystem business model. We worked closely with NWD to harness the synergies of multidimensional data, for them to make informed decisions and create a unified CRM journey,” added Ivan Cheung, Partner at Deloitte Digital.

The Customer 360 platform, powered by Salesforce, bridged the gap between NWD’s home-grown CRM and fragmented platforms across different business units. To illustrate this, Deloitte leverages an integrated omnichannel strategy, along with Customer Data Platforms, enabling NWD to decipher and analyse data more accurately,

which informs the creation of journeybased campaigns.

The project focused on applying design principles for front-end customers and back-end business processes. Business processes, data and technology are integrated to make all areas more informed, actionable and efficient. Using a hybrid agile strategy and “oneteam” approach, Deloitte provided comprehensive scope within a short timeframe, driving retail and office tenants’ life cycle, delivering loyalty programme design and strategy, and unlocking insight by unifying fragmented customer data across touchpoints, applications and platforms. At its core, digital transformation provides the technology and tools that allow companies to achieve operational efficiency, increase customer-centricity and make insightful decisions to navigate today’s business challenges.

Industry Recognition across APAC

Deloitte is a leading global Salesforce consulting partner in APAC that offers world-class expertise and the capability to help clients resolve complex challenges. Winning The HKB Technology Excellence Awards highlights Deloitte’s role as NWD’s trusted strategic partner and recognises Deloitte’s dedication to shaping innovative solutions that combine industry insights with technology expertise.

The companies jointly bagged home the NFT - Food & Beverage award at HKB Technology Excellence Awards 2022.

Tam Jai Internat ional (TJI), the leading and renowned mixian-specialised fast-casual restaurant chain, always takes the lead to bring innovation and excitement to the market. As the trailblazer of the industry, the company has taken a step further by creating the first charitable NFTs, Souper Hero to embark on its groundbreaking entry into Web 3.0, powered by the Strategy & Technology Consultant, EY Mtel in May 2022.

To uphold the spirit of “Originality with Innovation”, TJI always amuses the market with excitement, but at the same time, manages to keep abreast of the appetite of its target audiences. “We did not jump on the bandwagon. Instead, we understand that many of our target audiences embrace a techsavvy lifestyle. To engage them, I believe that we have to be attentive to the market trends and react agilely,” Agnes Lung, Executive Director, Group Chief Marketing and Digital Officer of TJI said.

Not only did the project showcase how TJI revolutionise customer journey with emerging technology, but it also serves as the company’s long-term commitment on corporate social responsibilities to promoting digital arts, under collaboration with the campaign’s beneficiary, Hong Kong Arts Centre which advocates the mission of “Arts for All”, echoing TJI’s mission of creating fulfilling and affordable food for all.

Innovative NFT projects

The Souper Hero NFTs are priced at a very friendly cost of HK$500 each and can be

purchased via fiat money such as credit cards, supported by Artzioneer, the project’s official marketplace, enabling the purchase highly accessible to all.

In addition, it will also enhance the loyalty programme of TJI by creating the first CRM with NFTs as loyalty valuators within the industry, showering members with an array of privileges such as free mixian redemption, and numerous offers online and offline for a fantastic O2O experience.

all, not just to a limited group of affluent investors. Meanwhile, TJI is paving the way to build its ‘edutainment hub’ on its land in The Sandbox metaverse, where avatars and NFT items created by community members will be showcased. It will become a perfect place for interactive virtual exhibitions and a platform where Souper Hero NFT holders convene, exchange insights, and participate in mixianthemed mini-games.

The Souper Hero project was well acclaimed even in the downtime of the crypto market, with overwhelming response in both whitelisting (with subscription 10 times over the quota) and public sale. A total of 10,000 NFTs were sold out within six days, winning massive media coverage of over HK$28M PR value in just one month.

The project is also well received by leading figures in the IT industry, such as The Sandbox’s co-founder Sebastien Borget by sharing the campaign on his social media.

The Souper Hero NFT project is unique in the sense that it carries a lot of cultural values and exclusivity. It is, at the same time, a charitable project that aims to nurture homegrown artists and make digital arts accessible to

As a local brand beloved by many, TJI never ceases to bring innovations to customers and supports meaningful initiatives in Hong Kong. Being a trailblazer in the industry, the Souper Hero NFT project will not only be a fun and engaging edutainment experience, but also a transformation in lifestyle harnessing emerging technology. The company will continue to bridge innovation with technology to amuse the market going forward.

Tam Jai International transforms the customer journey with charitable NFTs, powered by EY Mtel

THE COMPANY AIMS AT BRIDGING INNOVATION WITH TECHNOLOGY TO AMUSE THE MARKET GOING FORWARD

First charitable NFTs, Souper Hero

Agnes Lung, Executive Director, Group Chief Marketing and Digital Officer of TJI

Staking the opportunities of the future with livi bank

In their first two years in Hong Kong, livi bank established itself as a leading lifestyledriven virtual bank, offering competitive and top-quality benefits for their clients as they save and build for their financial futures.

To mark their second anniversary, livi bank launched livi Saving Space and their very own NFT named “Mochi”, breaking new ground and paving the way for their future success.

Mochi, the quirky rabbit from the future

As their new icon, Mochi has been released as the bank’s NFT along with the associated NFT artwork collectables which were given out as rewards for lucky customers and employees during their second-anniversary celebration. The NFT is driven by livi’s technology, offering customers a personalised experience beyond banking.

The virtual bank’s teams have been building on the success of its integrated digital banking platform, and with the release of Mochi, the bank has secured its spot as one of Hong Kong’s leading virtual banks with their app leading Hong Kong’s banking apps.

A total of 1,888 Mochi NFT artworks were given out as of 6 July, with Eric Lin, livi’s Chief Marketing Officer stating that, “It is great to introduce Mochi as our new icon. He represents livi’s creativity, adventurous heart and community spirit, and will reinforce the emotional connection livi has built with our customers and grow with us.”

Mochi owners can find their unique NFT artworks secure in their digital wallet found in the livi mobile application, and is exclusive and eternal for the recipient, being non-exchangeable, non-tradable and nontransferable

Aside from being an early adopter of livi, Mochi was up for grabs through the app’s lucky draw where winners received unique Mochi NFT artworks. Customers who have missed out on the lucky draw after Mochi’s reveal on

the 6th of July can still view the Mochi NFT collection through the app’s liviVerse.

“At livi bank, we believe that secure and innovative technologies and earning customer trust come hand-in-hand. Making use of our best-in-class emerging Web3.0 technology, such as using distributed ledger technologies like Blockchain to create our ‘Mochi’ NFT artwork collection, we have demonstrated livi’s agile digital capabilities that exceed our customers’ expectations,” said livi Chief Technology Officer Gary Lam.

Personalising regular savings with livi Saving Space

Tailor-made and designed to be fun, livi Saving Space helps customers in making saving easier by being a “smart manager” in the livi app.

“We understand customers are looking for a flexible way to manage their money. livi Saving

Space offers a personalised experience to help customers achieve their saving goals step by step, with a simple tool,” commented Lin.

Some features include auto-transfers within liviSave accounts to saving missions, personalising up to 5 saving missions at a time with the ability to choose goal amount and timeframe, unique travel-themed Mochi NFT rewards by accomplishing specific saving missions, and a competitive savings interest rate of 1% p.a. on the first HK$50,000.

Capitalising on a recent survey of livi’s customer base that shows travel as the goal many save up for, livi partnered with six leading travel platforms to launch exclusive offers to reward its customers with additional savings. livi PayLater Mastercard allows their customers to travel now and pay later, enjoying up to 200% cash back on select travel platforms.

Technological advancement and innovation in livi’s commitments

Substantial investments towards building up a secure, reliable and future-proof technology foundation have put livi in a comfortable position to support their future growth, as these capabilities alongside big data are projected to aid livi in maximising market launch speed and development of new offerings.

“Virtual banks are playing a key role in the digital transformation of society. We are confident that livi has the right mix of financial know-how, technology expertise and people skills to earn the trust of customers in Hong Kong and beyond,” said livi’s CEO David Sun.

The bank has also been enhancing their profit drivers such as lending offerings, SME services, and its Wealth Management and Insurance businesses. livi’s outstanding service to its customers and unique banking experience has put the bank on a prime position for future growth and success.

The company releases its NFTs alongside their digital initiative to drive success.

livi Travel Campaign

bodw+ : Becoming Asia’s Leading Online Design Portal

unprecedented challenges in delivering its in-person week-long conference programme under the pandemic. HKDC needed an alternative to share knowledge remotely and create virtual connections among creative leaders — and bodw+ answered the call perfectly, providing editorial, live and on-demand programmes in addition to a deep and versatile content archive with onestop access. Most importantly, bodw+ represents an entirely new paradigm and has seamlessly supported HKDC’s hybrid and tribrid events in both 2021 and 2022, contributing to a significant increase in viewership.

Since its launch, bodw+ has met with positive feedback from HKDC’s stakeholders, including government partners, strategic partner countries, sponsors, education institutions and the general public. Going forward, bodw+ will continue to inspire global audiences with a curated, expanding selection of content that covers creative developments in the region’s design scene. A new feature, ‘Design Inspiration’, will also be launched soon, comprising featured content, latest events, and credible and acclaimed creative agencies recommended by HKDC’s strategic partners — in

Adesign knowledge platform launched by Hong Kong Design Centre (HKDC) in October 2021, bodw+ has won the ‘Digital – Public Organization’ award of the Hong Kong Business Technology Excellence Awards 2022 for HKDC, becoming the sole winner in the category — within a year after its launch.

Featuring the latest insights on seminal design trends, bodw+ provides evergreen content in the form of live broadcasting, podcasts and webinars, exclusive interviews and event directory, fostering creative exchange within a vibrant community built on a member subscription model. On top of all these is a programme archive, starting with over 600 videos in 2021 from Business of Design Week (BODW) and Knowledge of Design Week (KODW) — HKDC’s flagship programmes — in three languages: English, Putonghua, and Cantonese.

Everything started 20 years ago, when HKDC first introduced ‘Business of Design Week’, or ‘BODW’ in 2002, which has evolved into Asia’s premier event on design, innovation and brands.

In the past two decades, BODW has also strengthened collaborations across borders, having joined forces with 13 partner countries and cities.

In 2021, however, BODW faced

2022 being the Netherlands.

With content accessible anytime to anyone around the world, the possibilities for bodw+ are endless in the digital age. It will be safe to say that bodw+ also plays an

role in advancing HKDC’s mission to promote the wide and strategic use of design, as the organisation strives to strengthen Hong Kong’s position as an international hub of design excellence.

important

Hong Kong Design Centre (HKDC) was recognised with the DigitalPublic Organization at the HKB Technology Excellence Awards.

“BODW has grown into one of the most exciting and inspiring gatherings of design visionaries and creative business leaders from all over the world. Our purpose is to assemble great minds to explore topics that mirror our world’s shared dreams, challenges, and trends”

— Professor Eric Yim, JP, Chairman of HKDC

bodw+ has seamlessly supported HKDC’s events

bodw+ portal

Visit our website to learn more about HKIS’s choice-based curriculum and take a virtual tour of our beautiful campuses.

Visit our website to learn more about HKIS’s choice-based curriculum and take a virtual tour of our beautiful campuses.

Education Award Winner - HKIS HKB National Business Awards 2022

+852 3149 7000

+852 3149 7000

Est. 1966 www.hkis.edu.hk

Est. 1966 www.hkis.edu.hk

admissions@hkis.edu.hk

admissions@hkis.edu.hk

Take a virtual tour of our campuses

Take a virtual tour of our campuses

Take a virtual tour of our campuses

+852 3149 7000

Purpose-built for learning at every age.

Purpose-built for learning at every age.

Purpose-built for learning at every age.

Reception 1 (Pre-K) - Grade 12

Reception 1 (Pre-K) - Grade 12

Reception 1 (Pre-K) - Grade 12

Est. 1966 www.hkis.edu.hk "When students engage with their own environment, they learn to think differently about their surroundings and develop skills to apply their knowledge to different contexts. " Thank you!

Pervasive Culture of Continuous Innovation at CITIC Telecom CPC drives Future-proof Breakthroughs

Infused with Innovation

Whilst every new era of business brings new opportunities, it also brings new challenges. CITIC Telecom CPC believes, with its motto “Innovation Never Stops”, it is well-equipped to help its customers to overcome challenges. The company has consistently leveraged innovative technologies—embracing AI, AR, Big Data, IoT, Blockchain, and other cuttingedge breakthroughs—to transform technical potential into real-world value for customers, helping them achieve higher productivity, agility and, ultimately, digital transformation.

CITIC Telecom CPC also brings a “globallocal” approach to serving customers. Its worldwide footprint spans across nearly 160 countries, including Asia, Europe and America, Africa, the Middle East, and Central Asia. Ample global network resources connect over 160 points of presence (POPs), 21 cloud service centres, 30+ data centres, and two dedicated 24x7 Security Operations Centers (SOCs). These all translate into the company’s ability to bring world-class expertise, coverage and resources to customers at local points of presence, with fully native language, culture, and business vertical competence.

“We have consistently pursued our goal to be a leading Global-Local Intelligent Data, Information and Communications Technology (DICT) Partner, empowering customers to achieve industry-leading positions, high agility, and cost-efficiency through innovative digital transformation,” says Chief Commercial Officer Jacky Kwok. He emphasised, “Our culture of innovation and intelligence are core values essential to future success. Our

vision for CITIC Telecom CPC is global and future-oriented. We need to be more agile in response to this constantly evolving industry and digitalised world. We need new skills, new innovations, and technologies to leapfrog the current state of the art.”

A Strategy for the Future

Perhaps it is best to explain CITIC Telecom CPC’s laser focus on the intersection of future challenges with novel capabilities through its Intelligence and Communications Transformation MiiND (ICT-MiiND) Strategy. ICT-MiiND integrates leading technologies with innovative ideas and is the “brain” that leads CITIC Telecom CPC to guide its enterprise customers to successful digital transformation. This strategy builds intelligence through advanced container technology—together with network, information security, and cloud computing solutions experience—fusing years of practical experiences in digital transformation and resources from global ecosystem partners, and integrates advanced technologies (such as Big Data, AI, AR, IoT and Blockchain) to provide different innovative and intelligent modules integrating tailor-made and customised industry service scenarios to bring enterprises a smarter IT service management platform.

It’s a lot of concepts blended together, but

it works. Indeed, when the world first faced COVID, companies struggled to keep afloat. Travel restrictions and quarantine measures impacted operations and manpower support. To address this unprecedented challenge, CITIC Telecom CPC used its revolutionary DataHOUSE™ AI-AR Remote Hand Service (developed through ICT-MiiND) to boost the productivity of engineers performing troubleshooting and maintenance tasks at equipment locations. These on-site engineers and maintenance staff would wear CITIC Telecom CPC’s AR glasses, which provide a heads-up display so engineers do not need to stop hands-on work to consult manuals, search for information, or communicate with back-end support personnel. The AR technology also enhances collaboration between on-site and off-site personnel, with off-site experts able to visualize the on-site situation through AR consoles. AI-AR Remote Hand delivers astounding field engineer productivity and availability, and dramatically facilitated data centre management during the ongoing COVID-19 pandemic, in addition to enhancing CPC’s regional customers’ business operations efficiency and continuity.

“The pandemic is a great example of how well we are able to handle current and future challenges,” explains Jacky. “This crisis changed the way companies in all sectors and regions do business. It also speeds up the adoption of digital transformation of many companies around the globe. We will continue to leverage our industry insights and expertise to deliver the promise of constant innovation, creating new products and services while refining existing offerings and best practices.”

Meanwhile, with the continuing digitalisation of enterprises, companies face new cybersecurity and privacy risks, especially when the remote workforce lacks cybersecurity awareness. CITIC Telecom CPC has collaborated with best-in-class ecosystem partners to develop a full range of innovative security and disaster recovery solutions to ensure business continuity, now and for the future.

“WE NEED NEW

NEW INNOVATIONS, AND TECHNOLOGIES TO LEAPFROG THE CURRENT STATE OF THE ART.” —CHIEF COMMERCIAL OFFICER – JACKY KWOK

Revolutionising public transport operations with remote monitoring and control capabilities

Thales Group’s Remote Secured Operation Control Center wins at the HKB Technology Excellence Awards 2022.

In our increasingly digitalised world, public transport operators and solution providers are also amongst those that look toward innovations in this domain to increase the quality of service to their end customers, the passengers.

Thales Group develops, manufactures, and sells products, systems, and services in high-technology fields. The development of this large offer relies on strong capabilities in terms of R&D, including both upstream (R&T: research and technology) and in engineering.

To this extent, Thales has established a network of innovation hubs to foster and promote innovative initiatives locally. An Innovation Hub is designed as a creative platform geared towards customer-centric collaboration with three main missions:

• Bridging Thales R&T centres to support new Thales businesses in a country and its neighbouring region;

• Implementing fast prototyping & evaluation of advanced technology concepts to complement Thales Solutions portfolio.

• Complementing Thales R&T competence with the local eco-system (Universities, Start-ups, etc.)

Design Thinking, Lean Start-Up, and Minimal Viable Products (MVP) methodologies are applied in order to deliver innovative and user-centered products in short cycles.

Design thinking is the primary methodology used for discovering each customer’s major problem and proposing solutions, which leads to rapid prototyping followed by the development and testing of MVPs.

Thales, for example, has developed consistent expertise in the simulation environment, video analytics, and big data analytics in Hong Kong since the establishment of the Innovation Hub.

Remote Secured Operation Control Center (OCC) is an innovation of the integrated control centre.

A control centre allows transport operators

to monitor their entire network and systems and take action to ensure smooth operations. What about the staff away from the control centre?

The objective of the Remote Secured OCC is to minimise the physical dependency of staff on site or in the operation control room. With remote working with a secured device, it provides safe working conditions in unsecured environments, for example, triggered by weather (typhoons), traffic (road gridlock), and health (virus outbreaks). It also enables monitoring assets remotely from home or from the working sites (stations, wayside, depots, maintenance centres, etc.). This solution can also serve as a backup control centre, and allow managers to access the operation KPI in real time.

time to key operation indicators to analyse the current situation and validate corrective actions proposed by his team.

To summarise, the Remote Secured OCC is an innovation that extends the supervision out of the operation and control room to any remote location with the same level of security in order to keep the system running smoothly in all circumstances.

This innovation was made in Hong Kong and won the Hong Kong Business Technology Excellence Awards 2022 in the Information and Communications TechnologyEngineering category. It will be first delivered for the Grand Paris Project in France and is proposed to all our customers.

It is not the first innovation to come out of the Innovation Team of Ground Transportation Systems Team in HongKong. Our team focuses on building digital and data-related prototypes for multiple customers.

It allows access to a broader range of parties to the information like the maintenance team, the station supervisors, or third parties like cleaning services or fire dept. Accessible from mobile devices, for example, smartphones, tablets, and laptops, and the solution is fully secured and tightly controlled.

Remote Secured OCC ensures the constant global awareness of all the concerned teams, wherever they are, and promotes collaboration.

As simple examples:

• The station staff can more easily switch an escalator direction to manage the incoming or outgoing flow of passenger.

• A technician in the depot can access the history of the ventilation system in front of him, and take control of the equipment through the same channel as the operator in the control centre, to diagnose and fix a control issue.

• A manager off-site can access in real-

That team also produced NAIA, the passenger flow analytic solution that provides customerfocused key indicators, like waiting time and crowdedness, to measure the quality of the service offered to the public. This solution is in constant evolution. It started as a retrospective analysis for planning and marketing using an algorithm and now proposes predictions and alerts for operations.

The selling point is that NAIA relies only on data already produced by the existing operating systems—the fare collection and the train schedule—and uses machine learning to augment the value of those data by providing needed indicators.

Thales has established a network of innovation hubs to foster and promote innovative initiatives locally

Insilico Medicine’s End-to-End AI Platform Is Transforming Drug Discovery

Finding Novel – and Dual-Purpose –Targets using AI

Insilico used its end-to-end AI platform to discover a novel pan-fibrotic target and design a corresponding drug candidate for IPF in just 18 months. That lead drug candidate has since been through extensive target validation and is currently in Phase 1 trials in New Zealand and China.

Insilico Medicine, a clinical-stage endto-end artificial intelligence (AI)-driven drug discovery company headquartered in Hong Kong, is bringing innovation to drug discovery through its end-to-end AIpowered platform, Pharma.AI.

Since 2014, this platform has enabled the Company to discover novel targets and design new therapeutics at much greater speed and for significantly less cost than traditional drug discovery.

There are now over 30 therapeutics programmes in Insilico’s internal pipeline for indications including cancer, fibrosis, central nervous system diseases, and COVID-19. Its lead drug for idiopathic pulmonary fibrosis (IPF) is currently in Phase 1 trials, the first AI-discovered and AI-designed drug to reach this milestone.

The Launch of PandaOmics

Insilico’s end-to-end AI platform first launched with PandaOmics, a novel target discovery engine that relies on trillions of data points, including 5 million omics data samples – transcriptomics, genomics, epigenomics, proteomics, and single-cell data generated by the scientific community including 1.3

million compounds and biologics; 3.8 million patents; over $1t in grants; 342,000 clinical trials; and over 30 million publications.

The system then evaluates the targets using omics and text evidence.

PandaOmics facilitates systems biology research, focusing on the fundamentals of complex interactions within biological systems to identify disease signatures and actionable targets related to a disease. The AI models dynamically assess disease targets on measures such as novelty, accessibility by small molecules and biologics, and safety and tissue expression in order to best evaluate their potential druggability.

The target discovery engine allows for significant customisation, providing filters that can prioritise targets based on novelty, prior validation, or other features. Using a “time machine” approach, PandaOmics trains the AI to recognise patterns based on empirical data comparing initial target discovery during a defined time point to the level of pharmaceutical industry interest in a subsequent time period until the list overlaps with recognised “hot” targets in the industry.

In just two months, Insilico also used PandaOmics to uncover multiple targets specific to both ageing and age-associated disease, opening the door to future dualpurpose therapeutics. In the study, the results of which were published in the March 2022 issue of the journal Aging, Insilico used PandaOmics to perform target identification for 14 age-associated diseases and 19 nonage-associated diseases across multiple disease areas to identify targets of ageassociated diseases. PandaOmics revealed 145 genes that were considered potential ageing-related targets and mapped these into corresponding ageing hallmarks, including 69 high-confidence targets with high druggability, 48 medium novel targets with high or medium druggability, and 28 highly novel targets with medium druggability.

And a consortium of researchers from Harvard, Johns Hopkins, Mayo Clinic, University of Chicago, Shanghai University and other institutions recently used PandaOmics to find new targets for the debilitating neuromuscular disease amyotrophic lateral sclerosis (ALS). The platform drew on extensive patient data collected by the group Answer ALS. The AI software found 17 high-confidence and 11 novel therapeutic targets. This study has generated and experimentally validated 8 unreported therapeutic targets in the ALS animal model. The results were published in June 2022 in the journal Frontiers in Aging Neuroscience.

PandaOmics and the rest of Insilico Medicine’send-to-endPharma.AIplatformare ushering in a new era of AI-led drug discovery and design – revealing new possibilities for treating diseases with high unmet needs and presenting new opportunities for partnerships with pharmaceutical companies in order to accelerate their own therapeutic programmes.

The company was recognised at the HKB Technology Excellence Awards 2022.

Hong Kong Business celebrates outstanding enterprises in this year’s High Flyers Awards

Hang

FLYERS

Archikris Design Group

AXA

EVENT: HIGH FLYERS AWARDS

Hyatt Regency Hong Kong, Tsim Sha Tsui Mayer & Associés

Meltwater Paragon Trading Asia Limited

PrimeCredit Limited

Sakura Elevator (Hong Kong) Limited

Soteria Trusts

Standard Chartered Bank Hong Kong theDesk

GREEN & AL MAHROOS

Revenge tourism is the new direction of travel for Asia

Despite high airline ticket prices, we have seen a surge in the demand for travel across regions which have eased COVID-19 restrictions. With staff and operational reductions over the past two and a half years, the tourism sector in Europe has been struggling to cope with pent-up demand and the high numbers of travellers. For example, in July 2022, Heathrow Airport controversially applied a daily 100,000 passenger cap to better manage excessive queues, baggage delays and flight cancellations. This operational crisis is, ironically, a welcomed relief and a sign that the industry is well on track to recovery.

From an Asia-Pacific perspective, the region has seen a significant easing of border restrictions, with most markets reducing quarantine periods and others taking more prominent steps to remove quarantine restrictions altogether such as Vietnam, Indonesia, Singapore, and the Philippines. Indeed, Thailand has just downgraded COVID-19 to the same level as influenza.

There is no doubt that the trend of ‘revenge tourism’ has already benefited large parts of the Asia-Pacific region with other destinations such as Hong Kong and Mainland China also anticipating the inevitable ‘revenge travel’ boom to reflect the easing of restrictions. As the hotel and hospitality sector continues to recover across the Asia-Pacific region, we wanted to highlight some other sector trends we have identified from working on a number of projects during the pandemic period.

Environment, Social, Governance (ESG)

The demand for environmental and sustainable travel by consumers has continued to accelerate. Corporate awareness and regulatory requirements have also carved ESG as an important trend in the industry. We anticipate more eco-centric brands to emerge within the Asia-Pacific region and hotels will likely incorporate green and wellness elements as a key offering.

Owners should consider the management structure and operating agreements carefully. Regional and international operators may seek to include enhanced obligations around committing to sustainable development and operational practices, imposing obligations to use particular suppliers (or prevent the use of others that do not have sufficient ESG credentials) as well as including additional budgets / contributions such as social, conservation or development funds.

Finance and the Role of Private Equity

Banks have been working closely with hotel owners over the past two and a half years to restructure debt across the hotel and hospitality sector, which has been badly affected by the impact of COVID-19. Those lenders are revaluating their portfolios and, going forward, will likely be more selective about the type of assets they are financing as well as the borrower’s profile.

We anticipate higher LTVs (loan to value) and / or lower debt service cover ratios. Accordingly, we expect private equity to play an increasingly important role in financing hotel acquisitions and/or required capital expenditure. Private equity as well as private capital

SIMON GREEN International Partner, Charles Russell Speechlys

REEM AL MAHROOS Senior Associate, Charles Russell Speechlys

more generally, is likely to be agile and not as constrained as the more rigid debt-financing structures.

Linked to ESG, we also anticipate a rise in green and sustainability linked finance in the Asia-Pacific region as both lenders and corporations strive to embed ESG within their practices. In CBRE’s Asia-Pacific Market Outlook 2022, they reported growth in green loans across the region and highlighted a number of noteworthy deals including a USD 160m green loan secured by Hong Kong and Shanghai Hotels Limited and granted by HSBC as well as a USD 299 million green load secured by Worldwide Hotels and granted by Maybank Singapore.

Owners of existing and prospective hotels seeking to benefit from private equity funding or green financing still need to consider their agreements, as hotel operating agreements typically contain a number of restrictions and requirements when it comes to changes of control in relation to the owner’s corporate structure or in relation to the ability to raise financing.

Technology

The use and integration of guest-facing and back-office technology within the hotel and hospitality industry has accelerated over the past 2 and a half years as a solution oriented response to COVID-19 Owners have had to inject additional capital expenditure to upgrade hardware and software including virtual check-in and guest management platforms, QR codes as well as tools to manage the hotel and interpret data more efficiently.

We anticipate a continued investment in technology as brand standards evolve to improve customer experiences and to manage other challenges in the hotel and hospitality industry such as employee shortages. Owners of existing hotels may be required, pursuant to their hotel operating agreements, to deploy additional funds to meet operator requirements. Owners of prospective new hotels should consider negotiating ‘freeze periods’ with operators to minimise additional capital expenditure for a period of time (typically 3 – 5 years) following the opening of the hotel to avoid being materially affected by these fast-paced changes.

Inflation Hedge

Hotels assets are seen as a better hedge against inflation than other types of property assets. The reason for this is that the operator has the ability to regularly revise room rates and other revenue streams to take into account inflation. This is not the case with, for example, a commercial office lease where the rent is usually set for at least 1 year if not considerably longer without the ability for it to be revised.

As such, we anticipate that the supply of hotels and the level of investment in the sector will increase significantly over the next few years APAC assuming the post-pandemic recovery continues. One clear example of this is international hotel chains such as Hilton, which is proposing to more than double the number of hotel in Asia in the next few years.

British

British Nationals are exposed to IHT on worldwide assets and could be taxed at 40%*. All Nationalities with UK assets are subject to IHT on death**.

Contact

Contact