Buck Whizz: The rise and fall of global currencies is a process which reflects new realities

The advantages accrued to the United States by its dollar being the world’s leading safe-haven asset are legion and ultimately help succour American power. Indeed, the US dollar’s status as the predominant reserve currency is known as the ‘exorbitant privilege’, enabling the country to borrow a lot of money relatively cheaply.

Though economists and historians may argue about how long this privileged position may last in a rapidly changing world, there is less dispute over the numerous benefits it brings to the US economy, businessaes and consumers. Enzio von Pfeil, a prominent financial commentor in Hong Kong, cites the US Treasury’s ability to issue as much debt as it wants as a key bonus, as well as the elimination of transaction costs. “All of America’s international transactions are done via her own US dollar, thus obviating any foreign exchange risk as well as foreign exchange conversion costs,” he says.

US government debt is also cheaper than that issued by non-reserve currencies. “Most reserves are held in US Treasury bills and bonds. Thus, strong global demand for USD Treasuries means that their yields are low,” explains von Pfeil, highlighting how the government can infinitely fund its federal debt at very low rates.

Financial gains

Other financial advantages derive from the depth of the dollar-dominated global payments system – all global US dollar transactions are easily processed via Swift (the interbank financial telecommunications network) – and the US dollar’s broad acceptance. American consumers also benefit from the willingness of countries to hold the US dollar as part of their reserves portfolio since this cushions their exchange rate.

As Professor Kent Matthews of Cardiff Business School in the United Kingdom outlines, short-term inflows and outflows are absorbed by the global currency markets without much change in the price of the dollar. “This means that the dollar exchange rate has a marginally higher value relative to other currencies. This is the dollar premium,” he says.

There are political advantages, too. “Owning the world’s predominant currency, the Americans can weaponise it by freezing another nation’s dollar assets, denying other nations any access to the dollar, or blocking their access to Swift,” notes von Pfeil.

Historical fluctuations

However, having a powerful global currency can also be a curse. “The yen and the pre-euro Deutschmark resisted attempts by the global market to make them larger internationalised currencies because upward pressure on their respective exchange rates would hurt their exporters,” explains Matthews of Japan and Germany’s export-led economies.

While any credible challenge to US dollar supremacy remains a subject of speculation, the same was once said of the British pound, which had prevailed for a century in the Pax Britannica period prior to the First World War (1914-1918). “Sterling lost its dominance because the immutability of its value was lost as it was weakened after the First World War. Its net foreign asset position declined dramatically after this war, and fell to zero after the Second World War,” says Matthews.

“It was losing in terms of trade dominance and capital dominance. At the same time there was a credible alternative,” he adds, referring to the eventual succession of the US dollar.

Dollar supremacy

Jean-Marie Mercadal, CEO of Hong Kong-headquartered Syncicap Asset Management, points out that the supreme strength of the dollar as the international currency of reference is justified in several respects – including that the US is the world’s largest economy with more than 25% of global GDP; US equities account for nearly 65% of international equity indices; it is the greatest military power; US soft power is strong, culturally and technologically; and the dollar is accepted everywhere.

This all-powerful position of American economic and political dominance is echoed in financial statistics cited by von Pfeil: “88% of foreign exchange trades involve US dollars; 80% of all foreign trade is conducted in US dollars, and about 60% of all foreign currency reserves consist of US dollars.”

At this stage, von Pfeil sees no real prospect of the dollar being usurped; the euro, the world’s second most important currency, commands just 20% of global total reserves. He also notes that any moves to create a Brics – the Brazil, Russia, India and China-founded international organisation – digital currency or gold-backed stablecoin are still in their embryonic stages, plus such initiatives could be derailed by internal competition between its member states.

Rise of the renminbi?

The renminbi, von Pfeil believes, is not ready to be a contender. “The yuan is a controlled currency, meaning that the RMB is neither freely convertible nor tradeable,” he says, also pointing to a dwindling share of renminbi global forex reserves since 2022. Furthermore, there is no legal framework for global renminbi transactions on the scale, or with the depth, of Swift.

According to Matthews, Beijing’s tight control of fund flows under its capital account is the standout hurdling block to the yuan becoming the dominant currency. He acknowledges that “the renminbi is a threat to the dominance of the dollar” but only in the long term in the event of further relaxation of flow restrictions.

Other financial experts are more bullish about the currency of the world’s second-largest economy, and highlight that the US dollar is beginning to face competition from the renminbi. In March last year, the latter overtook the dollar to become the ascendant currency in China’s own cross-border payments, according to China’s State Administration of Foreign Exchange. “China now exports more than 50% to other emerging countries that can be paid in renminbi that they get in return for their sales of raw materials,” says Mercadal. “Saudi Arabia, for example, sells oil to China and buys high value-added manufacturing goods in return, such as solar panels.”

He sees great significance in such transactions, noting that compared to 20 years ago China now has a wealth of high-quality manufactured products to trade, attracting countries that can pay with commodities or agricultural goods.

Risks and rewards

Despite this, the ability to settle trades in renminbi alone is unlikely to boost its use, according to Sam Kima, Senior Vice-President of bullion services provider First Gold. He points out that the volume of such trades depends on exporters’ willingness to accept the currency for payment, which in turn depends on their ability to use the yuan accrued.

“As the renminbi is not broadly used in international trade and finance, there are relatively few outlets to spend these proceeds. Cumulating the inflow would therefore incur substantial costs and raise currency risks,” he says. “The yuan may gain ground through bilateral agreements and economic growth, but the dollar’s established trust, transparency and stability give it a significant advantage.

“Furthermore, the US political system, despite its complexities, provides a stable and predictable environment for investors. The rule of law, property rights and institutional stability in the US create a favourable climate for the dollar to remain the preferred reserve currency.”

Money as a weapon

Perversely, any real threat to the US dollar could be as a result of its strength. Von Pfeil explains: “Weaponisation is the key threat to the popularity of the US dollar. If a country knows that its US dollar assets will be frozen (step in Russia), or that it will be denied access to US dollars, not to mention denied access to Swift, then why trade in US dollars?”

Escalating geopolitical events, shifting national interests and growing non-US trade, particularly with Asia, have spurred some emerging economies to consider diversifying their external relations. “Countries in the Middle East and North Africa are becoming acutely aware of the risks emanating from their dependence on the US dollar. Dollar dependence also limits their economic sovereignty by increasing their vulnerability to fluctuations in the US economy,” says Kima, who notes that higher international borrowing costs from hikes in US interest rates are another concern.

As many commentators indicate, any shift from one currency dominance to another can take several decades. “For now, there are no real competitors to the dollar,” affirms Mercadal. “The renminbi is not yet freely convertible, and the euro is a political construct that can be fragile.”

Set for Life: Hong Kong insurers’ policy of attracting mainland buyers is paying dividends

Selling the world’s most valuable life insurance policy earlier this year was undoubtedly a major coup for Hong Kong. Paying an astronomical US$250 million to the beneficiary upon the holder’s death, it was issued by HSBC Life to an ultra-high-net-worth individual (UHNW) whose identity understandably has not been disclosed. The cover surpassed the previous Guinness World Record for life insurance, a US$201 million policy to a US billionaire facilitated by advisory firm SG, LLC in 2014.

The 10-year wait to break the world record is relatively short, considering the previous interval spanned almost a quarter of a century – it was back in 1990 that British life insurance agent Peter Rosengard sold a US$100 million policy to a prominent figure in the US entertainment industry.

To the surprise of many industry insiders, this latest record-smashing policy is fully underwritten by HSBC Life. But what is certain is that it represents a huge vote of confidence in Hong Kong’s financial services industry, and particularly the insurance sector.

The attention-grabbing sale in question was an HSBC Life Paramount Global Life Insurance Plan, a type of life insurance that offers whole-of-life protection with wealth preservation and legacy planning features. According to HSBC Life, the demand for such policies among UHNW individuals has ballooned over the past year, with a further 10 valued at US$50 million or above issued by the insurance firm to clients seeking facilities for wealth transfer and legacy planning.

High penetration

Hong Kong has been a major player in the world of insurance since the early 20th century, a feat commonly attributed to its relatively stable sociopolitical environment, advanced finance infrastructure, and open-door policy to foreign investment. Given its strong, high-income per capita economy, there is a high life insurance penetration in the territory. Insurance companies eye further expansion via a proliferation of new policies and the city’s rapid growth as an Asian hub, particularly its close ties with mainland China.

“Asia is home to one of the fastest-growing UHNW populations in the world, and as such we are seeing a substantial increase in demand for insurance solutions to address business succession, estate management and legacy planning needs,” says Edward Moncreiffe, CEO of HSBC Life Hong Kong and Macau. He stresses that the issuance of these high-value life insurance policies proves that Hong Kong has reaffirmed its position as both a preferred destination for wealth management and a leading international insurance hub.

“The Hong Kong life insurance market has a number of characteristics that puts us in a strong position to capture this growth in regional UHNW wealth-transfer demand,” he says, citing Hong Kong’s deep talent pools across intermediaries, underwriters and actuaries, strong competition among international banks, brokers and insurers, well-capitalised insurance companies with strong credit ratings, and sound regulatory regime as contributing factors to the thriving insurance services.

Massive sector

According to recent research by GlobalData, a UK-headquartered data analytics and consultancy company, the Hong Kong life insurance market was worth HK$478.2 billion (US$61.1 billion) in 2023 and is expected to grow by more than 3% per annum from 2024 to 2028.

The high level of financial literacy and digitalisation has spawned a diverse range of products in Hong Kong. Major developments have included the growth of finance technology such as insurtech and Environment Social and Governance (ESG) related products, as well as inclusive insurance products aimed at the excluded or underserved market.

The industry’s leading line of business in Hong Kong last year was whole life insurance. Demand in this area is driven by an ageing society, increased life expectancy and a falling fertility rate. It is also buoyed by inclusivity elements to reflect these societal changes, such as whole-life protection for senior citizens and expanding the package of death and dementia-related benefits.

Mainland surge

Many Hong Kong-based life insurance companies have experienced a surge in interest and sales since the reopening of the border with mainland China in early 2023. Prudential, one of the top three life insurers in Hong Kong, has cited border flow from the north as a major contributor to the vast boost in sales last year. Its annual report stated that mainland customers were looking for “diversification of currency and asset class, professional financial advice across a broad product spectrum, and access to high-quality medical care available in Hong Kong”.

The border reopening came not a moment too soon for Ryan Lam Leong Sing, a Licensed Individual Agent of an insurance company with nearly 15 years of experience. He shares that about 80% of his life insurance business emanates from mainland buyers, adding that sales have rocketed by 30% and the pent-up demand from mainland Chinese eager for Hong Kong life insurance policies is huge. “It’s not difficult – the demand is there,” notes Lam of the influx of mainland buyers, pointing out that they need to be physically present in Hong Kong to sign the policy.

Mainland Chinese are attracted to Hong Kong to buy life insurance policies for a plethora of reasons, including its status as a leading financial centre and its legal system. More specifically, they are limited to US$50,000 per year in currency exchange and transfer out of China “If their money is in Hong Kong, they can exchange whatever they want and transfer it to any country,” says Lam.

Vehicle for growth

Due to Hong Kong’s highly developed financial services sector, life insurance policies here can offer mainland customers a far better vehicle for the growth of financial assets. “The growth of their money is what they are seeking,” affirms Lam. “They maybe want to put it in a trust, and life insurance is an important part in the trust.”

Their life insurance policies fall into three categories: risk management, such as life, accident and medical insurance, and critical illness; savings management, such as savings plans for retirement and educational funds; and investment plans, offering customers a passive income and a fund manager to monitor their money.

Hong Kong attraction

According to Lam, Hong Kong policies have an advantage over those offered on the mainland for paying dividends on the likes of critical illness cover. “In Hong Kong, after 30 years, even if you don’t become ill, you still get money paid out. On the mainland, there is no dividend at all,” he says.

“Then, for some savings plans, like an educational fund or retirement planning, the yearly return is under 3% on the mainland. But in Hong Kong, you can get like a maximum of 6-7%.”

This is important, stresses Lam, as the key component of these types of policies is maximising return for educational or retirement provision, while the insurance part acts purely as the foundation of the plan.

Lam adds that higher operating costs and taxes on the mainland are factors in limiting the level of return there. “Also, in Hong Kong, premiums are reinvested, and they can be put in any market around the world. In China, it is limited to the mainland market.”

The Covid years were difficult for life insurers in Hong Kong as business dropped by as much as 70%. Confidence in the Hong Kong insurance sector hinges on three factors, says Lam – “trust, ability and integrity” – and it appears this is now paying off. While it is not every day that a new policy smashes a world record, the industry has rebounded and sales are soaring.

Digital Daring: Financial maestro Sean Hung, CEO of Chiron Group, is steering a blockchain future

Sean Hung grew up in a family where finance was a natural subject of conversation around the dinner table. Both his parents were finance professionals, so dealing with numbers and financial information is embedded in his DNA, and from an early age this was his most likely future direction.

A career in finance subsequently blossomed, perhaps because he always seeks the next challenge, the next opportunity. Still young and fresh-faced, and never happy to rest on his laurels, he is now a big player in the digital assets industry as co-founder and CEO of Chiron Group.

Hung attended St Joseph’s College, a prestigious all-boys Catholic school in Hong Kong, before heading to the US to study for a double major in finance and marketing at Bryant University in Rhode Island, then an MBA at Boston’s Northeastern University. These enjoyable years on the East Coast led him to believe the US education system provides more opportunities to “think outside the box”.

More specifically, his degree helped him understand how businesses work. “You can’t do business without knowing the numbers, but just knowing the numbers without knowing how to push a product to market is also meaningless,” he observes.

Challenge-driven

Having completed his education, he stayed in Boston and joined Wellington Management, one of the world’s largest privately held asset managers, as an analyst in 2013. Though the experience was useful, he found his role in asset management – the traditional buy-side – a bit too slow-paced for his liking.

Spurred by a courageous character trait of continuously breaking out of his comfort zone, Hung switched continents in 2015 and flipped to the other side of the financial coin – the sell-side – in the guise of Cantor Fitzgerald in Hong Kong. Here, in high-pressure investment banking, results were everything and he thrived on the challenge.

As a director on the debt capital markets and special situations team, he relished the chance to meet so many interesting people and the faster pace of Hong Kong life, commenting: “It really rewards hard work and people who are trying to build a business for themselves.”

People-oriented

Connecting the dots between buyers and sellers, structuring unique deals, having to perform under pressure – all of this brought out the best in him. “It’s very difficult to convince people that you’re building a business without results,” he says. “It really drives you to do more than what you would normally comfortably do.”

A talkative and convivial young man, Hung became mindful of not just being results-driven in banking; he wanted to nurture long-lasting relationships forged through being genuine, irrespective of whether someone became a client or not. “Most business does not happen if it is purely transactional,” he shares. “By building these long-lasting relationships, even if business comes later, it comes naturally.”

Crypto calling

Hung could have stayed on in banking, but again some internal alarm bell told him to branch out into a brave new world. He saw “higher growth opportunities” elsewhere, especially in the crypto market – a digital innovation he had observed from an outside perspective for several years, but became determined to master by working on the inside.

Leaving Cantor Fitzgerald at the end of 2018, he was invited to join a team of 10 and build a startup called Diginex, whose aim was to create one of the first institutional crypto exchanges. He also served as director of a sister company, Diginex Solutions, which focused on blockchain ESG (Environmental, Social and Governance) solutions to the problem of investors finding it difficult to verify the ESG metrics reported by companies.

“Blockchain, due to its immutable and transparent nature, adds credibility to the data being consumed by investors,” says Hung, who believes ESG-related investing is a global trend that will sustain through the foreseeable future.

New asset class

Once their digital assets exchange was listed on Nasdaq in 2020, Hung decided to exit and seek pastures new yet again. With a few partners, he set up Chiron Group to focus on investing and growing businesses in the burgeoning digital assets field. Aside from investing in high-growth, early-stage projects, Chiron also eyes more stable, later-stage digital-asset infrastructure companies such as those in the trading, media and software sectors.

“As an investor, we like to take an active role in the company, taking on board seats or advisory roles, to make sure we are able to help drive certain business decisions for our portfolio,” says Hung.

He believes investing in a comprehensive range of players in the crypto field means companies can tap into a broad skill set and would be more amenable to receiving investment. “We can provide you support from the media arm; we can provide you support from liquidity perspective and so on,” he adds.

Bad actors

Of course, cryptocurrencies and the digital assets industry itself have gone through a torrid time recently, but Hung is undeterred. He comments: “It is undeniable that during the early stages of the digital assets, there were a lot of bad players as it was an unregulated field. That’s why it’s especially important for us as investors to be diligent and identify who are the real players.”

One bright spot of scandals like the bankruptcy of FTX and Three Arrows Capital crash is, he says, an acceleration in the onset of regulation around the world. This can only benefit the digital assets industry, especially given that many investors are scared of its opaqueness.

“Without regulation, digital assets will always exist in the dark and traditional investors will remain sceptical about the asset class. It also bars all the major traditional finance institutions from investing in it due to compliance concerns,” he notes.

Gaming insights

Undoubtedly a driven person, Hung is also a family man who cherishes his weekend downtime. Gaming has always been a big part of his life, and these days his two children sit with him as he follows his favourite esports teams. “Esports will be such a natural form of entertainment for my kids growing up so they won’t have second thoughts about them,” he opines.

Such is his love for video games that he has started to invest in promising and growing gaming companies and actively seeks to serve on their advisory boards. Hung intends to bring more value to these companies through his expertise in capital markets.

One such venture – Insights.gg – is a software company that serves the esports community by recording and analysing gameplay through computer vision and AI. “Imagine an automated analyst that allows individual players and coaches to make better decisions on how to better their game strategy and gameplay mechanics,” he says excitedly of a future digital world he is helping to shape.

Financial Fair Play: Whether metals, forex or other financial products, investment guru Sam Kima values integrity above all

Sam Kima is proud to have developed a rewarding career in the finance industry, a field he was encouraged to enter following advice from his father in the early 1990s. He comes across as modest and sincere, though delight in his achievements is evident on a wall of his office filled with certificates spotlighting his proficiency to trade in the markets.

“I’m still thriving in this career after more than three decades, winning accolades, awards, spanning Asia to Europe,” he says, indicating a further shelf packed full of trophies highlighting his business success.

Kima established Sam’s Investment Office in London in 2015, and also plays a huge role in sales and marketing as senior vice-president of First Gold. Jakarta-based PT Cyber Futures Indonesia, which specialises in forex, gold and derivative instruments, is another company that banks upon his expertise. He is also a professional senior analyst working under TraderHub Jakarta.

His formative years undoubtedly gave him an international outlook highly suited to the world of finance. Born in Hong Kong and further raised in California, he went on to study at the London School of Economics. He now spends his time shuttling between Hong Kong and Indonesia as well as Europe and Los Angeles, which he describes as his second home. He converses with a slight American twang, and with his strong physical presence, he easily commands attention when he articulates sentences in a deep, booming voice.

Carnegie confidence

Perhaps this innate ability to fill a room with his presence stems from the Dale Carnegie training he undertook at the outset of his burgeoning career. It was a decision that helped him achieve a better life. “Dale Carnegie is super amazing,” he says. “It has considerably influenced me on how to deal with people, colleagues, friends and clients. It guides you to be a smarter person with integrity and morality.”

He believes such training is all-important when developing a career in a people-centred occupation like finance, and credits the course with nurturing a whole raft of skills. “It develops communication, confidence, problem-solving, emotional intelligence and self-awareness,” he says.

Caring spirit

A sense of integrity is also fundamental to Kima’s attitude to work and his desire to partake in community service. For instance, every Tuesday he volunteers together with a group of influential community leaders to help serve food to more than 500 impoverished elderly people in Hong Kong. He believes these kinds of activities make someone a more positive person with other knock-on effects: “The better your character traits mesh with your career, the more productive and positive your job performance will be.”

He also reveals that he is a passionate believer in self-care and investing in activities that nurture body and mind. “This is not in a selfish way,” he adds.

Hungry for more

Kima likes to set and achieve goals, and his early banking career was spent mastering economic fundamentals like how technical charts play a big role in clients’ decision-making, and how various financial products, forex, gold and silver fluctuate according to data and news. He thrived on the adrenaline rush, constantly learning about the markets, and this made him hungry. “It is an amazing field and I loved what I experienced and was doing,” he recalls of the time.

This hunger has stayed with him. One can sense he is constantly checking the newswires to sense the market direction. The day of our meeting was soon after the terrible events in Israel and he noted a flight to the dollar as investors sought security in an uncertain world.

The fear factor

Shifting assets to the security of gold is another phenomenon in turbulent times, especially when the fear of inflation is pervasive. “As inflation occurs, investors increasingly turn to gold as a hedge, driving demand and price upwards,” he explains.

His team is part of a tightly interconnected network spanning Australia, Indonesia, the UK and Hong Kong in the rapidly developing investment brokerage field. Live analysis reports by their expert advisors on their state-of-the-art 24-hour trading platform can be the difference between clients making a profit or loss in the most lucrative forex and precious metals markets, according to Kima. He also states they can offer the most competitive spreads and that industry leaders from the Asia-Pacific region turn to his team for their wealth management and analysis reports.

Internet immediacy

He believes one of the main reasons why gold and forex investing is so easy – and attractive – is its accessibility. “Anyone with an internet connection and a computer or mobile device can access the market. Forex and gold brokers provide traders with trading platforms that allow them to buy and sell currencies, view charts and access real-time analysis and news,” he says.

His services aim to reduce the time it takes for an order to be routed to the servers for execution, something known as latency. “The high liquidity of forex and gold means that transactions can be completed quickly and easily, and that spreads are often very tight – meaning the underlying market price won’t have to make a significant positive move in order for your trade to be profitable,” he says.

Get-rich-quick worry

As he sits in his office in front of a shelf crammed with a bust of Mao Zedong, beautiful Chinese figurines and a lovely model of a traditional sailing boat, he talks earnestly about the dangers of naive and small investors who do not do their homework before putting their savings into investment vehicles. He is acutely aware that the reputation of the financial sector has taken a battering over recent years, and passionately believes that credibility is all-important when dealing in finance. Indeed, he reveals that he did an interview warning of the dangers of cryptocurrency just prior to the great unravelling.

He fears inexperienced investors post- Covid are exhibiting a dangerous get-rich-quick mentality, and perhaps with this concern in mind, he makes sure his investor clients first go through demo accounts to trade without using real money. “We must make sure that prospective clients are well educated about our markets and understand the fundamentals prior to putting funds in the real market,” he says.

Top track record

For our photo shoot, he dons an assortment of strikingly coloured suits, and there is certainly the showman side to his persona. In a wistful moment, he yearns for the return of the big pre-Covid society bashes. But he knows what traits are most important: “You will not find one bad review on a search engine about the companies I am involved with,” he reveals with immense pride.

“Integrity, loyalty, reviews, honesty and track records are the main ingredients and reasons for investing with us,” he adds.

Interview by: Neil Dolby Photographer: Jack Law Videographer: Jack Fontanilla

Out Of Money: We stand on the cusp of a cashless society but will it be welcomed by all?

Cash was once king, but talk of a cashless society has been doing the rounds for decades. Recent global developments have brought that state of play even closer, casting a heavier pall on the usefulness of cash – banknotes and coins – in daily commercial activities.

Among its lesser known consequences, the Covid-19 pandemic affected consumers’ payment habits– for some it instilled a fear of handling cash. Research into the impact of Covid on European payment habits by Cranfield University suggests the virus had a dual effect: not only did it push people to use cashless payments in shops, but it also increased online cashless transactions.

Covid cash crash

Andrea Moro, Professor of Entrepreneurial Finance at the Cranfield School of Management, who was part of the research team, believes the global pandemic accelerated pre-existing trends. “Concerns about Covid transmission via touching banknotes or coins that can be infected and the desire to reduce physical contact with others to the bare minimum reinforced and amplified a previous trend towards cashless transactions by increasing the use of cashless payment methods,” he says.

Moro, who previously worked as a senior financial advisor at a consulting firm owned by a group of Italian banks, adds their research suggests the change away from cash payment is longterm or permanent. For many, there came a realisation that concerns about personal information being misappropriated or that “money can be stolen from their bank” were not grounded in fact. “In some way people discovered an alternative way for paying for their shopping and they liked it,” he says.

Intriguingly, it was mainly members of the older generation whose payment habits shifted. Prior to Covid, this age group had demonstrated an affinity for traditional cash-based transactions; they were less prone to credit card usage and quite resistant to innovative payment services such as Apple Pay and Google Pay. As Moro points out, younger people were already using cashless payments before the outbreak.

In essence, reveals Moro, the pandemic consolidated the growing trend of cashless payments, which had begun in the ’80s and ’90s with the increased use of debit and credit cards and exploded with the introduction of mobile payment services. Recent data suggests 21 per cent of global retail purchases this year will take place online.

Cashless drivers

The arrival of technology allowing for the implementation of transactions that are perceived to be secure is a key driver towards a cashless future, notes Moro. “The fact that even if someone steals my phone, they will not be able to use the payment system set up on the phone because of the password/finger protection, has reassured users who nowadays find this approach even more secure than cash,” he says.

Moro favours the move to a cashless society: “It reduces costs, simplifies our life, speeds up transactions and makes them more secure and can also have a positive environmental effect.” He cites the risks of losing cash or receiving fake banknotes, and warns that cash has historically been used for illegal transactions where buyer and seller do not want the exchange to be trackable.

He links the desire to cling onto cash to those who struggle with technology or work jobs that are traditionally paid in cash.

China e-payment push

In many places including China, which has been quicker than most to embrace electronic payment, digital platforms will undoubtedly continue to erode the percentage of cash-based transactions. According to Professor Jack Poon of the Hong Kong Polytechnic University (PolyU), a fintech expert who advises artificial intelligence and blockchain startups, the prerequisites of a cashless society are smartphone penetration, availability of wireless broadband networks (4G, 5G), and the inadequacy of existing payment infrastructure within the country.

The demographic of the population also plays an important role. Younger generations, higher income groups and well-educated segments are more receptive to technology adoption than older generations, lower income groups and less educated segments, respectively.

Developing economies like India are also showing a huge uptake in mobile cash payments to the benefit of many marginalised communities with platforms like the Unified Payments Interface (UPI) allowing for fast account-to-account transfer using fintech apps such as PhonePe or Google Pay. China’s Alipay and WeChat Pay models, where the consumer scans a QR Code and payment is debited directly from the balance or through an affiliated bank account or another form of payment (like a credit card), have proved extremely popular.

Digital wallets are pervasive in China. “From a business standpoint, digital wallet providers are incentivised to acquire more customers because a larger customer base enables other forms of business models for additional revenue streams,” says Poon. Though by law, cash must be accepted as a legal tender in mainland China, he points out e-payment lowers the cost and risk of cash management, increases transaction efficiency and scales a business across multiple geographies (within a country) faster.

Kent Matthews, professor of banking and finance at Cardiff University, says so much of officialdom in China leans on technology that is only natural that this would eventually extend down to transactions at street markets as well as shops.

Hong Kong digital delay

Here in Hong Kong, the recent adoption of different forms of cashless payments is widely perceived to have been driven by their widespread implementation across the border. Certainly, the consumption voucher scheme has accelerated the use of digital payments by WeChat Pay, Alipay and Octopus.

But according to one local banking professional, the territory still lags far behind other places in terms of becoming a cashless society. “There are a lot of limitations and regulations regarding the implementation and promotion of developing cashless transactions in Hong Kong,” he says.

From his perspective as a banker, he believes the financial regulators in Hong Kong are conservative in implementing cashless methods because there is a lot of risk inherited, especially fraud and data leakage. “For most people in Hong Kong, cashless transactions are just for minor transactions like transportation, buying daily supplies and paying bills,” he says.

There is an apparent unwillingness to change consumption behaviour, particularly among the older generation, fuelled in part by numerous recent fraud cases. Ada Chung Lai-ling, Hong Kong’s Privacy Commissioner for Personal Data, recently voiced fears about online shopping platforms, citing evidence of data security incidents and phishing attacks.

Despite the many challenges in Hong Kong, a fintech adoption survey conducted by PolyU revealed that 91% of the 2,000-plus respondents had adopted e-payment in Hong Kong.

Disruptive fintech

The credit card model of payment in the West is strongly built, according to Poon, and is unlikely to be dismantled. He does suggest there are multiple fintech companies trying to break into this ecosystem and fill the gaps “like payments among friends when you share a lunch meal, or the buy- now-pay-later (BNPL) disruption to the traditional card model”.

He believes crypto is only an alternative to cash or e-payment in countries where the sovereign currency is experiencing significant devaluation.

NFTs: Future of investment or another bubble waiting to burst?

The world is now divided into two types of people: those who invest in NFTs and those who don’t. As mind-boggling as it is, an increasing number of people now use digital currency to purchase digital goods – or rather the certificates that legitimises ownership of said items – without ever having to physically touch them at all.

culture-cryptocurrency-nft-blockchain--might-are-nfts-investment-hongkong-beeple — 5000 days NFT artwork by Beeple

NFTs have been around since 2014, but they were relatively low profile before the end of the decade. They really began sweeping the internet last year, when this novel technology went mainstream and disrupted industries across the board, especially the art world. The NFT landscape has rapidly evolved over the past 12 months, with more institutions around the world and some governments recognising cryptocurrency as legal tender and NFTs as strong investments.

Even a traditional international art auction house like Sotheby’s has launched its own Metaverse dedicated to NFTs and digital art. So, those few who still staunchly prefer cash in hand might just have to come to terms with this new digitalised transaction that is revolutionising the financial, investment and creative sectors.

Cryptocurrency and NFTs: What’s the difference?
An NFT (non-fungible token) is a unique digitalised certificate that entitles one, and only one, person to exclusive ownership of an asset. Cryptocurrency is a peer-to-peer electronic cash system, such as Bitcoin, Ethereum and Doge, used to purchase NFTs. Blockchain is the platform on which all cashless digital transactions happen. The process is calculated by a large group of computers and recorded publicly, but anonymously, on the internet to ensure everything adds up. This provides transparency and avoids human error or the risk of financial mismanagement.

Yet, the use of digital ownership tokens remains controversial. While championed by artists and tech-savvy investors, others are cautious, citing a volatile, unregulated marketplace. Environmental campaigners, in particular, decry the huge amount of energy they eat up. What does that mean for Hong Kongers looking to invest in NFTs? And is embracing crypto a positive move for society? We break down the pros and cons…

culture-cryptocurrency-nft-blockchain--might-are-nfts-investment-hongkong-shoutartgallery-andrewmok-offgod-exhibition — Andrew Mok’s debut solo exhibition at Shout Art Hub & Gallery, Hysan place

Democratising art and the value of scarcity
NFTs spurred a creative boom for developers and artists last year. Helping to democratise art, they allow creators control and ownership of their created content while also sharing deserved revenue, and offering involvement in a community of like-minded individuals. The key takeaway here is that NFTs are one-of-a-kind, non-fungible and certified original tokens of an object, whose value is dictated by the community, not an institution or an art market.

culture-cryptocurrency-nft-blockchain--might-are-nfts-investment-hongkong-james-jean-forager — NFT artwork by James Jean Forager

Pro: They certainly benefitted Hong Kong high schooler, illustrator and graphic artist Andrew Mok. Also known as Offgod, Mok is a cover artist for social media rappers such as Bella Poarch, The Kid Laroi, and the late Juice Wrld. He was invited to do an NFT exhibition – his first solo exhibition – at Shout Art Hub & Gallery in Hysan Place – a gallery dedicated to NFTs and digital art and providing global support for local artists. “Offgod’s skill is very mature and creative with his own style and he has over 200,000 followers on social media from all over the world,” says gallery founder Christopher Tang. “The feedback from the market exceeded my expectations. We sold every art piece by the end of the first week – and some pieces pre-sold before the exhibition opened, which for a [then] 17-year old local artist is a miracle.”

Con: Difficulties arise when talking about value and how volatile the NFT marketplace can be. Unlike stocks or bonds, there is no way of knowing the intrinsic value of an NFT investment. What makes a successful NFT largely depends on how the popularity of the brand is, and how strongly the community feels about it.

The scarcity principle used in economics, social psychology and manipulating consumer behaviour theorises that greater value is placed on items that are scarce or in low supply, but in the case of NFTs, it is perhaps the exclusive ownership of a token that creates value rather than the uniqueness of the object itself. Why else would crypto entrepreneur Sina Estavi pay US$2.9 million for Twitter CEO and founder Jack Dorsey’s first tweet?

Pushing the boundaries of technology

There is one thing that is undeniable about the technology behind blockchain and cryptocurrencies, and it is that it has pushed the boundaries of how society and systems utilise computers for the purposes of validation and verification. As evidence by the 2008 financial crisis following the collapse of Lehman Brothers, there is room for error and risk of mismanaging financial systems when regulators are in a position to control funds.

Pro: Blockchain technology is a complex system that allows for strong security since it acts as a shared, immutable ledger; it is almost impossible to hack, alter and manipulate because all transaction records are publicly documented, in contrast to transactions conducted on traditional platforms.

Cons: However, ideal and utilitarian the blockchain is in theory, without the middleman or an institutional buffer between consumers and retail, NFTs leave investors vulnerable. Their value is volatile, and there is still the potential for fraud, scam and theft during transfers within the NFT marketplace, despite the security of blockchain and the anonymity it allows. The process and language can be complex as well, especially for those new to the NFT scene.

If the goal is to truly democratise blockchain and the NFT market for the masses, the exponential growth will require an institutional buffer to aid buyers and investors to oversee the marketplace, as risk in their trade is still very much present.

culture-cryptocurrency-nft-blockchain--might-are-nfts-investment-hongkong-boredape — Bored Ape NFTs by Bored Ape Yacht Club

Future or fad?
Whichever side one stands on the debate of NFTs as the future of investment, there is no denying the good they have reaped for artists and creators, inspiring them to take the lead in how their own creations are presented in the market. Artists have been enabled to deal directly with buyers and control the revenue they earn, while building communities of like-minded individuals with the same interests, fostering a positive and empowering influence for creators.

However, there are fears that a new law that will come into effect next year will stymie the growth of cryptocurrency in the city. The new legislation states that virtual asset trading platforms will face regulations and be monitored through a licensing system to prevent illegal activities, particularly money laundering. This will undermine the main point of decentralising, but perhaps it is a middle ground both sides can come together on.

Darrin Woo: On road trips, collectible cars and managing the Woo Hon Fai group

From vintage cars to blockchain technology, Woo Hon Fai Group investment mastermind Darrin Woo steers smartly into the future

Woo Factor Gafencu interviews Darrin Woo four generations of family money — Darrin Woo wearing Chinese jacket by G.O.D.

You helm the Woo Hon Fai Group. What’s the background of this company and how do you see its role today?
Woo Hon Fai Group is a single-family office named after my grandfather, who was the founding chairman of the Hong Kong Stock Exchange and a former president of the Chinese Gold and Silver Exchange Society. Today, our office manages capital on behalf of more than 30 family members across four generations. As the eldest grandson, I am accountable to a big family, and I am currently the third-generation family member leading the office. Our core business, Lee Cheong Gold Dealers, started in 1950 and remains active today.

As managing director of WHF Group, what comes under your purview?
My areas of responsibility are wide-ranging and divide broadly into two categories: managing financial and human capital. The former involves overseeing legacy investments (some of which date back over half a century), real-estate investments and core businesses, as well as sourcing, allocating and monitoring new and existing investment opportunities, including hedge funds, private equity and venture capital. Managing human capital encompasses developing and implementing succession planning strategies; identifying and retaining talent both inside and outside the family; managing our family businesses; and continuing our family legacy. Our office also provides concierge services to meet our family members’ daily needs. I lead a team whose roles include such responsibilities as corporate administration, accounting and finance, tax and estate planning, property management, investment management and domestic staff management.

Woo Factor Gafencu interviews Darrin Woo four generations of family money (4) — Darrin Woo wearing Jacket, top and pants by Hugo Boss; Shoes by Mr P., courtesy of Mr Porter

What are the benefits of being raised in a prominent family, and the drawbacks?
Growing up in a prominent family meant we enjoyed great privileges. My grandfather entertained a lot and we got to meet other prominent families and develop multi-generational friendships. Hong Kong was, and to a certain extent still is, a city where who you know is just as important as what you know, I’m grateful for the exposure and my childhood experiences.
I was born in San Francisco, did my schooling in Hong Kong, and went to university in the United Kingdom [studying town and country planning at University College London]. The message that with privilege comes responsibility and the paramount importance of giving back to society were inculcated throughout my formative years. Both my family and I have an active philanthropic programme that supports causes across the globe.

Can you elaborate on some of these?
Our family’s philanthropy programme began with the founding of TIACC Woo Hon Fai Secondary School in 1987 in Tsuen Wan. One of the more notable – and meaningful – gifts in recent years was a US$15 million pledge by my late father [David Woo] to the University of California at Berkeley, which ensured the preservation of the old Berkeley Art Museum and Pacific Film Archive building. This was renamed Woo Hon Fai Hall and today houses the Bakar BioEnginuity Hub, an incubator with 40,000 square feet of labs and office space for life-science research, innovation projects and start-ups. My father graduated from UC Berkeley’s College of Environmental Design in 1967, and was a resident architect for the firm that constructed the building. It is with great regret that he passed away last year, and he never got the chance to see Woo Hon Fai Hall in its present glory.

On a personal level, I recently supported a joint research studio between the University of Hong Kong and UC Berkeley, an innovative collaboration with an interesting comparative model to deliver design strategies for urban resilience and climate change in both Hong Kong and the San Francisco region.

Woo Factor Gafencu interviews Darrin Woo four generations of family money (3) — Darrin Woo wearing top, pants and shoes by Mr P., courtesy of Mr Porter

Aside from your work with the family business, you’re also involved in a new fintech startup. Tell us about this.
Blockchain technology and digital assets have seen tremendous growth with the promise of reinventing the finance industry. While physical gold bullion trading has been around for thousands of years, professional investors today are becoming interested in digital assets like cryptocurrencies, and I believe this trend will continueto grow. A big part of my job is investing into and for the future. One recent investment I made is in Volmart, a pioneering hybrid risk manager using TradeFi, AI and blockchain technologies to offer investment solutions for private banks, asset managers and prime brokers.

If you had a spare million to invest right now, where would put that money?
Capital preservation is my number-one priority. Real assets, financials, real estate and commodities offer superior risk-adjusted returns under the current inflationary environment and cycle of rising interest rates. I would buy gold bullion bars, not only because we are in the business, but I believe they are an important hedge against risks associated with financial systems and fiat currencies. The recent surge in gold prices amid the tension between Ukraine and Russia is proof that gold continues to be an effective hedge against geopolitical risks. The vintage-car market continues to perform well, too, and shows little correlation to the stock market. Even if your vintage-car investment isn’t financially profitable in the end, the joy you derive from driving one on the open road on a sunny afternoon is priceless.

Even if your vintage-car investment isn’t financially profitable in the end, the joy you derive from driving one on the open road on a sunny afternoon is priceless

How did you passion for collectible cars begin?
It goes back as far as I can remember. As a child, I lived and breathed toy cars, from pushing Matchbox die-cast versions to assembling static models and building petrol-powered remote-controlled buggies. I was desperate to start driving during my teens, so I arranged lessons in advance and took my driving test on my 17th birthday, the first day I could legally drive in the UK. It was a first-time pass, of course! Vintage cars are my true passion – I admire their aesthetic beauty, quality craftmanship and pure driving experience. I am a member of the Classic Car Club of Hong Kong as well as the Royal Automobile Club in the UK. I like to share my experiences on my personal blog, Motor & Co.

What are the standouts in your collection and your most cherished car memory?
My collection includes a 1927 Bugatti Type 35B pre-war race car, 1957 Fiat-Abarth 750 GT Zagato, 1965 Mercedes-Benz 600 Pullman, 1972 Ferrari Dino 246 GT, 1983 BMW Alpina B9 and 1992 Lancia Hyena Zagato. I am fortunate to be the custodian of these highly collectible cars – many are limited editions and rarely available for sale.
Just before Covid, I took an intercontinental road trip with my son, Marc – this is one of my most memorable car journeys. We started in a small town called Arese in Italy, and passed through Switzerland, Germany and France, crossing the Channel on a car ferry to the UK. The 1,500km drive took us through some of Europe’s most beautiful and most rugged countryside. We visited historic towns off the beaten track like Baden-Baden, Colmar, Reims, Rouen and Caen.

We met some great people along the way, and the highlight was a visit to Champagne house Taittinger, where we were greeted by Clovis Taittinger, a family friend who is at the helm of this legendary family business.
Your wife, Bonnie Chan Woo, is a successful entrepreneur.

Woo Factor Gafencu interviews Darrin Woo four generations of family money (2) — Jacket, top and pants by Mr P., courtesy of Mr Porter

How did the two of you meet?
As clichéd as it sounds, we met on the plane when we were teenagers. Those were the days before email and WhatsApp, so we communicated the old-fashioned way through writing letters – we still have many of the original letters at home. Our relationship developed over 14 years before we officially got married in 2005.

How has Covid impacted your family’s jet-setting lifestyle?
Last year, I spent nine months in the UK and the rest of it in Hong Kong, 42 days of which were in hotel quarantine. Bonnie, Marc and I were hardly ever in the same place due to our various travel engagements, but we are still very grateful for the time we had together and can’t complain.

Can you pass on a few tricks on how to cope with isolating and quarantining?
That’s a difficult question to answer; different people have different tricks. Living in a confined space over long periods is both mentally and physically straining. I find having a room with a view and direct sunlight helpful. The ability to see activities in the outside world helps combat loneliness and exposure to sunlight elevates my mood. I keep busy with Zoom meetings during the day and relax in the evening watching Netflix and listening to podcasts and audio books.

Living in a confined space over long periods is both mentally and physically straining. I find having a room with a view and direct sunlight helpful

What are your top-three quarantine must-haves (apart from basic necessities).
JIA Everywhere – delicious meals from the JIA group restaurants delivered right to your hotel; Muo Wireless Bluetooth Speaker by KEF – amazing sound in a sleek design; and Amazon Audible – A Gentleman in Moscow by Amor Towles is a great quarantine companion.

Thank you.

(Interview by: Nikita Mishra Photographer: Jack Law Art Direction and Styling: Jhoshwa Ledesma; Videographer: Jackie Chan Venue: Hutong Hong Kong Cover look: Suit by Ring Jacket and button-up shirt by Pye)

Liechtenstein at 300: How the tiny European state became a global economic power

The Principality of Liechtenstein, nestled between Switzerland and Austria, is Europe’s fourth-smallest state, but it has managed to become one of the richest nations in the world. Celebrating its 300th anniversary this year, Liechtenstein occupies an area of only 160 sq km and has a population of 38,000 people, yet it has an impressive GDP per capita that is more than double that of the United States.

The Princely Family of Liechtenstein, which reigns over the country, is one of the oldest noble houses in Europe. Having acquired the territory which would become Liechtenstein in 1719, the Princely Family has continuously presided over the country into modern times.

Today, the Principality of Liechtenstein is a constitutional monarchy and, in addition to heading the country, the Princely Family pursues a wide range of interests, from owning the world’s largest private collection of major European artworks to wine production at its own vineyards.

Over the course of its 300-year history, Liechtenstein has transformed into a leading player on the global economic stage, standing out as one of only five debt-free states around the globe today. Despite its small size, the country’s focus on exports has made it an innovation hub, offering the perfect environment for creative ideas and entrepreneurial spirit.

LGT Jan Coelenbier, detail from “A castle on the waterfront,” c. 1620 © LIECHTENSTEIN. The Princely Collections, Vaduz-Vienna — *Jan Coelenbier, detail from “A castle on the waterfront,” c. 1620 © LIECHTENSTEIN. The Princely Collections, Vaduz-Vienna*

As the Principality of Liechtenstein celebrates its 300th anniversary year in jubilee, it is a timely moment to look back in admiration over its three solid centuries of rich cultural heritage and financial stability, as the nation warmly invites visitors to discover and explore its history and stunning natural scenery in person.

LGT - Vaduz Castle, the palace of the Prince of Liechtenstein — *Vaduz Castle, the palace of the Prince of Liechtenstein*

Although Liechtenstein may be associated with its strengths in manufacturing, an attractive alpine climate, and collectable postage stamps, it is in the world of finance that the Principality truly shines. Known for its outstanding stability and security, the country’s financial system is a foundation for Liechtenstein’s success, attracting institutions with its professional, resourceful and business-friendly characteristics.

One secret behind the country’s financial acumen is the indomitable foresight and guidance of its hereditary rulers. Nowhere is this more apparent than in the success of LGT Group, the family office of the Princely House of Liechtenstein and the largest global Private Banking and Asset Management group to be owned by an entrepreneurial family.

*H.S.H. Prince Max von und zu Liechtenstein, CEO LGT*

Established in 1930, LGT takes inspiration from the Princely House, and its 30 generations of experience. Today, the bank remains very much a family-run enterprise, with Prince Philipp, younger brother of Prince Hans-Adam II, the nation’s ruler, currently its Chairman, and Prince Max, Prince Hans-Adam’s son, its CEO. The Princely Family’s ownership ensures that traditional values and virtues such as reliability, respect and integrity are firmly embedded in LGT’s corporate culture.

LGT Friedrich von Amerling, Portrait of Princess Marie Franziska von Liechtenstein (1834-1909) at the age of two (1836) — *Friedrich von Amerling, “Portrait of Princess Marie Franziska von Liechtenstein (1834-1909) at the age of two,” 1836 © LIECHTENSTEIN. The Princely Collections, Vaduz-Vienna*

As a testament to its success, LGT Group has grown from a small presence in Liechtenstein to 20 locations worldwide. LGT Private Banking, the private wealth management arm of LGT Group, adheres to traditional values while providing bespoke and innovative investment advice and wealth planning solutions to high and ultra-high net worth clients around the world.

LGT Peter Paul Rubens, “Portrait of Clara Serena Rubens,” c. 1616 © LIECHTENSTEIN. The Princely Collections, Vaduz-Vienna — *Peter Paul Rubens, “Portrait of Clara Serena Rubens,” c. 1616 © LIECHTENSTEIN. The Princely Collections, Vaduz-Vienna*

With respect to Asia, LGT opened a small representative office in Hong Kong in 1986. Today, it has over 800 Asia based employees, with offices in Hong Kong, Singapore and Bangkok and full booking platforms in Hong Kong and Singapore. In 2018, LGT was ranked among the Top 10 private banks in Asia, in the Asian Private Banker League Table. LGT’s evolution in Asia, like the history of Liechtenstein, is rooted in principles such as a long term commitment, vision and innovation – values worth sharing, 300 years ago, now, and for many more anniversaries to come.

Continuum Capital founder Marie-Louise Jungels on demystifying the world of finance

Marie-Louise Jungels, the Luxembourg-born founder of Continuum Capital, talks to us about the city’s banking potential, starting her own financial firm and her upcoming book.

Tell us a little bit about your early years…

I was born in Luxembourg, a tiny country in Western Europe. I have one sister and, by and large, my childhood was pretty normal. I grew up in a very rural, cosy environment – one that would be seen as rather provincial nowadays. Growing up, I primarily spoke Luxembourgish and German, my mother’s native tongue. I also studied French and English. It may seem like a lot, but many of my countrymen are quadrilingual, as we’re right at the crossroads of so many major cultures.

And then how did your education pan out?

I completed my primary and secondary schooling in Luxembourg, but I had to go abroad to attend university, the reason being that, back then, Luxembourg had such a small population – about 375,000 people – that it didn’t really have any high-level tertiary education institutions to speak of. Ultimately, I ended up collecting several finance and economics-related diplomas from universities in France, Belgium and the US.

Was finance always your one calling?

Honestly, growing up, I would never have guessed I’d end up as a banker. I was far more interested in the arts, so much so that I seriously thought about becoming an artist at one stage. But my father who advised me that something a little more financially lucrative might be wiser in the long run. After toying with the idea of becoming a scientist or a doctor, I finally settled on economics and finance, because they seemed to offer the broadest opportunities.

What brought you to Hong Kong?

After completing my studies, I was somewhat at crossroads in terms of what to do next. The obvious thing would have been to return to Luxembourg to work. The not-so-obvious choice, though, was to explore the wider world. I had never been to Hong Kong – or even to Asia – before and I wanted to see what could be achieved here. So I enrolled in a PhD programme in Economics at HKU, but ultimately decided to forego getting another degree in favour of gaining some real-life experience, preferably somewhere I could put all my theoretical knowledge into practice.

Having come to that decision, was it hard to find work?

It was a bit of a struggle to land my first job, largely because I was an economist interested in corporate strategy at the time, whereas Hong Kong finance companies were far more focused on immediate results rather than long-term planning. Eventually, I stumbled into private banking and thoroughly enjoyed the experience. What kept me in that sector was that I found a niche for myself – I loved managing client portfolios and met many amazing people while I was in that role. Gradually, I started to become more involved in bond portfolio management.

What led you to launch Continuum Capital, your own business?

It was down to a mix of several different factors. Firstly, I’d been working as a bond portfolio management specialist for many years and, while I enjoyed the challenges of working in a bank, I felt that it was somewhat restricting in terms of what I wanted to achieve for my clients.

In 2012, after the Global Financial Crisis, I was working for Merrill Lynch. Given the traumatic upheaval the company was going through, I thought it might be a good time to branch out on my own. Ultimately, though, it was my clients – many of whom I’d built strong relationships with over the years – who gave me the confidence to start Continuum Capital.

Tell us a little more about your business and about what makes it special…

Basically, it’s an independent asset management firm. We specialise in managing clients’ bond portfolios, working closely with them to meet their individual requirements and specifications. The company’s aim is to help preserve their wealth while building exponential financial gains over time.

In terms of your future plans is there anything that is particularly exciting you at the moment?

Actually, I’m currently writing a book, one that looks to explode the myth that finance has to be complicated – an impression that many in the industry seem keen to maintain. I’m writing it in a way will be accessible to everyone and will enable them to gain a solid working understanding of how the different aspects the industry all inter-relate. Sadly, the world of banking is not very transparent at the moment, something that I hope my book will help change.

Finally, what advice would you give any other female entrepreneurs looking to start her own business?

Well, it takes a lot of courage to start your own company, but – having said that – I would encourage everyone to give it a try. Irrespective of your field, keep a firm grip on your finances. Above all, you must be tenacious. While there will be hurdles and unexpected setback, much the same can be said of everything else in life. Above all, always keep a calm head and ensure you are well-prepared for every eventuality – no matter how positive or how negative.

Thank you.

Interview by: Tenzing Thondup
Photos: Jack Law
Art Direction & Styling: San Wong
Venue: Andante Lifestyle Store
Video: Kingsley Lau

Honkers or Singers? Which Asian megacity is more appealing to foreign businesses?

AI company ImageDeep was the latest to open its Asia-Pacific office in Hong Kong, citing the city’s strategic global position and involvement in the Greater Bay initiative as its reasons for expanding into the 852. The decision came as a surprise to some, as while there is a long history of financial firms expanding into Hong Kong, tech companies have increasingly been reaching for Singapore instead. ImageDeep’s move has thrown up the age old debate: Hong Kong vs Singapore, which of these two Asian mega-cities has the edge for modern businesses?

Fairs fair, both are extremely attractive to western businesses and remain the two most popular options for Western businesses wanting to get a piece of the ever-growing Asian market. Both being port towns Hong Kong and Singapore already have a great geographical advantage and their international airports, tap into a vast yet quickly navigated network of nearby countries and educated multilingual workforce mean businesses are spoilt for choice when it comes to hiring time. The government allows foreigners to own all of their shares, there is no mandate to have a native director on the company’s board and taxes are low with multiple exemptions available.

Hong Kong’s well-founded history of financial success, far reaching travel links and low low tax rates have been attractive to overseas entrepreneurs for decades. Singapore has easier access to the growing Indian and Sri Lankan markets and boast their super clean streets, mega high living standards and highly engineered public transport system as an absolute win over Hong Kong, where pollution has long been a problem. But what Singapore sees as its greatest strength might just be its downfall when it comes to incoming Westerners. Many expats living in Hong Kong revel in the varied landscape and diversity in people and they think Singapore a little bit too homogenised. While the two can boast strong legal systems which protect the business interests of foreign business owners a few think the Singaporean system might be a little too eager. Hong Kong’s procedures might take a little longer but it’s generally agreed that this is in the interest of making sure everything is done in the most just manner possible.

For the sake of diplomacy we’ll continue to call it a toss-up. For some Singapore’s spotless streets are utter paradise and for others the rolling mountains and gleaming spires of Hong Kong spell an irresistible adventure.

Text: Alice Duncan