WEBVTT - Hong Kong Could Take Switzerland's Wealth Crown

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<v Speaker 1>You're listening to Asia Centric from Bloomberg Intelligence, the podcast

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<v Speaker 1>that pulls back the curtain on global business so you

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<v Speaker 1>can invest better across the Asia Pacific rim. I'm John

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<v Speaker 1>Lee in Hong Kong. Hong Kong's wealth management industry is

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<v Speaker 1>booming as rich mainland Chinese investors continue to pour funds

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<v Speaker 1>into the city. Hong Kong's cross border wealth under management

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<v Speaker 1>is now over two point two trillion dollars, making it

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<v Speaker 1>the second largest in the world, and it's only a

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<v Speaker 1>matter of time before it overtakes Switzerland as the biggest

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<v Speaker 1>offshore finance center. What's driving China's individuals and families to

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<v Speaker 1>invest overseas, what are they investing in and how will

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<v Speaker 1>China's economic slump impact future flows. Here to discuss Hong

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<v Speaker 1>Kong's wealth management industry is Lemiel Lee, head of Wealth

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<v Speaker 1>management at BNP in Hong Kong, and Shani Wong, senior

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<v Speaker 1>financials analyst that Bloomberg and tell ugents. Welcome, Lemuel and Channing.

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<v Speaker 1>Thank you for having me here. Lemuel. What fact is

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<v Speaker 1>a driving Hong Kong as a wealth hump?

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<v Speaker 2>Well, several key opportunities are driving across the private wealth

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<v Speaker 2>management industry in Hong Kong and Greater China. Firstly, the

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<v Speaker 2>Hong Kong government is actively fostering a thriving ecosystem for

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<v Speaker 2>family officers, making and attractive destinations for both clients and

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<v Speaker 2>wealth management professionals. More importantly, initiatives like tax the new

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<v Speaker 2>Capital Investment Entrance Scheme relaunched this year and other streamlined

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<v Speaker 2>regulations are attracting families and entrepreneurs to establish a presence

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<v Speaker 2>in Hong Kong, creating significant opportunities for wealth managers. Secondly,

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<v Speaker 2>the continued growth potential in mainland China. While growth may

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<v Speaker 2>have slowed, the sheer size and potential for the Chinese

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<v Speaker 2>market reminds undeniable. Hong Kong serves as a crucial wealth

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<v Speaker 2>management hub for its strategic location. Wealth managers with an

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<v Speaker 2>onshore presence are well positioned to capitalize on this growth

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<v Speaker 2>by catering for the growing affluent and high network segment

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<v Speaker 2>that has an offshore need. Thirdly, well established capital markets

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<v Speaker 2>Hong Kong is strengthening its position as a key connector

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<v Speaker 2>between the Asia, the Middle East, and the mainland China.

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<v Speaker 2>This interconnectedness, coupled with a revival and IPO activity, presents

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<v Speaker 2>opportunities for wealth managers to offer investment solutions and capture

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<v Speaker 2>a share of the growing capital flows or not. I

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<v Speaker 2>see these three factors as the driving force to inflows

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<v Speaker 2>in Hong Kong.

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<v Speaker 1>Lemillu alluded to China's weak economic picture. It's well known

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<v Speaker 1>that the country is suffering from a slow down. Its

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<v Speaker 1>property market and stock markets are both pressed. Consumption is weak.

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<v Speaker 1>But on the other hand, as we all know, mainland

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<v Speaker 1>investors continue to pour money offshore. Are you surprised by

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<v Speaker 1>the strength of all the flows given the weak economic picture.

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<v Speaker 2>China continues to be a key growth drive in the region.

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<v Speaker 2>Growth may have slowed down, but the potential is still huge.

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<v Speaker 2>Our access and interactions determines our flows. For example, the

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<v Speaker 2>connect schemes between Hong Kong and China enables international investors

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<v Speaker 2>to gain broader access to onshore China capital markets. Through

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<v Speaker 2>Hong Kong Remenbe internization presents opportunities for Hong Kong to

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<v Speaker 2>position itself as an offshore Remenbee hub and wealth management

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<v Speaker 2>center for remen Be assets for both China and international investors.

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<v Speaker 2>In fact, after COVID, we have deepened interactions with prospects

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<v Speaker 2>and existing clients. As Chinese investors get more sophisticated, our

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<v Speaker 2>bankers have been taking the opportunity to engage in conversations

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<v Speaker 2>around more complex wealth needs such as secession planning, family

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<v Speaker 2>office setup, and wealth diversification for their offshore wealth, pivoting

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<v Speaker 2>a lot from the traditional discussions around pure investments. The

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<v Speaker 2>reduced iper activities and fundraising nevertheless has dampened overall investment

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<v Speaker 2>sentiments and less pronounced wealth creations, hence less assets and flows.

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<v Speaker 1>And where are the rich mainland investors?

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<v Speaker 2>Like?

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<v Speaker 1>Where they putting their money? Is it in like an

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<v Speaker 1>S and P five hundred ETF? Is it gold? Is

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<v Speaker 1>it bitcoin? Is it? You know? Money? Paintings give us

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<v Speaker 1>some color? Where are they putting their money?

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<v Speaker 2>Can I say all of the above?

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<v Speaker 1>Okay? Look?

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<v Speaker 2>After close to two years of pent up cash and

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<v Speaker 2>deposit balances due to high interest rates, clients have finally

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<v Speaker 2>started to return more broadly to lower risk and higher

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<v Speaker 2>quality segments of the market. Top inflows were into fixed

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<v Speaker 2>income such as global bond funds with a bias towards

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<v Speaker 2>developed market and investment grade. These well rated bond funds

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<v Speaker 2>provide relatively attractive, stable distribution income and our ideal position

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<v Speaker 2>for the rates cut environment. Equities continues to build momentum,

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<v Speaker 2>in particular towards Japan, India and US across different sectors

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<v Speaker 2>related to technology. With heightened volatility, many clients choose to

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<v Speaker 2>use structure products to cautiously enter the market to limit

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<v Speaker 2>the downside. We also advocate higher portfolio diversification to improve

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<v Speaker 2>risk return profiles for our clients and hence also saw

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<v Speaker 2>good inflows for multi assets funds, but also to add

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<v Speaker 2>higher components to alternatives including private debt, equity and hedge funds.

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<v Speaker 2>In particular, liquid alternatives like relative value fixed income and

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<v Speaker 2>long short global equity strategies receiving the best traction by

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<v Speaker 2>Chinese investors.

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<v Speaker 1>And you first mentioned bond funds. Now you can get

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<v Speaker 1>much higher interest rates in the US and other parts

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<v Speaker 1>of the world than in China. The US stock markets

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<v Speaker 1>have also significantly outperformed those on the mainland. Is this

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<v Speaker 1>also another reason why mainland investors want to invest overseas

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<v Speaker 1>but just getting a lot better returns.

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<v Speaker 2>I think returns headline is one target of which investors

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<v Speaker 2>are yield seeking, but I think what's more the pertinent

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<v Speaker 2>question is diversification. Many investors over the last four years

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<v Speaker 2>have natural home bias and they've invested in their own markets,

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<v Speaker 2>and we've seen the performance of Hong Kong and China

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<v Speaker 2>as a result. They've learned the benefits of diversification and

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<v Speaker 2>not only targeting returns with the US, but earlier mentioned Japan, India,

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<v Speaker 2>and they're really yield seeking to find returns in those

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<v Speaker 2>respective markets, and that's why we really see the benefits

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<v Speaker 2>of dipersification outside of your home market.

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<v Speaker 1>me you're the head of wealth at BMP. A lot

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<v Speaker 1>of listeners want to know how rich are these people.

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<v Speaker 1>Are they sort of like crazy rich billionaires or are

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<v Speaker 1>they more like the single digit millionaire types? Like what

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<v Speaker 1>does it take to become a client of a private bank?

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<v Speaker 2>Well, my definition private banking. There's several segments in the

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<v Speaker 2>market but I'll use the industry standard of what we

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<v Speaker 2>call the high network, which is generally between three to

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<v Speaker 2>up to let's say twenty million or so, and the

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<v Speaker 2>ultra high network, which is from normally thirty all the

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<v Speaker 2>way up to one hundred or even to the billions.

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<v Speaker 2>So the range is there. We are BNP par serve

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<v Speaker 2>the spectrum of clients and are really agnostic to the size.

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<v Speaker 2>What's more important is we're making sure that we serve

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<v Speaker 2>the needs and the needs offshore.

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<v Speaker 1>Okay, Shane, I want to bring you into the conversation.

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<v Speaker 1>The chairman of UBS, Sergia Ermodi, warned earlier this year

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<v Speaker 1>that Switzerland could lose its crown as the world's wealth

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<v Speaker 1>management hub to Hong Kong. Now, can you give us

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<v Speaker 1>some numbers? Is this a foregone conclusion and like when

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<v Speaker 1>is this going to happen?

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<v Speaker 3>Yes, right now, Hong Kong has roughly about two point

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<v Speaker 3>two trillion of our cross border wealth and Fwitzerland is

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<v Speaker 3>the head with about two point four tillion. But when

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<v Speaker 3>we look at the growth opportunity, the growth in Asia

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<v Speaker 3>is a lot faster than what we're seeing in Europe,

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<v Speaker 3>which is a developed market. So you know, a slam

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<v Speaker 3>also mentioned. A key driving force is China. It is

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<v Speaker 3>the second largest in terms of wealth globally, behind the US,

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<v Speaker 3>and people are still getting richer. You know, despite COVID

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<v Speaker 3>and despite their current property slump, people still save a lot.

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<v Speaker 3>You know, the savings rates really high, about the third

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<v Speaker 3>of their income. And right now with the fact that

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<v Speaker 3>property's done, you know, it's not an attractive investment. And

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<v Speaker 3>then with deposit rate cuts, there is this huge drive

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<v Speaker 3>for them to use that money and invest in high

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<v Speaker 3>yielding investment products. And I think offshore is definitely a

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<v Speaker 3>very attractive destination for them. Even if the FED cuts

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<v Speaker 3>rates later this year, the yields on something very low

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<v Speaker 3>risk like a time deposit, it's still far higher than

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<v Speaker 3>what they get on shore. So I think this is

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<v Speaker 3>one of the key drivers that is pushing a lot

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<v Speaker 3>of onshore customers to Hong Kong.

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<v Speaker 1>Okay, And when will Hong Kong overtake Switzerland? Do you think.

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<v Speaker 3>When we look at the growth potential, so for Hong

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<v Speaker 3>Kong it could grow roughly about six to eight percent,

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<v Speaker 3>so it should happen within the next two to three years.

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<v Speaker 1>And when a rich mainland investor decides to pour money overseas.

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<v Speaker 1>It's not just Hong Kong. There's other options as well.

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<v Speaker 1>There's obviously Singapore, there's also maybe potentially Dubai. How does

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<v Speaker 1>Hong Kong compete for this money shanny. Yeah, So one.

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<v Speaker 3>Edge that Hong Kong has that none of the other

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<v Speaker 3>places have would be their infrastructure connecting Hong Kong and

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<v Speaker 3>global investors with China. And also the fact that right

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<v Speaker 3>now regulators are really prioritizing these cross border schemes. They're

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<v Speaker 3>really pushing ahead. So for example, earlier this year they

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<v Speaker 3>increase the quotas for the southbound Wealth Management to connect

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<v Speaker 3>and also they relax the eligibility criteria for the ETF

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<v Speaker 3>connect And there's just so much going on. So when

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<v Speaker 3>we look at the flows through so many of their

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<v Speaker 3>cross border schemes, like the Neutral Cognition A fund scheme

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<v Speaker 3>for example, with AUM there surging. We look at the

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<v Speaker 3>GDII funds on shore that is also accelerating. So it

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<v Speaker 3>goes to show that policy support is also very important,

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<v Speaker 3>and I think that is one key differentiating factor with

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<v Speaker 3>Hong Kong. Thus is anywhere else.

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<v Speaker 1>And lemme or did you want to add to that?

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<v Speaker 2>Well, absolutely, I think Hong Kong and Singapore both possess

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<v Speaker 2>key advantages that make them both leading hubs for managing

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<v Speaker 2>private wealth in Asia. They both have their unique strength

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<v Speaker 2>catering to varying client needs. Rather than competing I outside,

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<v Speaker 2>they're often complementing each other in serving needs of sophisticated investors.

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<v Speaker 2>Some families now opt to set up accounts in both cities.

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<v Speaker 2>Client seed diversification not only at a portfolio level, but

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<v Speaker 2>also the custody of assets in terms of location the

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<v Speaker 2>versification we see the growth of Asian high network and

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<v Speaker 2>Ultra high network population, further strengthening the proposition for both hubs.

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<v Speaker 2>Emerging markets like to buy are also worth monitoring, but

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<v Speaker 2>unlikely to supersede establish plays. Yet, when we talk about competition,

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<v Speaker 2>one point that I want to highlight for us is

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<v Speaker 2>the competition on talent. This is something that keeps me

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<v Speaker 2>up every night. You know, how do we position ourselves

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<v Speaker 2>as to go to bank to attract the right talents,

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<v Speaker 2>to build a good working environment that enables our people

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<v Speaker 2>to unleash their potential and perform at the best.

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<v Speaker 1>I wanted to mention on Singapore. Now they had a

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<v Speaker 1>huge money laundering scandal last year. Authorities jailed. I think

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<v Speaker 1>a number of individuals from the mainland. I think it

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<v Speaker 1>was over two billion dollars. It was reported by various

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<v Speaker 1>press that the funds were from criminal activities. Now, the

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<v Speaker 1>Singapore authorities subsequently tightened family office regulations, making it more

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<v Speaker 1>difficult basically to park your money. There is this do

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<v Speaker 1>you think benefiting Hong Kong at all? Like this money

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<v Speaker 1>now moving.

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<v Speaker 3>Back to Hong Kong, I think with Singapore's regulators really

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<v Speaker 3>tightening the rules and you know, implementing tougher compliance criteria

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<v Speaker 3>for a lot of these private banks, there could be

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<v Speaker 3>a return of family officers to Hong Kong. So previously

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<v Speaker 3>Singapore grew a lot faster than Hong Kong did, especially

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<v Speaker 3>throughout COVID. There was a recent commission survey done by

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<v Speaker 3>the Hong Kong government which showed that in Hong Kong

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<v Speaker 3>there's about two thousand, seven hundred single family offices and

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<v Speaker 3>then Singapore had about one thousand, four hundred. So right

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<v Speaker 3>now Hong Kong family office space is still a lot larger.

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<v Speaker 3>But I think going forward, you know, as Singapore's regulated

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<v Speaker 3>tightened in terms of scrutiny on the industry, Hong Kong

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<v Speaker 3>at the same time, they are easing rules to clean

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<v Speaker 3>tax concessions. So I think for the next a couple

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<v Speaker 3>of years we could see Hong Kong maybe extend its

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<v Speaker 3>lead a little bit.

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<v Speaker 2>I think what's important is to maintain a high standard

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<v Speaker 2>of email vigilance in terms of onboarding, and I think

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<v Speaker 2>Hong Kong over the years and decades there have been

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<v Speaker 2>as an international hub, have maintained the standard, and that's

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<v Speaker 2>why that has been proven to reinforce one of the

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<v Speaker 2>earlier points around well capitalized our market. And that's in

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<v Speaker 2>itself the attractiveness because of the soundness of the fact

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<v Speaker 2>that Hong Kong remains robust as a world class international

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<v Speaker 2>financial centers and has the ability to really make sure

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<v Speaker 2>that the wealth comes in addressing this needs. I think

0:14:29.560 --> 0:14:32.160
<v Speaker 2>it's more pertinent and also explains the reason why these

0:14:32.240 --> 0:14:35.040
<v Speaker 2>inflows are being reinforced back into Hong Kong.

0:14:36.200 --> 0:14:39.920
<v Speaker 1>And Lemielle, you talked about the war for talent. You

0:14:40.040 --> 0:14:43.280
<v Speaker 1>are always trying to get the best people. Now, when

0:14:43.320 --> 0:14:45.400
<v Speaker 1>I look at Hong Kong, I think a lot of

0:14:45.400 --> 0:14:48.520
<v Speaker 1>people will be surprised at how strong the wealth management

0:14:48.600 --> 0:14:51.560
<v Speaker 1>industry is doing. If you listen to the press, Hong

0:14:51.640 --> 0:14:55.720
<v Speaker 1>Kong's property market is really suffering, especially on the commercial side.

0:14:55.960 --> 0:14:58.880
<v Speaker 1>You know, Shannie mentioned that IPO activity is really down.

0:14:59.440 --> 0:15:02.080
<v Speaker 1>Retail spending is down as well. But it seems like

0:15:02.440 --> 0:15:05.680
<v Speaker 1>the wealth management industry is the one sort of shining

0:15:05.800 --> 0:15:09.560
<v Speaker 1>light within the finance industry that's doing well. Are you

0:15:09.680 --> 0:15:13.000
<v Speaker 1>getting a lot of people, a lot of cvs wanting

0:15:13.040 --> 0:15:16.720
<v Speaker 1>to work at BMP, and how are you trying to

0:15:16.800 --> 0:15:17.800
<v Speaker 1>attract the right talent?

0:15:19.400 --> 0:15:22.240
<v Speaker 2>In terms of attracting talent, it's not something that we've

0:15:22.280 --> 0:15:25.320
<v Speaker 2>only seen as the last couple of years. What's important

0:15:25.360 --> 0:15:28.760
<v Speaker 2>to attract talent in the industry is making sure that

0:15:28.880 --> 0:15:31.720
<v Speaker 2>we have the ecosystem for them to thrive. And I

0:15:31.800 --> 0:15:34.200
<v Speaker 2>look at it in terms of three pillars or three pongs.

0:15:34.840 --> 0:15:35.000
<v Speaker 3>One.

0:15:35.320 --> 0:15:37.120
<v Speaker 2>We need to make sure that we attract the right

0:15:37.160 --> 0:15:39.560
<v Speaker 2>people for that to happen. We need to make sure

0:15:39.560 --> 0:15:41.840
<v Speaker 2>that we ensure we train them. We train them so

0:15:41.880 --> 0:15:44.000
<v Speaker 2>that they know how to be in the industry, they

0:15:44.080 --> 0:15:47.560
<v Speaker 2>know how to help serve the clients. And that's really

0:15:47.600 --> 0:15:49.560
<v Speaker 2>important because we need to make sure that they we're

0:15:49.560 --> 0:15:52.760
<v Speaker 2>given the career to thrive and having a longer term

0:15:52.880 --> 0:15:56.200
<v Speaker 2>prospect in the private wealth industry. Second of all, we

0:15:56.240 --> 0:15:58.400
<v Speaker 2>need to make sure that they actually have the platform

0:15:58.760 --> 0:16:01.440
<v Speaker 2>it was earlier shared by There's a lot of different

0:16:01.720 --> 0:16:05.000
<v Speaker 2>regulations that come out, whether it be the SPI or

0:16:05.040 --> 0:16:08.400
<v Speaker 2>the CIS. You know, how does the platform be agile

0:16:08.520 --> 0:16:11.280
<v Speaker 2>enough to adapt to these new changes so you can

0:16:11.320 --> 0:16:14.120
<v Speaker 2>be one of the earliest movers to be leading in

0:16:14.160 --> 0:16:17.760
<v Speaker 2>the private banking industry. And I think what's also important

0:16:17.800 --> 0:16:20.720
<v Speaker 2>is the platform allows you to customize to the needs

0:16:20.720 --> 0:16:23.400
<v Speaker 2>of our clients, so that you're not having cookie cutters

0:16:23.440 --> 0:16:26.720
<v Speaker 2>and pushing products, but really customizing the needs of the

0:16:26.760 --> 0:16:30.080
<v Speaker 2>inversus of whether it's high net worth or or try networth.

0:16:30.680 --> 0:16:34.320
<v Speaker 2>And lastly, what's important is to have the products. We

0:16:34.360 --> 0:16:36.240
<v Speaker 2>need to make sure the products are there, that we

0:16:36.280 --> 0:16:39.120
<v Speaker 2>are serving the needs of our clients. And now as

0:16:39.320 --> 0:16:42.400
<v Speaker 2>clients needs are getting more sophisticated, we actually serve not

0:16:42.480 --> 0:16:45.000
<v Speaker 2>only the needs based out of Asia, but they may

0:16:45.040 --> 0:16:48.760
<v Speaker 2>have needs for MPa propose in Europe or we actually

0:16:48.800 --> 0:16:52.040
<v Speaker 2>help them in terms of one bank. Also the business

0:16:52.040 --> 0:16:54.920
<v Speaker 2>needs whether they need to raise capital or have M

0:16:54.960 --> 0:16:58.280
<v Speaker 2>and A so all not to attract talent. I think

0:16:58.320 --> 0:17:01.760
<v Speaker 2>these three pillars are vital so that we can serve

0:17:02.040 --> 0:17:05.159
<v Speaker 2>our clients' needs holistically and as a result of this

0:17:05.240 --> 0:17:08.200
<v Speaker 2>over the years, Yes, we've been getting a lot of cbs.

0:17:07.760 --> 0:17:11.520
<v Speaker 1>To join us and Shannie. Looker Lemuel has been talking

0:17:11.520 --> 0:17:14.399
<v Speaker 1>about BNP's role. But you know, just outside of B

0:17:14.480 --> 0:17:18.720
<v Speaker 1>and P, which companies are really thriving in this wealth

0:17:18.760 --> 0:17:20.480
<v Speaker 1>management environment in Hong Kong.

0:17:21.600 --> 0:17:23.840
<v Speaker 3>So I think everyone is doing really well. When we

0:17:23.880 --> 0:17:27.679
<v Speaker 3>look at the more Hong Kong centric global banks like

0:17:27.920 --> 0:17:31.720
<v Speaker 3>HSBC and Standard Hearted, you know, they talk about very

0:17:31.760 --> 0:17:35.879
<v Speaker 3>strong increase in wealth management revenue. There isn't that much disclosure,

0:17:35.920 --> 0:17:39.200
<v Speaker 3>but of what they disclose it is going very well.

0:17:39.240 --> 0:17:44.160
<v Speaker 3>So for example, Muta fund sales, insurance sales that they're

0:17:44.200 --> 0:17:45.480
<v Speaker 3>doing very well. And then when we look at the

0:17:45.520 --> 0:17:48.480
<v Speaker 3>Singapore banks as well, apart from them, you know, with

0:17:48.520 --> 0:17:51.080
<v Speaker 3>a very big presence in Singapore, they also have a

0:17:51.160 --> 0:17:54.720
<v Speaker 3>very large operation in Hong Kong too. So I think

0:17:54.920 --> 0:17:57.479
<v Speaker 3>the Hong Kong banks and also the Singapore banks, just

0:17:57.520 --> 0:18:01.440
<v Speaker 3>by their geographical footprint, they are pro the most positively

0:18:01.560 --> 0:18:04.160
<v Speaker 3>leveraged to this Hong Kong Welsh growth story.

0:18:05.560 --> 0:18:08.040
<v Speaker 1>And look, we talked a lot about the growth potential,

0:18:08.080 --> 0:18:10.480
<v Speaker 1>but let's also talk about the risk. Now. We all

0:18:10.520 --> 0:18:13.560
<v Speaker 1>know that investing in this part of the world, especially

0:18:13.600 --> 0:18:17.600
<v Speaker 1>when it relates to China, there's always regulatory risk. Is

0:18:17.640 --> 0:18:20.600
<v Speaker 1>there any regulatory risks you can see on the horizon?

0:18:20.760 --> 0:18:22.159
<v Speaker 1>A Shani? Can you just talk about that.

0:18:23.560 --> 0:18:26.359
<v Speaker 3>What we've seen the regulators do in recent years is

0:18:26.400 --> 0:18:30.280
<v Speaker 3>to relax the rules, and it is quite unpredictable at times,

0:18:30.280 --> 0:18:33.800
<v Speaker 3>but I don't think that they'll backtrack anytime soon. And

0:18:34.119 --> 0:18:37.320
<v Speaker 3>from what the Hong Kong regulators and also mainline regulators

0:18:37.320 --> 0:18:40.639
<v Speaker 3>have said, they do plan to increase the quotas for

0:18:40.800 --> 0:18:44.040
<v Speaker 3>their current schemes, like for example, the Southound Wealth Management Connects.

0:18:44.320 --> 0:18:48.800
<v Speaker 3>They already just tripled the individual quota to three million

0:18:48.920 --> 0:18:51.520
<v Speaker 3>R and B and there is talk of that potentially

0:18:51.560 --> 0:18:54.800
<v Speaker 3>being listed higher. Because you know, this quota it doesn't

0:18:54.840 --> 0:18:57.720
<v Speaker 3>really cater to the private banking space, which you know

0:18:57.800 --> 0:19:02.280
<v Speaker 3>have a far larger out of wealth. So I think

0:19:02.320 --> 0:19:05.720
<v Speaker 3>going forward, it's likely that they're going to be more

0:19:05.720 --> 0:19:10.400
<v Speaker 3>opportunities to come in terms of what could potentially go wrong. Ultimately,

0:19:10.600 --> 0:19:12.800
<v Speaker 3>the regulators they do have a lot of control, so

0:19:13.000 --> 0:19:16.000
<v Speaker 3>if any of these schemes were to not work, or

0:19:16.000 --> 0:19:18.520
<v Speaker 3>if there's any sudden shock to the system or stress

0:19:18.600 --> 0:19:22.880
<v Speaker 3>to the system, they could potentially pull back or tighten approvals.

0:19:23.880 --> 0:19:27.000
<v Speaker 3>Another example would be the MRF scheme. Right now, the

0:19:27.080 --> 0:19:30.760
<v Speaker 3>rules are quite tight and even though the scheme does

0:19:30.920 --> 0:19:35.760
<v Speaker 3>allow asset managers to access on shore retail customers, the

0:19:35.800 --> 0:19:39.320
<v Speaker 3>pace of approval has been quite slow. But then again,

0:19:39.520 --> 0:19:42.439
<v Speaker 3>there are talks of the rules being relaxed going forward.

0:19:42.520 --> 0:19:45.480
<v Speaker 3>So you know that again is hope and more opportunity

0:19:45.600 --> 0:19:48.200
<v Speaker 3>for Hong Kong FI managers to take advantage of these

0:19:48.240 --> 0:19:49.480
<v Speaker 3>opportunities as they come.

0:19:50.840 --> 0:19:53.760
<v Speaker 2>Maybe I want to share one point. I would say

0:19:53.800 --> 0:19:58.960
<v Speaker 2>industry trends have been continually thinking that Hong Kong has

0:19:59.080 --> 0:20:03.600
<v Speaker 2>attracted money purely from China, but I do believe that

0:20:03.640 --> 0:20:06.560
<v Speaker 2>has changed. What I mean by that is that Hong

0:20:06.640 --> 0:20:10.880
<v Speaker 2>Kong as a super connector attracts significant capital inflows from

0:20:10.920 --> 0:20:14.040
<v Speaker 2>not only China, but also playing a pivotal role in

0:20:14.080 --> 0:20:19.040
<v Speaker 2>linking to Southeast Asia and the Middle East. Its strategic location,

0:20:19.560 --> 0:20:22.760
<v Speaker 2>robust legal framework, it's deep pool of financial talent and

0:20:22.960 --> 0:20:27.400
<v Speaker 2>unparalleled service level makes it an attractive destination for both

0:20:27.440 --> 0:20:31.080
<v Speaker 2>clients and wealth management professions. This we knows Hong Kong

0:20:31.119 --> 0:20:35.800
<v Speaker 2>standing and Hong Kong has a long history of capital flows,

0:20:35.840 --> 0:20:39.879
<v Speaker 2>expertise and device to and from Southeast Asia. The Hong

0:20:39.960 --> 0:20:42.600
<v Speaker 2>Kong government has recently been putting a lot of effort

0:20:42.760 --> 0:20:46.120
<v Speaker 2>in building the corridors with the Asian countries, which has

0:20:46.240 --> 0:20:49.080
<v Speaker 2>helped to drive a lot of business opportunities from MOSO

0:20:49.200 --> 0:20:53.800
<v Speaker 2>places like Indonesia and Thailand. We're also seeing how things

0:20:53.800 --> 0:20:55.960
<v Speaker 2>will involve in terms of the Middle East, and this

0:20:56.000 --> 0:20:58.919
<v Speaker 2>is rather new, so we haven't seen significant inflows, but

0:20:58.960 --> 0:21:01.840
<v Speaker 2>there's a growing effort to develop this dialogue. So I

0:21:01.840 --> 0:21:04.480
<v Speaker 2>thought it would be important for the listeners to also

0:21:04.800 --> 0:21:06.920
<v Speaker 2>get a sense of where these flows are coming from

0:21:06.920 --> 0:21:07.639
<v Speaker 2>across the region.

0:21:09.200 --> 0:21:12.080
<v Speaker 1>Okay, before I let you go, Lemielle, there's listeners of

0:21:12.160 --> 0:21:15.080
<v Speaker 1>Asia centric all around the world. You know, a lot

0:21:15.080 --> 0:21:18.000
<v Speaker 1>of people listening to you probably want a job in

0:21:18.119 --> 0:21:22.040
<v Speaker 1>private banking. But if you're not in private banking, how

0:21:22.040 --> 0:21:24.000
<v Speaker 1>do you get your foot in the door? Like give

0:21:24.000 --> 0:21:24.679
<v Speaker 1>them some tips?

0:21:25.680 --> 0:21:29.359
<v Speaker 2>Well, I think what's important is to have transferable skill sets.

0:21:29.760 --> 0:21:32.040
<v Speaker 2>What I mean by this is if you've been working

0:21:32.080 --> 0:21:35.320
<v Speaker 2>in let's say, asset management, you may have an interest

0:21:35.480 --> 0:21:38.960
<v Speaker 2>to join our discretionary or investment counselor's team. If you've

0:21:39.000 --> 0:21:43.200
<v Speaker 2>got expertise across specific asset classes like equity, bonds of

0:21:43.200 --> 0:21:46.000
<v Speaker 2>fixed income, you can join our products team. But if

0:21:46.000 --> 0:21:48.960
<v Speaker 2>you overall have a passion to serve the needs of clients,

0:21:49.440 --> 0:21:53.119
<v Speaker 2>have a real meaningful engagement with clients in general and

0:21:53.160 --> 0:21:55.480
<v Speaker 2>serving their needs, then you can become a banker and

0:21:55.520 --> 0:21:59.359
<v Speaker 2>relationship manager. And what's really interesting and makes the career

0:21:59.359 --> 0:22:02.480
<v Speaker 2>and wealth management fun is there's something new every day

0:22:02.600 --> 0:22:06.320
<v Speaker 2>because clients have multi angles of needs and they change

0:22:06.440 --> 0:22:09.119
<v Speaker 2>throughout the life of their wealth journey. And what I

0:22:09.160 --> 0:22:12.680
<v Speaker 2>mean by that is wealth is generally comes into three cycles.

0:22:12.760 --> 0:22:16.679
<v Speaker 2>They have wealth generation, wealth management and wealth legacy. And

0:22:16.720 --> 0:22:19.080
<v Speaker 2>what makes it fun is that we follow our clients

0:22:19.359 --> 0:22:22.680
<v Speaker 2>through those cycle and that changes every day.

0:22:23.560 --> 0:22:27.480
<v Speaker 1>Okay, that's a great answer, Lemiel. We have three Australians

0:22:27.520 --> 0:22:30.960
<v Speaker 1>working in Hong Kong now speaking on this podcast. If

0:22:30.960 --> 0:22:33.600
<v Speaker 1>three Australians can do it, then other people can do

0:22:33.680 --> 0:22:38.840
<v Speaker 1>it as well. It's been an interesting discussion on Age's

0:22:38.880 --> 0:22:43.640
<v Speaker 1>wealth industry, China's billionaires, and Hong Kong's role as offshore

0:22:43.760 --> 0:22:47.280
<v Speaker 1>financial center. Thank you, Lemiel and Shannie for joining the show.

0:22:47.760 --> 0:22:48.160
<v Speaker 2>Thank you.

0:22:48.160 --> 0:22:49.160
<v Speaker 3>Thanks.

0:22:50.040 --> 0:22:53.119
<v Speaker 1>I'm John Lee in Hong Kong. This podcast was produced

0:22:53.119 --> 0:22:55.480
<v Speaker 1>by Clara Chen and you've been listening to the age

0:22:55.480 --> 0:22:56.400
<v Speaker 1>of centric podcast