Conversations with Global Investors

The AoF co-organised with the Hong Kong Monetary Authority (HKMA) the “Conversations with Global Investors” seminar on 3 November, as part of the Global Financial Leaders’ Investment Summit. The seminar was attended physically by senior leaders in the financial, corporate and public sectors, both from Hong Kong and overseas.

In his opening speech, Mr Paul Chan, Financial Secretary of HKSAR and Honorary President of AoF, explained how Hong Kong has weathered through the risks and volatilities in our financial markets; our philosophy and approach towards market regulation, and concluded Hong Kong is “simply the best IFC in Asia”.

(From Left) Mr Paul Chan, Financial Secretary of HKSAR and Honorary President of AoF and Mr Eddie Yue, Chief Executive of the HKMA and Chairman of AoF

Mr Eddie Yue, Chief Executive of the HKMA and Chairman of AoF, closed the seminar by proclaiming “the buzz and energy of this city is coming back. I hope that this week will really mark the beginning of our path to normality from now on”.

During the panel titled “Creating Value Through Uncertainties” panelists exchanged brilliant ideas on the more promising markets, investment and asset allocation strategies against the background of global inflation, rising interest rates, and economic slowdown.

(From Left) Moderator Mr Weijian Shan, Executive Chairman of PAG, panelists Mr William E. Conway, Jr., Co-Founder, Interim CEO, and Co-Chairman of Carlyle, Mr Ben Way, Group Head of Macquarie Asset Management, Mr Jim Zelter, Co-President of Apollo Global Management, and Mr Luke Ellis, CEO of Man Group.

During the panel titled “ Managing through Volatile Markets ” panellists discussed the regime change in financial markets, and revealed their top picks of investment strategies and rebalancing in asset allocation and diversification that they are deploying for their clients. They also discussed what investors nowadays are demanding of investment managers, and what opportunities ESG investment would create.

(From Left) Moderator Mr Howard Lee, Deputy Chief Executive of HKMA, panelists Mr Stephen Klar, President & Managing Partner of Wellington Management, Ms Hanneke Smits, CEO of BNY Mellon Investment Management and Cyrus Taraporevala, President and CEO of State Street Global Advisors.

AoF Fellowship Conferred on Dr Norman T.L. Chan, GBS;
Prof Edward K Y Chen, GBS, JP;
and Dr David Y.K. Wong, GBS, JP

AoF Fellowship Conferred on Dr Norman T.L. Chan, GBS; Prof Edward K Y Chen, GBS, JP; and Dr David Y.K. Wong, GBS, JP

The AoF held its Fellowship Conferment cum Financial Leaders Programme Graduation Ceremony on 14 December. The Ceremony was officiated by Mr Paul Chan Mo-po, Financial Secretary of the Government of the Hong Kong Special Administrative Region and Honorary President of the AoF, and Mr Eddie Yue, Chief Executive of the Hong Kong Monetary Authority and Chairman of the AoF. Around 90 guests from the financial industry, regulatory authorities and academia attended the Ceremony and enjoyed the opportunity to gather with each other in person again.

This was the second Fellowship Conferment of the Academy. The AoF confers Fellowship to distinguished leaders in the field of finance who have made outstanding contributions to Hong Kong. The three recipients of AoF Fellowship are:

Dr Norman T L CHAN, GBS
Prof Edward K Y CHEN, GBS, JP
Dr David Y K WONG, GBS, JP

Graduation of 2022 Cohort of the Financial Leaders Programme

The Graduation Ceremony of the inaugural cohort of the AoF Financial Leaders Programme (the Programme) was held on 14 December 2022. The Programme aims to inspire financial talents, to equip them with a mindset to lead and look at issues from a macro perspective, as well as to expand their network. At the Ceremony, Mr Eddie Yue, the Chief Executive of the HKMA, congratulated the inaugural cohort and invited them to make good use of the learnings and connections from the Programme in their future leadership roles.

The 2022 graduates comprise 19 promising future financial leaders from a diverse background. During the nine-month programme, the cohort participated in over 30 discussion sessions with top leaders in financial services and other sectors on various issues pertinent to the continuous development of the Hong Kong financial industry.

Mr Paul Chan said “I convey my heartiest congratulations to our three new Fellows and the graduates of the Financial Leaders Programme. Talent development is vital to our success as a leading international financial centre. The Government will continue its efforts on all fronts to attract and groom our talents and develop future financial leaders.”

Mr Eddie Yue said “Today we are very glad to confer Fellowship upon three distinguished leaders of Hong Kong’s financial industry and celebrate the graduation of the first cohort of the Financial Leaders Programme. Three years into operation, the AoF has become an active player in financial leadership development and research in Hong Kong. Going forward, it will continue to develop itself into a centre of excellence for talent development and a knowledge hub that helps power Hong Kong as a leading international financial centre."

The full list of 2022 graduates can be found on https://www.aof.org.hk/flp/participants/2022-cohort.

The HKIMR successfully hosted its 12th Annual International Conference on the Chinese Economy on 23 November in a hybrid format. The theme of this year’s conference is “The Next Phase of China’s Economic Development”.

In his opening remarks, Mr Eddie Yue, Chief Executive of the HKMA, said the Chinese economy faced many challenges in the short run, but he was confident that the economy was resilient and would successfully move to the next phase of high-quality growth.

(From Left) Mr Eddie Yue, Chief Executive of the HKMA and Dr Wang Yiming, Vice Chairman and Chairman of the Academic Committee, China Center for International Economic Exchanges

During his keynote speech Dr Wang Yiming, Vice Chairman and Chairman of the Academic Committee, China Center for International Economic Exchanges, said China needed to get its economy back on track as soon as possible through appropriate monetary and fiscal policies.

After that, four Chief China Economists of major investment/commercial banks exchanged views about zero-covid policy, property market development, supply chain reshuffle and longer-term growth prospects in a panel discussion.

The conference also invited a number of leading experts to present their research papers on various topics.

The conference had more than 1.18 million real time online views and 75 on-site participants. It was widely reported by the local and the Mainland media.

(Top) Alicia Garcia-Herrero, Chief Economist for Asia Pacific of Natixis
(Bottom left) Shan Hui, Chief China Economist of Goldman Sachs
(Bottom middle) Zhu Haibin, Chief China Economist of J.P. Morgan and
(Bottom right) Liu Jing, Chief Economist for Greater China of Global Research of HSBC

Financial Leaders Programme

Progressing into the last phase of this year’s Programme, the inaugural cohort had dinners and fireside chats with distinguished leaders from the financial industry and regulatory bodies. The Programme ended on a high note with an in-depth and intriguing sharing by the Senior Adviser of the AoF, Mr Norman Chan, on his central banking career and his leadership philosophy. Highlights of past sessions can be found at
https://www.aof.org.hk/flp/programme-highlights/2022-cohort.

The application for the 2023 Programme closed on 11 December 2022. The industry response has been overwhelming, as evident in the large number of high-quality applications received. Application results will be announced in March 2023. Please stay tuned for the 2023 Programme activities on https://www.aof.org.hk/flp.

Dialogue with Norman Chan

Dinner with Dr Moses Cheng and Mr Tim Lui

Dialogue with Diana Cesar

Dialogue with Victor Fung

Dialogue with Lee Yuan Siong

Neil Shen Shared His Secrets of
Success in Discovering Hidden Gems

Neil Shen Shared His Secrets of Success in Discovering Hidden Gems

The AoF held a conversation session with Mr Neil Shen, Founding and Managing Partner of Sequoia China on 14 October 2022. The session was moderated by Mr Norman T.L. Chan, Senior Adviser of the AoF.

During the event, Mr Shen shared his insights on a wide range of subjects. On promising technologies, he believed that in addition to the so called “ABCD” technologies (AI, Blockchain, Cloud, Data Analytics), among which AI and Cloud will continue to prosper, the greentech is emerging as another crucial theme. He also pointed out that we are witnessing the birth of new cross-sector opportunities such as those crossovers between AI and drug discovery, creating new products and services.

Other than technological innovation, Mr Shen is of the view that the key thesis for China growth involves two major dynamics: (i) the consumption economy, which translates to ample opportunities for domestic consumption goods and services and (ii) urbanisation and industrialisation, which would lead to increasingly more supply chains located in China. These dynamics enable start-ups to thrive in China.

A world class venture capitalist, Mr Shen shared his secret of success in discovering hidden gems: to combine the “top down” and “bottom up” approaches. On “top down” approaches, it is important to understand what the megatrends are and what is up and coming. For “bottom up” approaches, it is vital to develop a knowhow of identifying and integrating key players and founders into one’s network. The “top down” and “bottom up” approaches are intertwined.

Mr Shen also discussed how to attract, groom, and retain talents. The key is to cultivate both a culture and system that are built on (i) Meritocracy, which encourages younger team members to contribute more and offers more opportunities to develop their careers; (ii) Teamwork. No investment is made by one person. Concerted efforts from not just the investment team, but also functional teams of Sequoia China are needed.

The conversation was conducted in hybrid format, and was broadcast online

(Left) Ms Irene Lee, Executive Chairman of Hysan Development Company Limited, (Middle) Mr Bi Ming Qiang, President & CEO of China CITIC Bank International Limited, and (Right) Mr KC Kwok, CEO of AoF exchanged views with Neil about Hong Kong’s relevance as an innovation hub, blockchain developments, and private equity as an asset class during the Q&As session.

The HKIMR organised a webinar on “Inflation in the Aftermath of Covid-19 – Was it Inevitable or Avoidable?” featuring Dr John Greenwood, Founder and Chief Economist of International Monetary Monitor Ltd., under the HKIMR-AoF Expert Speakers Series on 2 November. This webinar is part of the Global Financial Leaders’ Investment Summit.

During the webinar, Dr Greenwood presented his analysis on the recent surge in infiation in the advanced economies, arguing that the infiation is largely caused by too much money supply growth. The webinar was well received with close to 200 online participants.

(Top right) Dr John Greenwood, (Top left) Mr KC Kwok and
(Bottom) Mr Hongyi Chen, Senior Adviser of HKIMR

Asian Insurance Forum 2022 –
Panel Discussion on "Supporting Climate Actions –
Collaboration, Innovation and Finance"

Asian Insurance Forum 2022 – Panel Discussion on "Supporting Climate Actions – Collaboration, Innovation and Finance"

The AoF and the Insurance Authority (IA) co-organised a panel discussion “Supporting Climate Actions – Collaboration, Innovation and Finance” at the Asian Insurance Forum (AIF) on 5 December 2022. The AIF is the annual fiagship event of the IA, featuring discussions among leading players and experts in the insurance and financial markets, as well as top authorities in Hong Kong and the Asia Pacific region. The 2022 AIF had around 1,500 participants, including both in-person and virtual.

Moderated by Mr KC Kwok, CEO of the AoF, the panel featured Mr Ericson Chan, Group Chief Information and Digital Officer, Group Executive Director, Zurich Insurance Group, Prof Christine Loh Kung-wai, Chief Development Strategist of Institute for the Environment, The Hong Kong University of Science and Technology, Dr Gillian Rutherford, Head Reinsurance Sustainability, Swiss Re, and Ms Emily Woodland, Managing Director, APAC Head of Sustainable and Transition Solutions, BlackRock.

Speakers discussed how climate change is affecting insurers, reinsurers and how they are responding to keep insurance affordable; what governments could do both locally and at the multilateral level such as through COP27; how insurance companies could mainstream climate change into their investments and leverage technology to help their clients tackle climate change; and the issues related to data, reporting and standards. Asia is very important in the battle against climate change, and while huge investments mean a lot of opportunities, public private partnerships would be needed to mitigate risks.

(From Left) Moderator Mr KC Kwok, CEO of the AoF, panelists Mr Ericson Chan (virtually), Group Chief Information and Digital Officer, Group Executive Director, Zurich Insurance Group, Prof Christine Loh Kung-wai, Chief Development Strategist of Institute for the Environment, The Hong Kong University of Science and Technology, Dr Gillian Rutherford (virtually), Head Reinsurance Sustainability, Swiss Re, and Ms Emily Woodland, Managing Director, APAC Head of Sustainable and Transition Solutions, BlackRock.

Climate Risk Measurement: The Existing Landscape and
Developments in Hong Kong’s Financial Services Industry

Climate Risk Measurement: The Existing Landscape and Developments in Hong Kong’s Financial Services Industry

With rising temperatures and higher frequency of extreme weather events with intensifying impact, climate change is exerting a significant infiuence globally. In light of the recent 27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27), we are witnessing paradigm changes in global business under a new “carbon budget”. At this juncture, it is important to do a deep dive into financial institutions’ current practices and pain points in climate risk measurement, which is the fundamental step to manage the impact of climate risk and to explore how to facilitate further improvements. This will benefit both the financial services industry and society as a whole.

The new report released by the HKIMR, entitled “Climate Risk Measurement: The Existing Landscape and Developments in Hong Kong’s Financial Services Industry”, reviews global financial institutions’ motivations and challenges associated with climate risk measurement, and presents the results of a survey and interviews commissioned by the HKIMR, highlighting the existing landscape and developments on this subject in Hong Kong’s financial services industry. Financial institutions in Hong Kong are involved in the measurement of climate risk, with more than half of the survey respondents currently engaging in it and 76% having planned to allocate similar or more resources over the next 12 months. Although some challenges remain, the established experience of insurers in measuring climate risk can provide useful insights for other sectors. The report concludes by offering some considerations that can contribute to the discussion on how to facilitate and enhance climate risk measurement in Hong Kong.

The Launch of HKIMR’s SSRN Electronic Journal

The HKIMR has recently launched its first issue of an electronic journal (eJournal) on Social Science Research Network (SSRN), the world’s biggest open-access repository of research in economics and finance. The goal of this new initiative is to disseminate the HKIMR’s research output, including both applied/thought leadership research and academic-style monetary research, to a global community of academics, practitioners and policy makers. Applied/thought leadership research covers important topics under the key overarching themes including green and sustainable finance, financial innovation and recent developments in Mainland China’s financial markets, while monetary research focuses on macroeconomics, monetary policy and financial economics.

New issues of the eJournal will be published tentatively on a quarterly basis via emails. Everyone can subscribe to the HKIMR eJournal free of charge here.

HKIMR Seminars

The HKIMR has restarted in-person seminars, following the suspension due to the COVID-19 pandemic. Four researchers, under the open-bid applied research programme, and an overseas adviser have recently visited the HKIMR and shared with an interested audience their research findings. Full text of the papers will be available in early 2023.