InvestHK facilitates Hong Kong's emergence as a top-tier global art trading hub

The city's government body backs up international auction house Bonhams in launching its new Asian head office, aiming to cater to the growth of the local market.

Known worldwide as a major crossroads for Eastern and Western cultural interactions, Hong Kong also ranks among the top three global art trading hubs. This is quite an impressive feat considering the intense competition in this sector.

The most recent government data reaffirms this position, indicating that the combined trading value of art pieces, collectibles, and antiques last year came close to HK$105.5 billion (US$13.5 billion). There are indications suggesting that there is still significant room for ongoing expansion.

InvestHK, a governmental body tasked with drawing in foreign direct investment and offering actionable guidance and support to businesses from mainland China and abroad aiming to establish or grow in the city, has been a critical contributor to this achievement. It offers assistance to businesses of all types, from new ventures to well-established entities, helping them understand and comply with laws, regulations, and tax codes, ensuring they are on the path to success.

InvestHK has played a significant role in aiding numerous noteworthy corporations in the city to expand, with Bonhams being a recent instance. In October, this well-known auction house launched its new Asia-based head office in Hong Kong. This move is a part of their tactical plan to boost ongoing development in the area and to improve their variety of services and events.

"Hong Kong offers a distinct mix of cultural and business advantages, which makes it a perfect base for catering to our clients across Asia and the world," says Julia Hu, the Asia Managing Director of Bonhams. "Our growth in this area reaffirms the company's enduring dedication to this vibrant marketplace."

Absolutely, since launching its inaugural auction room in the city in 2014, numerous facets of the company have witnessed significant expansion. In the previous two years alone, the staff strength of Bonhams has surged by 20 per cent, thus making it crucial to locate a larger, tailor-made headquarters to facilitate the upcoming stage of growth and seize fresh prospects.

Citigroup's Chief Executive Officer Fraser has had meetings with the Vice Premier of China and the Mayor of Shanghai, as Beijing showcases its reforms. Fraser has stated that the Wall Street financial institution plans to increase its involvement in the market to aid in strengthening economic and trade relationships between the U.S. and China.

The Vice Premier of China, He Lifeng, had a meeting with Jane Fraser, the CEO of Citigroup, in Beijing this past Thursday. This highlights the country's attempts to liberalize its financial sectors and draw in overseas investment, despite geopolitical strain and a decelerating economy.

The nation's leading financial authority informed Fraser that the nation is intensifying the overhaul of its financial infrastructure while persistently broadening the high-grade, reciprocal accessibility of its financial industry.

China is opening its doors to more international financial entities and investments to collaborate in the expansion of its financial markets and to take advantage of the growth opportunities it offers.

Fraser conveyed that Citigroup is confident regarding the economic future of China as well as the prospects of its financial arenas. He added that this Wall Street institution plans to intensify its involvement in the market to foster US-China economic relations and commerce, while simultaneously ensuring the robust growth of the worldwide economy.

The future of relations between the US and China continues to be unpredictable after Donald Trump was re-elected as president. The soon-to-be-inaugurated president, who initiated a trade conflict with Beijing during his initial term, has threatened to impose duties up to 60 per cent on Chinese exports.

Despite political instability and international conflicts, Hong Kong's wealth management sector continues to prosper. The Capital Investment Entrant Scheme, which was inaugurated in March, has attracted over HK$20 billion through 670 submissions, according to Paul Chan.

The political future of Hong Kong is increasingly worrying investors who are interested in its wealth management products, as per a survey conducted by the Private Wealth Management Association and KPMG China on Friday.

In the meantime, the Capital Investment Entrant Scheme, which was initiated in March this year, has seen significant success, according to Financial Secretary Paul Chan Mo-po. He made these comments at a conference held by the Private Wealth Management Association in Hong Kong on Friday, where the survey results were disclosed.

The initiative, often referred to as the investment-immigration plan, has so far garnered approximately 670 submissions, raking in over HK$20 billion (US$2.5 billion), he stated.

According to private wealth management companies in the city, there's been an increase in the number of clients worried about the political future of Hong Kong. The figure rose from 21% in 2023 to 28% in 2024.

The survey indicated that political instability was being fueled by geopolitical conflicts, including disputes between the US and China, as well as an extraordinary number of worldwide elections.

The health of China's economy was a significant worry, coming in second only to the decisions of central banks regarding interest rates, which affect Hong Kong's private wealth management sector, as per the survey. Last year, China's economic condition was ranked sixth among the concerns.

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The biggest brokerage in China has been established through the $14.5 billion merger of Guotai Junan and Haitong. Shareholders of Haitong now have the option to exchange their shares for Guotai Junan stock or opt for a cash settlement instead.

Details of a merger plan worth 103 billion yuan (US$14.5 billion) between Guotai Junan Securities and Haitong Securities have been revealed, which is set to establish the largest brokerage in China.

The shareholders of Haitong have the opportunity to swap their shares for Guotai Junan stocks or accept a cash offer from the buyer, according to a shared announcement from the two brokerage firms on Friday.

Following the consolidation declared in September, Haitong will no longer be operational and Guotai Junan will release new stocks to finance growth in operations, as per the announcement. The transaction has been granted permission by Shanghai's government-owned asset supervisor, the final authority over the two firms, but is still awaiting approval from shareholders.

The statement indicated that the consolidation is a partnership between two major firms that will enhance their strengths. This will speed up the creation of a globally competitive investment bank that leads the industry, injecting fresh energy into capital market and brokerage industry innovations.

The Earth Alliance, based in Hong Kong, has appointed Jeffrey Sachs among others to lead its environmental efforts. After the United Nations' Cop29 climate conference, the Alliance announced the addition of six individuals to its executive council and 21 advisors to its team.

The One Earth Alliance (OEA) has put together a high-profile governing council and advisory board to guide its Hong Kong headquarters on its sustainability efforts and solidify the city's role as a centre for green financing.

The administrative council consists of six individuals, whereas the board is comprised of 21 specialists and delegates from various industries. The names on both rosters were disclosed at the conclusion of the United Nations' Cop29 climate conference in Baku, Azerbaijan this week.

The specialists are set to embody the coalition on a global scale, aid in expanding its scope and impact, and offer their expert advice and direction to the institution, stated OEA from Hong Kong. The coalition is poised to emerge as "the primary entity in constructing a sustainable, fair and thriving future for Asia," it further mentioned.

Poman Lo, the Vice-Chairman of Regal Hotels International, established the coalition in March with the objective of rapidly advancing sustainable progress in Asia. This will be achieved through the joint efforts of family offices, investors, companies, philanthropists, governments, and educational institutions.

The members of the governing council include: Vuk Jeremic, who served as the president of the 67th Session of the United Nations General Assembly; Prince Max of Liechtenstein and the CEO of private bank LGT; Arun Majumdar, the dean of the Stanford Doerr School of Sustainability; Hiromichi Mizumo, the CEO of MSCI; Johan Rockstrom, the head of the Potstam Institute for Climate Impact Research; and Jeffery Sachs, who is the leader of the Centre for Sustainable Development at Columbia University.

China strikes gold with the uncovering of sizable reserves in Hunan. This $80 billion treasure trove is the most recent result of China's ongoing efforts to locate new domestic reserves of valuable minerals.

China has unearthed a significantly large new goldmine in the central Hunan province, estimated to be worth several billion dollars. This is part of China's intensified endeavor to increase its domestic strategic mineral reserves.

Experts in geology have discovered over 40 new gold streaks, situated less than 2,000 meters beneath the surface at the Wangu gold mine in Pingjiang County. This discovery increases the total gold resources in the mine's central area to 300.2 tons, according to an online announcement on Thursday by the Hunan Provincial Geological Institute.

The recent discovery is categorized as a "huge" deposit, containing over 1,000 tonnes of gold reserves, which are estimated to hold a value of around 600 billion yuan (US$82.8 billion), according to current market rates.

The institute's vice-president, Liu Yongjun, stated that the find represents a significant milestone in China's mineral exploration efforts.

The announcement also asserted that the discovery is crucial in ensuring the nation's resource security.

The Wangu goldfield stands as a significant gold-mining center in China. From 2020 onwards, the regional government has poured over 100 million yuan into mineral discovery efforts in this region.

Amazon is encouraging Chinese vendors to join its new discount marketplace, Haul. The American online retail behemoth is actively marketing its fresh cost-effective shopping platform this festive season, aiming to compete with Temu and Shein.

At the moment, the process of hiring is exclusively through invitations, and it seems the Chinese supplier group is already enthusiastic about this fresh platform. A factory proprietor named Wu, who runs an Amazon shop selling nail trimmers and other items, expressed that he has not been invited to join Haul yet, and was advised to wait till the end of the year at least. However, he is eager to have his merchandise featured there.

During a recent gathering in Foshan, located in the southern region of Guangdong province, numerous international traders, Wu included, received advice from "Amazon business development representatives". These agents are responsible for training Chinese sellers on how to attract foreign customers via the platform. Haul, which was launched on November 13, has begun sending invites to chosen "top performers" who currently operate stores on Amazon, according to one manager.

Across the Pacific, Amazon is actively marketing Haul to American buyers by offering large price cuts and a guarantee that 75 per cent of the purchases will be delivered within a week. With the commencement of the festive season, the platform has launched a half-price offer for all acquisitions made by US patrons via Haul.

Every item available on Haul has a maximum price limit of $20, although most of them are sold for less than $10. Some items can be found cheaper on Haul than on other platforms. For example, an iPhone 15 case with a Christmas theme is priced at $2.99 on Haul, whereas a similar case is being sold for $3.28 on Temu.

New World Development has been stripped of its blue-chip status following its removal from the Hang Seng Index. The quarterly evaluation has introduced Kuaishou Technology, a video platform, and New Oriental Education & Technology to the Hong Kong standard.

As NWD departs, the video-sharing platform Kuaishou Technology and the New Oriental Education & Technology Group are set to become part of the stock index from December 9 onwards, according to a statement released on Friday by Hang Seng Indexes, a fully-owned subsidiary of Hang Seng Bank.

After evaluating various stock indicators in the Hang Seng index group, the mainland insurance company, PICC Property and Casualty, will be included in the Hang Seng China Enterprises Index of mainland firms trading in the urban area. Conversely, the mainland developer Longfor Group Holdings will be excluded, as stated by the compiler.

Kuaishou, a competitor of TikTok, receives a law enforcement caution concerning content control and safeguarding children. The admonition pertains to claimed delays in handling forbidden content promptly and inadequate measures to secure underage users.

The Public Security Administration has instructed Kuaishou to thoroughly enforce youth safety measures, conduct a sweeping investigation and purge of illicit content, and delete any unlawful accounts, as per the announcement made by the Cybersecurity Centre.

Kuaishou hasn't promptly replied to a comment request beyond the standard working hours on Friday.

This punitive action is a result of Beijing's increased efforts to regulate the online activities of younger individuals. In August 2023, China's leading online regulatory body, the Cyberspace Administration of China (CAC), suggested a preliminary regulation aimed at curbing online addiction and promoting socialist principles among the youth.

The organization stated previously that these regulations were created to enhance the beneficial aspects of the internet, cultivate a positive online atmosphere, curb and address issues of internet addiction among minors, and instruct them on developing appropriate internet usage practices.

Alibaba is relying on retail head Jiang Fan to boost e-commerce growth.

The consolidation of Alibaba’s local and international e-commerce enterprises is anticipated to enhance the company's operational and financial outcomes.

Medical research in Hong Kong is benefiting from Huawei's AI chips, which are providing a solution comparable to Nvidia's technology. The Chinese Academy of Sciences' AI research center is utilizing these Huawei chips to fuel their Cares Copilot model, a tool designed to assist in surgical procedures.

The CAS founded the Centre for Artificial Intelligence and Robotics (CAIR) in Hong Kong back in 2019. This past Friday, they unveiled their latest AI model, Cares Copilot 2.0. The design of this new model is aimed at helping surgeons with various tasks such as surgical planning, creating diagnostic reports, and finding similar case histories.

In August 2023, CAIR and Huawei entered into a collaborative agreement, stating that they plan to join forces to incorporate AI technology in surgical procedures.

"During that period, we believed that, for the foreseeable future, the US would undoubtedly continue to limit our access to high-end chips due to political and geographical considerations," stated Liu. "Being a research institution, it was necessary for us to formulate backup strategies."

Liu asserts that the proficiency of Huawei's AI chips has rapidly progressed since that time.

"The advancement is noticeably swift," commented Liu. "At first, we needed one to two months to finish the whole training with the same data set. But later on, it managed to complete the training in just a week."

A court in Shanghai has ruled that owning cryptocurrency is legal under Chinese law, coinciding with an increase in bitcoin's value. A judge in Shanghai recently stated in a case review that digital currencies possess the characteristics of property, hence their possession is lawful.

Beijing perceives cryptocurrencies as a danger to economic stability, and any business operations involving these assets continue to be prohibited within mainland China, casting uncertainty on their legal status.

Cryptocurrency, being a digital asset akin to property, is not deemed illegal under Chinese law, according to Sun. However, this legal status does not apply to commercial operations involving cryptocurrencies as they can potentially destabilize the economy and financial system, or be used as a means of payment for illicit activities, the judge pointed out.

"This is the reason why stringent measures are always enforced on speculative behavior in cryptocurrency trading," stated Sun in his viewpoint.