(Bloomberg) — The latest finance summit in Hong Kong has begun, with approximately 300 executives in attendance, including Ken Griffin from Citadel, David Solomon from Goldman Sachs Group Inc., and James Gorman from Morgan Stanley.Thank you for reading this post, don't forget to subscribe!
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This year’s summit, held from November 6-8 the previous year, aimed to restore confidence after years of Covid restrictions and a challenging political landscape. The theme for this year’s event is “Living with Complexity.” Hong Kong has experienced significant transformations recently, with financial firms cutting hundreds of top positions and a large exodus of highly skilled professionals.
(All times are Hong Kong time)
Templeton expresses interest in “affordable” Chinese assets (10:33 am)
Jenny Johnson, President of Franklin Templeton Investments, has shown renewed interest in China due to its “affordable” trading opportunities. In an interview with Bloomberg TV at the summit, Johnson also mentioned that the U.S. Federal Reserve is nearing the conclusion of rate hikes, leading investors to consider longer-term rates, such as high-yield bonds or private credit.
China to simplify listing process for Mainland companies in Hong Kong (10:12 am)
Wang Jianjun, Vice Chairman of the China Securities Regulatory Commission, announced that China will streamline the process of conducting initial public offerings in Hong Kong for Mainland companies. Wang also revealed that officials are modifying the Stock Connect program, which links mainland markets with Hong Kong, to incorporate block trading. The expansion will be implemented as soon as possible, as authorities have reached a consensus and are finalizing the details.
Apollo Global to retain senior debt position (10 am)
Matthew Michelini, Partner and Head of Asia Pacific at Apollo Global Management, stated that the company will maintain its senior position in the capital structure. Michelini also expressed interest in hybrid products and asset-backed securities, identifying them as promising opportunities. Apollo intends to continue recruiting in the areas of origination, global wealth, and capital solutions, including Asia.
China encourages Hong Kong to focus on ASEAN and the Middle East (9:32 am)
During the summit, China’s Vice Premier He Lifeng advised Hong Kong to explore ASEAN and Middle East markets to expand its network of allies. He highlighted Chinese President Xi Jinping’s commitment to Hong Kong’s development and emphasized China’s support for cross-border trade and investment with Hong Kong. He Lifeng urged Hong Kong to adapt to market changes and integrate into China’s development plans.
Possible relaxation of local restrictions in Hong Kong (8:46 am)
Eddie Yu, Chief Executive of the Hong Kong Monetary Authority, revealed that the city may loosen measures if house prices continue to decline. Yu stated that counter-cyclical measures would be relaxed when there is a clear turnaround in the market cycle. He also mentioned that the mortgage default rate in the city is low, and home prices have dropped by nearly 20% since reaching their peak in 2021.
Positive outlook on BNY Mellon Credit (8:32 am)
Haneke Smits, Global Head of Investment Management at Bank of New York Mellon Corp., expressed optimism about high yields, stating that they create a favorable environment for investors to focus on fixed income and add credit, particularly duration, to their portfolios. Smits explained that higher yields serve as a safe haven in the current economic climate, although it remains uncertain if they have reached their peak. The interview took place during the summit and was conducted by Bloomberg TV.
– With assistance from Paul Van Deventer, David Ingalls, Yujing Liu, Bei Hu, and Harry Suhartono.
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