Hong Kong’s New Investment Advisory Body Formed

Investment Advisory Body Created to Help Amp Hong Kong’s Financial and Commercial Status

On their recent announcement, the Hong Kong Government made the latest update on the establishment of two advisory bodies. A governance committee and an investment committee was created to aid the Hong Kong Growth Portfolio with strategic plans, counsel, and guidance on matters pertaining to investment and asset allocation.

 

Hong Kong Growth Portfolio

The portfolio is a sovereign wealth fund, designed for investment on projects that will elevate Hong Kong’s status furthermore. In the past, Hong Kong has customarily invested heavily in real estate and property development. This time around, the allocated fund for the growth portfolio will be used to invest in Hong Kong’s economic future, with prioritized focus on financial, commerce, and innovation projects.

 

The Two-Tier Advisory Body

The Hong Kong Growth Portfolio’s Governance Committee is comprised of six non-official members from technology, banking and commerce chaired by the Financial Secretary. Starting from the 1st of October 2020 until the 30th of September 2022, the board members will be serving a two-year term.

The advisory members’ tasks on the Hong Kong Growth Portfolio includes:

• Weighing in strategy and guidance to aid in the portfolio development (under Future Fund) with expected projected returns;
• Solidifying Hong Kong’s position as a premier financial, commercial, and innovation hub;
• Maximizing Hong Kong’s competitiveness and productivity for the time to come;
• Overseeing the portfolio.
• Advising on matters pertaining to the portfolio referred by the Financial Secretary.

In the Financial Secretary’s announcement of the 2020-21 Budget Speech back in February, he stated that a part of the Future Fund would set up the new Hong Kong Growth Portfolio. Since then, the Government has aimed to set aside 10% of HK$ 224.5 billion from the Future Fund for investment purposes.

Along with establishing the Governance Committee, the Government has opted to create an Investment Committee as well. The latter, which is the investment advisory committee has been tasked to aid in this initiative further. In conjunction with the matter, the Secretary for Financial Services & the Treasury will chair the body, with representatives of relevant government agencies. The agencies will be deciding on the general partner’s appointment as well.

 

Hong Kong’s Former Glory to Be Restored

With the COVID-19 outbreak resurgence, Hong Kong is expected to hit the highest deficit in history, which necessitates the need for stronger cash reserves. Thus, with the works of the two-tier-committee initiatives, Hong Kong’s former glory is expected to return once more.