Why did Cumulus Capital choose Hong Kong?
As one of the world's leading international financial centers, Hong Kong is not only the preferred location for financial services, but also the seat of many financial institutions. Hong Kong's financial markets operate under effective, transparent regulation that meets international standards. Located in the heart of Asia, Hong Kong is closely integrated with the Mainland and connected to the rest of the world. Hong Kong's advantages include a sound legal system, a simple and competitive tax system, free access to funds, a wide range of financial products, and a large number of financial talents. In 2021, there will be more than 277,000 employees in the financial industry in Hong Kong, accounting for 7.6% of Hong Kong's working population and approximately 21.3% of Hong Kong's GDP.
Why does Cumulus Capital deeply cultivate Hong Kong?
1. Bridge to the Mainland
Two-thirds of China's inward and outward direct investment, as well as most of its financial investments, are routed through Hong Kong. Mainland China's growth prospects and gradual opening-up policies present opportunities not to be missed. China is currently the world's second largest economy and is expected to account for 20% of the global economy by 2030*. Investment by international investors in the Mainland is currently modest but growing. At the same time, the "going out" of Chinese enterprises and the demand of Chinese investors to invest overseas can bring new opportunities.
With its unique advantages as an international financial center and its backing to the mainland, Hong Kong has always been a bridge to the mainland and the largest offshore RMB business center in the world. It is the most ideal place to capture opportunities in China. Hong Kong and the Mainland are constantly exploring new channels to enhance connectivity. Examples include Qualified Foreign Institutional Investor Scheme (QFII), Renminbi Qualified Foreign Institutional Investor Scheme (RQFII), Mutual Fund Recognition Arrangement, Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect.
2. The world's largest offshore RMB business center
With a huge capital pool, efficient financial infrastructure, and multiple cross-border capital circulation channels, Hong Kong is the world's largest and most important offshore RMB business center, providing comprehensive RMB-denominated financial services, including clearing, settlement, financing, assets management and risk management, etc.
Hong Kong has an efficient and stable financial infrastructure, among which the RMB real-time payment and settlement system facilitates the processing of RMB transactions between different local market participants with Mainland China and in the offshore market.
The largest offshore RMB capital pool Hong Kong has the largest RMB capital pool outside mainland China, with a scale exceeding RMB 600 billion, supporting the booming offshore RMB business.
The most important offshore RMB clearing center According to SWIFT statistics, more than 70% of global RMB payments are settled through Hong Kong. Our renminbi real-time payment settlement system facilitates renminbi payments for banks around the world and plays a key role in cross-border renminbi payments.
Major RMB and Foreign Currency Center Hong Kong ranks first in the global offshore market in terms of RMB foreign exchange and derivatives trading volume*.
The largest offshore RMB bond market Hong Kong is an important RMB financing center and has the world's largest offshore RMB bond market. Bond issuers include the Ministry of Finance, as well as financial institutions and corporations from around the world.
Unique access to the mainland market Hong Kong has unique access to the mainland capital market, including Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, Bond Connect, and mutual recognition of funds between the Mainland and Hong Kong. These channels allow overseas investors to access the mainland capital market through the connection between the mainland and Hong Kong markets. the
*According to the 2019 triennial survey published by the Bank for International Settlements
3. Competitive international financial center platform
With its advantages in banking, capital markets and asset management, Hong Kong provides a comprehensive and high-quality financial platform for investors, financial operators, asset managers, funds and financial institutions from all over the world. Hong Kong is also an ideal location for setting up a corporate treasury center.
Banking system: Banks are one of the most important funding channels in Asia. Hong Kong's sound and efficient banking system can play a key role in the region and provide a wide range of products and services. Hong Kong is also the largest hub in Asia for mainland Chinese and international banks. With the rapid development of technology, the HKMA has implemented a series of measures to push Hong Kong into a new era of smart banking.
Capital market: Hong Kong's securities market allows free flow of funds, and is active in trading. It has a considerable depth and attracts many international banks and securities companies to settle in Hong Kong, thus making the Hong Kong securities market a key fund-raising channel for companies to issue stocks and bonds. Hong Kong is one of the world's largest stock fund-raising centers, and has become the largest center in Asia for arranging international bond issuance for the sixth consecutive year. The arrangement and execution of bond issuance covers the entire process of bond structure design, bookkeeping and distribution, accounting for nearly 80% of the added value of the bond issuance process. Hong Kong is also significantly ahead of other major international financial centers in arranging initial bond issuances, accounting for about two-thirds of the Asian market.
Asset management: As a major fund management center in the region, Hong Kong brings together international fund managers, advisory services and private banks. In fact, Hong Kong is Asia's largest international asset management center, as well as Asia's largest cross-border private wealth management center, hedge fund center and the second largest private equity center (after Mainland China).
4. Forward-looking innovation platform
Hong Kong is a forward-looking center for innovative business, with the advantages to seize the opportunities brought by the Belt and Road Initiative, the Guangdong-Hong Kong-Macao Greater Bay Area, financial technology, infrastructure investment and financing, and green finance.
“One Belt, One Road”: Initiatives to establish connections, require large investments, and bring huge business opportunities. With international expertise, experience and network, Hong Kong is an ideal platform for investment in the Belt and Road Initiative.
Guangdong-Hong Kong-Macao Greater Bay Area: The Greater Bay Area includes Hong Kong, Macau, and nine mainland cities in the Pearl River Delta. The GBA has a gross domestic product (GDP) of US$1.5 trillion and a population of about 70 million. The development of the Greater Bay Area aims to facilitate the free flow of economic factors such as people, goods, and capital, thereby promoting and deepening economic and financial cooperation. The Greater Bay Area is the region with the most economic vitality and the highest degree of openness in China, with emerging innovative technology industries and a mature and leading international financial center - Hong Kong. The Greater Bay Area has a lot of room for development. It not only provides a huge market for Hong Kong's financial services industry, but also has the conditions to try out the opening-up policy first, so as to serve the booming real economy in the area.
Fintech: Fintech is driving innovation in financial services globally and changing the nature of commerce and user expectations for payments and financial services. In view of this, the HKMA established the Fintech Facilitation Office (FFO) in 2016 to promote the steady development of Hong Kong's fintech industry and promote Hong Kong to become a fintech hub in Asia. Banks in the city have been courting cryptocurrency firms as new clients as the city advances its vision to become a hub for digital assets. Banks in Hong Kong have opened deposit accounts for cryptocurrency businesses, which can be used to support daily operations, such as paying salaries to employees, and some banks provide cryptocurrency transaction settlement services. Hong Kong's banks are hoping to seize the opportunity presented by the recent collapse of some crypto-friendly banks in the U.S. and tightening regulation of the industry in the U.S. The Hong Kong government has been promoting the development of the cryptocurrency industry and attracting more cryptocurrency exchanges and companies to the Asian financial hub. At the inauguration ceremony of the Web3.0 Technology Association, Hong Kong Chief Executive John Lee said that the development of Web3.0 is now at a golden starting point!
Cumulus Capital Invests in the Future
Walkie-Talkie provides technical support from Sinan Lab, a blockchain research institution, Beosin provides real-time monitoring and evaluation of blockchain transactions, and security protection for identifying risky transaction addresses, Bitkub provides strategic support, and Cumulus Capital creates an institutional-level market for encrypted currencies Information sharing service platform. Based on the underlying technology of blockchain, Walkie-Talkie combines the financial model of Europe's top Quant hedge fund team from Cumulus Capital to build the world's first encrypted wealth signal with the Pro-six system as the core, integrating industry consulting and social entertainment source sharing platform. Cumulus Capital is a hedge fund headquartered in the British Virgin Islands and Cayman. It is an investment management company that is deeply involved in the field of cryptocurrency quantification. Committed to creating continuous compounding interest for our clients, we can achieve attractive long-term absolute returns with controlled volatility.
Cumulus Capital contributes returns to trust.