JAM Asia Pacific

Bonhams establishes new headquarters in Hong Kong. The London-based auction house Bonhams has enhanced its local operations by launching a new headquarters in Hong Kong, aimed at strengthening its presence in the region. The new Asia headquarters, located at Six Pacific Place, spans 19,000 square feet and was revealed during its inaugural autumn auction in November. It encompasses three floors, featuring modern galleries, a dedicated saleroom, and office facilities. The layout allocates one full floor for office use, half a floor for storage, and one and a half floors for exhibition purposes, a significant upgrade from its previous office, which occupied only half a floor. Having opened the first dedicated saleroom in the region in 2014, the 200-year-old British auction house has solidified its position in Hong Kong, where it began operations in 2007. Despite a slowdown in auction activities, the art scene in Hong Kong continues to thrive, bolstered by ambitious expansion initiatives from Western entities. In addition to Bonhams, competitors such as Sotheby’s, Phillips, and Christie’s have also enhanced their local facilities, while Hauser & Wirth inaugurated a larger gallery in January. Bonhams Hong Kong features specialized departments that cover key selling categories, including Chinese art, Indian and Himalayan art, Southeast Asian art, modern and contemporary art, as well as luxury items such as jewelry, watches, wines and spirits, and handbags.

Hong Kong boasts a total of 74 billionaires. A total of 74 billionaires from Hong Kong are included in the 981 billionaires identified in the Asia-Pacific region, as reported in the 10th UBS Billionaire Ambitions report. UBS has monitored the wealth of over 2,500 billionaires worldwide over the past decade. Globally, billionaire wealth surged by 121%, rising from US$6.3 trillion to US$14 trillion between 2015 and 2024, with the number of billionaires increasing by more than 50%. The report indicated a 3.7% decline in the number of billionaires in the Asia-Pacific, dropping from 1,019 in 2023, while their collective wealth grew by 1.8% to reach US$3.8 trillion. In Hong Kong, the billionaire count rose by 6 from the previous year, totaling 74, with a slight increase in wealth of 1.4%, amounting to US$326 billion. UBS noted that the emergence of new billionaires has slowed down due to the decreasing growth rates of global economies. Over the last decade, the global billionaire population has expanded from 1,757 to 2,682, comprising 1,877 self-made billionaires and 805 from multi-generational wealth as of 2024.

HK experiences a significant rise in tourist numbers, notably with a marked increase from Southeast Asia. On November 29, Hong Kong celebrated the arrival of its millionth visitor of the year from the Philippines, achieving a new record that surpasses the previous high of 930,000 visitors from the country by the same date in 2018. Since the city fully reopened to international travel, the influx of visitors from Southeast Asia has experienced significant growth. From January to October 2024, over 2.3 million visitors arrived, bringing numbers from this region back to approximately 95% of pre-pandemic figures. Specifically, Filipino tourists contributed 920,000 arrivals during the first ten months of the year, indicating a remarkable recovery rate of 127% compared to pre-pandemic levels. As a result, Hong Kong has emerged as the leading travel destination for Filipino tourists. Southeast Asian visitors tend to be younger, averaging a stay of 3.4 nights and spending around HK$7,100 per person. Their preferred attractions include theme parks, local markets such as Temple Street and Ladies’ Market, and the Tsim Sha Tsui Promenade, which features the Avenue of Stars, the Clock Tower, and the Hong Kong Cultural Centre. Overall the total number of tourist arrivals during the month of October reached 4,090,054, reflecting an increase of 18.3% compared to the same month in 2023.

HK worker's happiness increased. Hong Kong employees have reported a slight increase in happiness this year, despite ongoing significant challenges, as revealed by the latest Q4 2024 survey conducted by local recruitment platform CTgoodjobs. The survey indicates that the average happiness index for workers has risen for the second consecutive year, reaching 5.3 out of 10, up from 4.97 last year. Among different age groups, those aged 31 to 40 exhibited the lowest levels of happiness, with a score of 5.16, which is 0.37 points lower than their peers over the age of 50. The survey also highlights a link between educational qualifications and happiness levels: individuals holding PhDs reported an average score of 6.41, surpassing master's degree holders at 5.56, while bachelor's and diploma holders averaged 5.14. Freelancers reported higher levels of happiness compared to full-time, part-time, and contract workers. This increase in happiness suggests an improvement in the labor market, attributed to the government's proactive efforts in organizing community events in recent years. These initiatives have fostered a more positive environment, stimulating local consumption and enhancing the economy, which has contributed to greater happiness among Hongkongers following the challenges of the pandemic.

Multiple-entry HK visas for Shenzhen residents were reinstated on December 1. China has relaxed its visa regulations for Shenzhen residents traveling to Hong Kong, permitting unlimited visits within a year, in contrast to the previous restriction of one trip per week, with each visit capped at seven days. Since April 2009, Shenzhen residents have been eligible to apply for Individual Visit Endorsements, which allowed them to enter and exit the Special Administrative Region freely for a year. However, this program was modified in 2015 to a "one-trip-per-week" policy due to concerns regarding parallel trading and overcrowding. On December 1, over 109,000 mainland tourists visited Hong Kong, coinciding with the resumption of the multiple-entry individual visit scheme for Shenzhen residents after a 9 year break. This also represented an increase of more than 10,000 mainland visitors compared to the former Sunday.

HK private wealth management industry returns to growth. Hong Kong's private wealth management sector saw a notable recovery in 2023, as detailed in a recent report by KPMG in collaboration with The Private Wealth Management Association (PWMA). The findings indicate a resurgence in Assets Under Management (AUM), with inflows nearly tripling compared to the previous year. In spite of persistent global challenges, such as geopolitical tensions, interest rate changes, and digital disruptions, the majority of firms in the industry maintain a positive outlook for the market's prospects. Many leaders in the sector express confidence in the upcoming five years, particularly due to the significant wealth opportunities available in Mainland China. Additionally, firms are focusing on emerging markets in Southeast Asia and the Middle East. The report praised the initiatives taken by the Hong Kong government to bolster the industry. Notable measures from the 2024 Policy Address, including enhanced tax incentives and new distribution avenues, have been positively received by wealth management professionals. The government's continuous efforts to strengthen Hong Kong’s position as an international financial hub and attract talent are also viewed as crucial for future growth. Furthermore, the report emphasized Hong Kong’s distinct advantages over other global wealth management centers, such as its strong infrastructure, straightforward tax system, robust regulatory environment, and open financial markets. Hong Kong’s geographical and cultural proximity to Mainland China provides unique benefits, with local professionals adept at catering to both Mainland Chinese clients and international investors looking for opportunities in the region. Here's the link to download full report: https://lnkd.in/dXhAf6Ny

The Twins Tower I opened in Kai Tak. Lifestyle International has proudly announced the grand opening of The Twins Tower I, poised to redefine the skyline of Hong Kong and establish itself as the city's latest landmark and retail hub. This ambitious project, which has taken eight years to bring to fruition—from land acquisition and conceptual design to construction and leasing—marks the latest flagship development by Lifestyle International. With a total investment exceeding HK$15 billion, The Twins is anticipated to create approximately 3,800 job opportunities. Encompassing over 1.1 million square feet of gross floor area, this mixed-use commercial venture features two towers, each reaching a height of 120 meters and comprising 22 stories above ground and four below ground. The development also includes 61,000 square feet of landscaped greenery and two distinctive sky gardens designed for leisure activities. Tower I will be anchored by SOGO Kai Tak, a new Japanese-style department store. This flagship location will showcase over 480 brands, including 22 prestigious labels making their Hong Kong debut at the SOGO Kai Tak Store. Shoppers will discover a variety of curated zones tailored to their interests, beginning with beauty and personal care services on B1/F and G/F, followed by international luxury and jewelry on G/F and 1/F. Ladies’ fashion, accessories, and lingerie can be found on 2/F, while 3/F caters to executive fashion, golf apparel, and men's essentials. For urban casual styles, accessories, and footwear, 4/F is the destination, and sports enthusiasts will find a comprehensive selection on 5/F. Families can explore baby and children's clothing, products, and toys on 6/F, while home appliances, cookware, and tableware are available on 7/F. The 8/F features bedding, travel items, healthcare products, and personal care essentials. Finally, the 9/F offers luxury tableware and home décor, along with the inaugural SOGO VIP Lounge.

Hong Kong celebrates the groundbreaking introduction of its 3-runway system. Hong Kong has celebrated a significant milestone in its aviation sector with the inauguration of the HK$141 billion (US$18 billion) three-runway system on 28 November. The construction of the 3.8km (2.4-mile) third runway and its associated taxiway required over 100,000 tonnes of asphalt. The southern runway, situated nearest to Lantau Island, is designated for landings, take-offs, and cargo operations, while the middle runway is exclusively for take-offs, and the newly constructed northern runway is reserved for landings. The launch event featured a historic moment as all three runways were utilized simultaneously, with two aircraft, including a specially arranged flight from Cathay Pacific Airways, taking off while one landed. This development initiates the airport's plan to increase passenger capacity by 50%, aiming to accommodate 120 million passengers annually. Additionally, cargo capacity is projected to rise from the current 5 million tonnes to 10 million tonnes per year by approximately 2035. The Airport Authority's recent acquisition of a 35% stake in Zhuhai Airport for 4.3 billion yuan (US$593.2 million) and a partnership with Dongguan to enhance logistics capabilities in the Greater Bay Area further solidify Hong Kong's position as a premier global hub.

British seven-time snooker world champion Ronnie O’Sullivan has been granted residency in Hong Kong under the Quality Migrant Admission Scheme. O’Sullivan cited several reasons for his decision, including: Low tax rates: Hong Kong has a relatively low tax system, with a maximum income tax rate of 16.5%. This was a significant factor in his decision to relocate. Food and culture: the snooker star praised Hong Kong’s food and culture, stating that he enjoys his time in the city and has made good friends there. Snooker popularity: O’Sullivan noted that snooker is a popular sport in Hong Kong, and he has had many positive experiences playing in the city. As a resident of Hong Kong, O’Sullivan will be subject to the city’s tax laws. However, as a non-domestic source income earner, he will only be taxed on his Hong Kong-sourced income; this means that his income from international snooker tournaments and endorsements will not be taxed in Hong Kong.

The Airport Authority intends to increase its investment to HK$100 billion [USD 12.87 billion], thereby significantly expanding the Airport City initiative and enhancing high-end commercial, tourism, and leisure activities. Additionally, the authority is set to introduce several new projects, including a fresh food market, an art industry ecosystem, a second phase of AsiaWorld-Expo, and a yacht marina with supporting facilities. These initiatives aim to further stimulate high-end commercial and leisure sectors, with completion anticipated between 2026 and 2031. The development of Airport City is managed and financed by the Airport Authority, relieving the government of any financial responsibility, and a development framework is expected to be established by the first half of the upcoming year.