FSDC releases report "Trailblazing for Change: Hong Kong, the Impact Investing Hub of Asia"
27 Sep 2024
Hong Kong, 27 September 2024 – The Financial Services Development Council (FSDC) today released a research report titled “Trailblazing for Change: Hong Kong, the Impact Investing Hub of Asia.”
As the connection between the financial and social sectors deepens, investors are increasingly seeking innovative solutions that can generate both financial returns and positive societal impact. In this context, impact investing has emerged as a powerful means for asset owners and managers to align their investments with their core values. With Asia’s ultra-rich population expected to grow faster than anywhere else, the region is set to be a major hub for ambitious investments that combine innovation and social impact.
“Hong Kong's substantial wealth and assets, combined with its robust financial infrastructure and dynamic social sector, position the city to emerge as a hub for impact investing, mobilising capital for a sustainable future,” said Laurence Li SC, Chairman of the FSDC. “Creating an enabling ecosystem for impact investing in Hong Kong is not only a strategic necessity but also a significant opportunity for the city to establish itself as a global leader in sustainable finance. With the right regulatory framework, capacity-building initiatives, and supportive infrastructure in place, Hong Kong can cultivate a thriving impact economy by leveraging its strengths in finance, business, innovation, and philanthropy.”
Reflecting on common challenges faced by asset owners, asset managers and impact investors in Hong Kong, the paper sets out key recommendations conducive to enhancing the city’s value propositions as an impact investing hub. These policy recommendations include (i) prioritising SDGs and encouraging early adoption of impact frameworks; (ii) direct government involvement to set an example; (iii) empowering retail investors through increased investor education; (iv) enriching asset owners’ expertise through collaborative partnerships and industry engagement; (v) cultivating early through higher education; (vi) enhancing the ease of incorporation; and (vii) promoting investing with purpose.
The full version of the report can be downloaded from the FSDC website: www.fsdc.org.hk.