Professional Services Provider Offers Full Spectrum of Resources
Global financial markets are no strangers to ups and downs. Lately, there have been challenges, with global economic growth slowing, central banks raising interest rates and geopolitical tensions riding high. Against this backdrop, listing and financing activities in Hong Kong have faltered, although many industry watchers believe that Hong Kong's close economic and trade ties with mainland China and the rest of the world, and its status as a leading global financial centre, will help it to weather the current volatility. In any case, business service platforms in Hong Kong are not limited to supporting financing: they also bring together personnel from different disciplines to provide a wide range of professional services enabling clients to connect with various financial markets in Asia, Europe, the Americas and beyond. They offer suitable resources to support the commercial and investment activities of companies based in Hong Kong, on the mainland, or in the wider region, and help them secure cost‑effective funding for international business development.
Accessing global resources
Stella Law [1], Executive Director of CHFT Advisory and Appraisal Limited (CHFT), said in an interview [2] that Hong Kong’s financial services professionals do not just help raise funds through initial public offerings (IPOs): they also seek out financial resources from around the world to help clients in the region expand their business. Elaborating, she said: “When it comes to mainland companies, Hong Kong can indeed help them make overseas connections, identify business development opportunities and organise business matchings. Additionally, Hong Kong can offer clients all types of professional services to help them secure the necessary resources for market expansion, and these are all crucial attributes of a ‘super connector’.”
Law added: “As widely acknowledged, the advantages of Hong Kong’s financial market include a sound legal framework, a simple and competitive tax system, free flow of capital, the availability of a full complement of financial products, and a large pool of financial talent with international perspectives. Backed by these advantages, Hong Kong’s services professionals are helping their mainland clients execute business and investment projects and look for financing opportunities in international markets. Hong Kong’s financial specialists are familiar with the mainland culture, understand the business needs and challenges of mainland clients, and have an edge in being biliterate and trilingual.
“In addition to providing translations on the mainland and overseas projects of their clients, they can capitalise on their expertise to turn related corporate projects into financially feasible plans for consideration by investors and other financial institutions. Furthermore, they can help mainland companies communicate with overseas investors and provide appropriate financing and investment co‑operation proposals.”
CHFT provides diversified services, including real estate advisory, business and market research, and business appraisals, to a number of listed and unlisted companies in Hong Kong and other parts of the world. It specialises in delivering valuations and financial analysis to clients and its services encompass pre‑trading analysis, due diligence and financial reporting, as well as financing proposals and solutions. It also helps clients to review business challenges and manage risks.
Multi-channel financing
“Before a company seeks financing or brings in investors for its business operations or projects, it will have to conduct third‑party valuation and financial analysis, make projections on business prospects, evaluate risks and carry out independent due diligence,” Law told HKTDC Research. “Then it proceeds to pitch and present to prospective financiers or relevant investors. Hong Kong’s financial services professionals are skilled at providing comprehensive financial proposals and well‑thought‑out solutions to ensure that their clients can effectively obtain needed resources to expand their business.”She explained that, if a client commissions her company to appraise an overseas business, such as an investment project in a Southeast Asian country, CHFT will send its personnel to the country to conduct due diligence on‑site. It will also apply professional knowledge in different fields to provide valuations and financial analysis in relation to infrastructure, real estate and energy projects. In addition, the company offers business research services across a wide range of industries, including biomedicine, agriculture, automobiles, banking and finance, consumer products, and more. CHFT is able to offer such services because of the freedom to enter and leave Hong Kong and the free flow of information enjoyed in the city. These advantages also help service practitioners stay up‑to‑date with global trends in commerce, technology and industry development.
In addition to considering fundraising through IPOs or investment funds, mainland companies that require financial resources to support their international expansion plans can also obtain financing from private investors or through establishing special purpose acquisition companies (SPAC). With its extensive reach, the Hong Kong financial market can help mainland companies raise funds from a wide variety of sources, including investors, financiers, investment funds and financial institutions from around the world.
“Hong Kong’s services professionals are known for their independence, integrity and professionalism, so the services they provide are well‑trusted by international investors,” said Law. “Meanwhile, the world is increasingly concerned with sustainable development issues such as environmental, social and governance (ESG) concerns, bringing risks to a company’s financial status, business operations and compliance requirements. In addition to paying attention to the implications of these issues, Hong Kong's services professionals are generally perceptive of the effects of ESG issues on a company's balance sheets, development potentials and business prospects. So they are in a position to provide their clients with related advisory and risk management services, taking into account social responsibilities which are more in line with the requirements and investment criteria of international investors, when helping them to obtain financial resources.”
[1] Stella Law is a member of the Institute of Hong Kong Directors and the Royal Institute of Chartered Surveyors, as well as an Accredited Senior Appraiser for the American Society of Appraisers.
[2] Stella Law, Executive Director of CHFT Advisory and Appraisal Limited, was interviewed by HKTDC Research in the third quarter of 2023.
First, please LoginComment After ~