Introduction
High-quality projects in the Asia-Pacific region are surging, and global wealth is shifting to the Asia-Pacific region
According to a report by Boston Consulting Group, in recent years, the Asia-Pacific region has emerged as a center for industry transformation globally, giving rise to a large number of high-quality projects, with economic growth nearly quadrupling. It is projected that the gross domestic product (GDP) of the Asia-Pacific region, calculated in terms of purchasing power parity, will continue to rise in the coming years, surpassing the sum of other regions globally. Over the past decade, the compound annual growth rate of asset management assets in the Asia-Pacific region has reached 18%, making it one of the most important regions for global asset management institutions.
Hong Kong's total asset management assets continue to grow, with the fastest growth in private equity business
According to a report released by the Securities and Futures Commission of Hong Kong, as of the end of 2021, the total assets managed by Hong Kong's asset management industry reached HKD 25.89 trillion, with an average compound annual growth rate of 16.3% from 2018 to 2021, and the total assets increased by nearly 50% over the three years since 2018. As a transit hub for global capital flows into mainland China, 65% of the assets in Hong Kong's asset management industry come from investors outside Hong Kong. Among various types of asset management products, private equity funds have shown the fastest growth, with a year-on-year increase of 17% to HKD 444 billion.
Asset management institutions face severe homogenization of product types, while private equity products can provide differentiated competitive advantages
Currently, global asset management institutions are facing increasing homogenization of products, although they can leverage their specialized advantages to create unique value propositions. However, institutions with private equity, real estate, private debt, or private credit products can tap into their niche markets and provide differentiated capabilities beyond publicly traded assets, thereby gaining more capital through differentiated competition.
Zenta Group Builds Asset Management Platform for International Capital Entry into China
The Asia-Pacific region is currently experiencing the fastest growth in international capital inflows, with China being the most favored destination for international capital. In recent years, a large number of international funds have invested in high-quality projects in China, indicating that China's high-quality investment opportunities are attracting global attention and attracting international capital. Zenta Group has obtained the qualification of QFLP (Qualified Foreign Limited Partner) fund manager in mainland China, and possesses top-notch project resources and familiarity with local laws and regulations, making it well-positioned for asset management business for international capital.
Expanding partnership business in Hong Kong and Singapore
Exploring local opportunities: Family offices, investment funds, listed companies
Hong Kong's asset and wealth management market also holds a leading position in Asia. As of the end of last year, the assets managed in Hong Kong reached US$4.5 trillion, two-thirds of which were from overseas capital. Hong Kong is also the largest hedge fund center and the second largest private equity fund center in Asia (second only to mainland China). As an important regional and financial center in Southeast Asia, the latest data from the Monetary Authority of Singapore shows that Singapore's asset management industry grew by 16% year-on-year to US$4.1 trillion in 2021, reaching the highest level since 1998. Family office business in Singapore is also rapidly developing. According to data from the Monetary Authority of Singapore's official website, as of the end of April this year, the Monetary Authority of Singapore has received a total of 143 applications from family offices, and the number of family offices in Singapore has exceeded 400, compared to only 27 in 2018.
Hong Kong and Singapore, as the top four regions in the Global Financial Centres Index, have a large number of family offices, investment funds, and listed companies. Zenta Group will cooperate with local family offices, investment funds, and listed companies through its partners in Hong Kong and Singapore to broaden and enrich its own asset management business by leveraging resources and funding opportunities.
