Mr. Plato Yip, Chief Executive Officer of TREELION and Vice Chairman of Elion International Investment, was invited to participate in the Thematic Breakout Session titled “Hong Kong: Capital Raising Hub for ASEAN, Middle East, and Beyond” during the 8th Belt and Road Summit, commemorating the tenth anniversary of the Belt and Road Initiative.
During the session, Yip highlighted Hong Kong’s robust financial foundation, characterized by a well-established stock market, a resilient regulatory framework, and abundant financial expertise. This positions Hong Kong as a highly appealing destination for Middle Eastern countries. He underscored Hong Kong’s ability to support Middle Eastern clients in expanding into the Chinese market. Additionally, the close ties between Hong Kong and the mainland enable businesses to benefit from the internationalization of the Chinese yuan. Hong Kong is strategically positioned to attract enterprises from the Middle East with strong connections to China.
Yip also pointed out that Hong Kong’s tax system, free from value-added tax and featuring low taxes on businesses, adds to its appeal for Middle Eastern enterprises. Tax considerations in the Middle East could significantly influence business operations. Regarding the attraction of Middle Eastern companies for IPOs in Hong Kong, Yip believes that Hong Kong can elevate efforts in market promotion and publicity. The establishment of more agreements with Middle Eastern countries and the promotion of government-to-government cooperation, exemplified by the ongoing collaboration between the Financial Services Development Council and the Saudi Arabian Ministry of Finance, are unique features that contribute to making Hong Kong an attractive destination for Middle Eastern companies seeking to go public.
(Abstract from South China Morning Post: Hong Kong-based fund managers keen to tap Middle East investment opportunities need cultural insights into the region, panel says, published: 6:17 pm, 14 Sep, 2023)
Hong Kong’s strong capital markets are attractive for Middle Eastern companies seeking to raise funds, but investor education is required for a better understanding of the Gulf region’s cultural and religious traditions, according to a panel discussion held on Thursday.
At the same time, there are opportunities for Hong Kong and mainland Chinese companies that are already deriving revenues from Middle East and Asian countries, to invest in this region as they seek to diversify their economies, the panel said.
“For the domestic fund managers to get ready to tap the opportunities in the Middle East markets, they need to understand and appreciate the local culture and religion, which is very important as they are quite different from those in Hong Kong and China,” said Plato Yip, vice-chairman of Elion International Investment and a veteran private equity and green finance investor.
“The Middle East market is complicated,” Yip said. “Don’t expect things to happen as fast as they do in Hong Kong or China.”
Yip was speaking at a panel discussion at the two-day Belt and Road Summit, which marked the 10th anniversary of the Belt and Road Initiative, Beijing’s plan to link dozens of economies in Asia, Europe and Africa around a China-centred trade network.
Middle East markets offer a lot of investment opportunities, as these countries are diversifying their economies and want to develop green and sustainable infrastructure in their cities to save energy and cut carbon emissions, Yip said.
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