Reports & Articles 2020

China's recovery and its implications to Hong Kong's Real Estate Market

14/12/2020 - Colliers

While we are seeing other major global economies still adapting to COVID-19, China is emerging from the health crisis and has started to see its economy and GDP rebound. In this piece of research, Colliers examines the core asset types in Hong Kong and where we see an impact and the opportunities for Occupiers, Investors and Real Estate professionals in response to China’s recovery.

Key Highlights: 

  • Hoteliers and retailers should strategise ahead for their logistics and marketing campaigns to prepare for the border reopening.
  • Mainland financial and asset management firms to drive demand for Grade A office space in 2021.
  • The stronger RMB-to-HKD FX rate reinforcing Hong Kong as an attractive investment destination for Chinese capital.
  • Landlords should focus on customised incentives that target mainland clientele to target higher occupancy rates

 

Click here to download the full report.

 

Transforming Hong Kong Through Entrepreneurship

11/12/2020 - KPMG 

Entrepreneurs and corporate executives highlight the irreplaceable value of start-ups in Hong Kong amid the COVID-19 pandemic, agreeing that they are instrumental to developing new ideas, keeping society future-ready and creating job growth, according to the third annual study on Hong Kong’s entrepreneurial ecosystem by KPMG China and Alibaba Hong Kong Entrepreneurs Fund.

Building on two years of research, this year’s study features a survey of 134 Hong Kong-based entrepreneurs and executives at start-ups, 200 Hong Kong-based corporate executives and 866 Hong Kong-based university students; insights from in-depth interviews with start-up founders, corporate innovation leaders, academics and venture capital executives; and an analysis of venture capital and government funding directed to Hong Kong-based start-ups.

The study finds that the pandemic has caused both start-ups and larger corporates to re-evaluate their business models, with a refocus on purpose top-of-mind for organisations.  It examines how priority innovation and technology sectors including artificial intelligence (AI), robotics, biotechnology and smart city can be better enabled through supportive policies ─ calling attention to the need to support growth-stage start-ups as they expand beyond Hong Kong, as well as more cross-collaboration between start-ups and corporates to enrich the ecosystem.

To continue to foster an entrepreneurial mindset and innovation culture in Hong Kong, the study points out that more entrepreneur success stories and role models are needed to inspire younger generations.  In addition, STEAM (science, technology, engineering, arts and mathematics) education needs to be better supported – including providing viable career paths for STEAM graduates.

Please read the full report here, and  refer to the press release here.

 

Future of Healthcare Ecosystems

10/12/2020 - Arup

Our healthcare systems need to be future-ready. The COVID-19 pandemic has created unprecedented challenges for our healthcare systems – highlighting the need for our services, delivery models and facilities to be adaptable to ensure resilience in the future.

The demands of an ageing population, a changing workforce and new technologies will shape the future of healthcare ecosystems. New models of healthcare delivery and changing user’s needs will fundamentally change healthcare systems and infrastructure – from the hospital to the home. Sustainability, smart technology and digital services will be fundamental to this transformation, reshaping the delivery and access of healthcare services of the future. Flexible and adaptable healthcare facilities and systems are needed to ensure resilience against these changing requirements.

As we navigate this changing landscape together, we examine the major trends shaping the future of our healthcare ecosystems and consider what needs to be done to achieve a future healthcare system that works for us all – as investors, developers, owners and end users.

Click here to download Arup’s new report of ‘Future of Healthcare Ecosystem’.

 

Transparency and togetherness: fashion’s formula to sustainable success

30/11/2020 - Delta Global

The global pandemic, political climate change agendas and adjusted ways of life due to them both have caused businesses and consumers to rethink production processes and consumption habits.

This has included less frequent fashion collections and the rise of reselling platforms as a way for brands to reduce overstock issues and consumers to make back lost earnings. Curated capsule wardrobes have also emerged from the decluttering being done during people’s extended periods of free time at home, paired with a more minimal lifestyle and tighter budgets.

Although efforts might’ve been taken to overcome the current challenges, those that encourage transparency and togetherness are paving the way for a more sustainable future for fashion, too.

Click here to read more.

 

The future of fashion’s packaging is inclusive

30/11/2020 - Delta Global

As an industry trading for decades on exclusivity, luxury fashion has significant ground to make up in the inclusivity stakes. Some brands have adopted a more progressive attitude in recent times, celebrating diversity and inclusivity. But, in light of this year’s events, such an approach has shifted from merely optional to non-negotiable.

Click here to read more.

 

KPMG “AI Readiness Index”: Google Hong Kong “Smarter Digital City - AI for Everyone” whitepaper

28/10/2020 - KPMG 

Google Hong Kong embarked on a new three-year program of longitudinal research, conducted by KPMG, on the topic of AI adoption and readiness in Hong Kong. This year’s newly released AI Readiness Index among residents and businesses across four key business verticals is at 50 and 56 out of 100 points respectively, which signals a solid foundation and positive outlook for Hong Kong adopting AI and new technologies. The report points out that enhanced knowledge and willingness to invest for the future will help accelerate AI adoption and advance Hong Kong as a Smarter Digital City.

Click here to read the full whitepaper, and refer to the press release here.

 

Three design lessons for the post-pandemic city

20/10/2020 - Arup

Diseases shape cities. But what if we were able to shape our cities to better fight diseases? These last months have seen life disrupted in every city in the world. The variety and imagination of responses to this crisis has given us as urban planners a huge source of insight. As with any experiment, the findings may take time to review and adopt. But already they point to practical ways in which we can and should be improving the planning and design of our cities.

Click here to read more to learn more about Arup’s insight on master planning for post-pandemic city.

 

KPMG 2020 CEO Outlook: COVID-19 Special Edition

06/10/2020 - KPMG 

The KPMG 2020 CEO Outlook COVID-19 Special Edition offers a unique lens on evolving attitudes as the pandemic has unfolded. KPMG initially surveyed 1,300 CEOs in January and February, before many markets were beginning to feel the full impact of lockdowns. Then, in July and early August, we conducted a follow-up survey of 315 CEOs to understand how thinking has evolved. Key developments include:

  • Talent and a new working reality: Businesses are looking to change their recruitment strategies as remote working has widened their potential talent pool and companies may be rethinking their office space in the short-term while also considering the future of work.
  • Shifting risk agenda: Since the start of the pandemic, ‘Talent risk’ has risen to be named as the most significant threat to the growth of their businesses ahead of ‘Supply chain risk’ and a ‘Return to territorialism’.
  • Digital acceleration: Business leaders are betting on major dimensions of digital transformation and the majority have seen this accelerate during the lockdown.

Overall, three key themes emerged from this year’s survey, which we characterize as Purpose, Prosperity and Priorities.

Click here to download the full report; and click here to view the press release.

 

COVID-19 Scams – What to do if you are defrauded 

05/10/2020 - Gall

Since the outbreak of COVID-19, we have seen an overwhelming demand worldwide for Personal Protective Equipment (PPE), which includes respirators, surgical masks, gloves and face shields. Regrettably, unscrupulous traders never miss an opportunity to capitalise on public fears and concerns. Amid these difficult times, there has been a surge of fraud schemes associated with PPE transactions all around the globe. In Hong Kong, over 1,600 reports of online mask scams were received by the Hong Kong Police between January and March this year, consisting of more than 3,000 individual victims and local companies involving a total of HK$48.2 million.

Click here to read more.

 

Insolvencies in Hong Kong in a post-COVID-19 World

05/10/2020 - Gall

COVID-19 has created unforeseen challenges to businesses all over the world, resulting in many companies being unable to survive the pandemic. Hong Kong has been no exception. In Hong Kong, according to data published by the Hong Kong Government’s Official Receiver’s Office, in the first seven months of the year, 5219 compulsory bankruptcy petitions and 247 compulsory winding-up petitions were presented, representing 13.7% and 5.1% year-on-year increase respectively. The effect of COVID-19 may yet be fully reflected by these figures.

Click here to read more.

 

How retail is creating poor consumer patterns with deadstock discounting

17/09/2020 - Delta Global

Although changing consumer patterns are inevitable, a luxury retail expert warns that their current trajectory is a particular cause for concern for the fashion industry.

Click here to read more.

 

Mainland Chinese demand to stimulate opportunities for Hong Kong SAR’s real estate sector

31/08/2020 - Colliers

The latest Flash Report from Colliers discusses how mainland firms and capital will continue to seek opportunities in Hong Kong SAR, which is supported by China’s resilient economy, cross-border financial initiatives in stock and wealth management and the longer-term vision of the Greater Bay Area development.

Recommendations include:

  • Landlords should target mainland firms as potential future occupiers, especially those in the finance, fintech and insurance sectors.
  • Investors need to monitor Chinese capital looking for an end-user purchase or residential development.

 

Click here to download the full report.

 

Communicating eco-credentials in fashion and beauty packaging

19/08/2020 - Delta Global

Many consumers buy product, wear them once and simply throw them away, all in the name of their latest Instagram image. Consequently, fast fashion and changing beauty fads have taken over, with brands feeding consumer habits with ever more collections, constant sales and no incentive to slow down.

Click here to read more.

 

The enjoyment of in-store shopping is a culture we must not forget

19/08/2020 - Delta Global

With high street shopping hit hard by the closures caused by the global pandemic, human interaction and the immersive shopping has been put at risk. Robert Lockyer of Delta Global, a luxury packaging provider to retailers such as Estee Lauder and Radley, says that worringly customers accustomed to visiting stores, trying on and 'enjoying' interaction are being left out as retail increasingly moves online.

Click here to read more.

 

Future of offices: in a post pandemic world

07/08/2020 - Arup

Covid-19 has accelerated a range of pre-existing trends in the commercial property sector around health and wellbeing, activity-based working, flexibility and the drive for better space utilisation. Sustainability, smart buildings and the digital workplace are also reshaping the commercial offer. Taken together, these trends and developments will profoundly impact the kinds of workplaces likely to be needed in a post-pandemic world.

In this thought-piece Arup explore how East Asian workplaces could change in the years following the lockdown and look at developments in how people may work together both remotely and in the same physical location.

Click here to read the full report.

 

How Covid-19 has sharpened focus on water resilience

20/07/2020 - Arup 

In this article, built environment experts Kenneth Kwok and Eleanor Earl reveal the interdependence between urban systems and the role of resilient water systems in the community, which is extremely important in this complex environment we are encountered now.

Click here to read more.

 

Vision 2025 - The future of Hong Kong’s fund management industry

20/07/2020 - KPMG 

Jointly authored by KPMG China and the Hong Kong Investment Funds Association (HKIFA), this report aims to provide an informed perspective on the future of the fund management industry in Hong Kong, identify current and future growth opportunities and challenges, and develop recommendations to help Hong Kong maintain its position as a leading fund management hub.

The report finds that despite some challenges ahead, survey respondents and interviewees have a positive outlook for the future of Hong Kong’s fund management industry, driven by growth opportunities related to the opening up of mainland China’s asset management industry, the ongoing development of the GBA, technology-driven change and ESG.

Click here to read the full report.

 

Hong Kong Banking Report 2020 - Adapting to a New Reality

20/07/2020 - KPMG 

In this Hong Kong Banking Report, KPMG reviews the financial results of banks in Hong Kong in 2019 and offer their views and predictions on the future of the industry, especially in light of the onset of COVID-19.

The pandemic has been a catalyst for change in the banking sector, with the industry having to respond, recover and adapt to a New Reality. In KPMG's view, as banks respond to the effects of COVID-19, they will go through four phases: Reaction – responding to immediate challenges; Resilience – managing through uncertainty; Recovery – resetting and identifying opportunities; and the New Reality – adapting to a new world.

Navigating through these phases and adapting to the New Reality will be key for banks in order to continue to grow and succeed, especially with profitability expected to be significantly impacted in 2020.

Click here to read the full report.

 

Covid-19, tax residency and exceptional days

17/07/2020 - Quilter International

In the UK, Finance Act 2013 (FA 2013) introduced the Statutory Residence Test (SRT), which made it much easier to determine who was, and who wasn’t, UK tax resident for a particular tax year (6 April – 5 April).  In simple terms, if you are present in the UK (meaning physically there at midnight) for 15 or fewer days of the tax year, you are categorically not tax resident.  At the other end of the scale, if you are present for 183 or more days, you are categorically tax resident. What if you are neither?

Click here to read the full article.

 

After Covid-19: New Trends of the Hong Kong Office Market 

06/07/2020 - Colliers

Colliers latest report looks at ‘recentralisation’ opportunities, the new role of technology and workplace wellness becoming an expectation, not a value-add strategy. Key highlights from the report:

  • Hong Kong’s overall CBD rental gap against non-core areas narrows under the impact of COVID-19 and anticipated to decline further by 2022
  • Space optimisation, cost-effectiveness of rental rates and flight-to-quality provide strategic drivers for Hong Kong’s tenant-centric office leasing market
  • Hong Kong’s Grade A office market in a consolidation phase with the CBD now offering ‘recentralisation’ options
  • CBD becomes tenant-centric as vacancy rates increase and cost-saving exercises become a priority

Click here to read the full report.

 

SVA Update – Sino-tensions – Implications for foreign participants in the Macau gaming sector

16/06/2020 - Steve Vickers & Associates Ltd

The steep deterioration in US China relations, coupled with the savage impact of the corona virus outbreak, pose serious threats to foreign firms engaged in the Macau gaming industry. Investors should be mindful of these risks.

Steve Vickers & Associates Ltd. share their insight on this topic here.

 

The British Chamber Position Paper

11/06/2020: British Chambers of Commerce in China 

The British Chamber Position Paper created by the British Chambers of Commerce in China to provide advocacy and representation on behalf of British businesses operating in China is now live. In these unprecedented times, there is more need than ever for British businesses to be able to speak with a strong, unified voice. British businesses across a range of sectors in Beijing, Shanghai, Guangdong and Southwest China come together to raise the regulatory barriers that they face, areas of opportunity for bilateral cooperation and recommendations for market access reform.

The Paper has been presented to the UK and China governments in order to directly inform trade policy and negotiations.

Key points from the paper are:

  • Strengthen the implementation of market reforms at all levels
  • Address longstanding and continuing concerns around cybersecurity and IT restrictions
  • Promote greater liberalisation of the capital account
  • Reduce the direct presence of state-owned enterprises in the market
  • Keep conversations on bilateral trade frequent and open

Download the full paper here.

 

Rethinking BCP post-Covid-19

26/05/2020: Arup

As the world reels from the massive impact of the Covid-10 pandemic, Business Continuity Planning has become one of the most pressing topics that organisations have to revisit. The aim of this article is to share the views on business continuity planning needs to incorporate the change impacts of emergency and recovery strategies, then to new Normal on People, Processes and Assets.

Click here to read the full article. 

 

Unprecedented times to explore hotel opportunities

19/05/2020: Colliers

The introduction of international travel restrictions and the closing of the border with Mainland China has had a major impact on tourism in Hong Kong. This has forced hoteliers and investors to consider whether to buy, sell or hold. The hotel sector is heavily dependent on tourism and business travel to generate revenue. While efforts have been made to create a ‘staycation’ market, 12-months of disruption has seen COVID-19 compound the negative impact of social unrest. The potential re-introduction of regular travel between Hong Kong and Mainland China provides optimism for recovery as pre-COVID-19 figures demonstrated cross-border travel contributed to 80% of the city’s inbound tourism.

Click here to read the full report to learn more about Colliers insights on Hong Kong’s hotel sector.

 

Major banks try to mitigate financial risks of climate change – but global response is inconsistent, reveals Mazars’ research

14/05/2020: Mazars

Mazars is pleased to share its latest research on how 30 of the largest banks across the world are responding to climate-related financial risks. The report, ‘How banks are responding to the financial risks of climate change’ reveals that major banks try to mitigate financial risks of climate change but global response is inconsistent.

Click here to read more.

 

Must-Do’s on Urban Resilience in a time of Covid-19

28/04/2020: Arup

The COVID-19 outbreak, which is having a huge impact on lives and assets, has brought a renewed focus on ‘urban resilience’ making us rethink the way we plan, design, develop and manage our cities to protect the health and wellbeing of the people when emergencies arise.

Dr. Bruce Chong from Arup, specialised in smart and resilient city planning and implementation, shares his reflections on urban resilience under COVID-19 pandemic.

Click here to read more.

 

Psychological Coping Tips for Staff Working from Home During Outbreak

21/02/2020: Matilda Hospital

Many companies extend the period for staff to work from home to help reduce the risk of contracting the Novel Coronovirus. While the latest virtual technology has helped combating reduced work performance and morale by connecting teams that work remotely, there are known psychological risks by remaining socially isolated and possibly lacking accountability for a prolonged period of time. These include: low mood or depression, boredom, irritability, lassitude, anxiety, “cabin fever,” excessive worries or risks of obsessive-compulsive behaviours, reduced cognitive functions such as impaired memory and concentration, and increased poor health habits such as smoking and excessive alcohol consumption or snacking.

What could business leaders and companies do to counteract these challenges and manage these risks?

Click here to read more.

 

Market Outlook for 2020 Report

29/01/2020: Colliers
 
Colliers has recently published the Hong Kong Market Outlook for 2020 Report, which looks at the key trends and challenges Hong Kong’s property market will face this year. With continuing tensions at home and abroad, it expects the leasing and investment momentum to remain slow with potential corrections for rental and capital values across different property sectors.
 
Click here to read more. 

 

Decarbonising Construction

09/01/2020: Gammon
 
Buildings and construction are responsible for 39% of global carbon emissions. Sobering though that figure is, it does mean the potential exists to make dramatic reductions.
 
In the latest issue of our "Britain in Hong Kong" magazine, Emma Harvey, Group Sustainability Manager, Gammon Construction, explains how both project proponents and contractors should be setting ambitious targets to reduce carbon, and how setting such targets stimulates innovation and can reduce costs in the long run.
 
Click here to read more. 

 

How Luxury Can Fix Fashion

02/01/2020: Delta Global
 
The acceleration of the ‘fast fashion’ business model has encouraged over-consumption and excessive waste in a world enduring environmental crisis. While fast fashion is easily disposable and less likely to be re-used or re-sold, luxury, high-end goods re-circulate revenue and recyclability be it through re-sale, donation or second-hand use.
 
In the latest issue of our "Britain in Hong Kong" magazine, Robert Lockyer, CEO of Delta Global, explains how introducing luxury into your life can stop the current trend for throw-away fashion. 
 
Click here to read more.