In this episode of Spotlight, we explore how Hong Kong's family offices are influencing art, investment and philanthropy, driving the city's evolution as a global hub for wealth and cultural heritage.
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00:00Welcome to Hong Kong. I traveled to this dynamic financial hub to learn how an investment meets art and philanthropy.
00:16Metropolis strategically located at the mouth of the Pearl River Delta region is a natural gateway to the rapidly developing Asian markets.
00:25Hong Kong's vibrant art scene, shaped by its cultural heritage and avant-garde spirit, has drawn the attention of collectors.
00:34In the Central District, the business and retail heart of Hong Kong, we visited one of the most prestigious global auction houses, where collectors are drawn to the carefully curated pieces.
00:46Francis Belon has been living in Hong Kong for 13 years. He has extensive expertise in the Asian art market.
00:54We have always thought that Hong Kong was the right city for us to have our regional headquarters.
01:01The works of art that we bring to Hong Kong are very easy to process and possibly send to other destinations.
01:09There is a freedom of capital circulation, freedom of individual circulation.
01:13Historically, the ecosystem of the auction houses, whether they are specialists, painting restorers, logistics providers, are located here.
01:27No city in the rest of Asia, we think, offers the same advantages as Hong Kong.
01:33The global art marketplace boosts transactions exceeding 2 billion euros.
01:38While financial investments are important, for families collecting art, it's also about identity and legacy.
01:44I think that the admission of collectors goes far beyond just financial investment.
01:50There is also an aspect of the construction of one's own personality.
01:53There is an emotional relationship that is very strong with the objects.
01:56There is an aspect of heritage, of conservation, which is very important for collectors around the world and also for Asian collectors.
02:04As well as being an art hub, Hong Kong is one of Asia's premier financial and investment capitals.
02:11It's the entry point to the region's booming markets.
02:14Its favorable business environment and its proximity to mainland China make it an ideal place for managing cross-border investments.
02:22As art and other assets bring wealth into the city, family offices ensure strategic investment across generations.
02:29But what are family offices?
02:32I would always say family office is almost like an institutionalized or professional unit that takes care of family matters.
02:41And when it comes to family matters, it involves both financial legacies and non-financial legacies.
02:48Around 3,000 family offices are currently operating in the city, and more are expected to set up here in the coming years.
02:56I think for family offices, it's never just about the monies.
03:00So it's not equivalent to wealth management or asset management.
03:05I think it's the culture, it's the know-how, and it's the nice things about our history that we want to pass on and bring it on to our next generations.
03:16My grandfather really started in talking about linking, again, philanthropy into business.
03:28There's a Chinese saying called èȘćŒ·äžæŻ. It's really constant seek of self-improvement.
03:34I really believe in trying to solve social problems, and in different generations, there are different needs.
03:40Winnie Hsu runs a family office that has a portfolio in the hospitality sector with more than 60 hotels across Europe and Asia.
03:48She's the third generation in her family to head up the business.
03:51The company has grown in the last year. For her, profit comes with purpose.
03:55Winnie, why do you think it's important to blend profit with purpose?
04:00I think it's truly important because that's the only way whereby I can be truly sustainable.
04:06That's also why I like hospitality because it's about human development.
04:10So my only dream is that we can have some kind of positive influence that you can bring back into your day-to-day life.
04:19Winnie's company supports many philanthropic projects like a Chinese herbal medicine garden to promote health or vocational training programs.
04:27With the co-creation lab in VTC, what we also bring in is annually like an angel investing competition,
04:34and whereby we have families from Hong Kong and youth designing solutions to try to solve our different social problems.
04:48From philanthropic ventures to expression through art,
04:51purpose-driven portfolios are increasingly becoming a focus for family offices in Hong Kong within the business landscape.