Driven by Risk Aversion and Diversified Allocation, Middle Eastern Capital Eyes Hong Kong Market

Some institutions revealed that inquiries from clients in the Middle East have increased significantly recently. The inquiries cover a wide range, from Hong Kong stocks, bonds, insurance, to setting up family offices, reflecting the urgency of capital allocation. Some informed sources also stated that some Middle Eastern family offices, which had previously shifted their business focus to Singapore or Dubai, are now re-evaluating their global strategies and considering "repatriating" some assets to Hong Kong. A Shanghai-based private equity firm managing tens of billions of yuan stated that the company obtained its Hong Kong Type 9 license this year and is actively engaging with Middle Eastern capital, "currently, they are very interested in Chinese assets."

Reporters interviewed multiple institutions and learned that both the intensive inquiries about Hong Kong stock information from Middle Eastern clients and the consideration by some Middle Eastern family offices to shift their business focus to Hong Kong reflect that the logic of risk aversion and diversified allocation is jointly driving Middle Eastern capital to "look east." Furthermore, the long-term competitiveness of Chinese assets, especially the advantages in the technology sector, is becoming a key factor attracting their investment. (Shanghai Securities News)

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