In This Article:
Federated Hermes, a New York-listed global fund manager, is considering setting up an office in Hong Kong as it expands its family office and private wealth-management business in China and around Asia-Pacific, CEO Chris Donahue said.
The company is optimistic about markets in Asia and also impressed by Hong Kong's regulatory environment, including the commitment of market regulators to foster growth in the financial hub in the face of challenges like geopolitical tensions.
"Hong Kong is a wonderful window into China," he said in an interview earlier this month, adding that the firm is actively engaging with clients in the city. "No matter what happens with all the politics, we get rid of that noise and look at the opportunities."
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
Donahue, who is also the firm's chairman and president, attended the Asia Financial Forum in Hong Kong for the first time earlier this month.
Federated Hermes is based in Pittsburgh with 2,100 employees globally. Singapore is its headquarters in Asia, while it also has offices in Australia and Japan. Formerly known as Federated Investors, the firm bought UK-based Hermes Investment in 2021, giving it a footprint in Asia.
Assets under management rose 5.7 per cent in 2024 to a record US$800.5 billion, according to its annual report. About US$84 billion of that was invested in global equities, including US$3.4 billion in Asia excluding Japan.
Hong Kong has become a highly receptive market following the end of the Covid-19 pandemic and is integral to Federated Hermes' expansion plans in the region, said Jim Roland, head of Asia-Pacific distribution, who met with several local regulators earlier this month.
"The regulators are happy to have conversations," he added. "They are responsive, and the feedback is good. Hong Kong and Singapore are complementary parts of the [wealth] ecosystem."
Federated Hermes expects China's economy to expand by 4.5 per cent this year, in line with the World Bank's forecast. Economists at Swiss investment bank UBS forecast 4 per cent for 2025 and 3 per cent for 2026, citing potential impact from President Donald Trump's policies.
Trump began his second term in the White House on January 20. He threatened this week to impose a 10 per cent tariff on Chinese goods from next month, and unveiled an investment plan to "beat China" in artificial intelligence.