The Dubai royal’s investment approach through Inmā Emirates Holdings demonstrates how patient capital and technology transfer can generate measurable social impact across emerging markets By Exec Edge Editorial Staff The language of impact investing has evolved from philanthropic experiment to financial orthodoxy over the past decade, but the practice remains uneven. While Silicon Valley funds tout ESG metrics and Wall Street banks launch sustainability divisions, the actual work of building community ca ...

Group 1 - The Hong Kong Monetary Authority (HKMA) aims to encourage more mainland banks to establish regional headquarters in Hong Kong to enhance the city's status as an international financial center [1][3] - The local bourse operator plans to improve the listing regime as part of the government's strategy to strengthen Hong Kong's financial position [1] - The government intends to issue more RMB bonds and explore the use of renminbi for government expenditures under appropriate conditions [2] Group 2 - Authorities will introduce additional tax incentives to bolster the family office and wealth management sectors, as well as support gold and yuan trading in Hong Kong [2] - The government is actively inviting the Asian Infrastructure Investment Bank (AIIB) to set up an office in Hong Kong, enhancing the city's financial ecosystem [4] - The government has allocated funds to help universities attract top talent researchers, promoting innovation and development in the region [5] Group 3 - The policy address highlights the strategic role of the Hong Kong Investment Corporation (HKIC) in the city's economic development [6]

Core Insights - Global financial investors are increasingly entering Hong Kong discreetly to avoid attention amid rising geopolitical tensions [1] - The Hong Kong Investment Corporation (HKIC), with assets of HK$62 billion (US$8 billion), aims to protect its investments from geopolitical risks by being agile in capital and talent flow [2][5] - The HKIC's International Forum for Patient Capital attracted global investors with over US$20 trillion in combined assets, highlighting the interest in Hong Kong as an investment destination [3][4] Investment Focus - The HKIC was established in 2022 to transform Hong Kong into an innovation and technology hub, focusing on hard technology, biotechnology, and green technology [5] - Biotechnology constitutes approximately 20% of the HKIC's investments, emphasizing its importance for public health and alignment with central government initiatives [6]

Core Insights - The investment landscape in China is undergoing significant changes, particularly in the realm of guiding funds, which are becoming more market-oriented and flexible in their operations [2][7]. Group 1: Changes in Guiding Funds - Many regions are actively exploring market-oriented reforms for guiding funds, addressing previous challenges such as complex decision-making processes and strict investment return requirements [2][7]. - The investment ratio ceilings for guiding funds are being surpassed, with some regions allowing up to 70% investment in single sub-funds and even higher in certain cases [4]. - The risk tolerance levels have seen historic breakthroughs, with some areas implementing a 100% error tolerance mechanism, which is expected to encourage more social capital participation [4]. Group 2: Increased Activity and Support - There has been a notable increase in the activity of institutional Limited Partners (LPs), with a reported 8.15% month-over-month increase and a 41.12% year-over-year increase in contributions [3]. - Policy-driven LPs remain the most active, accounting for 39.05% of contributions in June [3]. - The duration of fund existence is being extended, with several funds now having lifespans of 15 to 20 years, which is crucial for attracting long-term capital [5]. Group 3: Decision-Making Efficiency - The decision-making processes for LPs have been significantly accelerated, with reports of faster engagement with General Partners (GPs) and a more streamlined approach to fund establishment [6][8]. - The government is promoting a unified national market and encouraging the reduction or elimination of return investment ratios, which is expected to bolster the venture capital ecosystem [7]. Group 4: Long-Term Capital Focus - The emphasis on "patient capital" is becoming a focal point in the industry, with government policies aiming to foster long-term investment strategies that can support high-tech and emerging industries [5][9]. - The transformation of LPs towards a more market-oriented and professional operational model is expected to provide GPs with the confidence to invest more boldly [9].

Core Insights - The aging population in China is accelerating, with projections indicating that by 2024, the population aged 60 and above will reach 310 million, accounting for 22% of the total population [2]. - The development of pension finance is crucial to address the needs arising from this demographic shift, yet it currently does not fully meet the demands of an aging society [1][2]. Group 1: Current Status and Challenges of Pension Finance - By 2035, the population aged 60 and above in China is expected to reach 422 million, representing 30.7% of the total population, indicating a shift into a severe aging phase [2]. - The pension finance system includes three pillars: basic pension insurance led by the government, enterprise annuities, and personal savings plans, with 1.07 billion people covered by basic pension insurance by the end of 2024 [2]. - The pension service finance sector is still in its early stages, with long-term care insurance and pension target funds developing rapidly, while other products lag behind [3]. - The pension industry finance market size reached 9.4 trillion yuan in 2022, with expectations to exceed 20 trillion yuan by 2027, highlighting significant growth potential [3]. Group 2: Policy and Regulatory Framework - Recent policies have been introduced to promote the development of pension finance, including the 2016 guidelines for financial support of the pension service industry and the 2023 Central Financial Work Conference emphasizing the strategic importance of pension finance [4]. - Multiple regulatory bodies, including the Ministry of Human Resources and Social Security and the People's Bank of China, collaborate to ensure the safety and liquidity of pension funds [4]. Group 3: Key Issues Facing Pension Finance - The pension finance system faces a supply-demand imbalance, with projections indicating that by 2028, the basic pension insurance will experience a deficit [4]. - The low coverage of enterprise annuities and the slow development of personal pensions hinder the ability to effectively supplement pension funding gaps [4]. - The pension service finance sector struggles with product innovation and meeting the diverse needs of the elderly population [4]. Group 4: Role of Patient Capital in Pension Finance - Patient capital aligns with pension finance in terms of investment strategies and social responsibility, focusing on long-term stable returns and improving the quality of life for the elderly [5][6]. - Patient capital can provide substantial long-term funding necessary for the development of the pension industry, with a significant portion of pension finance needing to come from stable, long-term sources [6]. - The integration of patient capital into pension finance can help balance the uncertainties and return demands associated with pension industry projects [11]. Group 5: Pathways for Promoting Patient Capital and Pension Finance Integration - Optimizing the institutional environment is essential to strengthen the support of patient capital for pension finance, including expanding the coverage of the second and third pillars of the pension system [15]. - Establishing a multi-layered pension finance support system can facilitate the penetration of patient capital into pension finance [15]. - Encouraging financial innovation in pension products can attract more long-term savings into the capital market, enhancing the scale of patient capital [16].