Core Viewpoint - The Hong Kong Special Administrative Region (HKSAR) government has issued approximately HKD 105.2 billion (equivalent to about USD 13.4 billion) in infrastructure bonds to support infrastructure projects and promote the development of the bond market [1] Group 1: Infrastructure Bonds - As of March 31, 2025, the HKSAR government has issued around HKD 105.2 billion in infrastructure bonds [1] - The funds raised through the infrastructure bond program have been fully allocated or reserved for infrastructure projects, including ten significant development projects in the Northern Metropolis [1] Group 2: Economic Impact - The Secretary for Financial Services and the Treasury, Christopher Hui, stated that the proceeds from the infrastructure bonds will be used to advance infrastructure projects that benefit the economy and people's livelihoods [1] - The infrastructure bonds provide citizens with a safe, reliable, and stable investment option, enhancing their sense of participation and benefit in the long-term development of Hong Kong [1]

Core Insights - The survey conducted by Goldman Sachs Asset Management indicates that only 17% of insurance companies plan to increase their allocation to U.S. equities, while private equity assets are gaining significant attention [1][3] Group 1: Economic Concerns - 52% of surveyed insurance companies view inflation as the biggest macroeconomic risk, an increase from 42% in 2024, reflecting concerns similar to those in 2023 [1] - The top five macroeconomic issues perceived as risks to investment portfolios include inflation (52%), U.S. economic slowdown/recession (48%), credit and equity market volatility (47%), geopolitical environment (43%), and tariffs/trade (32%) [4] Group 2: Asset Allocation Trends - 58% of insurance companies plan to increase their allocation to private credit in the next 12 months, indicating strong demand for private assets despite market challenges [1][7] - In the Asia-Pacific region, over 90% of insurance companies intend to maintain or increase their overall portfolio in the next year, with a preference for credit risk at 42% [2] - The expected asset classes with the highest total returns in the next 12 months are led by private credit (61%), followed by U.S. equities (57%), private equity (55%), secondary market private equity (30%), and high-yield bonds (28%) [2] Group 3: Market Outlook - 83% of insurance companies expect positive returns from the S&P 500 in 2025, but growth expectations are tempered, with 50% anticipating a rise of 5% to 10% and only 15% expecting an increase of 10% to 20% [2][3] - 35% of insurance companies expect to increase duration risk in fixed income for 2025, down from 42% the previous year, indicating a cautious optimism regarding the interest rate environment [3] Group 4: AI and Industry Consolidation - 68% of respondents believe that operational synergies and scale effects are the main drivers of increased mergers and acquisitions in the insurance industry, with 90% currently using or considering AI applications [4][5] - Among those planning to adopt AI, 81% cite reducing operational costs as a primary consideration [5]