A survey conducted by Kinetic Partners of senior figures in the Asian asset management, investment banking and broking industry revealed that almost half believe that regulation will continue to be the greatest challenge for the global finance industry over the next five years.
A fifth of respondents believe that liquidity will be a greater challenge, whilst 15% anticipate that ineffective governance will cause the most trouble for the industry in the coming years. Restrictive tax regimes are not considered to have a significant impact on the global industry.
Singapore is emerging as an increasingly popular financial centre with 40% of respondents selecting the country as a preferred business location in the Asia Pacific region, compared to 35% choosing Shanghai and just 3% opting for Tokyo.
Regarding the performance of Hong Kong’s stock market, there is an optimistic sentiment for the Hang Seng Index for the remainder of the year, with 44% predicting a significant increase by year end and just under half of respondents predicting it will remain the same or slightly above current levels.
The survey was conducted last week at Kinetic Partners’ launch of their Hong Kong office, which opened earlier in the year. The event took place at the Foreign Correspondents’ Club and was attended by 20% of Hong Kong’s financial services industry.
The opening of the Hong Kong office marked an important milestone for the Firm, which has come to be recognised as the leading provider of advisory and consulting services to asset management firms and financial institutions worldwide. Established in 2005, Kinetic Partners has grown rapidly to serve over 1,200 clients globally, providing a bespoke service for firms who need in-depth industry advice, analysis and valuation across borders. The Firm currently has a team of 140 across its seven offices in London, Dublin, Grand Cayman, New York, Geneva, Hong Kong and Luxembourg, following the recent acquisition of Luxembourg-based advisory firm AB Fund Services earlier this week.
Julian Korek (pictured), a Founding Member of Kinetic Partners, says: “The Asia Pacific region is clearly a hub of growth for the financial services industry and a dynamic and exciting place in which to be operating. Cautious hope for a strong year for Hong Kong’s stock market is promising and hopefully this confidence will spread to the wider Asian market.
The continuing concern for the impact of heavy regulation on the health of the global financial services industry remains a worry for the future growth and success of our sector”.