Staying at home and working-from-home have become the new norms under COVID-19. The social-distancing measure has rapidly driven the development of the Information Technology industry. Online games, communication software, and e-commerce are all benefited from the pandemic. Digital transformation was also spotted in various industries through adopting big data, cloud computing and artificial intelligence technologies in daily operations. However, the network security, data security and personal information security risks brought by the application of new technologies are more noticeable than ever.
 
In early July 2021, The Cyberspace Administration of China (CAC) issued the "Cyber Security Review Measures (Revised Draft for Comments)” to respond to the data security concerns arising from recent Chinese companies' applications for overseas listings. With the introduction of various laws and regulations, companies should place more emphasis on cybersecurity and strengthen internal control systems to avoid any violations of laws and regulations.
 
Click <a href="../../../../../uploads/_2f7fc17902.pdf" target="_blank" rel="noopener">here</a> to download the full insight. (Available in Chinese version only.)
 
<a href="../../../../../uploads/_2f7fc17902.pdf" target="_blank" rel="noopener"><img src="../../../../../uploads/cover_3826de4709.JPG" width="600" /></a>

95713048_m.jpg

 The Cyberspace Administration of China (CAC) Draft on  "Cyber Security Review Measures” 

The low interest rate environment and emerging economic recovery after consecutive quarters of contraction supported the revival of investment activities in office properties. Meanwhile, the risks of sooner-than-expected rate hikes and uncertainties surrounding the outbreak of the Delta coronavirus variant may pressure the office market, either on investment or leasing activity in particular.
 
In this publication, AVISTA Property Valuation team covered the performance of the HK office market in 2021 Q2 and the market potential of newly developed districts such as Kowloon East and Hong Kong Island South.
 
<a href="../../../../../uploads/AVISTA_HK_Office_Market_Insights_Q2_2021_EN_40827eb92d.pdf" target="_blank" rel="noopener">Click here</a> to download the full insights.
 
<a href="../../../../../uploads/AVISTA_HK_Office_Market_Insights_Q2_2021_EN_40827eb92d.pdf" target="_blank" rel="noopener"><img src="../../../../../uploads/cover_en_3e2af67100.JPG" width="600" /></a>

38391858_m.jpg

Early Signs of Recovery in Property Investment Market despite Subdued Leasing Activities—AVISTA HK Office Market Insights (Aug 2021)

Coupled with rising concerns of climate change and governments’ commitment to carbon neutrality, it is an irreversible trend of electric vehicles increasingly being adopted, with China and Europe being the key markets. This phenomenon has unsurprisingly brought investment attractiveness in the financial market. The electric vehicle-related Exchange Traded Funds (ETF) notably outperformed the general market in both the United States and China over the previous year, which was contributed by the companies in the value chain of industry, ranging from lithium &amp; battery to vehicle manufacturing.
 
Click <a href="../../../../../uploads/New_Energy_Vehicle_Sector_Update_July_2021_1b542f4196.pdf" target="_blank" rel="noopener">here</a> to download the full report. 
 
<a href="../../../../../uploads/New_Energy_Vehicle_Sector_Update_July_2021_1b542f4196.pdf" target="_blank" rel="noopener"><img src="../../../../../uploads/EV_cover_en_1039de1b40.JPG" width="600" /></a>

120583792_m.jpg

Electric Vehicle Sector Update - July 2021

The Securities and Futures Commission (“SFC”) issued a circular providing guidance to management companies of SFC-authorized unit trusts and mutual funds on enhanced disclosures for funds that incorporate environmental, social and governance (“ESG”) factors into their key investment focus (“ESG funds”) on 29 June 2021.
 
As a replacement for the previous version released in 2019, the circular includes an additional requirement that ESG funds should conduct and disclose periodic assessments concerning how ESG factors are integrated and provide guidance for climate-oriented ESG funds.
 
According to SFC, the number of ESG funds offered to the public in Hong Kong has more than doubled since 2019. Increasing awareness regarding ESG investing has led to a need for asset managers to clearly explain their ESG focus, helping investors determine if the products meet their investment goals.
 
The circular outlines the requirements for ESG funds to disclose in their offering documents, including a description of the ESG focus and a list of ESG criteria used to measure the fund’s ESG focus, such as filters, indicators, ratings, third party certificates, etc. ESG funds should also disclose their investment strategies, asset allocations, benchmarks and risks associated with their ESG focus. Furthermore, there are new requirements outlined in the updated circular, requiring ESG funds to make periodic assessments and reports on attaining the ESG focus, and specific guidance for ESG funds that focus on climate change.
 
"Making sustainability-related disclosures more transparent, comparable and consistent will help investors identify suitable ESG funds and reduce opportunities for greenwashing," said Mr Ashley Alder, the SFC's Chief Executive Officer. “Hong Kong’s financial market is where global capital connects with Mainland enterprises, so what we do here can have an outsized influence on global developments in green and sustainable finance.”
 
Currently, there are about 60 SFC-authorised funds with an investment focus on climate change, green, ESG or sustainable development in the SFC database on authorised ESG funds. To enhance transparency for these funds, their key features will also be listed in the database after the new circular takes effect on 1 January 2022.
 
As the ESG landscape is still developing rapidly, the SFC will continue to monitor the market developments and may provide further guidance or impose additional requirements for ESG funds, where appropriate.
 
Click <a href="https://apps.sfc.hk/edistributionWeb/api/circular/openFile?lang=EN&amp;refNo=21EC27" target="_blank" rel="noopener">here</a> to read the full circular.
 
<a href="https://apps.sfc.hk/edistributionWeb/api/circular/openFile?lang=EN&amp;refNo=21EC27" target="_blank" rel="noopener"><img src="../../../../../uploads/cover_en_a007a82352.JPG" width="250" /></a>

59100585_m.jpg

SFC Issues Updated Disclosure Guidance for ESG Funds

1612973910056.jpeg

HKEX Consultation Conclusions on The Main Board Profit Requirement and Review of Listing Rules Relating to Disciplinary Powers and Sanctions

The spread of COVID-19 has markedly impacted and changed the Hong Kong office market, particularly the leasing market, alongside the emergence of work-from-home arrangements. In the meantime, the roll-out of the vaccination program and the closer connection with the Mainland China economy will be reshaping the Hong Kong office market.
 
In this publication, AVISTA Property Valuation team discussed the performance of the HK office market in 2021 Q1 and its possible development in the post-pandemic world.
 
Click <a href="../../../../../uploads/AVISTA_HK_Office_Market_Insights_Q1_2021_EN_117536c9ef.pdf" target="_blank" rel="noopener">here</a> to read the insights. 
<a href="../../../../../uploads/AVISTA_HK_Office_Market_Insights_Q1_2021_EN_117536c9ef.pdf" target="_blank" rel="noopener"><img src="../../../../../uploads/thumbnail_en_d666899d16.JPG" width="600" /></a>

Research and Insights