Hong Kong has the potential to become a leading hub for art financing, which is crucial for family offices aiming to preserve their legacy through art collections, according to Damien Green, non-executive chairman at Manulife Financial Asia. Family offices not only invest in traditional assets like stocks and real estate, but also allocate wealth to arts and cultural projects as a form of philanthropy. To attract more family offices to the city, Green believes that Hong Kong needs a comprehensive art financing ecosystem.
The Hong Kong government has already taken steps to appeal to family offices, including the establishment of an art storage facility at the airport. Additionally, major financial institutions like HSBC, JPMorgan, and Citigroup, as well as prestigious auction houses like Sotheby’s and Christie’s, offer art-secured loans. However, Green emphasizes the need for platforms that connect local artists with international family offices.
In order to address this gap, Green is personally funding StudioKT, a 400 sq ft studio in Kwun Tong that aims to connect local artists with global family offices and other art investors. The studio will house exhibitions by local artists, allowing investors and family-office managers to visit and engage with the artwork. Green has also invested in cloud technology to showcase the artworks online, making them accessible to overseas investors.
Green envisions Hong Kong as a creative arts and culture center, similar to the success of South Korea’s cultural exports. South Korea’s cultural exports amounted to US$10.3 billion in 2021, significantly higher than Hong Kong’s exports in the same category. Green believes that Hong Kong has the necessary ingredients to develop a thriving art and culture export industry, but an ecosystem is needed to nurture and promote local artists on the world stage.
The city is also becoming an attractive destination for family offices interested in investing in musical talent. Kelvin Avon, co-founder of music management company MAD MoFo, notes that Hong Kong’s emerging role as an arts destination has led to increased investment in music and entertainment projects. MAD MoFo itself has received investment from family offices attracted to its successful collaborations with local Cantopop singers.
In conclusion, Hong Kong has the opportunity to position itself as a fundraising and art financing hub, attracting global family offices seeking to develop and protect their legacy through art collections. By building a comprehensive art financing ecosystem and providing platforms for local artists to connect with investors, Hong Kong can further enhance its appeal as a regional family office hub and creative arts and culture center.
