James Campion, regional head of mutual funds at Schroders, says Hong Kong's open and competitive market offers tremendous choice for investors

For London-based fund manager Schroders Investment Management the business-friendly environment here has enabled Hong Kong to serve as a test-bed for the company's products launched elsewhere in Asia.

For 33 years the investment house has had an office in the SAR that is now the base for all its North East Asian operations, barring Japan.

"Geographically, it is more convenient to fly from Hong Kong to Taiwan in one hour, for example, than it is to attempt this from Singapore," explains James Campion, regional head of mutual funds. 

" If I book a ticket with an airline I get a fax confirming it by the time I put the phone down. It's the same in every line of business."

"The place has a 'can do' attitude. People are able to innovate, to create new ideas, in a way that is unique in Asia. It is dynamic in a way that is well known to anybody who's been here."

"And this is probably the most open market in the world, which is good from an investors' standpoint. It results in an incredibly competitive market and tremendous choice for investors. There is a phenomenal number of fund houses in Hong Kong per head of the population."

Superb regulatory environment

The guaranteed funds his company pioneered were tried out first in Hong Kong he says.

"In Hong Kong it was easy to conduct market research and get dialogue with the key distributors. This gave us the ability and confidence to launch similar funds in Taiwan and Korea."

"Investors here are very sophisticated. One example of the Hong Kong advantage is the growing interest in hedge funds," says Mr Campion. "Again, the extent to which different currencies are traded is probably greater than anywhere else."

"People understand global economic developments and their impact. I have been surprised at seminars by the depth of questions asked." 

"The regulatory environment is superb.  The regulators are faster and more efficient than any internal compliance mechanism that I know. They don't try to slow you down as they are as keen as you are to develop the market."

Mr Campion speaks highly also of the "high-quality management" one finds in Hong Kong. "They are well educated.  There is an outstanding level of corporate transparency."

As for access to cash, "liquidity here is much better than in many other markets in Asia. Outside Hong Kong, market capitalisation is small with so many companies family-owned that less shares are available for trading." 

Schroders' success in the SAR has attracted other investment houses here, Mr Campion believes.

"News of our success is global. I get phone calls all the time from other international fund managers interested in coming to Hong Kong. Hong Kong is a place where things happen."

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