Loving life in the brave new world (hktdc.com)


	Louis-Vincent Gave, CEO of GaveKal, explains why Hong Kong is at the heart of global economic activity

Louis-Vincent Gave's career path has taken him from the French Army to the urban jungle of Hong Kong's financial district. Along the way the Duke University graduate co-founded GaveKal, a global financial research and money management firm, authored two books on global finance, married and is raising his family in his new home, Hong Kong.

"After my bachelor's degree at Duke University I went off to officer school in the French army to serve in my mountain infantry battalion. I wanted the army to be my career, but when military service was abolished and the army turned professional, this was a job I was no longer interested in. I interviewed with various firms in France and was hired by Paribas, a French investment bank.

After a training period they sent me to Hong Kong where the bank had just purchased a pan Asian brokerage firm called Asia Equity. That's how I first ended up in Hong Kong, in 1997.

I'd always believed Asia was set to become an ever more important factor in global growth – in fact, I wrote two books about it! In Our Brave New World and The End is Not Nigh, I look at our rapidly changing world and why financial relationships that used to work in the past have now completely broken down.

Many advantages

Hong Kong seemed the best place to run a financial analysis business for the usual reasons. Among them: Hong Kong Stock Exchange ranks seventh in the world by market capitalisation of listed companies (over US$1.87 trillion as of May 2007). Hong Kong International Airport has consistently been voted best airport in the world – and from there, one can basically reach any major city in Asia (or around 60 per cent of the world's population) with a four hour flight.

Hong Kong maintains a highly capitalist economy built on a policy of free market, low taxation and government non-intervention. It is an important centre for international finance and trade, with the greatest concentration of corporate headquarters in the Asia-Pacific region.

For me, there were more personal reasons as well. Having lived and worked here before with Paribas, I already had a lot of friends. I also just love the outdoor experiences that Hong Kong can offer, from sailing, to wake-boarding, to hiking on Lantau, the New Territories or the Hong Kong trail… one always finds fabulous outdoor activities to enjoy on the weekend. Did you know of the territory's 1,104 square kilometres, less than 25 per cent is developed?

In setting up GaveKal, we wanted to be at the heart of "Our Brave New World". In order to write about something convincingly you need to have a finger on the pulse - Hong Kong offered us this opportunity.

Another benefit of being headquartered in Hong Kong is that we have been able to recruit a highly qualified team at a fraction of the cost of London, New York or Tokyo.

Global clientele

We have been very lucky in our growth and today, over 400 institutions in some 40 countries, from Australia to Brazil, from Canada to Denmark or from South Africa to Sweden, buy GaveKal research on tactical asset allocation and financial markets. Our clients include some of the world's best known money management houses, private banks, pension funds, hedge funds, industrial companies, family offices, endowments and foundations, investment banks and insurance companies. There really is no typical client - which of course keeps us on our toes as we need to try and address very different needs, questions and requests. It's a very interesting job and we all love doing it.

The first thing that strikes most people about Hong Kong is how easy it is to make friends. People here are by and large very open and welcoming. You meet someone, and before you know it, you have become great friends. As a result, Hong Kong is a hard city to be bored in. There is always something to do, and someone to do it with.

More importantly, I just love running my business out of Hong Kong. The people we have hired are exceptionally hard working and dedicated. The red tape is kept to a manageable minimum and people who work in the civil service do just that: they are civil, and they do provide a service.

Tax incentive

Finally, I do like the tax regime which allows me to keep most of the fruits of my labour. Thanks to the fact that my tax bill is a now a lot lower than it was in Europe, I can contribute to causes that are close to my heart such as Room to Read (a great charity my wife is involved in), sending money back to my alma mater, and my church.

Hong Kong was a great place to live as a bachelor. And it's been a great place to live as a married man and father. There are many advantages to raising a family in Hong Kong – among them very affordable full time help, and the wide variety of clubs one can join. Education is highly competitive compared with global standards. Plus, Hong Kong offers you incredible coastline, mountains, peaks, beaches, friends, and a great expatriate community.