An Overview: Clara Chan Ka-chai, currently the Executive Director of Monetary Management at the Hong Kong Monetary Authority (HKMA), is set to make her departure next Monday. She is poised to take on the role of CEO at the Hong Kong Investment Corporation (HKIC), marking her as the institution’s inaugural leader. This transition highlights her renowned expertise in managing significant financial challenges, particularly underscored by her pivotal role in orchestrating the bailout for Cathay Pacific during the global pandemic.
Her Reputation and Past Roles: Clara Chan’s name became synonymous with success and resilience due to her involvement in the monumental bailout plan for Cathay Pacific in 2020. Sources intimate with the situation have confirmed her instrumental involvement in the government’s multibillion-dollar rescue initiative for the struggling airline. As a result, her unmatched ability to navigate complex financial landscapes earned her the informal title of “goddess.”
Chan’s laudable management of the Cathay Pacific bailout is recognized as the primary catalyst for her nomination to lead the HKIC, which is conceptualized as Hong Kong’s counterpart to Singapore’s esteemed sovereign wealth fund, Temasek. To put into perspective, Temasek oversees a staggering portfolio valued at US$278 billion.
The New Challenge: As the CEO of the nascent HKIC, Chan will have the responsibility of supervising four primary funds, cumulatively valued at HK$62 billion. Among these, the HK$30 billion Co-Investment Fund stands out as a promising initiative to magnetize businesses to Hong Kong by investing directly in their ventures, a strategy reminiscent of Temasek’s approach.
Additionally, the HKIC will manage the HK$32 billion Hong Kong Growth Portfolio. This portfolio encompasses both the HK$5 billion Strategic Tech Fund and the HK$5 billion Greater Bay Area Investment Fund. The latter is specifically focused on identifying and capitalizing on investment prospects within the development zones encompassing Hong Kong, Macau, and nine mainland cities in China’s southern Guangdong province.
Government Initiatives: This Co-Investment Fund is part of a broader suite of strategies, unveiled last October by Chief Executive John Lee Ka-chiu. The objective of these initiatives is to facilitate economic growth in Hong Kong by luring enterprises, investments, and talent.
Chan’s Multifaceted Career: Trained as a barrister, Chan’s journey in the finance sector has been nothing short of illustrious. Her colleagues at HKMA, where she has represented the authority in public forums and Legco meetings, often describe her as a “high flier.” Her insightful perspectives on a broad spectrum of topics ranging from financial stability and ESG to contemporary financial challenges have been invaluable.
Before her tenure at the HKMA, Chan held the title of Chief Investment Officer of Private Markets, directing the HKMA’s ventures in domains including private equity, real estate, infrastructure, technology, healthcare, and credit.
Furthermore, her association with the Hong Kong government predates her HKMA stint, where she served as an administrative officer, handling portfolios related to home affairs, transport, and financial services. An official who previously collaborated with her lauded her profound understanding of both governmental operations and private market transactions.
Acknowledgements and Endorsements: Chan’s impactful tenure at the HKMA, which supervises investments surpassing HK$4 trillion across bonds, stocks, and real estate, has not gone unnoticed. Eddie Yue Wai-man, CEO of HKMA, recently extolled her contributions, particularly emphasizing her outstanding achievements with the Exchange Fund Investment Office and her dedicated efforts towards fortifying Hong Kong’s financial and monetary stability.
Paul Chan Mo-po, Hong Kong’s Financial Secretary, also joined the chorus of appreciation. He celebrated Chan’s extensive knowledge, especially in the fields of venture capital and private equity, and praised her acute financial insight, expansive industry network, and profound understanding of governmental operations.
Conclusion: The unanimous sentiment is clear – under Clara Chan’s stewardship, the HKIC is anticipated to make significant strides. She is expected to not only amplify the growth of target industries but also ensure robust investment returns. Her past successes, particularly her astute management of the Cathay Pacific loan during the HK$39 billion government bailout, solidify the confidence vested in her. As Kenny Ng Lai-yin, a strategist at Everbright Securities International, puts it succinctly, the HKIC’s mission is to champion local enterprises while ensuring sustainable returns. With Clara Chan at the helm, this vision seems well within reach.
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