In other words, Hong Kong participating insurance products with an expected IRR7%+ currentlyLess than one month window remaining.
01

Expected interest rate cuts

What are the implications?

In the case of investors who are already insured, they are not affected in any way, and policies that are already in force remain at the expected interest rate.

For investors who plan to allocate Hong Kong participating insurance policies, this will affect the policy'sLong-term benefits.

With the new rules in place, policyholders will faceSignificant decline in expected returns. 以下图为例

The difference between the expected IRR of 7% and 6.5%, for example, is $50,000 per year for 5 consecutive years. When the policy rolls over to 100 years, theThe difference in expected earnings between the two would be as much as $65 million!

That'scompound interestThe power of this may seem like a good difference in interest rates, but with enough time, it's enough to make a world of difference in dividend values.
02

Seize the window

Allocate early and benefit early

It is understood that the vast majority of products will not be taken off the shelves after the new regulations are implemented, but theThe expected dividends of the product will be adjusted downwards.Once the demo income of Hong Kong insurance is adjusted, insured customers will not be affected, but new policies will be implemented according to the new rules.

Therefore, it is the right time to allocate Hong Kong insuranceFinal "window".The difference between allocating to Hong Kong insurance on June 30 and allocating on July 1 is only one day, but the expected returns will be vastly different.

Why act early? At the heart of it all is the "magic of time" - compound interest:

▼ Locking in a Higher Start

Taking out a policy now will still allow for long-term compounding based on current higher demo rates (e.g., 71 TP3T+). For every 0.5% higher at the starting point, the difference in eventual returns could be significant when compounded and accumulated over decades.

▼ Seizing the Time Dividend

The compounding effect takes time to develop. The earlier you invest, the longer the "snowball" of capital appreciation will roll. The same amount of capital, a few years earlier allocation, the final harvest may be very different.

▼ Seizing the Window of Opportunity

The last window to lock in high demo rates is before July. Early allocation is not only a good opportunity to lock in potentially higher yield expectations, but also to lay out dollar-denominated assets and diversify your allocation ahead of time.

The magic of time is that it makes tiny starting differences thatGrowing into a huge end-value chasm with compound interest addedAct before the interest rate "ceiling" falls. By acting before the interest rate "ceiling" falls, you are making decisions today that will put you in a better position to grow your wealth for decades to come.

If you are interested in configuringHong Kong insuranceIn order to ensure the smooth operation of the insurance, it is recommended to act as early as possible! Welcome to contact us!

总和生育率（显示一名女性一生生育孩子的数量）降至1.15，连续3年创新低。远远低于维持人口所需的约2.07……

更夸张的是，同年死亡人数是160万，比出生人数多了快92万人。这已经不是人口放缓，是断崖式下跌。

但与此同时，选择移居东京的中国家庭，却越来越多……

背后原因究竟是什么？

01

日本劳动力减少

带来职业机遇

据日本总务省统计数据，受少子老龄化影响，日本劳动年龄人口自1995年达到峰值8716万人后持续下降，预计到2050年将减少至5275万人，相比2021年减少近三成。

受此影响，促使政府松绑政策，积极引进外籍劳动力，特别是优秀人才。

当下，日本众多行业对外国人的依赖程度日益加深，持有新居留资格“特定技能”的外国劳动者在日本制造业等现场发挥着重要作用。随着新制度的推进，“在日本工作的外国人”数量正不断增加。

此外，针对金融、IT等高技能群体，日本还推出 “特别高度人才”签证，积分达标者最快1年可获永住权。

02

优质的教育资源

日本教育体系以卓越的教育质量together with教育资源分配的公平性享誉全球，这成为众多重视子女教育规划的中国家庭选择移居日本的核心动因。

作为日本教育资源最集中的区域，东京文京区等学区正经历显著的人口结构变化——据东京都教育委员会最新统计，自2019年以来，该区非日籍适龄儿童数量激增118%，其中中国籍儿童占比达52%，形成独特的华人教育移民现象。

此外，日本政府近年来推出了高中和公立大学学费全免等优惠政策，进一步降低了教育成本，增强了对外国家庭的吸引力。

03

日本移民政策

逐步开放

日本长期以来对移民持谨慎态度，但近年来，随着人口老龄化和劳动力短缺的加剧，政府逐步放宽了移民政策The

 对创业者：早前日本放宽了Business Management Visa的资本金要求，允许投资者通过多种方式筹集500万日元的资本金，为创业者提供了更为宽松的环境。

对高端人才：日本在高度人才签证的基础上，增设“特别高度人才制度”，合资格人才最快一年可获永久居留权。

综上所述，日本在就业、教育、政策等多方面的优势，使其成为越来越多中国家庭移居的首选目的地。

在此背景下，若您有意赴日发展，当前正是绝佳时机。欢迎垂询！

As of May 2025, Hong Kong has a cumulative relationship with the52 economies sign comprehensive double taxation agreements(hereinafter referred to as the "Tax Treaty"), covering key markets in Asia, Europe and Oceania.

This figure not only marks thethe global reach of Hong Kong's tax treaty network has reached new heights.It further emphasizes its role asThe unique advantages of an international tax planning hub.

By eliminating double taxation and reducing the tax cost of cross-border investment, the tax treaties provide institutional support for Hong Kong to consolidate its position as an international financial center and attract global capital.

01

What is a tax treaty?

Definition of tax treaties

tax treaty(Tax Treaty) means a written agreement negotiated and concluded between two or more sovereign States or territories for the purpose of harmonizing their tax jurisdictions and dealing with related tax issues.

Its main purpose is toAvoiding double taxation by dividing the right to tax specific income between contracting States and providing appropriate tax incentives for international investment.Tax treaties usually include the following:

❶ Tax jurisdiction: clarifies the right of both countries to tax the income or profits of the same taxpayer.

❷ Avoidance of double taxation: Avoidance of double taxation of the same income or profit in more than one country through the Exemption Method or Credit Method.

❸ Preventing tax evasion and avoidance: Preventing tax evasion and avoidance by multinational taxpayers between countries through measures such as information exchange and joint audits.

❹ Special rules: special taxing rules for specific types of income (e.g., interest, dividends, royalties, etc.) or for specific transactions.

02

Combined benefits for businesses and individuals:

The "double dividend" of tax treaties

The signing of the tax treaties has not only injected vitality into the Hong Kong economy, but also directly benefited enterprises and individuals:

Globalization "gas pedal" for enterprises

01. Sharp reduction in cross-border investment costs

Enterprises investing in agreement countries through the Hong Kong platform can enjoy dividend and interest withholding tax relief. For example, for Hong Kong enterprises investing in the tourism sector in the Maldives, the cap on the dividend repatriation tax rate has been reduced from 151 TP3T to 51 TP3T, resulting in a significant increase in the return on investment.

02. Increased efficiency of financial operations

With no foreign exchange controls in Hong Kong, companies can concentrate their global earnings in Hong Kong and then optimize the movement of funds through a network of tax treaties. For example, a multinational enterprise can repatriate its profits from Southeast Asia to Hong Kong for reinvestment in the European market with controlled tax costs.

03. Reduced compliance risk

The agreement clarifies the rules on the allocation of tax rights and reduces cross-border tax disputes. Enterprises can rely on Hong Kong's professional services organizations to design compliant cross-border transaction structures to avoid double taxation and tax penalties.

"New options" for personal wealth management

01. Reduced tax burden on cross-border income

Individuals receiving overseas income (e.g. dividends, rents) through the Hong Kong platform can apply for tax credits based on the agreement. For example, if a Hong Kong resident receives rent from a Singaporean property, he can pay Singapore tax at the agreed rate of 5% and the remaining portion is tax-free in Hong Kong.

02,Global Asset Allocation Optimization

Individuals can take advantage of Hong Kong's tax advantages to diversify their asset allocation. For example, holding overseas assets through a Hong Kong family trust to enjoy the tax benefits brought about by tax treaties while realizing wealth inheritance.

03. Tax Compliance Facilitation

The Agreement simplifies the process of cross-border tax declaration so that individuals do not need to declare their income to the tax authorities of the two places twice. For example, Hong Kong residents working in the Agreement countries only need to declare their income at Hong Kong tax rates, thus avoiding the cumbersome double declaration procedures.

Hong Kong's accumulation of 52 tax treaties is not only a numerical milestone, but also a strategic achievement in the globalization of its tax advantages.

For enterprises, grasping the tax advantages of Hong Kong means seizing the first opportunity in global competition, and high net worth individuals can also realize wealth preservation through "offshore trust + Hong Kong tax status".

If you are also interested in tax planning, please feel free to inquire!

With an average net worth of $2.7 billion and average assets under management of $1.1 billion, the surveyed family offices' figures reflect the report's most comprehensive and authoritative analysis of this influential group of investors. 

#01

More Asia Home Office starts

Seeking investment back to Asia

About a quarter of the global family offices surveyed were from thethe Far East, the second largest region surveyed.

The report shows thatthe Far East(except Greater China) to becomeGlobal Home Office's top choice for increased investmentOver the next five years, up to50%Family Office Programs in the Middle East RegionIncreasing investment in the Asia-Pacific region.45% may increase its investment in Greater China.

In terms of specific asset allocation, the top choices for family offices in Asia Pacific in 2024 areshow (one's feeling)amount tomarketStocks and bondsThe average will24%'s assets are allocated to equities(math.) genus20% Invested in bonds. The report argues that the public stock market offers investors the opportunity to participate in transformative innovations, such as emerging technologies like generative artificial intelligence.

#02

Hong Kong Family Office

Asia-Pacific Asset Allocation "Super Hub"

In the Asia-Pacific region, Hong Kong, as the world's third largest financial center with a mature capital market and diversified investment channels, isCore financial hub in the Asia-Pacific regionIn this context, its family offices have demonstrated multiple strategic advantages and becomeA key node connecting global capital with Asia-Pacific opportunities.

Financial center status:Hong Kong is the world's third largest financial center, with a mature capital market and diversified investment channels, family offices can conveniently allocate global assets, especially stocks, bonds and private equity in the Asia Pacific region (except Greater China).

Tax Benefits:Hong Kong offers profits tax exemption for single-family offices and is free from capital gains tax, estate duty and VAT, and has an extensive network of tax treaties to minimize the tax risk of cross-border investments.

Rule of law and asset protection:Hong Kong follows a common law system with well-established trust law and a robust privacy protection mechanism, providing a secure legal environment for family wealth.

Talent and service networks:Hong Kong has a large group of wealth management practitioners, certified public accountants and lawyers, forming a one-stop service chain covering legal, tax and investment, and the government has also strengthened the supply of talents through organizations such as the Hong Kong Wealth Management Institute.

Strategic location:As the "Belt and Road" super-contact, Hong Kong serves as a bridge between the Mainland and the global market, as well as a gateway to the Asia-Pacific region (except Greater China), and family offices can leverage on its status as a free port to flexibly allocate assets in emerging markets.

Under the Asia-Pacific investment trends revealed in the UBS report.Hong Kong not only provides a safe haven for family wealth, but also helps family offices capture growth opportunities in emerging markets through its cross-border connectivity, realizing the triangular balance of "wealth preservation - cross-generational inheritance - social impact".

Hong Kong remains an irreplaceable strategic fulcrum for global families seeking opportunities in Asia Pacific. If you are interested in a family office in Hong Kong, please feel free to contact us!

After several years of volatile adjustments, against the backdrop of increased volatility in the global capital markets and a sustained low interest rate environment, Hong Kong stocks have been able to capitalize on the "Low valuation + high dividend + growth potential"The composite advantage of beingFunds are competing for the layout of the "value of the depression".

#01

Hong Kong Stocks: The Time to Dig for Gold

Since the beginning of the year.The Hang Seng Index accumulated a gain of 18.2%(math.) genusTechnology, Consumer, High Dividend SectorsTaking turns leading the charge.Cumulative southbound fund inflow of HK$6,039 during the yearForeign investment has also shifted from "underweight" to "overweight".

Source of data: Go-Goal

The driving logic of this round stems from both theChina's AI tech breakthroughs, consumer recovery policies add upThe restructuring of earnings expectations brought about by also benefited from theGlobal liquidity rebalancing under the Fed's rate-cutting cycleThe boost.

Meanwhile.The Hong Kong IPO market is back in full swing.Ningde Times, Auntie Shanghai and other giants pile up to hand in their forms, and the size of the single-day capital freeze has repeatedly exceeded HK$1,000 billionThe

May 20 Ningde Times listed on the Main Board of the Hong Kong Stock Exchange

In terms of valuation, the current price-to-earnings ratio (TTM) of the Hang Seng Index is about 10.32 times, which is a significant valuation advantage when compared to major global markets (e.g., U.S. and Japanese stocks).Sufficient margin of safety.The price-to-earnings ratio of the Hang Seng Technology Index is also at an all-time low.Attract long-term capital layout.
#02

Which assets in Hong Kong stocks are worth focusing on?

Hong Kong Stocks Technology, Innovative Pharmaceuticalsetc. are to cultivate the important direction of the new quality of productivity, and more A-share assets of the same kind have a certain degree of scarcity, but need to pay attention to the high growth accompanied by high volatility attributes, in the investment process need to be prepared to withstand the phases of larger fluctuations.

Dividend assets have "debt-like" propertiesThe high dividend yield protection allows for a relatively lower level of asset volatility, making it more suitable for an underlyer allocation.

Hong Kong stocks and technology

Hong Kong stock technology assets and A-shares complement each other.A number of high-quality Internet platforms and technology companies have chosen to list in Hong Kong due to the advantages of the flexible listing rules, the convenience of international financing, the efficiency of listing and the convenience of subsequent financing.

China's tech assets are seeing a revaluation.As an offshore market, Hong Kong stocks have advantages in terms of capital flow, and Hong Kong stocks have a higher degree of internationalization of the revenue of technology companies, which has become a strategic place for foreign investors to lay out China's core technology assets.

Hong Kong's technology valuations are highly attractive.The price-to-earnings ratio of the Hang Seng Technology Index is also at a historic low, attracting long-term capital.

There are still a large number of quality technology companies that may go public in Hong Kong in the future.Recently, Hong Kong Exchanges and Clearing Limited (HKEx) and the Securities and Futures Commission (SFC) formally launched the "Technology Company Line" to facilitate the listing of specialized technology companies and biotechnology companies in Hong Kong.

Hong Kong Stocks Innovative Drugs

Hong Kong stocks have brought together a number of high-quality Biotech companies that are scarce in A-shares.The Hong Kong stock market allows unprofitable biotech companies to list through Rule 18A, and many innovative drug leaders have realized listing in Hong Kong stock market through the reform of the system.

Domestic innovative drug companies going overseas have entered the harvest period, and the fundamentals continue to be realized.China's innovative drugs have been increasing their position in the global BD market, and the number and amount of innovative drug projects going overseas have reached record highs.

Hong Kong Stocks Innovative Pharmaceutical CompaniesValuations are still at the bottom of the historical range.

Policy efforts continue to increase, the potential catalyst is worth looking forward to.In 2024, the country introduced a new policy to clarify the pricing protection mechanism for innovative drugs, and the policy orientation shifted from "cost control-oriented" to "encouraging innovation".

Hong Kong stock dividend

Hong Kong stock dividend assets have a dividend yield advantage over A-shares.There is a long-term liquidity discount in Hong Kong stocks, and the dividend yield of the Hong Kong dividend index is generally higher than that of the A-share dividend index.

Risk-free rates continue to fall and the attractiveness of high-dividend assets continues to rise.Compared to the 10-year Treasury yield of 1.64%, the HFT High Dividend Index's dividend yield of 8.90% puts the risk premium at an all-time high of 91.04%. (Source: wind, data as of 2025.05.09)

Asset drought and system-driven demand for incremental capital allocation by insurers is strong.Insurers will need to find alternative assets as long bond yields continue to fall and non-standard assets mature.

Hong Kong Stock Trials -Technology, Innovative Pharmaceuticals, and Dividends, which represent growth, policy dividends and defense, respectively.A combination of both "offense and defense" allocations.

Under the resonance of policy support, capital inflows and valuation repair, theThe attribute of "value depression" of Hong Kong stocks will be further emphasized.It has become the core battleground for global capital to layout Chinese assets.

If you also want to invest in Hong Kong stocks, please feel free to enquire!

It should be noted that the trading rules and trading methods of the Hong Kong stock marketSignificantly different from A shares.Understanding these rules and how they operate is important for investors to rationalize their strategies and avoid risks.

01

Hong Kong Stocks Core Trading RulesTrading Schedule

Hong Kong stock trading days are from Monday to Friday (except public holidays), and daily trading is divided into four sessions:

• Pre-opening session (9:00-9:30): Includes bid limit order filing and summarization, which may not be withdrawn after 9:15.

• Morning market (9:30-12:00)together withLunch market (13:00-16:00): Continuous trading session, orders can be declared or withdrawn.

• Closing bidding session (16:00-16:10): It is divided into phases such as reference price pricing, inputting buy and sell orders, and randomizing the market close to finalize the closing price.

Under special circumstances (e.g. typhoon), trading of Hong Kong stocks may be suspended.T+0 Rollover and T+2 Settlement

Hong Kong stocks are practicedT+0 trading systemThe stock bought on the same day can be sold on the same day, and the number of times is unlimited, suitable for short-term operation.

However, the actual settlement of funds and shares needs to be made inCompletion on the second business day after the transaction (T+2)For example, trades made on Friday need to be settled on the following Tuesday.No up/down limit and cooling-off period mechanism

Hong Kong stocks do not have a single-day limit on price increases or decreases, and stock prices may fluctuate dramatically, but the introduction of theMarket fluctuation adjustment mechanism (cooling-off period): If an individual stock moves more than 10% in 5 minutes, a 5-minute cooling-off period is triggered, during which trading is limited to a specific price range.

Trading Units and Quotation Rules

• Trading Units:The basic unit is the "lot", and the number of shares per lot is set by the listed company (usually 100 shares or a multiple thereof).

• Quotation Rules:The smallest unit of price change is HK$0.01, but high priced stocks (e.g. Tencent Holdings) may use a finer unit of quotation.

Transaction cost components

Hong Kong stock trading fees include:

commissions(ranging from 0.03%-0.25%),non-residential property(0.1%, paid by both buyer and seller),Transaction levy(0.0027%).

Other costs such asShare Delivery Fee(0.002%, minimum HK$2),Trading system usage fees(HK$0.5/stroke), etc.

02

Ways for Mainland investors to invest in Hong Kong stocks

Investing through Hong Kong Stock Connect

HK Stock Connect is one of the major channels for Mainland investors to invest in Hong Kong stocks, includingShanghai and Hong Kong connectioncap (a poem)Shenzhen-Hong Kong Stock Connect. Investors can open Hong Kong Stock Connect privileges through mainland brokerage firms to directly purchase certain stocks listed on the Hong Kong Stock Exchange.

Scope of investment: The HK Stock Connect covers constituent stocks of the Hang Seng Composite Large Cap and Mid Cap indices, as well as some A+H stocks.

fig. knack or trick (esp. scheme get sth cheaper): Investors are required to fulfill the asset requirement of RMB 500,000 yuan.

Trading Mechanisms: Settlement in RMB, subject to daily quota.

Open a Hong Kong Securities Account

Investors canChoose to open a securities account with a broker in Hong KongIn addition, you can directly participate in Hong Kong stock trading with a wider investment scope and without the restriction of Hong Kong Stock Connect. However, you need to handle foreign exchange by yourself and need to comply with the regulatory requirements of the Mainland and Hong Kong.

Documents such as proof of identity and proof of address are usually required, and some brokers support online account opening.

Investments through the Fund

Investment in Hong Kong stocks through the Fund meansInvestors purchase fund products that specialize in investing in the Hong Kong stock marketThe Government has been participating in the Hong Kong stock market indirectly.

This approach is suitable for investors who do not want to trade Hong Kong stocks directly, or are not too familiar with the Hong Kong stock market, but wish to participate in Hong Kong stock investment, common ones areQDII(Qualified Domestic Institutional Investor) Fund and Hong Kong Stock ETF (Exchange Traded Fund)The

The fund company will invest these funds in stocks, ETFs or other financial instruments in the Hong Kong stock market, and investors will enjoy the returns of the Hong Kong stock market through holding the fund shares.

The Hong Kong stock market, with its open institutional design and efficient trading mechanism, offers a wealth of investment opportunities for global investors.However, its high volatility and differences in rules also require participants to have adequate risk perception and strategy preparation.

By understanding the trading rules, choosing the right instruments, and building a rigorous risk control system, investors will be able to move steadily in the international market. Welcome to contact us

The investment trajectory of this group is not only a localized interpretation of the phenomenon of "Mrs. Watanabe" in Japan, but also a reflection ofThe deep logic of Chinese family asset allocation in the era of globalization.

01

What's "Mrs. Watanabe"?
"Mrs. Watanabe."

In the 1990s, Japan maintained an ultra-low interest rate policy for a long time, and the return on domestic deposits was close to zero. A group of Japanese investors, mainly housewives, began to look to overseas markets, seeking higher returns globally through foreign exchange margin trading, purchasing overseas bonds or funds.

These people are known as "Mrs. Watanabe" (渡边太太), a name derived from the common Japanese surname "Watanabe", symbolizing the financial awakening of ordinary families.

Today, a similar scene is playing out in China.

As domestic deposit rates remain low and real estate investment properties weaken, theLarge amounts of residential savings are beginning to "spill over".

For example, middle-class investors are allocating their assets through cross-border wealth management, overseas insurance, and Hong Kong and U.S. stocks, forming the Chinese version of the "Mrs. Watanabe" phenomenon.

Their common claim is:In the era of low interest rates, looking for a safer, higher-yield "habitat" for funds.

02

"Mrs. Watanabe" Revelations:

China's "Mirror Moment" with Japan

The current economic environment in China is highly similar to that of Japan:  

Low interest rate dilemma

Bank deposit rates continue to fall, treasury yields hit record lows, and returns on traditional financial tools are struggling to beat inflation;  

The scale of wealth is enormous

Chinese households' investable assets are expected to reach US$46.3 trillion in 2025, but the proportion of overseas allocation is less than 5%, much lower than the global average of 24%; 

Signal of policy relaxation

The gradual relaxation of capital controls, such as the "Cross-border Wealth Management" pilot scheme, which allows investment in the Hong Kong market, and the QDII (Qualified Domestic Institutional Investor) quota, have reached record highs.

03

Hong Kong Insurance:

The easiest access to global investment

Among the many cross-border investment tools, Hong Kong insurance is becoming the first choice of China's "Mrs. Watanabe".

For the full year 2024.New policy premiums for Mainlanders taking out insurance in Hong Kong amounted to HK$62.8 billion!Second only to the all-time peak of HK$72.7 billion in 2016 and up 6.5% from 2023, this equates to one in three new Hong Kong policies coming from Mainlanders! 

Behind this phenomenon is a triple advantage:

"Any door" to global investment

Hong Kong insurance companies have the freedom to invest globally and are able to invest their funds in stocks, bonds, real estate, infrastructure projects, agriculture, forestry and orchards, and other alternative assets worldwide.

Investments made by Hong Kong insurance companies can not onlyDiversification of investment categoriesI can still do it.Regionally dispersedThe

Taking a Hong Kong insurance company as an example, its investment in sovereign bonds covers multiple markets such as the United States, Singapore, Thailand and Vietnam, demonstrating the advantages of a diversified and diversified layout.

"Hedge" for exchange rate risk

In a cycle of interest rate hikes in the United States dollarThe US dollar-denominated nature of Hong Kong insurance has become an effective tool to hedge against RMB depreciation.

For families with children studying abroad and overseas home ownership needs, insurance products can also lock in exchange rate costs in advance through the currency conversion function.

The "safety cushion" of regulatory dividends

Hong Kong's insurance industry has implemented the "Ten Safety Mechanisms", including solvency regulation, reinsurance arrangements and the investor compensation system. Strict disclosure requirements on dividend realization rates have also forced insurance companies to operate in a prudent manner.

The long-term expected rate of return on Hong Kong participating savings and with-profits insurance is maintained at6%-7%The historical dividend realization rate has averaged90%-105%, far exceeding market expectations.

In the era of low interest rates, the unique advantages of Hong Kong insurance products provide investors with new asset allocation options. Through rational allocation of insurance products, investorsNot only can they withstand the low interest rate environment, but they can also realize solid asset appreciation.Provide strong protection for wealth preservation and appreciation.

If you are interested in Hong Kong insurance, please feel free to enquire!

This data sends a strong signal:Japanese assets are becoming a "safe haven" for global capital.

#01

Why do safe-haven funds choose Japan?

Behind this influx of money.It is a direct response to the "ebb and flow of confidence" in the U.S. market:

After Trump returned to politics, frequent mention of tariff policy, triggering market anxiety; the Fed senior changes, so that the future path of interest rate hikes more confused; after the dollar is strong, the New Taiwan dollar, the Korean won, the Australian dollar and other Asian currencies have been appreciated, only the Japanese yen almost did not go up, the relative become "cheap".

The yen is cheap, healthy bonds, the Japanese stock market valuation is also low, the three advantages of superimposed, into the eyes of the global hedge funds in the new "depression".

This round of buying is not about a short-term rally, but about repositioning a country's future value.

#02

Japanese Yen Assets

Dual attributes of safe-haven + appreciation

Yen assets, as the name implies, are also assets denominated in yen, such asYen bonds, yen stocks, yen-denominated real estate, etc.

The current rise in the attractiveness of Japanese assets is not only driven by external risk factors, but is also closely related to its own structural advantages.Japan's stable corporate profitability and relatively reasonable valuations, coupled with the consistency of its fiscal and monetary policies, have demonstrated a stability advantage in an international environment of rising uncertainty.

The god of stock, Warren Buffett, has continued to increase his holdings in the shares of Japan's five largest trading companies, and the U.S. Blackstone Group, Singapore's sovereign fund, and Middle Eastern capitals have been buying Japanese real estate in a big way.Both are essentially highly recognized yen assets.

yen assets will remain committed for the next few years.the dual attributes of safe-haven + appreciation.Or it will usher in a new round of value growth opportunities!

If you want to learn more about Japanese Yen assets and have a need for "safe-haven + appreciation", please feel free to contact us!

In a rare move, the "stockbroker" defined his bet on Japan in terms of the "long term" - the"intends to continue to hold these merchant company stocks for fifty to sixty years."He even said, "I wish I had invested $100 billion instead of $20 billion".

And Buffett's handpicked successor, Abel, likewise said he "envisions holding Japan Trading stock for at least 50 years, or forever."

This handover across the ages has unveiled a new script for global capital flows.

#01

Warren Buffett's final "Retirement Q&A":

Why Japan?

May 3, 2025 Berkshire Hathaway annual shareholders meeting into the end of the 94-year-old "stock god" Buffett suddenly announced plans to retire at the end of the year, the current vice chairman Greg Abel will take over the baton to become the CEO of Berkshire.

In the finale of this "Warren Buffett Era" speech.Warren Buffett affirmed his investment in Japanese companies and expressed his willingness to hold shares for 50 years or more.

Regarding the logic of investing in Japan, he gives the core answer:

Buffett said.An investment in Japan is entirely consistent with Berkshire's investment philosophy.The five Japanese trading companies in which Berkshire has invested have performed very well in the past, and it intends to continue to hold their shares for fifty to sixty years, and hopes to build a long and deep relationship with them.

Buffett said, "Berkshire now has $20 billion invested in Japan, and I even wish we had invested $100 billion instead of $20 billion in the first place."

Buffett's designated successor, Abel, said he envisions holding shares of the Japanese trading company for at least 50 years, or forever.

When asked about investing overseas, Buffett even added: "Wouldn't invest overseas willy-nilly unless there was an excellent opportunity" -Apparently, Japan is what he sees as a "great opportunity".

#02

The yen and Japanese assets:

The Underrated "Friend of Time"

Buffett's judgment is highly in line with the market trend, from the current market viewpoint:
The yen is bullish in the medium to long term

• Risk aversion properties come to the fore:U.S. tariff policy exacerbated dollar volatility, part of the capital out of the dollar assets to other assets, as of April, foreign net buying Japanese stocks and Japanese bonds hit a record high.
• Exchange rate safety cushions:Although many people are used to the yen exchange rate of about 4.0 in the previous two years, but in fact, the yen against the yuan long-term level of about 6.0, the current 5.0 is still relatively low.

Certainty in the Japanese property market

• House prices continue to rise:Tokyo's 23 wards saw a year-on-year rise of 11.21 TP3T in unit prices for second-hand apartment transactions, with demand outstripping supply in core locations.
• Rental income is stable:The rental return of Japanese properties is about 3-5%, and the rental return of high quality locations in the short-term rental market can reach 5-6%, which stabilizes the cash flow in foreign currencies.
• The conflict between supply and demand has intensified:The number of new homes for sale across the Tokyo area has halved, and competition for quality second-hand homes is fierce.

This fits perfectly with Warren Buffett's investment logic - "the five merchant houses in which the investment is made are fully consistent with Berkshire's philosophy."

As he said.The value of Japanese assets needs to be measured on a "50-year" scale.rather than accounting for short-term exchange rate fluctuations.

#03

Opportunities for ordinary people:

How do I get on this train?

For the average person, the easiest to keep up with may still be theReal estate investment.

The property market in Japan's major cities such as Tokyo and Osaka is extremely prosperous. According to Jones Lang LaSalle, real estate investment in Japan's Tokyo area reached $7.65 billion in January-March 2024, surpassing New York and London, theIt has jumped to the first place in the world and become the new favorite of global asset allocation.

Warren Buffett's regret that "I wish I had invested $100 billion in Japan" prompts us to think about two key points:
Exchange rate window still open

• The current 5.0 exchange rate equates to an asset discount of 23% compared to a high of 6.5 by 2021.
• Even if the yen rallies to 5.5, it is still 8% below the historical pivot.

Asset selection criteria

• Core locations are preferred: this type of property is the most resistant to declines.
• Smaller units are more flexible: 30-50 m² balances occupancy and mobility.
• Long-term holding mentality: offset short-term fluctuations with rental income and wait for revaluation.

When 94-year-old Warren Buffett defines the investment cycle as "50 to 60 years" and 63-year-old Abel promises to "hold forever," the average investor should read more into the meaning of the term---.In the midst of global turmoil, Japanese assets may be one of the few options that can ride out the cycle.

As we learned from the stock god Warren Buffett: the luckiest thing is not to be born in a certain era, but to see undervalued values.

If you are interested in investing in Japan, please feel free to contact us!

However, Hong Kong asAsia's largest financial centertogether withindependent customs territoryLong-term"Zero tariffs"The policy attracts global trade, with the United States running a cumulative trade surplus of $271.5 billion with Hong Kong over the past decade, and Hong Kong leveraging on itsUnique economic positioncap (a poem)legal system, providing companies with an important strategic advantage.

01

Low tax rates and a simple tax system

Reducing the corporate tax burden

Hong Kong is renowned for its low and simple tax regime, with businesses mainly payingprofit taxThe tax rate is only 16.51 TP3T (Enterprise)maybe 15% (Individual)andNo VAT, GST or capital gains tax.

In addition, Hong Kong has adoptedterritoriality principleIn addition, Hong Kong companies are taxed only on locally generated profits, and overseas income is tax exempt. Compared with high tariff countries, Hong Kong companies can effectively reduce tax costs and increase profit margins.

02

Freeport policy

circumventing tariff barriers

Hong Kong is one of the freest trading ports in the world:

◎ Zero tariff policy: With the exception of a few commodities such as tobacco and alcohol, imported and exported goods are basically duty-free, which greatly reduces trade costs.

◎ No exchange controls: Free flow of capital to facilitate cross-border settlement and investment by enterprises.

◎ Efficient customs clearance:Hong Kong's ports and airports lead the world in terms of logistics efficiency, with fast turnaround of cargoes, making them suitable for transit trade.

For enterprises affected by high tariffs, they can carry out re-export trade through Hong Kong companies to rationally optimize the supply chain and reduce the burden of tariffs.

03

Internationalized financial system

Facilitating cross-border capital operations

As a global financial center, Hong Kong has a sophisticated banking system and capital market:

◎ Multi-currency accounts:Enterprises are free to open accounts in US dollars, euros and Chinese yuan to reduce exchange rate risks.

◎ Financing facilitation:Hong Kong's stock (HK stock) and bond markets are active and suitable for enterprises to go public or issue bonds for financing.

◎ Offshore funds management:Multinational corporations can pool their funds through Hong Kong to enhance the efficiency of capital utilization.

Hong Kong's financial freedom provides companies with the flexibility to move capital in areas where there are trade wars or strict foreign exchange controls.

04

The common law system and international arbitration

Protection of commercial interests

As used in Hong Kongcommon law systemIn addition, the law is transparent and internationally harmonized, and contract enforcement is strong. In addition, Hong Kong isInternational Arbitration CenterMany multinational corporations choose to settle commercial disputes here to avoid political interference.

For enterprises involved in international trade disputes, Hong Kong's legal environment can provide a fairer and more efficient dispute resolution mechanism.

05

Global Business Network

Enabling Market Expansion

With its backdrop of the Mainland and its global outlook, Hong Kong has a unique locational advantage:

CEPA agreement:Hong Kong companies can enjoy preferential treatment for entry into Mainland China, such as zero-tariff product access.

◎ "One Belt, One Road" Hub:Hong Kong is an important node connecting ASEAN, the Middle East and Europe, which is suitable for enterprises to layout emerging markets.

◎ International business networks:Hong Kong brings together global multinational corporations, financial institutions and professional services organizations, making it easy for businesses to establish partnerships.

Against the backdrop of rising tariffs and trade protectionism, Hong Kong companies'low tax regime, free port policy, financial convenience, legal security and international networks.Make it an important platform for enterprises to optimize the global supply chain, reduce trade costs and avoid risks.

Whether it's re-export trade, capital management, or market expansion.Hong Kong all offers unique strategic advantages that can help companies stay competitive in a complex trading environment, bringing them more opportunities and advantages for development.

If you want to seize this opportunity, why don't you take action and register a Hong Kong company to start your new business journey? Welcome to contact us!