What is the appeal of financial products that can be purchased in Hong Kong? Hong Kong financial institutions with abundant foreign bonds are attractive because they can build long-term assets and secure regular income in old age!

I'm Yoko Hanawa, a financial planner (FP). The other day, she attended a seminar hosted by "Nippon Wealth Limited, a Restricted License Bank (NWB)" in Hong Kong. NWB is a financial institution in which Shinsei Bank of Japan and Monex, Inc. have invested. This time, I would like to report on the latest financial information on Hong Kong that I learned at the seminar.

In Hong Kong, authorities control financial products and do not sell high-risk and low-return products

Hong Kong is a well-developed financial city. Hong Kong's stock market has a large market capitalization and is also the world's largest initial public offering (IPO) market.

Many of the larger financial institutions in Japan and Europe have a large staffing focus on Hong Kong. There is no doubt that Hong Kong will continue to maintain its solid position as one of Asia's top financial centers. Financial markets are well developed in Tokyo and Singapore, but it will be interesting to see how they can segregate with this powerful Hong Kong.

At the NWB (Nippon Wealth Limited, a Restricted License Bank) seminar, I was able to learn more about the financial products sold by such Hong Kong financial institutions, but I was surprised at the sophisticated lineup.

Hong Kong authorities have very strict control over financial products. Therefore, I have the impression that only “risk-level products commensurate with returns” are handled by financial institutions.

It seems natural that returns and risks are proportional, but there are some financial products in Japan that are surprisingly not. It seems that many investment trusts, which are handled by Japanese securities companies, are too risky to handle in Hong Kong.

What are the NWB services and financial product lineups that are different from general financial institutions in Japan?

By the way, when opening an account at NWB, "risk tolerance diagnosis" is performed. The system was such that a staff member other than the staff member in charge comprehensively diagnosed the risk tolerance based on the investment experience, income, assets, etc. of the customer. By doing this, you can be reassured that you will be able to plan your asset management according to your risk tolerance.

Regarding the specific contents of financial products, I have the impression that there are many long-lived investment trusts that have survived the Asian currency crisis and the Lehman shock, with the main being US dollar-denominated investment trusts and having a high Morning Star rating.

In the case of investment trusts set up by Japanese financial institutions, it is not uncommon for investment trusts to be redeemed in advance due to a decrease in total net assets and the like, and the investment is often terminated. Even if you make a lot of efforts, if the investment trust suddenly redeems in advance, it will be a big blow to investors. However, a good longevity investment trust has a high probability of avoiding these concerns.

The great attraction of Hong Kong financial institutions is the extensive lineup of foreign bonds!

Also, as in Singapore, Hong Kong financial institutions have a full lineup of foreign bonds (foreign bonds). However, most of them have a minimum trading unit of about 10 million yen or more, which is a fairly high hurdle. Still, you may be able to buy a combination of two or three foreign bonds, for example when you get a severance pay or when you get an insurance maturity.

Many foreign bonds are suitable for the retired generation. When considering income in old age, the pension is paid once every two months, so there will be months when income is not included. Foreign bonds often receive coupons (interest rates) once every six months, but if you buy foreign bonds so that you can receive coupons in the month when there is no pension payment, you can have a source of income other than the pension. increase.

Many working generations may be worried that their income will decline after retirement. It's difficult to suddenly lower your standard of living just because you're retired, so it's important to have a plan on how to make up for your retirement income in your 40s and 50s.

In the case of bonds, if you hold them until maturity, in principle, the funds will be returned without breaking the principal. Stocks can also receive dividends, but there is an aspect that price fluctuations are severe. In that respect, with bonds, you can earn coupon income while maintaining your mental stability.

However, since foreign bonds in Hong Kong and Singapore are denominated in foreign currencies such as the US dollar, it is important to note that there is a "foreign exchange risk" for people living in Japan. Even if the principal is not broken on a foreign currency basis, there is a possibility that the principal will be broken when converted to yen. People who often travel abroad (or want to travel abroad in old age) should consider investing after considering how much foreign currency risk can be taken, including using the local currency as it is. Let's.

Financial institutions in Hong Kong and Singapore have a rich lineup of bonds in Asian countries and companies, which is not unrelated to the fact that many high net worth individuals invest mainly in bonds and investment trusts. At Japanese financial institutions, even if individuals try to buy foreign bonds, the options are limited to a small number of stocks such as US Treasuries, so financial institutions in Hong Kong and Singapore can be said to be attractive.

It is difficult to open an account in Hong Kong while living in Japan, but NWB has a lower hurdle than other financial institutions.

So how do you open an account at a financial institution in Hong Kong?

As a general rule, opening an account with an overseas financial institution while in Japan is not easy. In recent years, many private banks in Hong Kong have lost their Japanese desks, and even the well-established HSBC seems to have difficulty opening an account without considerable negotiations in English and Cantonese these days.

Meanwhile, NWB is responding in Japanese, and it is attractive that the hurdles such as the deposit amount are low. We also handle investment trusts that can be accumulated at low prices, so it can be said that it is a fairly easy entrance for Japanese people who are interested in financial products in Hong Kong.

Lastly, the question is whether the cost will be higher when operating using overseas financial institutions. Basically, the cost will be "amount according to the deposited assets".

It does not mean that the assets are proportional to the cost, but the cost is higher for a small investment, and conversely, the cost is very low for a large investment such as a private bank. Therefore, it can be said that it is suitable for people who want to manage a certain amount of assets such as 10 million yen or more.

This time, I was excited to attend the NWB seminar and learn about a lot of investment trusts and foreign bonds that I personally want to buy. He decided to stop wasting money and encourage him to secure a stable income with bonds in old age.

If you are interested in Hong Kong's financial products, why not take part in a seminar or a tour of financial institutions in Hong Kong while also traveling.

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