Finance
‘Hong Kong is an ideal option for foreign investment despite market pressures’
Hong Kong remains one of the “most ideal options” for international investment despite pressure on capital markets, the finance chief has said, pointing to an ongoing net-inflow of funds into the city.
Financial Secretary Paul Chan Mo-po struck the upbeat note on his weekly blog on Sunday, ahead of the World Economic Forum’s annual meeting in Davos, Switzerland, which he will be attending.
“It is true that in the face of the global high interest rate environment and multiple external adverse factors, Hong Kong’s asset market has been under pressure in the past year,” Chan said.
“However, it is also true that investment opportunities have become more attractive, and many funds are waiting for chances to look for investment opportunities.”
In the first 11 months of 2023, total deposits reached HK$16 trillion (US$2.04 trillion), a year-on-year increase of 4.1 per cent, of which deposits in Hong Kong dollars rose by 1.7 per cent year-on-year to HK$7.6 trillion, Chan added.
Taken together with preliminary figures from December, the minister said the total growth in deposits last year was expected to reach 5 per cent.
“The figures reflect that between entry and exit, funds are still in a state of ‘net inflow’,” he said.
Hong Kong may take ‘year or two’ extra to achieve budget surplus, Paul Chan says
Hong Kong may take ‘year or two’ extra to achieve budget surplus, Paul Chan says
Chan’s positive assessment comes amid a four-year slump in the city’s stock markets, and wider economic malaise despite earlier hopes of a post-pandemic rebound.
The Hang Seng Index was down about 13.8 per cent in 2023, according to its year-end report, marking its fourth straight year of decline. It also had its worst start to the year since 2016, as a slowdown in mainland China’s growth and longer than expected policy tightening in the US continued to dent sentiment.
Housing prices have also fallen to their lowest in seven years, down about 20.6 per cent from the market’s peak in September 2021, as the city’s slowing economy and high interest rates undercut demand.
Buyers opt for cheaper homes in Hong Kong’s first 2024 weekend sales
Buyers opt for cheaper homes in Hong Kong’s first 2024 weekend sales
But Chan said international investors sought out the most “cost-effective return opportunities” and thus were not focused on “past numbers”, but rather “potential for future growth”.
“Many international investors who are familiar with the Hong Kong market agree that the city is one of the most ideal options,” he said.
The finance chief added that there were “great advantages” in Hong Kong’s wealth management sector, pointing to a 2023 report by US-based Boston Consulting Group which estimated that the city would experience a 7.6 per cent growth rate in the industry between 2022 and 2027.
He also highlighted efforts to diversify the city’s economy, including the “vigorous promotion” of innovation and technology industries, including in artificial intelligence, data science and biomedicine.
900 technology companies drawn to Hong Kong amid city’s innovation drive
900 technology companies drawn to Hong Kong amid city’s innovation drive
Chan said he would introduce and promote the city’s developments while attending the summit in Davos this week.
The summit is an annual event which brings together public officials, business leaders and civil society groups from around the world. This year’s meeting runs from January 15 to 19 under the theme of “Rebuilding Trust”.
“I hope that everyone will strengthen cooperation and achieve better economic growth together,” Chan said.
Secretary for Commerce and Economic Development Algernon Yau Ying-wah will join parts of the summit, along with Airport Authority chairman Jack So Chak-kwong, Hong Kong Exchanges and Clearing chairwoman Laura Cha Shih May-lung and MTR Corporation CEO Jacob Kam Chak-pui.
Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
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