Hong Kong’s 106 billionaires, Treasury yields hit recent highs: the numbers moving markets

China's foreign-exchange regulator recently granted new quotas for mutual funds, insurers, and banks' wealth-management units, allowing them to invest in overseas assets. As a result, US$6.84 billion in new quotas were approved by the end of August for these institutions. Notably, 18 money managers, including China Asset Management and GF Fund Management, received US$100 million each, while more than 20 Chinese banks' wealth-management units received quotas for the first time.

Hong Kong remains the world's second-largest hub for billionaires, with 106 billionaires, trailing only New York, which has 164, according to wealth data provider Altrata. The city's billionaire population is bolstered by wealth creation from the AI boom, as Beijing and Shenzhen also rank among the world's 15 cities with the most billionaires.

In financial markets, the US 10-year Treasury yield hit a 20-month high of 4.78 per cent on Tuesday, reflecting concerns over the country's fiscal outlook and prompting investors to sell government debt. US Treasury Secretary Scott Bessent assured G20 finance ministers that Washington was a leader in addressing sovereign debt problems in emerging markets. Additionally, benchmark yields in Japan and the UK have climbed to multi-decade highs.

China's National Social Security Fund has reached a record US$86 billion in offshore assets, more than doubling its investments in three years. The fund allocated 15.23 per cent of its total assets to offshore investments by the end of 2025, seeking higher returns through greater exposure to overseas markets.