HSC Wealth Management Hong Kong: Inside the Asian Investment Reset as Capital, Crypto and Private Markets Converge

by
Alyssa Davidson

Posted: May 8, 2026 8:28 AM Updated: May 8, 2026 8:29 AM

by Anastasia Oh

Edit and fact check date: May 8, 2026, 8:28 AM

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On April 23, Hong Kong-based HSC Asset Management gathered industry leaders to examine the evolving landscape of cryptocurrencies and institutional finance.

Among the key discussions was a fireside chat titled “An Insider’s View of the Asian Investment Landscape,” which explored the forces reshaping global capital markets at the intersection of traditional and digital finance.

In this conversation, Allan Liu, Global Chairman of AIC, shared his perspectives with Vadim Krekotin, Managing Partner of HSC Asset Group, taking an in-depth look at how capital flows, investment strategies and market structures are evolving in Asia and beyond.

Lessons from China’s opening up: building trust before capital

The conversation began with a reflective account of China’s early reform era, using one speaker’s career as a lens for understanding how major market transitions begin. The core idea is that meaningful capital formation rarely begins with money alone. It starts with information, trust, and a credible narrative that makes outsiders believe in unfamiliar markets. Speakers explained that in the early 1980s, when foreign investors had little data, no clear laws, and little understanding of Chinese consumers, they built sector-specific investment cases through research, reporting, and direct engagement with global companies and governments.

This approach helped turn uncertainty into certainty. He published independent research on China’s investment climate and argued that by persuading multinationals to remain involved after the political shock, the real task is not to attract capital but to make long-term capital available. The message was that when institutions can finally see how they operate on the inside, the market opens up.

From foreign investment to private equity funds

The discussion then moved to the next stage of his career. It’s not just about attracting companies, it’s about bringing capital to China. After helping establish the logic for foreign direct investment, he turned to private equity because he needed capital to support homegrown entrepreneurs and domestic companies as well as multinational corporations. The second leap was described as equally important as it represented a shift from market access to market building.

He recalled helping introduce private equity as a business model to Chinese policymakers in the early 1990s, ultimately contributing to the creation of China’s first true private equity fund. According to him, this was not just a business opportunity, but a response to a financial system in crisis. Insolvency, bad debt and systemic vulnerabilities in the banking sector have created a need for more flexible and disciplined capital allocation models. His conclusion is that private equity funds succeeded because they filled a structural gap.

Turn crisis into opportunity, discipline into survival

A key topic throughout the conversation was how crises change markets. Drawing on the Asian financial crisis, global financial crisis, credit tightening and other cycles, the speaker argued that every recession has its own unique characteristics, but one principle that always repeats is that crises create opportunities for those with the discipline and patience. He explained how many of Asia’s leading private equity firms were created at the bottom of the 2008-2009 cycle, when asset prices were low and capital could be deployed wisely.

His advice was blunt. Investors should never overpay, assume the peak will persist, and never let optimism replace discipline. In his view, the best private equity investors are not those who move fastest in a boom, but rather those who maintain discipline in entry, remain patient throughout the cycle, and exit when conditions are favorable. For him, this philosophy has remained consistent across decades and market systems.

New George in the Capital

The conversation then expanded to the current moment, which he described as a global reset of trade rules, tariffs, alliances and capital flows. In this environment, he warned, the mandate to invest only in China is becoming too narrow and risky for a growing number of global allocators. Western limited partners in particular are now more cautious about their China exposure, while fund managers are facing pressure to structure around these concerns.

His answer was adaptation. Rather than trying to force old fund structures into the new world, managers should build flexible vehicles, separate mandates and tailored partnerships. He emphasized the importance of ‘playing with the Chinese theme’ without necessarily investing directly in China. This means helping Chinese companies expand outward, building ecosystems in other regions, and supporting cross-border industrial and technology partnerships.

Outbound China’s new logic

One of the most prominent ideas from the discussion is that capital today often needs to move together with technology, manufacturing and regional partnerships. The speaker argued that Chinese companies in fields such as transformers, digital infrastructure and advanced manufacturing can only succeed overseas through localization. In markets like the Middle East, Europe, and North America, companies cannot simply export their products and expect success. They must build local supply chains, collaborate with local companies, and adapt to local rules.

That led to broader reflection on the role of private equity funds themselves. In this new phase, private equity is not limited to just writing checks. It’s about bringing together the entire ecosystem – capital, suppliers, technology, customers and partners. Investors are not only catalysts, but they also act as bridges.

Asia, the GCC, and the future of partnership capital

The second half of the conversation focused on deepening relations between Asia and the Gulf region. Speakers described both inflows and outflows as part of a larger reorganization of global capital. Gulf investors want access to top-level Asian managers and technology, while Asian companies need capital and market access in Gulf countries. But once again, the message was that money alone was not enough. Countries such as the GCC want technology transfer, industrial localization and linkage with national development agendas.

This is why, in his view, the future belongs to partnerships and not passive ownership. Capital must be matched with experience, networks and execution. The winners in Asia’s next phase of growth will be those who can combine international capital with Chinese or Asian talent, technology and manufacturing know-how.

The closing advice was personal and practical. Build relationships, collaborate through partnerships, and don’t be afraid to change direction. The speaker frames his career as a series of timely leaps, each connected to a different historical moment. His final message was that the next generation must remain adaptable, remain curious, and follow beliefs rather than routine. In a world where markets, geopolitics and capital flows are being rewritten, this may be the most sustainable strategy.

As a dedicated journalist at MPost, Alisa specializes in the broad areas of cryptocurrency, AI, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.

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