Financial services specialist Leland L Sun, Managing Director and founder of Pan Asian Mortgage, taps into two pillar industries of Hong Kong: financial services and real estate. After moving from California in 1993, he started Pan Asian Mortgage in 2001, while working with Goldman Sachs. The firm’s initial focus was to help clients in negative equity to refinance at a lower rate. From seven employees at start-up, Pan Asian now has more than 40 staff in Hong Kong. As well as a mortgage lender, the firm has become the second-largest mortgage broker in Hong Kong, a division that was set up in 2007. It has a sister company in Chongqing, established in 2007 to provide financial guarantees on SME loans, with nearly 50 staff. His business thrives because there is consistent demand for properties and, with it, a need for mortgage financing in Hong Kong. Much of the demand in recent years has been from the Chinese mainland. Still the greatest demand comes from Hong Kong’s local population, as families move out from public housing and children leave home. “Hong Kong is the best Harvard Business School case study for entrepreneurs,” Mr Sun said. “Even the largest local companies started out as SMEs. “Hong Kong has long been the gateway into China and, in recent years, a gateway from China to the rest of the world. For many reasons, Hong Kong is still a top choice for entrepreneurs and SMEs to set-up their operations, especially if they plan to market into Asia. Leland Sun is chairman of Pan Asian Mortgage
Archive for 2013
(Published by South China Morning Post, 17 Apr 2013) Last week, I offered three specific suggestions to address the high property prices head-on. As when any new measures are introduced, some stakeholders are bound to be affected. With the Hong Kong economy heavily skewed towards property investment, the suggestion to increase rates would provide a substantial source of recurrent revenue for the government, unlike stamp duty and land sales, which can fluctuate greatly.
(Published by South China Morning Post, 10 Apr 2013) It’s no secret that since late 2009, there have been valiant attempts to moderate the rise in property prices in Hong Kong. In the past three years the government and related agencies have intervened in the property market no fewer than 25 times, introducing additional stamp duties – a Special Stamp Duty and a Buyers’ Stamp Duty – and mandating banks to lower their maximum mortgage advance ratios and run increased interest rate stress-test scenarios. Most recently, it doubled ad valorem stamp duty rates.