To capitalize on Asia's growing interest in assets of passion, such as art, HSBC has recently introduced a new alternative financing solution to the region.
HSBC recently introduced art financing products in Asia, according to Jyrki Rauhio, APAC regional head of credit advisory at HSBC Global Private Banking, to capitalize on growing opportunities in the region.
The bank offers loans equivalent to about 50 percent of an art collection’s value. The art being used as collateral must not be displayed and also be kept in secured warehouses with proper temperature and humidity controls.
«A lot of our clients have what we call passion assets, including yachts, planes or art. We have been providing services and solutions around these assets for several years in Europe, and we have recently brought the art financing product into Asia,» said Rauhio in an «SCMP» report.
Pharrell Williams
As part of its effort to promote the art finance offering, HSBC hosted a series of events including a dinner with US artist Pharrell Williams and a talk about his newly launched non-fungible token platform.
Other events include workshops for art collectors and local artists as well as an exclusive tour at auction house Phillips in Hong Kong.
Hong Kong Hub
HSBC’s art finance rollout coincides with Hong Kong’s ambitions to become a major art hub in Asia. The local government recently announced a series of new measures to attract family offices to the city, including plans to build an art storage facility at the airport.
«We are very active in this art and culture space,» said HSBC head of wealth and personal banking Maggie Ng. «It is our ambition to help Hong Kong be a global hub for art and culture. We are promoting art on one hand. On the other hand, we are helping our customers mobilize their art investment.»
