New Hong Kong finance sector lawmaker Robert Lee says tech and diversification, as well as government support can help small brokers grow

Many small players are struggling but the outlook remains positive, says Robert Lee Wai-wang

‘The brokerage industry is not a sunset industry, as many investors still like to trade through brokers to enjoy their more personal services’

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Brokers need to diversify into asset management and other investment services for customers, says Robert Lee Wai-wang. Photo: Jonathan Wong

Published: 12:00pm, 2 Feb 2022

Hong Kong’s small brokers can use new technologies and diversify their businesses to capture growth opportunities in the Greater Bay Area, said the city’s newly elected lawmaker representing the financial services sector.

Many small players were struggling but the outlook remained positive, said Robert Lee Wai-wang, who is also the CEO of Grand Capital Holdings.

“Brokers can no longer rely on commission income from stock trading – they need to diversify into asset management and other investment services for customers,” he said in an interview with the South China Morning Post. “As long as the country will allow local players to get more involved in the Greater Bay Area development zone, the opportunities will be huge.”

Lee, 41, who does not belong to any political party, represents the third generation of a brokerage family. He defeated Christopher Cheung Wah-fung, another veteran broker, in the Legislative Council election in December, and will represent the more than 600 stockbrokers, 170 gold trading firms and other investment managers who are key players in Hong Kong, the third largest capital market in Asia.

“Hong Kong brokers can help wealthy families in the Greater Bay Area set up family offices here. Since Hong Kong is an international financial centre, they can use Hong Kong as a base to invest in many international markets and products,” Lee said.

The Greater Bay Area development blueprint was first unveiled in February 2019, and includes a broad master plan that has assigned key industries and strategic roles to each of the 11 cities in the cluster to attract capital, talent and investment. With a combined economy estimated at US$1.75 trillion, the zone would already be larger than South Korea’s economy if it were a stand-alone entity.