HSBC invites Grammy-winner Pharrell Williams to meet its richest Hong Kong clients as it introduces art-finance offering

Wealthy Hong Kong clients of HSBC will dine with Grammy-winning recording artist Pharrell Williams on Wednesday as the bank hosts a series of events to promote the launch of an offering that allows high-net-worth individuals to get loans using “passion assets” such as artwork as collateral.

The launch by HSBC, the largest lender in Hong Kong and Europe, comes as the Hong Kong government hosts a Wealth for Good in Hong Kong summit this Friday, indicating that both officials and the private sector are promoting the city as a hub for the world’s richest people to manage their wealth and philanthropy. The summit will bring some of the world’s wealthiest families to the Palace Museum to discuss wealth management, the arts, green finance and charity.

“A lot of our clients have what we call passion assets, including yachts, planes or art,” said Jyrki Rauhio, regional head of credit advisory under global private banking of Asia-Pacific at HSBC. “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.”

“The art scene in Asia has obviously grown enormously in the last 10 years, but aspects like our financing are relatively new.”

HSBC will offer loans equal to about 50 per cent of the value of an art collection, allowing private-bank clients to leverage their art to finance other business initiatives. The art in question must be kept in secured warehouses with proper temperature and humidity controls, not displayed.

“We are very active in this art and culture space,” said Maggie Ng Yuk-yu, head of wealth and personal banking for HSBC Hong Kong. “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 mobilise their art investment.”