A Word with Richard Johnston

EMpower President and CEO Cynthia Steele recently spoke with Richard Johnston, Chairman of Asia at Albourne Partners and an EMpower Board Director (HK) since 2016, about the evolving financial landscape in Hong Kong, the impact of regional and global economic shifts, and his continued commitment to EMpower’s model of impact.

Richard, I'm glad to do this with you! I always enjoy our conversations on the finance sector in Hong Kong, especially any trends EMpower should better understand. What would you like to share with me today? 

Well, we've been through a challenging period, both due to regional and global factors like COVID-19. There's also been a major slowdown in private equity globally and a lack of exits. Then, more regional factors like the clampdown on the private sector in China and some American investors withdrawing funds from this part of the world have had a significant impact. 

We've been through this period of what I might call peak American exceptionalism, where it looked like America led in all technologies. I think that's been questioned by some of the innovations coming out of China. I would say we're in a recovery phase in this region. Certainly, we're seeing the relative outperformance of markets here for the first time in a while. We're seeing managers making money and an improving opportunity set. We're seeing the green shoots of IPO markets opening. There is less American money than in the past, but what has become much more significant is in Hong Kong and China -- they've connected the markets through Stock Connect, and we are now becoming much more of a Chinese liquidity pool. 

So, we're seeing an interesting recovery and performance and starting to see innovation coming back into China, particularly in AI that could rival the US. I would say there’s been quite a major transition in the mood and certainly in the market performance we're seeing. We definitely seem to be having the green shoots of a recovery here. 

I love the idea of green shoots, that things are coming back and growing, and there's opportunity. Switching gears, you've been an EMpower supporter for a really long time. You're one of the early believers and investors. What attracted you or still attracts you to the model? 

I always like the multiplier effect and EMpower has that. The unique thing about our model is that by also empowering young charities focused on empowerment, I'm hoping we get a double multiplier effect, i.e., we join those charities at an early stage in their growth journey and help them become more significant and, therefore, I hope that we help them, that charity, multiply what it can do.  What I look for in charities is to know that my dollar can be multiplied heavily over time regarding the impact. 

Thank you, Richard.