Two investment firms are establishing offices in Hong Kong, signaling a resurgence in financial activity in the city amid government efforts to maintain its status as a financial hub. Paris-based Ardian SAS is set to open an office to meet the growing demands of clients, particularly family offices from China, and to strengthen ties with regional sovereign wealth funds and insurers.

Ardian, which manages assets worth $177 billion, will make Hong Kong its fifth office in Asia, joining locations in Seoul, Tokyo, Beijing, and Singapore. The firm currently employs at least 14 staff across its existing Asian offices. This move comes as global investors are showing signs of renewed interest in China, with the Hang Seng index rebounding approximately 18% year-to-date, partly due to advancements in AI technology.

Despite this positive momentum, many long-term investors remain cautious, waiting for evidence of a sustainable rally in China. Asset allocators are hesitant to invest in China-focused private equity and venture funds due to challenges in achieving exits. North American investors, in particular, are exercising caution, exemplified by the Ontario Teachers’ Pension Plan Board's decision to close its Hong Kong office and reduce its on-the-ground operations over the next 18 months.

Ardian is currently applying for licenses with the Hong Kong Securities and Futures Commission (SFC) and plans to hire eight to nine staff for roles in sales, investments, and compliance, based at the International Finance Centre. Both Ardian and the SFC have declined to comment on these developments.

In addition to Ardian, Arga Investment Management, based in Stamford, Connecticut, is also planning to open an office in Hong Kong. Managing $19 billion in assets, Arga's client base includes family offices, pensions, and endowments. This new office would be Arga's fifth, following its operations in the US, UK, and India. The firm has posted job advertisements for positions in Hong Kong but could not be reached for immediate comment.

Overall, the establishment of these offices reflects a strategic move by investment firms to tap into the growing financial opportunities in Hong Kong, despite the cautious sentiment prevailing among many investors regarding the Chinese market.