Billionaire Zhang Yiming’s Private Investment Fund Gets Green Light in Hong Kong
A New Chapter in Wealth Management
Hong Kong’s Securities and Futures Commission (SFC) has granted a type 9 licence for asset management to Cool River Venture HK, a private investment fund founded by billionaire Zhang Yiming, the mastermind behind TikTok’s Chinese parent company ByteDance. This move paves the way for the young entrepreneur to utilize Hong Kong as a base for managing his wealth.
A Strategic Move
The licence, awarded on November 21, enables Cool River Venture to engage in various activities, including real estate investment management and securities and futures contract management. The company, headquartered in the Central business district at the International Finance Centre, has listed Liu Bide and Liu Zhao as responsible officers.
A Tech-Savvy Investor
Cool River Venture, incorporated in Hong Kong in May 2023, primarily invests in technology-related industries. Zhang’s decision to establish the fund in Hong Kong underscores the city’s appeal as a hub for wealthy entrepreneurs seeking to manage their wealth.
A Low Profile, But Still Active
Since stepping down as CEO and chairman of ByteDance in 2021, Zhang has maintained a low profile. However, he remains actively involved in corporate strategy and has personally overseen the recruitment of artificial intelligence professionals from rival companies.
Hong Kong’s Attractiveness
According to Wilson Chan Fung-cheung, associate director of the master of business administration programme at City University of Hong Kong, “Hong Kong has become more attractive to rich people in the region to manage their wealth, and the trend is likely to continue in coming years.”
Zhang’s Wealth and Influence
The 41-year-old billionaire owns roughly 21% of ByteDance and currently resides in Singapore. His personal wealth could increase further if TikTok can avoid an impending ban in the US, one of the app’s largest markets.
Philanthropic Efforts
Zhang has taken a more philanthropic approach since stepping down as CEO, focusing on education. He has donated significantly to an education fund he created in his hometown, Longyan in southeastern Fujian province.
A New Era for Wealth Management
As young Chinese tech entrepreneurs like Zhang continue to accumulate massive wealth, their wealth plans often remain shrouded in secrecy. However, Zhang’s move to establish Cool River Venture in Hong Kong marks a significant step towards greater transparency and a new era in wealth management.
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