Hong Kong Edition: Goldman vs Morgan Stanley

In this week's Hong Kong Edition, we look at how Wall Street's back on top of the city's booming equity capital markets, find some silver li
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In this week's Hong Kong Edition, we look at how Wall Street's back on top of the city's booming equity capital markets, find some silver lining in the recent heat wave and talk to the professor behind OldHKinColour. For the Review, we visit a dim sum restaurant hidden in a Kowloon basement that hits the Hong Kong trifecta.

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They Might Be Giants

Hong Kong's booming capital market might be the tide that lifts all boats for investment banks, but some firms have pulled ahead of the field. A couple of the biggest global names are outshining their Chinese rivals and are engaged in a pitched battle for the top spot in the equity underwriting league tables, which reflect how much business each bank is doing in helping companies raise funds.

Goldman Sachs just had a jubilant finish to the first half of 2025 as Hong Kong's top arranger of equity offerings, its first win to start a year since 2017, thanks to its work on the city's marquee deals. But the champagne had not yet lost its fizz when arch rival Morgan Stanley leaped back in front. After losing out on the Xiaomi and BYD deals, it raced to complete a massive block trade in the shares of insurer AIA and reclaim the crown it's held for much of the last decade-plus.

As the second half of the year gets underway, and with Morgan Stanley holding a lead of less than $700 million, the race is back on to dominate Hong Kong dealmaking.

The stakes are especially high this year as deal volumes in the city surge back after a multi-year slump. Companies and their shareholders raised over $33 billion selling shares in Hong Kong in the first half, six times the amount a year ago, and bankers are expecting more to come. PwC is predicting that the city will reclaim its position as the world's top fundraising venue for IPOs.

It's a far cry from the environment in recent years. The Chinese economy began to sputter under the twin pressures of deflation and a widespread property crisis, Beijing moved to rein in some of its most successful private entrepreneurs, and globally, central banks cranked up interest rates to tame soaring inflation.

Global investors steered clear of China as a result, hitting Hong Kong dealmaking — and the global banks that for years had invested in their China business — hard.

But now Hong Kong's position as a gateway to China is looking enviable again. Mainland companies are flocking to the city to raise funds as onshore markets remain largely shut, New York is less appealing because of geopolitical tensions and global investors have turned more positive on China.

Morgan Stanley's Ted Pick, all smiles for Hong Kong. Photographer: Paul Yeung/Bloomberg

Of course, Wall Street's biggest banks rising to the top isn't exactly a massive surprise. And even in the heat of competition, they can be quite chummy as they close ranks against upstarts in the finance industry. Goldman chief David Solomon and Morgan Stanley CEO Ted Pick showed that in Hong Kong last year, with some friendly ribbing over whether a combination of their banks should be called "Goldman Stanley" or "Morgan Sachs." 

And it's exactly their position in the global finance ecosystem that's allowed them to leverage their connections to top international investors and come out ahead in Hong Kong. Just looking at IPOs, Chinese rivals have slid down the rankings after claiming the top four spots a year ago. While CICC is still No. 1, it is followed by Morgan Stanley, Goldman and UBS. Huatai Securities rounds out the top five.

To be sure, winning in the league tables doesn't mean all is rosy. Chinese brokerages continue to be big players and the dearth of deals on the mainland has only worsened the competition — and as a result the fees — for offerings in the city.

CATL's $5.2 billion listing in Hong Kong — the world's biggest this year — paid just 0.8% of the deal size in fees, a fraction of historical payouts.

They brought out the big gong for CATL. Photographer: PETER PARKS/AFP

And geopolitics can still be a headache for US banks doing business in China. During the CATL deal, Bank of America and JPMorgan, the two lead US banks on the offering, came under pressure from Washington to drop the mandate.

They both ultimately stayed on, but it was a reminder of how banks can get caught up in tensions between China and the US.

All that shows that the race for supremacy will remain cutthroat. The pipeline remains strong and as shown by the AIA deal, a bank missing out on the two biggest follow-on offerings of the year doesn't mean it can't claw its way back. —Julia Fioretti and Cathy Chan

Chart of the Week: But It's a Dry Heat!

We are hitting peak summer. And though remnants of Tropical Storm Danas are drenching Hong Kong this week, the year overall remains less humid than usual. That can help mitigate the sticky, stultifying heat and make the same temperature feel more tolerable. But don't get too comfortable: If last month were any guide, the city is set for a particularly hot season. June had six days with the daily maximum temperature breaching 33C (91.4F), compared with the 30-year average of 3.1, according to Hong Kong Observatory records. —Mary Hui

Five Minutes With: The Man Adding Color to HK History

In a city that changes as fast as Hong Kong, with little regard to the preservation of the built environment, photos of bygone streetscapes have a special value. In that context, OldHKinColour emerged as one of the key repositories of those images. The project, started five years ago by Loka Siu, helps restore and add color to historical pictures. And it has found a ready audience: Its Instagram page now boasts some 188,000 followers.

We caught up with Siu, who by day is an assistant professor specializing in translation at the Hang Seng University of Hong Kong, about how he and his team of two volunteers go about the painstaking process. —Mary Hui

What motivated you to start OldHKinColour?

I started the project in 2020, driven by a growing sense of nostalgia amongst Hong Kongers. Over the past couple years, there were lots of people having more and more interest in the history of Hong Kong. They want to learn about the daily life, the architecture of the city.

But I noticed that while interest in Hong Kong's history was really high, the resources were almost exclusively in black and white. This monochrome format, while historically important, can create a psychological distance, making the past feel abstract and disconnected from our modern and colorful world.

I hope that I can establish this platform to help youngsters learn more about the history of Hong Kong. I also wanted to create an educational project that uses the latest AI technology to make history more immediate, immersive and emotionally connected with our contemporary audience.

The first City Hall, in 1868. Photographer: John Thomson/Wellcome Library
Image of the first generation of City Hall, which OldHKinColour restored with the assistance of AI technology. Source: OldHKinColour

How do you choose which photos to work on, and where do you find those images?

I source high-resolution digital copies of original monochrome photos from different archives, online databases and academic institutions, as well as government records. My selection focuses on images from the 1950s and 1960s that capture the city's unique traditions, architecture and daily life.

Can you talk me through the process of colorizing a photo?

There are four major steps. Step one is sourcing and selection. Step two is pre-processing, a kind of digital restoration, usually using AI-powered software developed in-house by my team. We also use manual techniques to restore the image, repairing physical damage like scratches and fading, and enhancing the image resolution and clarity to create a clean canvas.

Step three is historical research. This is the most time intensive and is a critical phase. I conduct comprehensive historical research to ensure color accuracy, cross-referencing old newspapers, documents and even films. Sometimes I can't recognize all the objects appearing in the images, and I have to do intensive historical research to figure it out. The colorization process itself is a manual process of adjustments and judgment, done together with different kinds of AI models developed by myself.

And lastly, step four. Over the past few months, we have tried to incorporate the latest AI animation model, and for some images we add subtle animation such as moving trams or blinking lights.

The waterfront of Central in 1868. Photographer: John Tomson/Wellcome Library
Image of the waterfront of Central, which OldHKinColour restored with the assistance of AI technology. Source: OldHKinColour

You've got a full-time job and life is busy, but you're still devoting hours and hours to this project. Why is it important to you to do this?

I think it's quite important for us to learn about the history of our city. I believe this is a mission for all educators. I hope that we can provide younger generations with a comprehensive understanding of the city without any bias, and simply provide the images and animations and let them learn the city's history through an immersive experience and exploration. That's one of the key reasons for me to keep doing this research project.

How is all this funded?

It's self-funded. I use my salary to support the project. We spend maybe HK$10,000 to HK$20,000 a year to pay for GPUs and computing power.

What plans do you have for OldHKinColour?

We hope to expand media formats, moving beyond still images to restoring and colorizing historical films or footage of Hong Kong. We're also in the early stages of developing an online database where users can explore photos with interactive maps, and maybe in the long term include features like AR and VR. Another major focus is creating a 3-D virtual tour, maybe of Central as it appeared in the late 19th or early 20th century, allowing users to walk through history. We would also like to publish a high-quality monograph and make the collection accessible to an audience that prefers physical media.

The Review: Dim Sum Trifecta

Anyone in Hong Kong knows there's a trifecta when it comes to eating out. In English, it roughly translates to: affordable, beautiful and delicious. Add a Michelin star to the mix, and you truly have an unbeatable combination.

I'm loathe to share one of my favorite dim sum spots. I wouldn't necessarily call it underrated (see said star) but it's sufficiently out of the way (read: not on Hong Kong Island) that it's off the radar for the uninitiated.

Yat Tung Heen is an unexpected gem deep in the basement of the Eaton hotel, its entrance on an alley off bustling Nathan Road. The Cantonese restaurant excels in bringing a twist to dim sum staples, playing with ingredients such as scallop, which can be found topping siu mai, in the filling for various other dumplings and in rice rolls. The dishes are always a delight — delicious and delicately crafted — and the menu tweaked every so often to incorporate new ingredients.

Our first round featured a variety of steamed items along with the wok-fried turnip cake. Photographer: Alice Truong/Bloomberg

Oh, and it's a deal. When Din Tai Fung and Tim Ho Wan lost their Michelin stars in Hong Kong, it got significantly harder to find a starred meal on a budget (of course, we still have Ho Hung Kee). For years now, Yat Tung Heen has run an incredible weekday special during lunchtime. On its current menu, dim sum dishes start at HK$38 and go up to HK$98. For my appetite, the HK$48-HK$58 sections of the menu are the sweet spot. To freshen up my research, I recently revisited with two guests on a Tuesday for lunch, with the total coming to HK$600 for nine items, tea and service.

The vibe: It's a stylish and spacious restaurant with large round tables for big groups or your party of two. The upscale teahouse decor is inspired by 1920s Shanghai taverns, with wood paneling, tile and stained glass on the walls.

Those century-old Shanghai vibes. Photographer: Alice Truong/Bloomberg

Who's next to you: Families, pairs and large groups, usually on the more casual side, make up the lunch crowd. Aside from the dim sum deal, the lunch set is also popular. Starting at HK$398, it features a dim sum platter followed by what seems to be an obscene amount of food.

Can you conduct a meeting here? Yes. There's plenty of space between tables, and inoffensive jazz plays at a low volume in the background.

What we'd order again: We enjoyed all the "special" dim sum items, especially the scallop dumplings with sea cucumber and vegetables. The wok-fried turnip cake — little cubes with a delicately crispy skin and topped with XO sauce and aromatics — here is the best version I've had. Though I'll admit there are more delicious egg tarts, I always seem to order the ones here because they're topped with bird's nest. I also have a soft spot for the classics, opting for steamed char siu bao over the more trendy baked ones. If I'm being honest, I'd probably order everything again.

The mini egg tarts topped with bird's nest at Yat Tung Heen. Photographer: Alice Truong/Bloomberg

Need to know: Yat Tung Heen is on level B2 of the Eaton, 380 Nathan Road in Jordan. Reservations for the weekday special are essential, with 90-minute seatings at 11 a.m., 12:45 p.m. and 2:30 p.m. The restaurant opens from 11 a.m. on weekdays and 10 a.m. on weekends and public holidays, and closes at 10:30 p.m. —Alice Truong

Read more of our dim sum reviews: Mott 32 and Nove in the Galleria.

We're all ears. Let us know if you have any restaurants you'd like us to review. Drop us a line at [email protected].

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