The China International Finance Forum · Hong Kong Summit was held on November 6, 2025, under the theme "The New Financial Ecosystem in a Changing Landscape: Openness, Innovation, and Sustainability."

Leo Chen, Partner at Geometric Capital (Hong Kong) Ltd., moderated a roundtable discussion titled "Institutional Investors Entering the Market: Strategic Allocation and Risk Management of Crypto Assets and Stablecoins." Panelists included: - Zhang Guanbang, Managing Director and Investment Manager, PIMCO Asia - Emma Pecenicic, Head of Digital Distribution and Partnerships, Fidelity International (Asia ex-Japan) - Abdelhamid Bizid, Head of Product Development, Asia Pacific, BlackRock Global Product Solutions - Li Kaixiang, Co-founder, IDA - Ho Kwok Kiu, Co-founder and Managing Partner, Initial Ventures

### Key Discussion Highlights

#### **Topic 1: New Trends and Challenges in Institutional Crypto Asset Allocation** **Zhang Guanbang (PIMCO):** Macro trends highlight demand for asset diversification amid U.S. fiscal deficits and policy uncertainty. While investors explore emerging markets and commodities like gold, crypto adoption remains cautious.

**Emma Pecenicic (Fidelity International):** Institutional interest is rising, with 20-25% of institutions now allocating to Bitcoin ETFs. Challenges include accounting standards, liquidity fragmentation, and volatility.

**Ho Kwok Kiu (DDC Enterprise):** Investors must understand crypto’s structural differences from traditional assets. Real-time risk monitoring and stress testing are critical for 24/7 markets.

#### **Topic 3: Building Risk Management Frameworks for Digital Assets** **Zhang Guanbang:** Traditional assets also face volatility spikes. Crypto’s extreme swings demand robust risk-adjusted return strategies.

**Emma Pecenicic:** Customized risk frameworks should address market/valuation risks, operational/ custody risks (e.g., SOC 1/2 compliance), and evolving regulations.

#### **Cross-Border Capital Flows and Rate Policies** **Zhang Guanbang:** Short-term U.S. Treasuries attract stablecoin demand, while long-term bonds face pressure. Investors are diversifying into emerging markets and alternatives like hedge funds.

#### **Web3 Ecosystem Outlook (3-5 Years)** **Zhang Guanbang:** Regulatory-technical synergy will dictate crypto’s role as an alternative asset. Institutions should explore innovations within compliance.

**Emma Pecenicic:** Tokenization and regulatory clarity (e.g., U.S. stablecoin rules, EU CBDCs) will shape growth. RWAs and digital-native assets will coexist.

**Ho Kwok Kiu:** Irreversible trends: institutional-driven liquidity, stablecoin competition (e.g., Tether vs. Circle), and prudent allocation (e.g., tolerating 50% drawdowns).

*(Updates ongoing)*