Anticipating a Billion-Dollar Asset Sale: Hong Kong Jockey Club Reduces US Investments Amid Trade War Escalation

In response to escalating trade tensions between the United States and China, the Hong Kong Jockey Club is taking a drastic financial step. The foundation, which operates the city’s horse racing monopoly, has plans in the works to reduce its exposure in the US. This move comes as relations between the two superpowers continue to deteriorate, with US imposed tariffs on Chinese goods throwing international trade relations into disarray.

Sources indicate that the foundation is considering exiting funds held with Blackstone, TA Associates, Warburg Pincus, and Clayton, Dubilier & Rice. The total divestment action could potentially reach a staggering $1 billion. This represents a significant portion of the foundation’s contingency fund which, as of June 30, held HK$18.8 billion (around $2.4 billion). This fund comprises a range of interests including private equity, private credit, and private real estate fund investments.

Looking to the near future, the Hong Kong Jockey Club is not alone in taking preventative financial measures. Reports have also surfaced of China Investment Corp looking to reduce its own US exposure, potentially divesting from funds associated with Carlyle Group and KKR. As the financial ramifications of global tension continue to reverberate, particularly between these two world powers, such strategic maneuvers are indicative of a new, defensive approach to managing high-value assets.