The Hong Kong Jockey Club’s chief executive Winfried Engelbrecht-Bresges has voiced his concerns over the impact of rising global economic uncertainty on racehorse ownership, warning that recent trade policy shifts pose a “major concern” for long-term confidence.
Just days after the HKJC’s ownership ballot closed with “encouraging” initial signs, Engelbrecht-Bresges cautioned that broader geopolitical forces – including the fallout from US tariffs – could have a significant impact on the future of ownership in Hong Kong as well as the rest of the world.
“The world has changed,” Engelbrecht-Bresges told Idol Horse. “Principles which were in place for 90 or 100 years with free trade are gone.
“We have to see how it plays out but there will be uncertainty for a period of time and I don’t think that will be easy to resolve, therefore we have to be careful and prepare for some challenges.”
The Jockey Club’s ballot, which closed on Monday, will see 460 permits offered to prospective owners in June. A total of 120 Private Purchase permits will be offered for horses with previous overseas racing experience, while 340 Private Purchase Griffin permits will be assigned to import unraced horses. In Hong Kong, an ownership permit is required before a horse can be purchased for racing.
While the volume of applications was described as encouraging by Engelbrecht-Bresges – total applications were up over 11 per cent at 782 for the 460 permits – he was keen to point out that buoyant early activity in the process doesn’t necessarily translate into investment, especially in a period of economic uncertainty.
“The underlying support we have is good,” Engelbrecht-Bresges said. “But, to be very honest, I am very concerned that this will have a significant impact on confidence.
“We’ll see what the outcome of the ballot is, which has been encouraging so far, but it’s only one thing putting a form in.”
His caution comes after a show of strength from Hong Kong-based buyers at recent yearling sales, particularly at the Inglis Easter Sale, where bloodstock agent Sam Wright and trainer Douglas Whyte made a powerful statement when purchasing a son of Zoustar for AU$1.7 million.
Elsewhere, local interests also recently secured promising Australian galloper Shanwah, who finished third in the ATC Derby and is due to join Hong Kong ranks with a view to next year’s Hong Kong Derby.
But despite the recent flexing of spending power by Hong Kong-based owners, Engelbrecht-Bresges is taking a measured approach, saying that broader implications of disrupted global trade flows and diminished consumer confidence may yet bite.
“It’s a major concern,” he said. “We’ll have to really carefully consider what happens in the next month because it can definitely have an impact on disposable income and confidence.”
The coming months will provide a clearer picture, particularly around how many of the 480 permits are taken up in June and how actively owners move to purchase horses during what is usually a peak time to secure promising PPs ∎
