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How the Cathay Pacific bailout landed Clara Chan the CEO’s job at Hong Kong wealth fund

  • Clara Chan’s role in the Cathay rescue earned her the nickname ‘goddess’ from some airline executives, while others called her ‘little chilli’ for being a tough negotiator

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Clara Chan took over as CEO of the HK$62 billion Hong Kong Investment Corporation in October last year. Photo: Enoch Yiu
Clara Chan Ka-chai earned the monikers “goddess” and “little chilli” for deftly negotiating Cathay Pacific Airways’ HK$39 billion (US$5.2 billion) rescue plan in 2020, which catapulted her into the CEO’s chair at the Hong Kong Investment Corporation (HKIC).
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Chan’s handling of the Hong Kong flag carrier’s bailout within three months of the Covid-19 pandemic proved her mettle, which led her to be considered for the top job at the government-run HK$62 billion wealth fund last October, according to two sources familiar with the hiring process.

Back then, Chan was an executive director at the Hong Kong Monetary Authority, overseeing the HK$4 trillion Exchange Fund’s investments that included the Land Fund used to finance Cathay’s rescue.

“The negotiation of Cathay Pacific’s rescue plan was hard, as it had to be done within a short period of time,” Chan said in her first media interview after taking over at HKIC nearly eight months ago.

The Hong Kong government took part in Cathay Pacific’s HK$39 billion (US$5.2 billion) rescue plan in 2020. Photo: Eugene Lee
The Hong Kong government took part in Cathay Pacific’s HK$39 billion (US$5.2 billion) rescue plan in 2020. Photo: Eugene Lee

The terms and conditions of the bailout had to be tough, she said, noting that a balance had to be struck between the funding needs of the carrier and decent returns on taxpayers’ money.

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