Cover image courtesy of The Hong Kong Jockey Club
Five bloodstock agents from the Federation of Bloodstock Agents Australia spoke to TTR about the ins and outs of sourcing horses for owners in Hong Kong, what can be forgiven in the face of proven performance, and what makes a sire successful in the lucrative jurisdiction.
1. What is the ideal physical type of horse to work in Hong Kong?
Peter Twomey, Wattle Bloodstock (FBAA): “Strength is probably the main key. A medium-sized horse with plenty of strength is ideal.”
Mark Player, International Thoroughbred Solutions (FBAA): “It’s a big, strong horse that works in Hong Kong. Because of the ratings-based handicapping system as horses go up and down the grade, they end up carrying significant weight at different points in their careers. So the Hong Kong trainers prefer a big strong horse, he has to be correct, because they're training at the same one or two locations at all times. They like big hindquarters with a good depth of girth, good shoulder, and a good movement. They have got to be 520kg fully grown.”
Suman Hedge, Suman Hedge Bloodstock (FBAA): “The racing is more geared towards sprinters and milers over there, so obviously a strong type of horse works well over there. They also have to be able to deal with the conditions over there, being quite warm and living in boxes. So, I think temperament is a really big component of it as to how they acclimatise over there.
Suman Hedge | Image courtesy of FBAA
“We focus very heavily on the radiographs and their reports and things like that, because they've got a very strict threshold there as to what's acceptable. So that's always very important, if you're looking at the kind of horse that you think might be tradable, then that's always there in the back of your mind that they're going to need to be fairly clean to get through. And since most of them are gelded, you can have a little bit more leeway with a colt that's strong and on the heavier side.”
David Mee, Pinhook Bloodstock International (FBAA): “They buy them almost by the kilo up there. There’s been a rule for a while that they generally need to be 15.3 hands at a bare minimum, but in the last year or so, that has increased to 16 hands and about 500kg. They are after a bigger horse with substance and decent bone.”
Grant Burns, Premium Bloodstock Services (FBAA): “The ultimate goal is to buy a horse to win the Hong Kong Derby, so the prerequisite is often 16 hands and 500kg - it seems to be the first thing a lot of the buyers ask you for, the weight and height of the horse. The reality is, you're (usually) buying a proven product. You've got exposed form. You know the horse can gallop. As long as it meets that criteria and it has a bit of scope, that’s the main thing.”
2. What do Hong Kong buyers like to see in a horse’s pedigree?
Twomey: “Most Hong Kong buyers are looking for something that they can relate to, whether that's on the dam side, or on the sire’s side - it can be a lot easier to relate to the sire’s side as there’s a lot more chances for their progeny to get up there. O’Reilly and Encosta De Lago did very well up there, and therefore a lot of Hong Kong buyers would flock to those ones and their sons as well. But if there's a female page which has Hong Kong winners on it, that's shown a capability of running well and adapting well up there, they’re interested too.”
Player: “Pedigree is probably not so important, but they do like to see speed on the page. It's a jurisdiction where, and it's been proven over 20, 30, 40 years, that a good horse by any size will work in Hong Kong as long as he has speed.
Mark Player | Image courtesy of Goffs
Hedge: “I think they like to drill where there is already oil. If they've had success with a particular breed, they like going back and getting them again. We do see that some breeds work particularly well over there, sometimes better there than anywhere else. So that's definitely part of the strategy; if you're looking for a nice athletic horse with some scope and athletic capacity, if it's got a pedigree also that's working well over there by the stallion, it definitely does attract you for that kind of horse.”
Mee: “There are horses that do well up there, and there are stallions that do well up there, but it can very much depend on the buyer. Toronado is very popular up there, as are the Deep Fields and the Capitalists, and it can be quite competitive buying those horses. Some people are more pedigree-driven than others, and it can really depend on their budget, just as it does in Australia.”
Burns: “Because it's a unique racing jurisdiction, horses that already do well up there are highly sought after, and there's always an appetite to buy a horse by a stallion that's already worked up there. Toronado is popular (as a sire), Deep Field, Capitalist, Rubick also does a good job in Hong Kong. The more fashionable the stallion or the more successful they are in Hong Kong, the easier the sell. We've got really obscure stallions over here (in Western Australia), so they need to be a pretty well-performed horse for them to get Hong Kong’s interest.”
Deep Field | Image courtesy of Newgate Farm
3. When looking to buy tried horses, what do Hong Kong buyers like to see in a horse’s race record?
Twomey: “They look for a high percentage of wins to runs, and they will go back to the same tracks and trainers that they have had success with before. They know that Flemington and Randwick are high quality race tracks and you've got to be good to win there, so ideally you're buying as many of your horses from those places as possible. You can get your outliers. Tomodachi Kokoroe was a winner up at Cairns, but there's not many Cairns winners that end up on their way to Hong Kong.”
Peter Twomey | Image courtesy of FBAA
Player: “The buyer doesn’t want too many miles on the clock. They want the horses to perform well early in their careers and be available to buy early in their careers. They also want to see proof of that speed - they want to see a change of gear, so that the horse can put itself into a race and then be able to quicken off the pace, which is so much required in Hong Kong.”
Hedge: “From our point of view, they like horses that have shown speed in their trials, they can’t be too exposed. I think they (Hong Kong buyers and trainers) can be very clever at analysing the ratings and identifying horses that have got some upside. If a horse shows real potential, they will come pretty hard for it.”
Mee: “A tried horse has to meet the import criteria, which is a Hong Kong rating of 63 or above. They are generally lightly raced horses, and I think horses that have the ability to accelerate off a fast speed is what works best up in Hong Kong.”
Burns: “The reality is, in their minds, the horses have only got so many race starts, so every one that they have in Australia is one less than they're going to have in Hong Kong. Most horses will only have 20 or 25 starts - there are ones that have double that - so if a horse has already had 12 starts, to (a Hong Kong buyer) that’s only eight starts on average in Hong Kong. Less than five or six starts is ideal.”
4. What is the difference in assessing a yearling for Hong Kong interests versus a tried horse? What can they forgive in a tried horse?
Twomey: “With yearlings, they're generally quite strict on vetting and what they want. Once a horse is shown it can win a trial, and certainly once it’s proven it can run in a race, they can be a lot more forgiving of the pedigree and physical. A number of the best horses up there aren't physically and pedigree-wise what Hong Kong buyers buy as yearlings, either. There’s not many horses up there by Flying Artie or Shamexpress or Acclamation, but Ka Ying Rising, My Wish, and Romantic Warrior are some of the best horses up there.”
Player: “You can be a bit more forgiving in the tried horse, if you can prove that it has the speed and ability to quicken already. The vetting is controlled by the Jockey Club and is quite strict and it's a challenge for everyone in the industry, the sellers, the buyers, the agents, to work within those parameters. We all work with them as best we can to achieve the best results.”
Hedge: “At the end of the day, it’s about the horse being able to pass the vetting. But also since they like a bit of a bigger horse in Asia, they will ask about height, and if a horse isn’t at least 15.3 hands, it can kill the deal.”
Mee: “There’s a lot of hurdles to overcome with a tried horse. They go through a minimum of three sets of vets’ eyes - the attending vet, the Australian or New Zealand representative, and the Hong Kong veterinary panel themselves. There's a lot of hoops to jump through to actually get them past the vetting stage. Some trainers will accept horses classified as low to moderate (on vetting), but it really depends on what the risk factors are identified during vetting and what the owner is willing to take on.”
David Mee | Image courtesy of Inglis
5. How do you go about setting a budget or an offer price?
Twomey: “It just depends on what the client's budget was and upon trying to work out what's value in the market. The prize money up there in Hong Kong is very good, so the value of a gelding in Hong Kong is a lot higher than it is in Australia. You get a good feel of what people are prepared to pay, what people are prepared to sell, and what is value. Nine times out of 10, when I pick up the phone and ring someone (to make an offer), they're going to say no, not for sale or not at that price. So you get used to people saying no. Myself and my clients, we won't chase horses for the sake of it if it’s not viable to purchase them.
“It’s also driven by supply and demand. A large number of the owners in Hong Kong don’t have the capacity or the permits to have 50 to 100 runners in their colours, they might only have two or three permits, so they're prepared to pay more for a gelding to race in Hong Kong than what it could potentially earn in Australia.”
Player: “You are trying to work out where the market will stand on the horse if it remains in Australia or New Zealand, and what its earning capacity is in those two places. You are also looking at its potential rating for when it ends up in Hong Kong. You're just trying to establish a fair market value at both ends.”
Hedge: “The price is a two-way street. You've got what the buyers' expectations are and the sellers, and you've sometimes got to try to meet somewhere in the middle there. But I think for the most part, they're very reasonable and pragmatic about what they're willing to offer. From my side, you've got to try to keep the owners' expectations a little bit in line because they can get carried away. Every sale is different. Sometimes people can get an extraordinary sale result because everything comes together, and that's not really a benchmark for what the market is.”
Mee: “It depends what angle you are coming from. I have clients that ask me to chase certain horses, and I also have Australian trainers that ask me if there could be a Hong Kong buyer that might be interested in their horse. It can be a bit of a chicken and the egg scenario where you go back and forth to work out what a buyer is willing to pay and what offer an owner is willing to accept.”
Burns: “It depends on the horse’s performance and where it has been sourced from. Horses on the East Coast are going to sell for more than horses in West Australia, because our horses aren’t as commercially bred, and a horse that wins at Randwick is going to be deemed a better horse than a horse that wins at Ascot. You’re going to be able to buy a horse out of the West for 50-70% of what you would pay in the East. Our yearling prices also average a lot lower - less than $100,000 - so being offered $400,000 over here is more appealing.
“Plus, there’s earning potential. A locally bred horse here is racing for the best part of $85,000 on a Saturday, so the offers have to be lucrative enough to entice owners to sell and not race on. It’s getting harder and harder to buy as the racing is so good in Australia. We have so many million dollar races now.”
6. Have you found that buying horses through digital auctions is becoming more popular?
Twomey: “I don’t really look there personally, I've found that the better quality ones and the ones I want to buy generally aren't for sale.”
Player: “It’s a trend across the entire industry, the digital sales are getting more popular, and savvy Hong Kong buyers are looking there also. What’s important still is having a pair of trusted eyes on the ground - contacts in the horse’s area to view it in person for the client and to be able to have a really good assessment of its form and characteristics. It pays dividends to go through a registered agent, because they are experts in their field.”
Burns: “It's certainly gaining momentum, isn't it? It's an interesting space. We've seen a few horses be traded to Hong Kong and places like that in that space, and potentially it's probably going to continue to go that way.
“Generally though, I find the horses that I'm trying to buy aren't for sale. I think the Hong Kong buyer likes to buy the horse that they think they've found themselves, that they saw win on the TV on the weekend and they can then go chase that horse, rather than buy one that is already for sale.”
7. Are there any up-and-coming stallions that you think have the potential to work in Hong Kong?
Twomey: “I think Brutal is one. I’ve got a Hong Kong client who sent their mare to Brutal this year and she is safely in foal. Given O'Reilly did so well up there, and they're a stock that seemed to get better with age and potentially perform up to a mile and further, I think he has the potential. But generally, if a horse is fast, and they're sound, and they're strong, they should work up in Hong Kong.”
Brutal | Standing at Newgate Farm
Player: “I think it's the nature of the Hong Kong environment, any speed stallion has a great chance of working in Hong Kong. But the reality is that the numbers of horses by individual size isn't huge anyway, so at the end of the day, it's just about trying to find the individual athlete that's going to suit the Hong Kong environment.”
Hedge: “I think in Australia, a horse like Brutal has the potential. He’s from a sire line that already works in Hong Kong and he's thrown some interesting horses over here that show a little bit of potential. I think these 1400-metre types also have the potential to work well, like Ole Kirk has obviously started amazingly in Australia (and could work in Hong Kong too).”
Mee: “I’d rather not say! The stallions that do well in Hong Kong are generally stallions who are a little bit later maturing. Toronado and Deep Field are like that, and Starcraft did very well up there when he perhaps wasn’t so fashionable in Australia.”
Toronado | Standing at Swettenham Stud
Burns: “That’s a good question. The West Australian stallions don’t really get the volume up in Hong Kong (to make an impression), but West Australian horses have always done well in Asia because they’re so tough and bred from sound, strong female pedigrees. We had the monopoly on Singapore for so long because of how tough our product was. There's no real reason why, if we could get volume up there from Western Australia, that we wouldn't have the same sort of results (as Eastern stallions).”
8. Since the changes to owners’ permits in 2022 allowed international owners into Hong Kong, have you seen any changes to the jurisdiction’s buying bench?
Twomey: “Not really. I think it's only quite a small number in general, and those people that were given permits, particularly from Australia and South Africa, are breeders themselves and are sending up their own horses. The strength of mainland Chinese who have now got permits in Hong Kong, that certainly has changed the market a bit, especially at the Ready To Run sales.”
Player: “I think the strength of the Hong Kong buying bench is and will always be the strength of the membership of the Hong Kong Jockey Club, and the Jockey Club do a fantastic job of trying to get young owners involved and trying to retain the traditional owners that have been the backbone of the club for so long.”
Hedge: “Not really from my point of view. We have sold a few horses to the jurisdiction, and often we've worked with other agents that are a little bit more active over there for that.”
Mee: “Not really. These people granted permits are owner breeders with quite substantial operations already so they are taking their own stock out there.”
9. One of the common features with Hong Kong’s champion racehorses is their longevity on the track. What do you think is the key factor in ensuring that?
Twomey: “I think it’s about very good management. It's amazing how often the good horses are trained by the same trainers. There's the odd one every now and again which might pop up with someone else, but overall I think the management of the horses is absolutely key. So I've been a firm believer after dealing with Hong Kong for a long time that the success of a horse in Hong Kong is 50% the horse, 50% who trains it and manages it. It's hard as an agent, but I want as many of the horses that I buy to go to those good trainers. I can't dictate that all the time, but it's amazing, the success of the horses I've sent over there when they end up in a good trainer's stable.”
Player: “Longevity is a product of the environment over there. They plan for the horses to only have a certain amount of race starts a year and they can work up through the grades, but I suppose the big thing is just looking to start with a genuine racehorse that's physically correct and sound.”
Hedge: “It's actually a really good question. I think there would be a number of reasons for that. They don't necessarily target our 2-year-olds or our really top 2-year-olds for Hong Kong. Sometimes they'll win in a Listed race or they'll run placings and things like that and show a little bit of ability, and they'll (Hong Kong) act on that. But the horses they buy are quite often not as exposed.
“I think they give them the time there to develop as well. I think when the horses have raced quite heavily in their two and 3-year-old seasons over here, there's not as much tread left on the tyres. Whereas Hong Kong seems to have a lot of success with those more lightly raced horses and just developing them nicely over a period of time, and then when they're six and five, six, seven, they're still racing very soundly. That's probably a bit of a lesson for us even here in Australia.”
Mee: “Soundness, toughness, and temperament are so important in Hong Kong. Like any horse that races over a long period of time at a high level, they generally have well above the average constitution, soundness, and the will to win.”
Burns: “They've obviously got world-class facilities, world-class veterinary care, and also they cater to racing at all levels. For example on a Wednesday night, they will run races that are the equivalent of a Randwick Saturday race and also a Bathurst Class 1 race. Maybe the horses are looked after a bit more as they don’t have anywhere else to go, whereas Australia tends to trade them on a lot quicker if they aren’t showing they are up to racing at Flemington, for instance. You can’t beat the feeling of winning a race, and it’s a large expense to go back to Australia and buy another one, so you might as well look after the ones you have at all levels.”
