HK’s wealth management business growth may attract China’s onshore investors

Onshore investors from China currently accounts for 10% of the asset and wealth management business in 2020.

The strong asset and wealth management business in Hong Kong will likely attract more of China’s onshore investors when the wealth management connect is launched in the Greater Bay Area.

The Securities and Futures Commission earlier reported that the asset and wealth management business in Hong Kong climbed 21% year-on-year to $34.93t in assets under management (AUM). This is approximately US$4.5t in 2020.

“The strength of the industry and a large number of funds authorized by the SFC may help to attract China’s onshore investors, who only contributed to 10% of HK’s asset and wealth management business in 2020, once the wealth management connect is launched,” the OCBC Treasury Research said in a report.

Of the $34.93t, some 64% were from non-Hong Kong investors. Moreover, the net fund inflows in 2020 also amounted to $2.04t, higher than $1.67t in 2019.

Read also: Asset and wealth management business grows 21% to US$4.5t

The wealth management connect scheme is an arrangement that allows residents to carry out cross-boundary investment in wealth management products offered by banks in the Greater Bay Area.

Moreover, the OCBC also noted that the recent Asset and Wealth Management Activities Survey result showed that the industry remained “resilient” even amidst political tensions and the economic crisis.

“Despite the political risks and the COVID-19 pandemic over the past two years, Hong Kong’s asset and wealth management industry has been resilient amid robust fundamentals and supports from global flush liquidity,” the report read.

It added that the strong growth in the private banking and private wealth management business, continuous net fund inflows and increased employment reinforced its view that political tensions did not lead to net outflows of capital and talents.

The AUM of private banking and private wealth management business grew 25% to $11.31t in 2020.

Follow the link s for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

3 Hongkongers land on Forbes Asia's Power Businesswomen 2024
The youngest is Stephanie Lo, vice chairman of Shui On Land.Three Hongkongers were included in Forbes Asia’s Power Businesswomen 2024 for being the first women to step into their roles in their companies.The youngest of the three is Stephanie Lo, vice chairman of Shui On Land. Lo assumed the role in May, overseeing the China-focused property development arm of the Shui On Group, founded by her father, Vincent Lo.Also on the list is Clara Chan, CEO of Hong Kong Investment Corporation (HKIC). Prior to HKIC, Chan was a manager of direct investments at the Hong Kong Monetary Authority in 2010 where she handled the $39b bailout of Cathay Pacific during the pandemic.The third Hongkonger is Bonnie Chan, CEO of Hong Kong Exchanges and Clearing, who has overseen a notable increase in listings this year. In the second quarter, 18 companies went public compared to 12 in the first, raising 79% more funds.

Exclusives

Stellerus helps organisations manage hazard, climate risks
The Hong Kong startup offers a fast and accurate early warning system for natural disasters.
K11 MUSEA bridges art, culture, and retail
Visitors find top-tier brands and museum-grade art pieces at the cultural-retail landmark.