Two-thirds of Hong Kong entrepreneurs lack plans for wealth transfer

Entrepreneurs in Hong Kong lag global peers in succession strategies.

Despite more entrepreneurs in Hong Kong (36%) planning to exit in the next five years than globally (23%), a greater proportion of businessmen in the city still lack succession plans compared to their international peers.

The HSBC Global Entrepreneurial Wealth Report 2024 revealed that two in three Hong Kong business owners do not have a wealth transfer plan, whilst six in 10 have yet to develop a successful succession strategy for their business.

There are also more high-net-worth entrepreneurs (78%) without a business succession plan compared to ultra-high-net-worth individuals (54%).

Rather than succession plans, entrepreneurs appear to be prioritising building global networks which seven in 10 view as essential in business success. Eight in 10 also said it's important to have a mentor (83%).

"For entrepreneurs to thrive in today's competitive landscape, they need to cultivate a strong network that can assist them in identifying and seizing business opportunities. It is essential to recognise that they do not have to navigate this journey alone," said Frank Fang, general manager, head of Commercial Banking, Hong Kong and Macau, HSBC.

Business success often leads to personal wealth growth, and according to the report, nine in 10 entrepreneurs expect their wealth to increase.

Enteprreunres allocated their wealth to precious metals and stones (32%), Investments in stocks, bonds and real estate (46%), and real estate for their personal use (38%).