It trails behind Switzerland after managing US$1.1t in offshore wealth.
Hong Kong trails behind Switzerland to score the second spot in the global offshore wealth management rankings, according to an annual study from Boston Consulting Group.
The Asian Financial Center manages US$1.1t in offshore wealth, which is half of the Alpine country which manages US$2.3t. However, Hong Kong easily beats Singapore, US, UAE which manage US$0.9t, US$0.7t and US$0.5t in offshore wealth respectively.
The SAR also has the largest compound annual growth rate (CAGR) from 2012 to 2017 at 11%, which is more than triple that of Switzerland whose CAGR clocked in at measly 3%.
Tightening banking secrecy regulations in the Alpine Republic have also made it less attractive for high net worth individuals to stash their wealth, putting faster growing centers like Hong Kong and Singapore who posted a CAGR of 10% in a prime position to take the crown.
The top sources of offshore wealth are largely regional peers, with the Mainland securing the top spot, followed by Taiwan and Japan.
A separate report by the Tax Justice Network ranks Hong Kong as the fourth most secretive financial center in the world after accounting for 4.17% of the global market for offshore financial services and roughly on par with Panama.
Photo from Wing CC 3.0
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