Foreigners dominate fund management in Hong Kong

Over 60% of all funds invested in Hong Kong in the past five years came from overseas investors.

This comes to a total of $5.643 trillion in monetary terms, but excludes real estate investment trusts. This proportion has remained steady over the past five years, said the Securities & Futures Commission.

The local combined fund-management business continued to increase on a trailing three-year average basis last year, despite a 10.4% year-on-year decline. SFC also said Hong Kong achieved a number of milestones in expanding the range of renminbi investment products.

It also found non-real estate investment trusts asset-management business dropped 15.8% to $5.762 trillion. Other private banking business increased 1.5% to $2.263 trillion while fund advisory business dropped 3.1% to $889 billion.

The market capitalisation of authorised real estate investment trusts grew 20.4% to $124 billion.

The commission’s Deputy Chief Executive Officer and Executive Director of Policy, China & Investment Products Alexa Lam said the local fund management industry continued to develop last year despite challenges stemming from the global economic environment.

"The Securities & Futures Commission will keep in view developments in the financial markets and where necessary, additional safeguard measures may be considered given the uncertain global economic outlook and the continuing European debt crisis."