Hong Kong’s private banking and wealth management sectors are poised for further growth in hiring and office expansion, according to Eddie Yue Wai-man, Chief Executive of the Hong Kong Monetary Authority (HKMA).
Yue said major private banks saw a 14% rise in assets under management (AUM) in the first half of the year, compared to the end of December, and hired over 400 wealth management professionals in the past two years, a 12% increase, South China Morning Post reported.
Yue did not name the banks involved.
Both HSBC and Standard Chartered reported strong performances in their wealth management businesses during the first half of the year, according to their interim results released last week.
Transactions conducted by the city’s 46 private banks reached HK$4.47 trillion (US$569.4 billion) in 2023, marking a 50% increase from HK$2.97 trillion the previous year.
Yue noted that some banks have expanded their office space by as much as 50% in recent years.
“Recently, a number of international banks and asset management firms have announced plans to further enlarge their operations in the city, with headcount growth projected to range from 10% to 100% in the next few years,”
Yue said.
“These developments show the strong confidence international financial institutions place in Hong Kong’s asset and wealth management market and highlight the strategic importance they attach to its long-term growth potential.”
Alongside HSBC and Standard Chartered, UBS, Julius Baer and DBS Hong Kong have also unveiled plans to expand their presence to tap into growing client demand.
According to the Securities and Futures Commission (SFC), total AUM by the 46 private banks increased by 15% last year to HK$10.4 trillion.
When including assets managed by investment firms, brokers, and insurers, overall AUM in Hong Kong rose 13% in 2023 to HK$35.14 trillion, close to the 2021 record of HK$35.55 trillion.
Yue said Hong Kong attracted HK$384 billion in net inflows last year as high-net-worth individuals turned to the city to manage their wealth, supported by the stock market rebound, the enhanced Wealth Management Connect scheme, the Capital Investment Entrant Scheme (CIES), and new measures to attract family offices.
The CIES, also known as the investment migration scheme, has attracted around HK$16.5 billion from 543 applicants in the 14 months up to April.
Government data indicates that two-thirds of the capital was invested in mutual funds and equities.
Authorities expanded the Wealth Management Connect scheme in February 2024, tripling the annual individual investment quota to 3 million yuan (US$416,640), adding more fund options, and easing sales restrictions.
The enhanced framework, dubbed Wealth Connect 2.0, has more than doubled participation to over 160,000 investors as of June.
Mainland investors have tripled their investments in Hong Kong fund products via the scheme to 16 billion yuan.
“As southbound scheme investors become more familiar with Hong Kong products and put more emphasis on diversification, their focus has shifted from deposits to a broader allocation towards funds and bond products,”
Yue said.
He added that Hong Kong banks had benefited from the region’s growing wealth.
The number of individuals in Asia with more than US$10 million rose 5% last year to 850,000, including about 470,000 from mainland China.
“The continued growth of wealth in China and the wider Asia region is expected to provide ongoing momentum for Hong Kong’s wealth management industry,”
Yue said.
“Importantly, as a superconnector linking mainland China with the international markets, Hong Kong plays a vital role in facilitating cross-boundary asset allocation and capital flows.”
Yue also pointed to geopolitical uncertainties prompting international investors to diversify more proactively, with yuan-denominated assets gaining greater prominence in portfolios.
Between April and July, Asia attracted US$91.5 billion in net inflows from investment funds, with US$44.3 billion flowing into Hong Kong and mainland China, according to data from EPFR.
The Hang Seng Index has surged over 20% so far this year, making it one of the best-performing major stock indices globally.
Hong Kong has also reclaimed the top spot in global initial public offerings.
Digital assets are playing a growing role as well. Local banks traded HK$26.1 billion in digital and tokenised assets in the first half of 2025, a 233% year-on-year increase.
“Hong Kong is forecast to become the world’s largest wealth management centre in the coming years,”
Yue said, noting that the HKMA will work with the government and industry stakeholders to realise this ambition.
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