Mainland Chinese investors to drive Hong Kong wealth boom despite new tax rules: report
Hong Kong banks expect the contribution of mainland Chinese investors to the city’s wealth management business to continue to grow through 2030, presenting opportunities despite Beijing’s tightened cross-border tax rules. Mainland China’s share of local assets under management was projected to reach 68 per cent from 59 per cent within five years, according to a report released by the Hong Kong…
In the face of tighter cross-border tax rules, Hong Kong banks anticipate that mainland Chinese investors will continue to drive the city's wealth management sector through 2030, according to a new report. The Hong Kong Association of Banks (HKAB) and Deloitte China's survey of 147 member banks projects mainland China's share of local assets under management to increase from 59% to 68% over the next five years.
Stephen Chan, acting chairman of HKAB and deputy CEO of Bank of China (Hong Kong), emphasized that Hong Kong remains the world's largest cross-border wealth management center and will continue to serve as a vital link between mainland China and international capital. The primary factors attracting mainland investors include international diversification, intergenerational wealth transfer, and the expanding family office sector.
To capitalize on this growth, banks urged the Hong Kong government to relax investor eligibility, ease sales and promotion rules, raise quotas, and broaden product ranges to include medium-risk and higher-return options. They also recommended deepening financial linkages with mainland China by adding an initial public offering connect scheme and accelerating the inclusion of a yuan counter in Stock Connect.
Written by urgent.news from SCMP Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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