HK 'is largest cross-boundary wealth management hub'

In a keynote address at the Wealth Management Summit, Hong Kong's Financial Secretary Paul Chan declared that the city's wealth management sector is thriving and well-positioned to capture a significant portion of global affluent business. According to a July survey by the Securities and Futures Commission, assets under management surged 20% to surpass HK$42 trillion.

Chan declared Hong Kong the world's leading cross-border wealth management hub. Private Wealth Management Association's survey corroborated this, revealing that 77% of member firms saw heightened demand for account openings or client asset bookings in Hong Kong, with 94% expressing moderate to high optimism about the city's prospects over the next five years.

Chan's comments were supported by the Global Financial Leaders' Investment Summit, attended by about 280 international sector leaders, roughly 120 of whom were top executives. Chan reported a positive sentiment at the summit, noting that some attendees planned to expand investments and workforce in the city. He emphasized the city's tax advantages for family-owned investment vehicles, which are now well-established, and highlighted that Hong Kong houses over 3,300 single-family offices, a 25% increase in just two years.

The New Capital Investment Entrant Scheme attracted 4,300 applications, amounting to an anticipated HK$150 billion investment. Chan introduced legislation to further improve preferential tax regimes for funds, single-family offices, and carry interest, aiming to pass by year-end. Chan noted that higher rates and uncertainty are reshaping capital flows, with cash earning returns again and investors diversifying across markets and currencies.

Hong Kong benefits from this shift, as deposits rose 7.7% to HK$20.9 trillion in the first nine months of the year. Initial public offerings reached a record HK$388 billion, and capital is arriving from various international sources, including the United States, Europe, mainland China, Southeast Asia, Central Asia, and the Middle East.

Technology and AI are emerging as significant wealth sources; tech now dominates among the world's wealthiest tycoons, while mainland billionaire fortunes surged 20% to US$1.8 trillion last year. Hong Kong is capturing this growth at its source, with 116 A- and H-share listings in the first three quarters accounting for about 70% of funds raised, half of which are in AI, semiconductors, and robotics, with approximately 500 applications in the pipeline.