Hong Kong’s Wealth Management Sector Achieves Record Growth

The sector’s Assets Under Management (AUM) nearly tripled in 2023 compared to 2022, reflecting robust growth.

Despite ongoing global uncertainties, including geopolitical tensions, interest rate fluctuations, and digital disruptions, most AUM firms in the sector remain optimistic about the market’s future.

Industry leaders are particularly confident about the next five years, driven by significant wealth opportunities in Mainland China. Surveyed firms anticipate that AUM from the region will maintain its upward trajectory during this period.

While Mainland China remains a key wealth source, firms are also increasingly targeting emerging markets in Southeast Asia and the Middle East.

Hong Kong’s position as a premier hub for family offices plays a vital role in driving this optimism, with the majority of respondents highlighting the sector’s promising growth potential. Moreover, many firms are focused on engaging the next generation of wealth holders.

Key measures from the Hong Kong government’s 2024 Policy Address, such as expanded tax concessions and new distribution channels, have been well-received by wealth management professionals.

Efforts to enhance Hong Kong’s status as an international financial center and attract top talent are seen as pivotal to future growth.

Hong Kong enjoys unique advantages over other global wealth management hubs, including robust infrastructure, a simple tax system, a strong regulatory framework, and open financial markets.

Additionally, Hong Kong’s close ties to Mainland China—both geographically and culturally—offer distinct benefits, enabling local professionals to serve Mainland Chinese clients effectively while also catering to international investors seeking regional opportunities.