Hong Kong Wealth Management – High Net Worth (HNW) Investors 2022
Hong Kong wealth management market report analyzes the investing preferences and portfolio allocation of Hong Kong’s HNW individuals. It profiles HNW investors in terms of their demographics, examines the allocation of HNW investors’ portfolios, analyzes their propensity to invest offshore, and explores their product and service demand.
What are the market dynamics in Hong Kong wealth management market?
While the majority of HNW individuals derive their wealth from earned income, entrepreneurial income forms a smaller yet growing source. Earned income reflects the large number of high-earning executives based in Hong Kong, which is obviously a key hub not just for global financial services firms but also many other companies looking to invest in the mainland and wider region. With the economy recovering from the COVID-19 pandemic, several companies that had delayed leadership transitions are now recruiting C-level executives.
Considering the often more complex needs of entrepreneurs, wealth managers that can cater to entrepreneurs’ private and business financial needs will find this target audience more lucrative than professionals. A 2021 Startup Survey conducted by government agency InvestHK revealed that despite the economic challenges of the global pandemic, the startup ecosystem in the special administrative region (SAR) remained robust in 2021.
What are the key investment preferences for HNW investors in Hong Kong wealth management market?
The key investment preferences in Hong Kong wealth management market are advisory asset management, automated investment services, discretionary asset management, and execution-only asset management.
Advisory, discretionary, and execution-only mandates attract an almost identical proportion of HNW wealth in Hong Kong. With a large number of Hong Kong’s HNW individuals employed in the financial services industry, investors tend to have good knowledge of capital markets and investment matters. This contributes to investors’ preference for advisory and execution-only mandates.
Hong Kong wealth management market, by key investment preferences
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What are the key reasons for expatriation for HNW investors in Hong Kong wealth management market?
The key reasons for expatriation in Hong Kong wealth management market include job transfer, retirement, business start-up, tax efficiencies, better opportunities for children, better lifestyle conditions, and political/economic instability.
Political/economic instability, better opportunities for children, and tax efficiencies are the moat prominent drivers for expatriation to Hong Kong, suggesting that wealth managers have to take into account a diverse range of drivers.
Hong Kong wealth management market, by key reasons for expatriation
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What are the major asset classes of wealth allocation for HNW investors in Hong Kong wealth management market?
The major asset classes of wealth allocation in Hong Kong wealth management market are equity, cash and near cash, bonds, property, alternatives and commodities
Hong Kong HNW investors’ allocation to equities is roughly in line with that of the wider region. While high allocations to bonds and real estate would have cushioned portfolio losses, this explains the strong demand forecast for cash and near-cash investments over the coming years.
Hong Kong wealth management market, by major asset classes of wealth allocation
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What are the major asset classes of offshore investment for HNW investors in Hong Kong wealth management market?
The major asset classes of offshore investment in Hong Kong’s wealth management market include equity, cash and near-cash products, bonds, property, alternatives, and commodities.
HNW individuals in Hong Kong invest offshore for a multitude of reasons, mainly because of business interests abroad, better returns offshore, and geographic diversification. Access to a better range of investments and local political instability are other important reasons. Business interests is the most important driver for offshore investment. Considered the world’s freest economy and one of the most important economic powerhouses in Asia, Hong Kong is the regional headquarters for several multinational companies. Established businesses are likely to operate in multiple jurisdictions and their wealth will be spread across several countries around the world. Consequently, wealth managers should be able to provide products minimizing foreign exchange risks to stand out from competition.
Hong Kong wealth management market, by major asset classes of offshore investment
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Who are the key players in Hong Kong wealth management market?
The key players in Hong Kong wealth management market include AQUMON, China CITIC Bank International, and CMB Wing Lung Bank
Market report scope
| Important drivers for expatriation | Job transfer, retirement, business start-up, tax efficiencies, better opportunities for children, better lifestyle conditions, and political/economic instability |
| Key reasons for expatriation | Job Transfer, Retirement, Business Start-Up, Tax Efficiencies, Better Opportunities For Children, Better Lifestyle Conditions, and Political/Economic Instability |
| Major asset classes of wealth allocation | Equity, cash and near cash, bonds, property, alternatives, and commodities |
| Major asset classes of offshore investment | Equity, cash and near cash, bonds, property, alternatives, and commodities |
| Key Investment services | Advisory asset management, automated investment services, discretionary asset management, and execution -only asset management |
| Key players | AQUMON, China CITIC Bank International, and CMB Wing Lung Bank |
Scope
- Expats represent an attractive target market thanks to their more complex service requirements.
- Robo-advisory services are at a very nascent stage of development in the HNW space in Hong Kong, but they are slowly gaining traction.
- Hong Kong HNW individuals spread their investments in line with the Asia-Pacific average, with equities, property, and bonds dominating.
Reasons to Buy
- Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
- Enhance your marketing strategies and capture new clients using insights from our data on HNW investors’ asset management style preferences.
- Tailor your investment product portfolio to match the current and future demand for different asset classes among HNW individuals.
- Develop your service proposition to match the demand expressed by Hong Kong HNW investors and react proactively to forecast changes in demand.
Key Players
Table of Contents
Frequently Asked Questions
Advisory asset management, automated investment services, discretionary asset management, and execution-only asset management are the various investment services in Hong Kong wealth management market.
Job transfer, retirement, business start-up, tax efficiencies, better opportunities for children, better lifestyle conditions, and political/economic instability are the key reasons for expatriation in Hong Kong wealth management market.
Equity, cash and near cash, bonds, property, alternatives and commodities are the major asset classes of wealth allocation in Hong Kong wealth management market.
Equity, cash and near cash products, bonds, property, alternatives, and commodities are the major asset classes of offshore investment in Hong Kong wealth management market.
AQUMON, China CITIC Bank International, and CMB Wing Lung Bank are the key players in Hong Kong wealth management market.
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