Global wealth management institutions are recruiting and expanding into the Hong Kong market, with the number of private banking clients constantly increasing and funds continuously flowing in... The demand for wealth management services in Hong Kong from high net worth investors is increasing, strengthening Hong Kong's position as a hub for wealth management. The "2024 Asset and Wealth Management Activity Survey" released by the Hong Kong Securities and Futures Commission shows that as of the end of 2024, the total value of managed assets in Hong Kong increased by 13% year-on-year, reaching HKD 35 trillion. Among them, private banking and private wealth management businesses are particularly prominent, with a year-on-year increase of 15% in total managed assets and a net inflow of HKD 384 billion. In the first half of this year, several banks in Hong Kong achieved significant growth in their wealth management businesses. HSBC Group has added 600000 new clients to its wealth management business in Hong Kong. The total number of affluent customers in Standard Chartered Hong Kong increased by 8% year-on-year, with a 35% increase in net new funds and a 30% increase in revenue from wealth solutions business. The Chief Executive of the Hong Kong Monetary Authority, Yu Weiwen, believes that the thriving development of Hong Kong's asset and wealth management market is due to both the huge demand brought by the sustained growth of wealth in the Asia Pacific region and Hong Kong's own advantages, including a mature financial market, a reliable linked exchange rate system, a stable banking system, and an active capital market. The 2025 Wealth Report released by international real estate consulting firm Knight Frank shows that the Asia Pacific region is one of the fastest growing regions for private wealth in the world. Based on a net asset value exceeding 10 million US dollars, the number of high net worth individuals in Asia will increase by 5% in 2024, with a total of over 850000 people. Among them, the number of high net worth individuals in mainland China has reached 470000, accounting for 20% of the global total. The demand for professional wealth management services among this group continues to rise, and Hong Kong, with its unique role as a 'super contact', naturally becomes an ideal hub for connecting mainland funds with global investment opportunities. ”Deloitte China Tax Partner Bao Jiayin said that international high net worth investors can easily share the dividends of China's economic growth, while mainland high net worth individuals can also achieve "going global" and global asset allocation through Hong Kong. Industry insiders have observed that after the inflow of international funds, investors' understanding of the economic development situation in Hong Kong and mainland China has greatly improved, gradually increasing the proportion of asset allocation. At the end of July, the total market value of Hong Kong's securities market reached HKD 44.9 trillion, a year-on-year increase of 44%; As of mid July, Hong Kong has raised HKD 124 billion through 52 IPOs, a year-on-year increase of 590%, temporarily ranking first in the world. The active performance of the capital market has driven the growth of the wealth management industry. The favor of international investors is also closely related to the driving effect of relevant policies. Hong Kong Legislative Council member Li Weihong stated that the SAR government encourages family offices to come to Hong Kong to consolidate the advantages of traditional financial services, while also exploring innovative financial businesses such as digital assets, further enhancing the attractiveness of wealth management services in Hong Kong. Industry insiders believe that Hong Kong's leading position in digital asset management is becoming a key differentiating advantage in attracting a new generation of high net worth clients. In the first half of this year, the total transaction volume of bank digital asset related products and tokenized assets reached HKD 26.1 billion, a year-on-year increase of 233%. On August 1st, the Hong Kong Stablecoins Ordinance came into effect, and the licensing process for fiat stablecoin issuers has begun. This open attitude towards innovative financial products enables Hong Kong to meet the allocation needs of high net worth investors for emerging asset classes. ”Bao Jiayin said. In the coming years, industry insiders expect Hong Kong's wealth management business to maintain a steady development momentum. The economic growth and wealth accumulation in mainland China, as well as the expansion and optimization of various interconnectivity arrangements, will further broaden the customer base of Hong Kong's wealth management industry. Hong Kong continues to promote the inclusion of RMB stock trading counters in the Hong Kong Stock Connect. Liao Yijian, Co CEO of HSBC Group in Asia and the Middle East, said that this measure will facilitate mainland investors to directly participate in the Hong Kong Stock Connect in RMB, and will also enrich the selection of offshore RMB products, thereby consolidating Hong Kong's position as the world's largest offshore RMB business center and international wealth management center. Several international financial institutions also plan to increase their investment in wealth management business in Hong Kong. Citibank's goal this year is to expand its customer manager and investment advisory team in Hong Kong's retail wealth business by 10%. HSBC Group also announced that it will continue to strengthen its private banking team this year. Looking ahead to the future, the Secretary for Financial Services and the Treasury of the Special Administrative Region Government, Mr. Hui Cheng yu, stated that the government is developing the asset and wealth management industry from three aspects: continuously expanding the scale of asset management; Strengthen cooperation with mainland China and other cities in the Guangdong Hong Kong Macao Greater Bay Area; Enhance market competitiveness through policy and project innovation. (New Society)