Singapore and, in particular, Hong Kong are increasingly overtaking Switzerland as a financial hub. The extent of the Asians' determination has become evident in recent days in the banking strongholds of Zurich and Geneva.

The Swiss financial center is among the world's leading ones. However, this is not a given, warned UBS CEO Sergio Ermotti last Tuesday during his lecture at the University of Lucerne: «We must not become complacent». Hong Kong, Singapore, and the USA are the biggest competitors in this regard. According to forecasts, Hong Kong is expected to become the largest financial center in the world by 2027.

Hong Kong is already number one today in terms of the wealthiest people in the world. According to official figures, 12,615 so-called ultra-high net worth individuals (UNHWI) live in the metropolis on the Pearl River Delta. This is followed by New York (11,845 people), London (6,370), and Singapore (4,160).

Interest From Swiss Family Offices

Charles Ng (Image: zvg)

How much Hong Kong leaves nothing to chance has been demonstrated in recent days. Charles Ng, Associate Director-General of Invest Hong Kong, was on a promotional tour in Zurich and Geneva, meeting with representatives of Family Offices.

His message: Hong Kong is the ideal hub for wealth management. «We have recently noticed a growing interest from Swiss representatives,» he emphasized during a meeting with finews.asia. Hong Kong already counts over 2,700 Family Offices; in Switzerland, there are around 600. The appetite of the representatives of the Asian financial center is not yet satisfied.

Hong Kong has not only made positive headlines in recent years. Ng is aware of this. «That's why I'm here. I want to inform potential clients firsthand,» he asserted.

Lucrative Investments and Tax Breaks in Tow

And he did not come empty-handed. He can offer potential clients investment opportunities in the fields of life sciences, green technology, infrastructure projects, and fintech. «We are the gateway to the Chinese market,» he emphasized. The art market, which is becoming increasingly significant, should not be forgotten. Additionally, Family Offices benefit from attractive tax breaks for investments over 200,000 Swiss francs ($223,000).

«Hong Kong and Switzerland Have Much in Common»

Ng does not want to pit Hong Kong against Switzerland. «Switzerland is the country of luxury, which is also lucrative for wealthy individuals from Hong Kong,» he said. He sees himself more as a bridge-builder. After all, Hong Kong and Switzerland have much in common. «Hong Kong, like Switzerland, is a hotspot for Family Offices and stands for technical innovation,» he emphasized.

The two financial centers complement each other well. «That's why I'm meeting representatives of Family Offices here in Switzerland,» said Ng, «after all, it's about diversifying wealth in the best possible way.»

Not an Easy Situation for Swiss Institutions

For Swiss financial institutions, this is a double-edged sword. Many private banks and asset managers are being drawn to Asia, recently including Zug-based private equity specialist Partners Group, which opened an office in Hong Kong. However, it cannot be that too much wealth flows out of Switzerland as a result. Switzerland is challenged, or to put it in the words of UBS CEO Ermotti: «We must not become complacent.»