Assets under management in Hong Kong’s private wealth industry grew in 2023 for the first time since 2020, according to an industry report.
Hong Kong’s private wealth industry saw assets under management (AUM) grow 0.6 percent year-on-year to over HK$9 trillion ($1.2 trillion) in 2023, according to a report co-authored by the Private Wealth Management Association (PWMA) and KPMG. This marks a turning point after contractions in 2022 and 2021 which saw a 10.6 percent reduction in AUM during the period.
Inflows totaled HK$341 billion, compared to HK$121 billion in 2021, offsetting a 3.2 percent decline in asset performance.
Target Markets
Currently, mainland China and Hong Kong clients account for 67 percent of AUM in the city. And moving forward, firms are looking towards other markets with 21 percent and 15 percent targeting Southeast Asia and the Middle East, respectively.
By client size, those with $5 million to $10 million were the top target in the coming three to five years, according to 28 percent of respondents. This was followed by the $10 million to $50 million (25 percent) and the $50 million to $200 million (18 percent) ranges.
Business Priorities
Currently, respondents said that preparation for inter-generational wealth transfer and capturing of next generation clients was the top business priority. This was followed by one-bank collaboration, digitalization of platforms and operations as well as expansion of product offerings.
And in terms of the industry’s future concerns, respondents highlighted the macroeconomic environment and market volatility, geopolitical tensions and the regulatory environment.
Data and insights were based on findings in the ninth edition of the «Hong Kong Private Wealth Management Report».
