Wealth management clients' preference for Hong Kong as their hub of choice fell in 2024 with political risk cited as the top concern, according to a PWMA report.
In 2023, 36 percent of respondents agreed that Hong Kong was a preferred wealth management center compared to others with 6 percent strongly agreeing, according to the «Hong Kong Private Wealth Management Report». These figures fell to just 10 percent and 3 percent, respectively, in 2024.
59 percent were neutral on the matter (compared to 32 percent in 2023) while 28 percent disagreed that Hong Kong was a preferred hub (26 percent in 2023).
Concern about the political future of Hong Kong was cited as the most significant constraint as agreed by 28 percent of respondents. This was followed by competition from other regional financial centers (21 percent) and an evolving regulatory landscape (14 percent).
Booking Center Demand
While fewer respondents saw increased demand for new accounts or assets to be held in Hong Kong – 34 percent in 2024 compared to 40 percent in 2023 – rival hub Singapore saw an even deeper decrease (52 percent in 2024 compared to 70 percent in 2023).
In contrast, booking centers outside East Asia, such as Dubai, saw continued demand growth of 21 percent in 2023 and 2024.
«Given that multi-shoring will remain a part of Hong Kong’s private wealth management landscape, the potential impact of this trend needs to be considered by the industry,» the report said. «While most private wealth management firms currently possess the capacity to register client assets across multiple jurisdictions, firms lacking this capability should take note of this ongoing client need.»
