White Paper Recommends How To Boost Hong Kong's Wealth Industry
A new white paper from an industry group and university examines the steps that Hong Kong must take to push its wealth sector to another level.
Hong Kong’s ambition to bounce back from the pandemic and compete as a prime wealth management hub – against the likes of Singapore and Dubai – has been underscored by a new industry/academia white paper.
Issued last week – Hong Kong 2035: A Global Wealth Management Centre – has been published by The Hong Kong Private Wealth Management Association and Tsinghua University PBC School of Finance Global Family Business Research Center.
The study analyses financial policy, regulation, market, talent, technology in the Guangdong-Hong Kong-Macao Greater Bay Area.
The publication of this report comes at a time when, via funds and family office developments, the jurisdiction is attempting to push forward, compete more effectively with rival centres, and win back friends after the challenges of recent years, such as the pandemic. A few days ago, this news service spoke to Hywin Wealth about its prominent role in a business association, and the ways in which it wants to boost Hong Kong's status.
The report proposes five strategic directions to strengthen Hong Kong’s core competitiveness: Mutual access with the mainland, asset platform building, bi-directional cross-border practice, industry expertise cultivation and digital capability enhancement.
The paper notes that the 2022 Boston Consulting Group ranking on global offshore wealth management centres puts Hong Kong in second place behind Switzerland.
“Benefiting from the rapid accumulation of wealth in the mainland and the increased demand from high net worth individuals to invest overseas, Hong Kong is the fastest growing major wealth management centre in the world in terms of international asset management,” the report said.
“According to the Chinese Academy of Social Sciences’ 2020 China National Balance Sheet, the wealth of China’s residents reached 512.6 trillion yuan, up nearly 17 times from 30.6 trillion yuan in 2000. In the process of synergistic development and deepening integration in the Guangdong-Hong Kong-Macao Greater Bay Area, the vast wealth management market in the Mainland has provided new momentum for Hong Kong’s wealth management industry to achieve exponential growth,” it said.