The Hong Kong Wealth Management industry is quite an important one. After all it manages about $800bn in private client assets.
Why Hong Kong wealth management matters?
Hong Kong wealth management activity is also high due to demand from mainland China.
Hong Kong provides easy access to China’s trade and capital flows.
A number of European and Swiss brands renowned for their discretionary portfolio advice have recently managed to attract Asian HNW wealth.
GlobalData’s Wealth in Hong Kong: HNW Investors 2018 report stresses that there will be greater demand for discretionary mandates in coming months.
Even though Hong Kong wealth management attracts assets from around the world, a significant talent gap exists in the the country’s wealth management industry.
In order to bridge this shortage in talentHong Kong Private Wealth Management Association( PWMA) launched an apprenticeship programme with Hong Kong’s monetary authority in 2017.
The programme is an eight-week programme which lasts two summers targeting students. If the apprentices perform well, they will be offered a job at the end of it.
The PWMA was founded in 2013 and has amassed 45 members since. Several mainland Chinese banks have joined this year. These include: Noah Holdings, CMB International Securities, Haitong International Securities.
China’s link to Hong Kong wealth management
The Hong Kong wealth management industry also needs to constantly find ways to serve the country’s growing number of billionaires both in Hong Kong and in the Greater China region.
According to research by the UBS and PwC’s Billionaires Report published in 2017, China created two new billionaires every week in 2016.
Data published by Citi Private Bank in March 2018 also shows that the number of millionaires rose 15% compared to the previous year, making one in 7 people millionaires in Hong Kong.
Because Hong Kong is part of Greater China, much of its outlook depends on the performance of the Chinese economy, the experts tell PBI.
Hong Kong’s wealth management landscape is quite bullish. UBS Wealth Management, predicts GDP growth of about 2-3% in coming months.
For a full picture on Hong Kong’s wealth industry, read PBI’s feature: Discretionary mandates set to soar in Hong Kong.