Hong Kong’s assets under management climbed 20% to a record HK$42.2 trillion ($5.4 trillion) last year, a sign that the city’s prolonged attempt to become a wealth management hub is bearing fruit.
The increase was fueled by a 193% jump in net fund inflows to HK$2.1 trillion, according to an annual survey by the Securities and Futures Commission published Thursday.
The amount overseen by the asset management and fund advisory sector grew 19% to HK$31 trillion. The private banking and wealth management industry did even better, swelling 24% from a year earlier to hit HK$12.9 trillion.
Hong Kong has taken numerous steps to attract wealth in recent years, an attempt to rebound after the city lost some of its allure in the wake of political upheavals and the Covid pandemic. It has overtaken Switzerland as the world’s largest cross-border wealth hub, driven by an influx of mainland Chinese capital and a resurgent local equity market, according to Boston Consulting Group’s 2026 Global Wealth Report.
Still, momentum faces pressure from a shifting regulatory landscape after Chinese authorities rolled out extensive restrictions in May to curb capital outflows from the mainland.
Underscoring the recent reliance on Chinese capital, mainland-related firms in Hong Kong saw a 28% increase in assets from asset and wealth management, the survey showed. That was helped by an 80% increase in net fund inflow.
Investors from outside the Chinese mainland and Hong Kong have held more than 54% of total assets in recent years, a figure that the SFC said reaffirmed the sector’s global reach.
A total of 1,316 firms took part in the survey, including asset managers, private banks, insurance companies and trustees.
Written by: Eunice Xu @Bloomberg
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