Hong Kong: Wealth Management
Wealth Management Industry
Wealth management in Hong Kong has as much to do with the wealth of Mainland Chinese as it has to do with Hong Kong itself, and virtually every bank of any significance has a wealth management office in Hong Kong. Early in the year, Standard Chartered Plc announced that it proposed to add 500 employees to its Hong Kong wealth management staff; that's just one bank!
To put the opportunities for wealth management into context, Boston Consulting Group predicts that the annual household financial asset growth in Mainland China will be around 17.4% over the next several years, and the personal assets under management will reach an estimated US$5.5 trillion by 2011. The BCG says that less than 1% of households in China hold more than 67% of the nation’s personal wealth. Most of the wealthy individuals are living in Beijing, Shanghai, Shenzhen and the east coast cities, and many are entrepreneurs in the real estate, manufacturing, retailing and information technology sectors. BCG thinks that as little as 8% of the pool of HINWI wealth (US$2.5 trillion) is currently invested offshore, with much of it remaining in cash and represented by physical assets, as wealthy Chinese only gradually come to trust banks or asset managers to look after their wealth.