(Bloomberg) -- Private wealth assets under management in Hong Kong may nearly double to $2.3 trillion in six years, according to Bloomberg Intelligence, with the Asian financial hub projected to surpass Switzerland as the world’s top cross-border wealth center.
The increase is forecast to come from growing demand by Chinese investors for higher-yielding offshore investments, which may rise 16% each year through 2030 due to interest rates in Hong Kong and the US seen remaining higher than in mainland China, BI analysts led by Sharnie Wong wrote in the report.
The projection bodes well for Hong Kong’s ambition to strengthen its status as a global hub for wealth management and family offices after years of strict Covid-19 restrictions and a sweeping crackdown against political dissent took the shine off the location.
“Hong Kong’s financial infrastructure gives it an edge in attracting wealth inflows from high-net worth individuals from mainland China and across the rest of Asia,” the analysts wrote. “Wealth managers operating in the city could benefit from accelerating net new money sourced from both local households and offshore residents.”
Other key findings from the report include:
- Personal investable assets in mainland China may soar 83% from 2023 to 2030 to $80 trillion, with overseas investments rising to 11% of households’ investable assets.
- HSBC Holdings Plc and Standard Chartered Plc may be the best positioned banks to win share of wealth inflows after UBS Group AG cut jobs in the region after the merger with Credit Suisse.
- The assets under management by family offices in Hong Kong may double to $387 billion by 2030 from 2023, led by Chinese and Asian ultra-rich investors.
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