Hong Kong

Hong Kong’s Asset and Wealth Management business reports strong growth in 2019, says SFC

Hong Kong’s Securities and Futures Commission (SFC) has reported that its Asset and Wealth Management Activities Survey found that the assets under management (AUM) of the asset and wealth management business in Hong Kong increased by 20% year-on-year to HKD28,769 billion (USD3,694 billion) as at 31 December 2019.

Ashley Alder, Chief Executive Officer, SFC, said: “Hong Kong’s asset and wealth management business posted strong growth in 2019 despite the challenges facing global markets and we remain committed to further developing Hong Kong as a premier global asset and wealth management centre. The performance of Hong Kong’s financial markets in the first half of 2020 showed that they remain resilient.”

Highlights of the survey include:

  • Net fund inflows of HKD1,668 billion (USD214 billion) were recorded for the asset and wealth management business during 2019.
  • The AUM of the asset management and fund advisory businesses conducted by licensed corporations (LCs) and registered institutions (RIs) increased by 22% year-on-year to HKD20,040 billion (USD2,574 billion).
  • The AUM of the private banking and private wealth management business grew by 19% to HKD9,058 billion (USD1,163 billion).
  • Assets held under trusts increased by 11% to HKD3,844 billion (USD494 billion).
  • The number of licensed corporations carrying out asset management (Type 9 regulated activity) in Hong Kong increased by 10% to 1,808.
  • The total number of staff in the asset and wealth management business was 45,132, with an increasing proportion directly engaged in asset management and related support functions.

During the first half of 2020, Hong Kong’s financial markets remained resilient despite challenging circumstances:

  • After experiencing net fund outflows in the first quarter in line with global market dislocation and a “flight to safety” arising from the Covid-19 outbreak, Hong Kong-domiciled public funds rebounded in the second quarter with net fund inflows of HKD27 billion (USD3.5 billion).
  • The Hong Kong stock and futures markets have been active, with average daily turnover increasing 20% year-on-year to HKD117.5 billion (USD15.2 billion).
  • The initial public offering market has continued to thrive, with HKD92.8 billion (USD12 billion) raised during the first half of 2020.

The full Asset and Wealth Management Activities Survey can be found HERE.