Hong Kong

HSBC scales up structured product capabilities to boost Asia Wealth growth

HSBC scales up its structured product capabilities in Hong Kong and Malaysia, in an effort to further the Bank’s ambition of becoming Asia’s leading wealth management bank

The Bank has rolled out a new structured product linked to a customised index – The Solactive Luxury Dynamic Factors Index (‘the Luxury Index’), providing an investment opportunity for wealth clients to capitalise on the growing luxury consumption in Asia, in addition to a wide array of products linked to standard and thematic market indices.

 

“To accelerate the growth of the wealth business in Asia, Global Markets continues to invest in our product manufacturing capabilities leveraging our market expertise, and deliver bespoke solutions for wealth clients,” said Justin Chan, Head of Greater China, Global Markets, Asia-Pacific, HSBC. “The Luxury Index sits within our theme of stocks benefiting from Asian discretionary spending. HSBC Global Research estimates that the luxury goods market in mainland China will likely achieve 48 per cent growth in 2020, doubling its overall share of the global luxury market in 2020, with further growth expected through to 2025. We are also bullish on the sector due to the likely consolidation seen in the industry and the use of more affordable online sales channels.”

 

Luxury spending from Asia, and in particular mainland China, already accounts for a significant portion of global luxury consumption. Luxury as an investment theme is poised to benefit from strong economic recovery led by Asian economies in the post COVID-19 world. The Luxury Index provides investors dynamic exposure to a list of global stocks that have high exposures to the luxury sector.

 

Maggie Ng, Head of Wealth and Personal Banking, Hong Kong, HSBC, said, “The growth of the wealth management market is unparalleled in Asia, underpinned by the expansion in high net worth population and the increase in their sophistication. Therefore, we are working closely with our Global Markets colleagues to bring innovative structured products to our customers. This index-linked structured product exemplifies our commitment to meet customers’ diverse wealth management needs aligned to prevalent investment themes. The product enables investors to gain exposure to the sector, while maintaining a high level of capital protection.”