Hong Kong is projected to become the world's largest wealth management center in the coming years, with the city's asset and wealth management market experiencing robust expansion last year, according to Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue on Monday.

According to the latest Asset and Wealth Management Activities Survey released by the Securities and Futures Commission, total assets under management (AUM) in Hong Kong grew by 13 percent year-on-year, reaching HK$35 trillion ($4.46 trillion) by the end of 2024, Yue wrote in an online post.

The private banking and private wealth management sector has performed particularly well, with AUM increasing by 15 percent year-on-year and net fund inflows totaling HK$384 billion.

This trend reflects the strong demand for Hong Kong's wealth management services from high-net-worth individuals, Yue wrote.

"We are optimistic about the prospects of Hong Kong's asset and wealth management market," Yue noted, adding that economic growth and wealth accumulation on the Chinese mainland, along with enhancements and expansions to various Connect Schemes, will further broaden the client base for Hong Kong's wealth management industry. He noted that global uncertainties are also prompting international investors to adopt more proactive diversification strategies to better manage risks.

The comment by the head of HKMA follows those of Hong Kong Financial Secretary Paul Chan Mo-po, who wrote in a blog post in June that "it is expected that within the next two to three years, Hong Kong will become the world's leading cross-border asset management center," Chan said.

According to Yue, the surge in Hong Kong's asset and wealth management market is partly driven by the growing wealth in the Asia-Pacific region.

Hong Kong's status as a regional hub for asset and wealth management is also supported by its inherent strengths, Yue said. Amid global uncertainties, the city's mature financial markets, resilient Linked Exchange Rate System, robust banking sector, and vibrant capital markets offer numerous investment and value-enhancement opportunities for global capital.

As a global financial center, Hong Kong has the advantages of connecting to the vast market of Chinese mainland and radiating to other major economies. Its financial market is highly diversified and convenient, with sound business and legal environment, Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told Global Times on Monday, noting that Hong Kong is considered a "more friendly" platform for wealth management.

As the country further pursues high-quality economic development and high-level institutional opening-up, the scale of funds, market depth, and technological agglomeration effects in the Chinese mainland will expand rapidly, bringing Hong Kong unprecedented opportunities, Dong said. "During the process, Hong Kong will also need to improve its financial services, strengthen industrial and financial interactions, and help wealth management companies better share the dividends."

According to the 2025 IMD World Competitiveness Yearbook, released recently by the International Institute for Management Development in Lausanne, Switzerland, Hong Kong's global competitiveness rose by two positions to third place, marking its return to the global top three for the first time since 2019.

According to a business environment report themed "One Country, Two Systems: Unique Advantages" and released by the Hong Kong Special Administrative Region (HKSAR) government on July 30, amid the impact of trade tensions, countries and regions around the world are actively seeking external investment opportunities, and global capital is being reallocated. The report said Hong Kong is well positioned to help countries diversify risks and attract capital, businesses, and talent.

Yue wrote that the HKMA will continue working closely with the government, the industry, and the international community to drive policy innovation and promote market enhancements, further strengthening Hong Kong's competitiveness and solidifying its position as an international hub for wealth management.

(Source: Global Times)