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Shengsen International was invited to attend the "Head Office Activity Day of Hang Seng Bank of Hong
2025.09.02
Hong Kong’s Wealth Management Sector Booms: AUM Surpasses HKD 35 Trillion, Eyeing Global Top Spot in Cross-Border Wealth
There’s big news in Hong Kong’s wealth management circle recently: the assets managed last year grew not only in size but also at a much faster pace than before! According to a newly released report by the Securities and Futures Commission (SFC) of Hong Kong, the total assets under management (AUM) in Hong Kong exceeded HKD 35 trillion in 2024, a 13% increase from the previous year. Even more impressively, net new money (i.e., newly invested funds minus withdrawn funds) surged by 81%, adding HKD 705 billion. This momentum has given Financial Secretary Paul Chan strong confidence: “At this rate, becoming the global leader in cross-border wealth management within two to three years is very much achievable!”
What Does HKD 35 Trillion Actually Mean?
To put this in perspective, HKD 35.1 trillion (equivalent to approximately USD 4.53 trillion) represents the total value of all assets managed by Hong Kong for individuals, enterprises, and institutions by the end of last year. Among this, private banking and wealth management services—specifically tailored for high-net-worth individuals—grew even faster, rising by 15% year-on-year to reach HKD 10.4 trillion.
Retail investors also have reason to cheer: SFC-authorized funds (accessible to ordinary investors) performed exceptionally well. By the end of 2024, the total net asset value (NAV) of these funds rose by 22% to HKD 1.64 trillion; in the first five months of this year, growth accelerated further by 21%, pushing NAV to HKD 1.99 trillion. New inflows into these funds were also robust: HKD 163 billion poured in last year, and HKD 237 billion has already been added in the first five months of 2025—indicating that investor enthusiasm for fund investments is still on the rise.
Hong Kong’s Wealth Management: Not Just “Big,” But “Globally Diverse”
Hong Kong’s strength in wealth management lies not only in its “scale” but also in its “broad global reach.” Data shows that 59% of the assets managed in Hong Kong were invested in markets outside Hong Kong and the Chinese mainland. In recent years, investors have also shifted from over-reliance on stocks: the proportion of “non-equity” assets (such as bonds and money market funds) has increased by 13 percentage points over five years, now accounting for 59% of total AUM. Simply put, wealth managers are getting better at “diversifying risks”—following the old adage of “not putting all their eggs in one basket.”
International Recognition: Tied with Switzerland as Top Cross-Border Hub
This performance has earned international acclaim. Boston Consulting Group (BCG) recently stated that Hong Kong tied with Switzerland as the world’s largest cross-border wealth management hub in 2024. Hong Kong’s cross-border wealth value grew by 9.6% year-on-year, adding USD 231 billion—making it the fastest-growing among major global hubs.
Why Is Hong Kong Attracting So Much Capital?
Paul Chan summed up several key reasons:
- Free flow of resources: Hong Kong enables the free movement of capital, talent, goods, and information, with seamless currency conversion.
- International-aligned legal system: Its legal framework is consistent with global standards, supported by active stock and IPO markets.
- Risk diversification needs: Amid complex global conditions, investors are more eager to “diversify their portfolios,” making Hong Kong a natural choice.
He also noted, “When I talk to senior financial figures from Europe, the US, and Southeast Asia, they all express strong optimism about Hong Kong and the mainland Chinese markets, actively seeking investment opportunities here. They believe Hong Kong’s financial system is stable and has great growth potential—making it a secure place to invest.”
Government and Industry Efforts to Strengthen Hong Kong’s Position
The HKSAR Government has not been idle. It is deepening connectivity with the mainland market (e.g., via Stock Connect and Bond Connect) while supporting the development of bond, currency, and digital asset markets to offer investors more options. “Backed by the motherland, and with joint efforts from the government and the industry, Hong Kong’s status as an international financial center will be elevated to new heights,” Chan emphasized.
Industry insiders also share this optimism. Choi Fung-yee, the SFC official in charge of investment products, stated that driven by capital inflows, financial innovation, and a growing pool of professionals, Hong Kong’s influence as a wealth management hub is expanding. The SFC will next focus on developing the bond and currency markets, aiming to make Hong Kong not just a leading asset management center but also a global top offshore RMB center.
The Hong Kong Investment Funds Association (HKIFA) added, “Growth is evident across all segments—asset management, fund advisory, and private banking—rather than being driven by a single area. This shows the industry’s growth is healthy, not fueled by unsustainable hype.”
Looking Ahead: Toward “Global No.1 Cross-Border Wealth Hub”
In summary, Hong Kong’s asset management scale expanded significantly last year, with capital inflows accelerating. Both local and cross-border businesses are showing strong “all-round positive momentum.” At this pace, Paul Chan’s vision of Hong Kong becoming the “world’s top cross-border wealth management hub” may soon become a reality.
