Hong Kong’s Asset And Wealth Management Business Remained Resilient In 2021

A survey published today by the Securities and Futures Commission (SFC) found that the asset and wealth management business (Note 1) in Hong Kong recorded a 2% year-on-year increase in assets under management (AUM) to $35,546 billion (US$4,558 billion) (Note 2) as at the end of 2021. Net fund inflows during the year reached $2,152 billion (US$277 billion), up 6% from 2020. The AUM of the asset management and fund advisory business conducted by licensed corporations and registered institutions increased 8% to $25,888 billion (US$3,320 billion).

“The survey findings underscore the core strengths of the asset and wealth management industry in the fast-changing, challenging environment,” said Ms Christina Choi, the SFC’s Executive Director of Investment Products. “The SFC will continue to support the development of Hong Kong as a premier global asset and wealth management centre and preferred fund domicile.”

Other highlights of the survey (Note 3) include:

Assets held under trusts increased 5% to $4,719 billion (US$605 billion).
The AUM of the private banking and private wealth management business decreased 6% to $10,583 billion (US$1,357 billion). Respondents reported that the decrease was mainly due to changes in the values of underlying investments held by clients.
Non-Hong Kong investors remained a major source of funding for the asset and wealth management business, accounting for 65% of AUM.
The total number of staff in the asset and wealth management business increased 12% to 54,003.

Notes:

Asset and wealth management business comprises asset management, fund advisory, private banking and private wealth management, SFC-authorised real estate investment trusts and assets held under trusts. Highlights of the survey are included in the Appendix.
Unless stated otherwise, values given are in Hong Kong dollars and all comparisons are made on a year-on-year basis (ie, 2020 versus 2021). Amounts shown in US dollars were converted at the prevailing exchange rate.
This year, 1,019 firms took part in the SFC’s annual Asset and Wealth Management Activities Survey, including SFC-licensed corporations engaging in asset management and fund advisory business, banks engaging in asset management, private banking and private wealth management business, non-SFC licensed insurance companies registered under the Insurance Ordinance and trustees.