The key benchmarking metrics in an annual survey by the Securities and Futures Commission (SFC) reaffirmed Hong Kong’s position as a premier asset and wealth management hub with a highly-diversified investor base, globalised asset allocation and robust fund inflows.
According to the SFC’s Asset and Wealth Management Activities Survey 2023 published today (Notes 1 and 2), investors outside Mainland China and Hong Kong have consistently accounted for 54-56% of total asset under management (AUM) in the past five years, while 60% of the assets managed in Hong Kong are allocated to overseas markets. Over the past three years, the city also saw the number of Type 9 licensed firms (ie, asset management) increase steadily by 12% to 2,161 as of June 2024.
Overall AUM grew 2% year-on-year in 2023, while net fund inflows surged 342% (Note 3). In addition, Hong Kong-domiciled funds authorised by the SFC also showed strength. They continued to see net fund inflows of $33 billion (US$4.2 billion) in the first quarter of 2024 after rebounding by a robust 93% to $87 billion (US$11.1 billion) last year. Their AUM also further increased 3% for the first quarter after growing 5% in 2023 (Note 4).
“The survey’s findings underscored the enduring strengths of Hong Kong’s asset and wealth management industry, particularly the market’s growing breadth and depth, as well as its resilience in the face of unprecedented challenges and macro headwinds,” said Ms Christina Choi, the SFC’s Executive Director of Investment Products. “These unique advantages would place Hong Kong in an enviable position to forge closer connectivity with Mainland, regional and global markets, thus further consolidating its status as an international financial centre.”
Other highlights of the report include:
- Mainland-related firms continued to expand their footprint in the city, as the AUM of their asset and wealth management business grew 4% to $2,676 billion (US$343 billion), outperforming the industry average for another year. Their net fund inflows increased 16% to $153 billion (US$20 billion).
- The strong growth momentum for open-ended fund companies (OFCs) persisted, as the number of registered OFCs more than doubled (up 118%) from 2022, showing asset managers continued to take advantage of the corporate fund structure in Hong Kong and the associated government grants.
More details can be found in the Appendix.
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 of this press release.
- This year, 1,192 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, and non-SFC licensed insurance companies registered under the Insurance Ordinance and trustees.
- Unless stated otherwise, values given are in Hong Kong dollars and all comparisons are made on a year-on-year basis (ie, 2023 over 2022). Amounts shown in US dollars were converted at the prevailing exchange rate.
- The number of Hong Kong-domiciled SFC-authorised funds increased to 914 in 2023 and further increased to 926 at the end of the first quarter of 2024.
