Hong Kong’s asset and wealth management market experienced robust growth in 2024. According to the latest Asset and Wealth Management Activities Survey released by the Securities and Futures Commission (SFC), total assets under management (AUM) in Hong Kong grew by 13% year on year, reaching HK$35 trillion by the end of 2024. The private banking and private wealth management sector’s performance was particularly stellar, with AUM increasing by 15% year on year and net fund inflows totalling HK$384 billion. This trend reflects the strong demand for Hong Kong’s wealth management services from high-net-worth individuals (HNWIs).
Based on market information and our interactions with the industry, international financial institutions are actively expanding their presence in Hong Kong. The number of banks engaged in private banking or private wealth management business increased steadily in recent years, reaching 46 in 2024. Over the past two years, several major private banks have expanded their workforce in private banking or private wealth management business by a total of nearly 400 persons, representing an increase of close to 12%. In the meantime, AUM of these institutions grew by 14% in the first half of 2025 compared to the end of 2024. Some private banks have expanded their office spaces, increasing their floor area by some 35% to over 50%. Recently, a number of international banks and asset management firms have announced plans to further enlarge their operations in the city, with headcount growth projected to range from 10% to 100% in the next few years. These developments show the strong confidence international financial institutions place in Hong Kong’s asset and wealth management market and highlight the strategic importance they attach to its long-term growth potential.
Meeting Domestic Strengths with External Demands
The surge in Hong Kong’s asset and wealth management market is driven, in part, by the growing wealth in the Asia-Pacific region. Market analysis1 indicates that Asia-Pacific is among the fastest-growing regions for private wealth globally. The number of HNWIs with a net worth of over US$10 million in Asia grew by 5% in 2024, surpassing 850,000. Among them, HNWIs in Mainland China exceeded 470,000, accounting for 20% of the global total. For years, the source of the capital managed in Hong Kong has been roughly evenly split between investors from China (including Hong Kong) and those from overseas markets. The continued growth of wealth in China and the wider Asia region is expected to provide ongoing momentum for Hong Kong’s wealth management industry.
Hong Kong’s status as a regional hub for asset and wealth management is also supported by its inherent strengths. Amid global uncertainties, Hong Kong’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. In the first half of 2025, funds raised through initial public offerings (IPOs) in Hong Kong exceeded HK$100 billion, making the city the top IPO market globally. Sales of investment products at banks have also thrived. Between 2022 and 2024, transaction volumes at retail banks more than doubled from HK$819 billion to HK$1.774 trillion. Private banks also saw strong growth, with transaction volumes increasing from HK$2.975 trillion to HK$4.466 trillion. Concurrently, the number of securities, futures, and asset management client accounts grew from 3.71 million to 4.3 million. Total income from securities and futures business also rose steadily, from HK$37.7 billion to HK$46.4 billion. Importantly, as a super-connector linking Mainland China with the international markets, Hong Kong plays a vital role in facilitating cross-boundary asset allocation and capital flows.
Policy Measures to Stimulate Industry Vitality
Our efforts to enhance the market will continue. The Government, the HKMA, and other regulatory bodies have been actively introducing various policy measures to leverage and strengthen Hong Kong’s unique advantages. Notable initiatives include the launch of the Capital Investment Entrant Scheme in 2024 and preferential tax regimes for private equity funds, carried interest, and single family offices, all designed to attract global capital to Hong Kong.
Regarding regulation, the HKMA, together with the SFC, launched a streamlined approach in 2023 for suitability assessment and product disclosure processes aimed at sophisticated professional investors. This initiative seeks to provide more flexible, convenient and tailored services while protecting investors. As of June 2025, seven private banks have adopted this streamlined approach, with nearly 200 sophisticated clients completing transactions exceeding HK$70 billion. An additional 13 private banks plan to adopt this streamlined approach, four of which are expected to implement it within this year. These 20 private banks represent approximately 80% of the total AUM of eligible clients.
On cross-boundary personal wealth management, the “Cross-boundary Wealth Management Connect (WMC) 2.0” was launched last year, featuring a higher individual investor quota, a wider choice of products, relaxed investor eligibility criteria, broadened participating institutions, and refined sales and promotion arrangements. The HKMA, in collaboration with Mainland regulatory authorities, has introduced some enhancements under the WMC 2.0 framework, including “one-off consent” and “three-party online conference” arrangements2, as well as allowing Southbound Scheme account opening through a non-face-to-face approach. These measures aim to facilitate banks in providing more effective sales and account opening services. Hong Kong banks have responded positively, with six banks implementing the “one-off consent” arrangement to proactively introduce products and information to customers, and ten others planning to implement the same. Since the introduction of the “three-party online conference” arrangement in June, some banks have already adopted this measure or are in the process of doing so.
The market response to the WMC 2.0 enhancements has been encouraging. As of the end of June, over 160,000 individual investors participated in the Scheme, representing a growth of over 120% compared to WMC 1.0. Under the Southbound Scheme, the market value of investments held at Hong Kong participating institutions exceeded RMB16 billion, nearly tripling from WMC 1.0. As Southbound Scheme investors become more familiar with Hong Kong products and put more emphasis on diversification, their focus has shifted from deposits to now a broader allocation towards funds and bond products.
Looking Ahead
We are optimistic about the prospects of Hong Kong’s asset and wealth management market. On one hand, the Mainland’s economic growth and wealth accumulation, along with enhancements and expansions to various Connect Schemes, will further broaden the client base for Hong Kong’s wealth management industry. On the other hand, uncertainties are prompting international investors to adopt more proactive diversification strategies to better manage risks. Notably, China-related and Renminbi assets are gaining an increasing share of their asset allocation. According to EPFR3, from April to late July 2025, Asia collectively received US$91.5 billion in net inflows from investment funds, with approximately US$44.3 billion directed towards the China market.
Hong Kong banks are also expanding in the rapidly growing digital asset space. Following the introduction of relevant regulatory guidelines, more banks are starting to distribute digital asset-related products and tokenised assets, as well as provide custodial services for digital assets. As of mid-July 2025, 22 banks have been allowed to distribute digital asset-related products; 13 banks to distribute tokenised securities; and five banks to provide custodial services for digital assets. In the first half of 2025, the total transaction amount of digital asset-related products and tokenised assets in banks reached HK$26.1 billion, marking a 233% year-on-year increase and surpassing last year’s total. Several asset management companies have also announced plans to launch tokenised products. With the Government actively promoting tokenised bond issuance as well, Hong Kong is poised for continued growth in the digital asset space, providing fresh impetus for its wealth management sector.
Hong Kong is forecasted to become the world’s largest wealth management centre4 in the coming years5. In this regard, the HKMA will continue to work closely with the Government, the industry, and the international community to drive policy innovation and market enhancements, further strengthening Hong Kong’s competitiveness and solidifying its position as an international hub for wealth management and asset allocation.
Eddie Yue
Chief Executive
Hong Kong Monetary Authority
4 August 2025
1 Source: Knight Frank’s The Wealth Report 2025.
2 The “one-off consent” arrangement allows Hong Kong banks to, in their place of business, proactively introduce products which meet the risk appetite of Southbound Scheme customers and provide related information, and/or provide research reports on products to the customers, after obtaining their written consent. The “three-party online conference” arrangement enables Mainland banks, upon request from Southbound Scheme customers, to assist the customers at their Mainland branch premises in setting up three-party online dialogues or conferences with Hong Kong banks regarding Southbound Scheme services.
3 Emerging Portfolio Fund Research.
4 Source: BCG’s Global Wealth Report 2025.
5 In terms of wealth booking scale.
