Number of rich Hongkongers growing 12pc a year, says HSBC

HSBC (0005) expects the number of high-net-worth individuals in Hong Kong to grow 12 percent year-on-year over the next five years, which will help grow the bank's wealth management business.

The bank said the number of its high-net-worth clients in Hong Kong grew by around 8 percent till the third quarter compared to the end of 2019.

Early last year, the bank launched HSBC Jade to serve customers with liquid assets of more than US$1 million (HK$7.8 million)

Head of customer wealth, wealth and personal banking Sami Abouzahr revealed that HSBC's securities business grew 1.38 times year-on-year.

He said out the clients were interested in fixed-income assets in a period where yields are low and that the bank didn't see any capital outflows in Asia.

"Asia is an exciting place for people to look at investment opportunities, and it's recovering probably earlier than other markets from the pandemic," said Abouzahr.

HSBC currently manages assets of US$249 billion for high-net-worth Jade and Private Banking clients.

The bank witnessed more digital activities as wealth sales via digital channels increased by 57 percent, said Abouzahr.

In light of the Covid-19 pandemic, the bank now offers phone and video-based services to help clients manage wealth and review their portfolio, which 14,000 of its customers have enjoyed.

Customers can access most banking services from their phones and open an investment account remotely through the bank's mobile app.

The bank is now reviewing the staffing arrangements for the next year to support its business.

Regional head of wealth and personal banking for Asia Pacific Greg Hingston said: "With more millionaires on the rise in Hong Kong, Jade offers an exciting gateway to new client relationships and to deeper engagement with our existing base as we continue to invest in innovative wealth solutions, enhance our digital capabilities, offer tailored investment insights and enable greater access to international opportunities."

Meanwhile, the bank has appointed Canto-pop superstar Aaron Kwok as new brand ambassador for HSBC Jade in Hong Kong.