Client confidence in HK as top wealth centre hit 3-year peak: PWMA

Client confidence in Hong Kong as a preferred wealth management center has risen to a 3-year high, with 44 percent of wealth management firms reporting that clients are choosing Hong Kong this year, according to the latest report from the Private Wealth Management Association and KPMG China.

The findings are based on a survey of PWMA member institutions, supplemented by interviews with senior industry executives in Hong Kong, which were conducted between June and August. PWMA members include top global private banks such as HSBC (0005), UBS, JPMorgan, and Citi. 

The report showed that 100 percent of member firms expressed optimism about the Hong Kong PWM market over the next five years, up from 76 percent in 2024, despite ongoing concerns about geopolitical instability and macroeconomic uncertainty, which remain the top concerns for the PWM industry.

As the gateway to mainland China and the development of a refined financial infrastructure, the city saw nearly double the client demand for opening new accounts and allocating assets, with 59 percent of firms reporting increased demand, up from 34 percent last year, the report said.

The report also highlighted that allocations to alternative assets would rise in the next three to five years. Currently, 44 percent of client portfolios allocate less than 5 percent to alternatives, while one in three firms expects this figure will rise to 11–15 percent by 2030. 

Regarding digital assets, the report found that 52 percent of firms are either already investing in or planning to invest in virtual asset trading platforms, custody, or product services in the next two to three years. which is double from 2024.

Besides, Mainland China remains the largest source of Hong Kong-based AUM, accounting for 57 percent of the total, while the figure is projected to rise to 63 percent over the next five years, according to the report.