KPMG: Hong Kong Private Wealth Management Industry Expects to Double AuM in Five Years, PWMA New Survey Finds Go back »
2018-09-12 | Beijing
The growth outlook for the private wealth management industry in Hong Kong remains strong, with a majority of the firms surveyed in the Hong Kong Private Wealth Management Report 2018 anticipating the industry’s Assets under Management (AuM) to double over the next five years. The rapid growth underlines the greater need to invest in technology and talent to enable ongoing development of the industry to realise its potential, according to the report jointly published today by Private Wealth Management Association (“PWMA”) and KPMG China.
In its third year, the report aims to provide a view of the Hong Kong private wealth management industry landscape as well as its growth outlook and issues/challenges for the next five years.
Fuelled by the significant wealth creation in China, the 2018 report reveals that almost 80% of respondents agree China is the main driver of growth in the private wealth management industry, and that up to 49% of Hong Kong’s AUM could come from mainland China by 2023. Hong Kong is expected to benefit from its unique position as the traditional gateway to mainland China, while over 80% of respondents also highlight the Stock Connect as a key differentiator for Hong Kong.
Besides China, family offices and the next generation of clients are ranked as the second and third most important growth drivers for Hong Kong’s PWM industry going forward. Over 40% of respondents cited family offices as an increasingly important source of business, while attracting the next generation is identified as another growth area in the midst of generational shift and digital transformation.
Amy Lo, Chairman, Executive Committee of PWMA, said, “The Hong Kong private wealth management industry continues to expand this year, reaching US$1 trillion in AuM according to recent figures from the Hong Kong Securities and Futures Commission. Taking advantage of this growth, however, requires a strategic approach toward seizing the opportunities as well as tackling the challenges ahead such as regulatory complexities, technological disruption and talent shortage.”
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Source: KPMG
