Hong Kong’s assets under management grew 2.1 percent to HK$31 trillion ($3.97 trillion) last year despite economic obstacles and challenges, with two-thirds of the funds coming from international investors, Financial Secretary Paul Chan Mo-po said in his Sunday blog.
The wealth management sector has shown “robust resilience” although the financial market faced multiple challenges in the past two years, he said. “The figures demonstrated that some worries about the capital outflow from Hong Kong are unnecessary.”
The value of private fund management in the special administrative region exceeded HK$1.7 trillion in 2023, allowing the city to maintain its position as Asia’s second-largest market after the Chinese mainland.
The value of private fund management in the special administrative region exceeded HK$1.7 trillion in 2023, allowing the city to maintain its position as Asia’s second-largest market after the Chinese mainland
Benefiting from the strong performance of private banks and private asset management businesses, the international financial hub saw net capital inflow of nearly HK$390 billion last year - more than triple the amount recorded in 2022.
ALSO READ: Business leaders: HK must maintain competitive edge in trade and finance
Hong Kong-domiciled funds almost doubled in 2023 compared to the previous year, with net inflow of around HK$87 billion.
Chan said the figures showed that despite simmering geopolitical tensions, overseas investors are upbeat about the mainland and Hong Kong markets.
The number of investors trading financial products through the Cross-boundary Wealth Management Connect Scheme had grown by 42,000 as of May this year, following the implementation of the mechanism’s second edition in February. Cross-border funds under management surged by about 44 billion yuan ($6.05 billion) during the same period.
The Securities and Futures Commission is expected to release the 2023 Asset and Wealth Management Activities Survey this month.
Chan noted that Hong Kong flagship carrier Cathay Pacific Airways announced last week it will buy back the remaining 50 percent of preference shares from the SAR government. “This signals that Hong Kong’s aviation industry is moving steadily toward full normalcy”.
READ MORE: Cathay to buy back remaining 50% of govt preference shares
During the COVID-19 pandemic, the government invested HK$27.3 billion in CPA, including HK$19.5 billion in preference shares and HK$7.8 billion in bridge loans, to help the airline ride out the crisis.
