A Year of Unprecedented Growth for Hong Kong's Wealth Management

2024 was a stellar year for Hong Kong's asset and wealth management sector, with a staggering 81% jump in net fund inflows and a 13% increase in assets under management (AUM). According to the latest findings from the Securities and Futures Commission (SFC), the total AUM soared to an impressive HK$35.1 trillion (approximately $4.53 trillion).

Private Wealth Management on the Rise

Private banking and wealth management saw remarkable growth, with AUM expanding by 15% year-on-year, reaching HK$10.4 trillion ($1.3 trillion). This surge highlights a robust demand for tailored financial services from affluent clients.

Hong Kong Funds Show Strong Performance

Funds authorized by the SFC also demonstrated significant strength, with net asset values jumping 22% to HK$1.64 trillion by the end of 2024. The momentum continued into 2025, with a further rise to HK$1.99 trillion by May, fueled by net inflows of HK$163 billion in 2024 and an impressive HK$237 billion in the first few months of 2025.

Strategic Diversification Ahead

In an interesting trend, Hong Kong's asset managers have diversified their portfolios, with 59% of assets now allocated outside Mainland China and Hong Kong. This shift towards non-equity investments is a significant change, reflecting a strategic move towards greater diversification over the past five years.

Rising Number of Licensed Firms

The SFC's latest survey saw participation from 1,237 firms, with the number of licensed asset managers in Hong Kong increasing by 4%, reaching 2,212. This growth signifies the robust health of the asset management industry in the region.

Global Recognition for Hong Kong

These findings align with the Boston Consulting Group's Global Wealth Report 2025, which ranked Hong Kong as one of the top two cross-border wealth centers, alongside Switzerland. The city achieved the highest absolute growth in cross-border wealth, gaining HK$231 billion, and also surpassed the global average with a year-on-year increase of 9.6%.

A Bright Future Ahead

Christina Choi, SFC’s executive director of investment products, emphasized that Hong Kong's stature as a global hub for asset management is solidifying, driven by strong fund inflows, financial innovation, and an expanding talent pool. Meanwhile, the Hang Seng Index has surged by about 22% year-to-date, largely fueled by tech stocks and new listings from Mainland China.