UBS Group AG: Average wealth of Hong Kong residents to increase by over 5% to HKD 4.54 million in 2023, with financial assets accounting for 70%

Zhitong
2024.07.11 02:22

In 2023, UBS predicts that the average wealth per capita in Hong Kong will increase by over 5% to reach HKD 4.54 million, with financial assets accounting for over 70%. According to UBS's "Global Wealth Report," global wealth is expected to grow by 4.2% in 2023, with wealth in the Asia-Pacific region increasing by 4.4%. Average wealth in Hong Kong is projected to grow by over 175%, mainland China by over 365%, and Taiwan by nearly 130%. The median wealth in Hong Kong is $206,900, ranking fourth globally. UBS forecasts that by 2028, the number of millionaires in Hong Kong will increase by over 17% compared to 2023. Additionally, an estimated $83.5 trillion in wealth will be transferred through inheritance in the next 20 to 25 years

According to the latest "Global Wealth Report" released by UBS Group AG, global wealth is expected to grow by 4.2% in 2023, reversing the 3% decline in 2022. In the Asia-Pacific region, wealth is projected to increase by 4.4%. In terms of individual markets, Switzerland continues to be the fastest-growing market in global wealth, followed by Luxembourg, with Hong Kong ranking third. In US dollars, the average wealth per adult increased by over 5% to $582,000 (approximately HKD 4.54 million) last year.

Since the global financial crisis in 2008, the per capita wealth growth in local currency has been quite remarkable, with Hong Kong exceeding 175%, Taiwan approaching 130%, and mainland China surpassing 365%.

In Hong Kong, financial assets account for over 70% of total wealth per adult, slightly over 50% in mainland China, and nearly 80% in Taiwan. The proportion of debt to total wealth in these three markets is close to the average level in the Asia-Pacific region, lower than the average levels in North America and Western Europe.

The median wealth of Hong Kong residents also increased by 2.2% to $206,900 (approximately HKD 1.61 million), ranking fourth globally. Last year, there were 629,000 millionaires in Hong Kong, similar to 2022. UBS Group AG expects that by 2028, the number of millionaires in Hong Kong (in US dollars) will increase by over 17% compared to 2023, mainland China will increase by 8%, and Taiwan will increase by over 45%.

UBS also pointed out that in the next 20 to 25 years, $83.5 trillion of wealth will be transferred through inheritance, with over 10% of wealth transferred between spouses, mostly occurring in the Americas.

The UBS "Global Wealth Report" defines wealth as including financial assets such as stocks and bonds, as well as non-liquid assets such as real estate and land, minus liabilities. In 2022, per capita wealth in Hong Kong decreased by 0.4%, while the median wealth slightly decreased by 0.06%

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