Hong Kong's private wealth management industry welcomes a new wave: foreign banks actively recruiting, targeting inflows of mainland funds

According to Zhitong Finance APP, several foreign private banks and wealth management institutions are strengthening their recruitment efforts in Hong Kong to accommodate the influx of funds from the mainland. As Chinese individuals seek offshore diversification, driven by policies aimed at attracting the wealthy, private wealth assets may nearly double by 2030, reaching USD 23 trillion. Additionally, a report from the Hong Kong Private Wealth Management Association (PWMA) indicates that the focus of Hong Kong's private banking industry is shifting from ultra-high-net-worth individuals to more entry-level clients, with 44% of surveyed institutions viewing emerging wealthy individuals with assets under USD 10 million as a key area for expansion in the next 3 to 5 years.

A series of tax exemptions and family office policies in Hong Kong have accelerated overseas investments by wealthy individuals from the mainland, while Singapore's enhanced anti-money laundering regulations have slowed its review processes, indirectly increasing Hong Kong's attractiveness. Jamee Wong, head of UBS Wealth Management's Greater China private client division, stated that the number of mainland clients has increased this year due to various initiatives, and UBS is strategically expanding its team in Hong Kong by hiring new client advisors and team leaders.

Jamee Wong further pointed out that Hong Kong's introduction of tax incentives and new capital investor entry programs is attracting family offices and wealthy individuals to the region. It is reported that approximately several billion dollars have flowed into Hong Kong, seeking high-yield investments and insurance. At the same time, talent programs have led many white-collar professionals and young families to relocate to Hong Kong. To cater to tech-savvy clients from mainland China, UBS has enhanced its digital capabilities and provides authorized communication channels through WeChat and WhatsApp.

The Hong Kong Private Wealth Management Association previously predicted that the number of companies targeting lower wealth groups will significantly increase in the next five years, with a net inflow of HKD 341 billion recorded last year, a year-on-year increase of 1.8 times, and assets under management rising by 0.6% year-on-year to HKD 9.02 trillion. According to data from the Hong Kong Securities and Futures Commission, last year saw a return to growth in assets under management, increasing by 1% year-on-year to HKD 9,022 billion, with net inflows growing threefold. The association described last year as a turning point for Hong Kong's private wealth management industry, estimating that the number of wealth management companies serving the wealth segment of less than USD 5 million to USD 10 million will significantly increase in the next five years.

In response, UBS is increasing its staff, aiming to double the assets managed for millionaire clients in the Greater China region within the next three to five years. Rickie Chan, head of private banking at Bank of Singapore, stated that as of October this year, the number of client managers at Bank of Singapore in Hong Kong has increased by over 30%, with plans to hire more.

Among other major banks, Standard Chartered plans to double its investment in wealth business over the next few years and increase staff in Hong Kong and other cities; Citigroup's wealth head Andy Sieg stated that due to optimism about Hong Kong and its connections with the Greater Bay Area, Citigroup plans to increase talent in Hong Kong; Julius Baer Group's managing director David Shick noted that last year its office space in Hong Kong expanded by over 40%, and it continues to strategically hire client relationship managers to strengthen its front office team