Hong Kong has emerged as a leading rapidly-growing cross-border wealth management center globally, with assets under management (AUM) reaching 35.1 trillion HKD (4.53 trillion USD) in 2024, and potentially surpassing Switzerland as the world’s largest cross-border wealth hub by 2025-2028. This article defines wealth management, outlines its scope of services, and discusses its development trends.
Defining Wealth Management
Wealth Management（中文：財富管理） is a professional service offering comprehensive financial planning and asset allocation, aimed at helping high-net-worth individuals (HNWIs) or families achieve financial goals and enhance asset growth and preservation capabilities. Its services encompass investment advisory, tax planning, retirement planning, estate arrangements, insurance advice, and philanthropic strategies.
Wealth Management vs. Financial Planning: In a narrow sense, wealth management’s scope is far broader than financial planning, with the latter often considered a component within the wealth management process. Financial planners may serve clients across various income levels, focusing more on daily household finances, insurance needs, and budgeting. In contrast, wealth management advisors specialize in serving HNWIs, handling more comprehensive and complex matters like business succession and philanthropic planning.
Hong Kong’s Wealth Management Industry
The CFA Institute defines private wealth management as combining financial planning and investment management specifically for high-net-worth individuals (HNWIs with $1-5 million) and ultra-high-net-worth individuals (UHNWIs with $25+ million). This discipline encompasses personalized financial planning, specialized advisory services, portfolio management, tax planning, and estate planning.
As of 2024, the number of institutions licensed for asset management (Type 9 regulated activity) in Hong Kong increased by 4% to 2,212 from 2,127. Non-local investors are the primary source of funds for Hong Kong’s wealth management business. Data from the Hong Kong Securities and Futures Commission (SFC) shows that Hong Kong local investors account for 37% of AUM, while Mainland Chinese investors account for 9%. Combined, these two sources do not exceed half, with overseas investor fund origins including North America (23%) and Europe (11%).
Hong Kong Government’s Supportive Policies for Wealth Management
In recent years, the Hong Kong SAR Government has introduced a series of forward-looking policy measures aimed at consolidating and enhancing Hong Kong’s status as a leading global wealth management center. An example is the “New Capital Investment Entrant Scheme” (New CIES), relaunched on March 1, 2024, which allows eligible individuals to apply for residency in Hong Kong by investing a minimum of HKD 30 million.
| Policy Measure | Key Features |
| New Capital Investment Entrant Scheme (CIES) | – Minimum investment of HKD 30 million – Mandatory HKD 3 million investment in innovation and technology portfolio – Investment linked to residency |
| Tax Concessions for Family Investment Holding Vehicles (FIHV) | – 0% profits tax rate on eligible transactions – Must meet HKD 240 million asset threshold – Mandatory economic substance requirements (employees and expenses) |
| Cross-boundary Wealth Management Connect 2.0 | – Individual quota raised to RMB 3 million – Expanded participating institutions to include securities firms – Increased types of eligible investment products |
Development Trends in Hong Kong’s Wealth Management Industry
Hong Kong is at the forefront of FinTech adoption and application in Asia. According to a report by Quinlan and Associates and Allfunds Asia, up to 93% of Hong Kong investors have used digital wealth management services in the past two years, a higher proportion than Singapore’s 85%.
Hong Kong investors also demonstrate higher engagement with digital channels, particularly through online self-service, mobile applications, and online chats with wealth managers and advisors. These investors increasingly prefer digital-first interactions.
Digital Investment Platform SYFE, regulated by the Hong Kong SFC (holding Type 1 – securities trading, Type 4 – advising on securities, and Type 9 – asset management licenses), offers bespoke solutions for high and ultra-high-net-worth individuals, families, and institutions.SYFE Private Wealth curates a unique solution aligned to investor convictions and risk preferences. Select from a variety of themes, geographies, and sectors for a portfolio that best suits investors.
