Summary

"Wealth in Hong Kong: HNW Investors 2018", report analyzes the investing preferences and portfolio allocation of HNW investors resident in Hong Kong. The report is based on our proprietary Global Wealth Managers Survey.

The established nature of the Hong Kong market makes it larger and more diversified than is common in the rest of Asia Pacific, with a strong element of offshore wealth management. Local HNW investors have mainly sourced their wealth through a mixture of entrepreneurship and earned income. Convenience is an important factor driving uptake of professional advice. While advisory mandates dominate, this is changing and we are seeing greater uptake of discretionary mandates, in part driven by expats. The average portfolio is heavily invested into equities, but bonds and alternatives will grow. We forecast a bias towards defensive assets.

Specifically, the report -

  • profiles the average HNW investor in terms of their demographics and analyzes the expat opportunity in Hong Kong
  • analyzes which wealth management mandates are preferred among HNW investors in Hong Kong and how demand will develop looking forward
  • examines the allocation of HNW investors’ portfolios into different asset classes and how this allocation is expected to develop in the future
  • analyzes HNW investors’ propensity to invest offshore, their preferred booking centers, and the asset classes as well as Hong Kong’s standing as an offshore center
  • analyzes the wealth and investment management product and service demand among HNW investors in Hong Kong.




Scope

  • Constituting 22,000 individuals, the HNW female segment is predicted to grow strongly as demography and changing social mores reshape Hong Kong.
  • 42.8% of the local HNW population are non-nationals, making the expat opportunity a significant one.
  • 6% of offshore wealth from the wider region is booked in Hong Kong, but one of the center’s key appeals - client anonymity - will be under pressure from the Common Reporting Standard (CRS).
  • 31% of HNW wealth is held in bonds, making it the preferred asset class, closely followed by equities (30%); the former and alternatives are forecast to show the steepest increase in demand.
  • An increased focus on tax evasion following the introduction of the CRS will drive demand for tax advisory services in the short term, while a focus on discretionary service is a must in the long term.




Reasons To Buy

  • Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
  • Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investors’ preferences for the various styles of asset management.
  • Tailor your investment product portfolio to match the current and future demand for different asset classes among HNW individuals.
  • Develop your service proposition to match the service and product demand expressed by HNW investors in Hong Kong and react proactively to the forecasted change in demand.