Challenges and Opportunities for the Wealth Sector in Hong Kong 2014

Published: Dec, 2014 | Pages: 54 | Publisher: WealthInsight
Industry: Wealth Management | Report Format: Electronic (PDF)


Synopsis

 This report is the result of WealthInsight's extensive research covering the high net worth individual (HNWI) population and wealth management market in Hong Kong.

 The report focuses on HNWI performance between the end of 2008 (the peak before the global financial crisis) and the end of 2013. This enables us to determine how well the country's HNWIs have performed through the crisis.

Summary

This report is a thorough analysis of Hong Kong's Wealth Management and Private Banking sector, and the opportunities and challenges that it faces.

Scope

 Independent market sizing of Hong Kong HNWIs across five wealth bands

 HNWI volume and wealth trends from 2009 to 2013

 HNWI volume and wealth forecasts to 2018

 HNWI and UHNWI asset allocations across 13 asset classes 

 Number of UHNWIs in each state and all major cities

 Fastest growing cities and states for UHNWIs (2009-2013)

 Insights into the drivers of HNWI wealth

Reason To Buy

 The Challenges and Opportunities for the Wealth Sector in Hong Kong 2014 is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the database comprises dossiers on over 60,000 HNWIs from around the world.

 With the wealth reports as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe in each of the countries and regions we cover.

 Report includes comprehensive forecasts to 2018.

Key Highlights

 At the end of 2013, Hong Kong HNWIs held 40.6% (US$423.0 billion) of their wealth outside their home country, which is higher than the worldwide average of 20-30%. 

 WealthInsight expects foreign asset holdings to increase to US$532.0 billion by 2018, accounting for 38.3% of total HNWI assets.

 In 2013, the Asia-Pacific region accounted for 59.6% of Hong Kong HNWIs' foreign assets. 

 It was followed by North America with 17.9%, Europe with 9.4%, South America with 8.1%, the Middle East with 2.6% and Europe with 2.4%.

 Hong Kong HNWI allocations to South America increased compared with other regions during the review period, from 5.2% in 2009 to 8.1% in 2013. Asia-Pacific was the other emerging region in terms of global investments.

 Over the forecast period, HNWIs are expected to increase their levels of investment in South America to 10.1% of foreign HNWI assets by 2018, with investments increasingly being diverted to emerging economies.

 
Table of Contents
1 Introduction
1.1 Details of this Report
1.2 Definitions
2 Executive Summary
3 Wealth Sector Fundamentals
3.1 Political Background
3.2 Economic Background
3.3 Benchmarking Hong Kong Wealth in Context
3.3.1 Distribution of wealth in Hong Kong
3.4 HNWI Volume and Wealth Trends
4 Competitive Landscape of the Wealth Sector
4.1 Competitive Landscape
4.1.1 Foreign private banks
4.1.2 Wealth managers
4.1.3 Family offices
4.1.4 Financial advisors
4.2 Developments in the Hong Kong Private Banking Industry
4.3 Hong Kong Wealth Management Industry - Clientele Model and Maturity
4.4 Behavioral Mapping of Wealth Management and Private Banking in Hong Kong
5 Appendix
5.1 Additional Components of the Wealth Sector in Hong Kong
5.1.1 Philanthropy
5.2 Tax Regulations
5.3 Regulations Related to Immigration, Investment and Employment
5.4 Key Drivers
5.4.1 HKD to US$ exchange rate
5.4.2 Real GDP growth
5.4.3 Per capita GDP
5.4.4 Domestic market capitalization
5.4.5 Commodity index
5.4.6 Foreign direct investments - inflow and outflow
5.4.7 Inflation rate
5.4.8 Interest rate
5.4.9 Balance of payments
5.4.10 Government debt
5.4.11 Stock market performance
5.5 Wealth Breakdowns
6 About WealthInsight


List of Tables
Table 1: HNWI Wealth Band and Group Definitions
Table 2: Regions in Hong Kong by Population (Volume), 2013
Table 3: Leading Foreign Private Banks in Hong Kong by local AuM (US$ million), 2013
Table 4: Leading Wealth Managers in Hong Kong by AuM (US$m), 2013
Table 5: Leading Family Offices in Hong Kong by AuM (US$m), 2013
Table 6: Wealth Management Industry - Recent Deal Activity in Hong Kong, 2014/2013
Table 7: Hong Kong Income Tax Bands (HKD), 2013-2014
Table 8: HKD per US$ Exchange Rate, 2009-2018
Table 9: Hong Kong Real GDP Growth (%), 2009-2018
Table 10: Hong Kong GDP per Capita (US$), 2009-2018
Table 11: Hong Kong Domestic Market Capitalization (US$ Billion), 2009-2013
Table 12: Hong Kong Commodity Indices, 2009-2018
Table 13: Hong Kong Foreign Direct Investment (US$ Billion), 2007-2011
Table 14: Hong Kong Inflation Rate (%), 2009-2018
Table 15: Hong Kong Money Market Rate (%), 2009-2018
Table 16: Hong Kong Balance of Payments (US$ Billion), 2009-2013
Table 17: Hong Kong Government Debt as a Percentage of GDP, 2009-2018
Table 18: Hong Kong Stock Market Performance, 2009-2013
Table 19: Hong Kong HNWI Wealth vs GDP Ratio, 2009-2018
Table 20: Hong Kong - Appendix One
Table 21: Hong Kong - Appendix Two