HNWI Asset Allocation in Hong Kong 2014

Published: Dec, 2014 | Pages: 63 | 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 provides the latest asset allocations of Hong Kong HNWIs across 13 asset classes. The report also includes projections of the volume, wealth and asset allocations of Hong Kong HNWIs to 2018 and a comprehensive and robust background of the local economy.

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 

 Insights into the drivers of HNWI wealth

Reason To Buy

 The HNWI Asset Allocation 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 report 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

 In 2013, real estate was the largest asset class for Hong Kong HNWIs, with 34.8% of total HNWI assets, followed by business interests with 23.3%, equities with 17.9%, cash and deposits with 11.5%, fixed-income with 8.3%, and alternatives with 4.3%.

 Real estate, equities and alternatives recorded growth at respective review-period rates of 87.4%, 82.2% and 60.7%. 

 Alternative assets held by Hong Kong HNWIs decreased during the review period, from 4.4% of total HNWI assets in 2009 to 4.3% in 2013. HNWI allocations to commodities increased from 1.1% of total assets in 2009 to 1.4% in 2013. 

 Over the forecast period, allocations in commodities are expected to decline to 1.0% of total HNWI assets by 2018, as global liquidity will tighten due to a forecast near-term drop in demand for raw materials from China.

 In 2013, Hong Kong HNWI liquid assets amounted to US$391.9 billion, representing 37.7% of wealth holdings.

 
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 Analysis of Hong Kong HNWI Investments
4.1 Analysis by Asset Class
4.1.1 Trends in alternative assets
4.1.2 Trends in 'art, wine and wheels'
4.1.3 Trends of investments in real estate
4.1.4 Trends of investments in cash and deposits
4.1.5 Trends of investments in fixed-income
4.1.6 Investment trends in equity
4.1.7 Investments trends in business interests
4.2 Analysis of Foreign Investments
4.2.1 Investments in Europe
4.2.2 Investments in North America (including the US, Mexico and the Caribbean)
4.2.3 Investments in Asia-Pacific
4.2.4 Investments in Central and South America
4.2.5 Investments in the Middle East
4.2.6 Investments in Africa
4.3 Alternative Breakdown: Liquid vs. Investable Assets
4.4 Analysis of Hong Kong UHNWI Investments
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: Hong Kong Allocations of HNWI Assets (%), 2009-2018
Table 4: Hong Kong HNWI Holdings Growth (%), 2009-2018
Table 5: Hong Kong HNWI Alternative Asset Composition (%), 2009-2018
Table 6: Hong Kong HNWI Trends of Investments in Alternative Assets (%), 2009-2018
Table 7: Hong Kong Trends in 'Art, Wine and Wheels', 2009-2013
Table 8: Global Prime Real Estate Prices per m2 (US$), 2014
Table 9: Hong Kong HNWI Foreign Investment Allocations (%), 2009-2018
Table 10: Hong Kong HNWI Liquidity Breakdown (US$ Billion), 2009-2018
Table 11: Hong Kong HNWI Liquidity Breakdown (%), 2009-2018
Table 12: Hong Kong UHNWI Allocations and Share of HNWI Assets (%), 2013
Table 13: Hong Kong Income Tax Bands (HKD), 2013-2014
Table 14: HKD per US$ Exchange Rate, 2009-2018
Table 15: Hong Kong Real GDP Growth (%), 2009-2018
Table 16: Hong Kong GDP per Capita (US$), 2009-2018
Table 17: Hong Kong Domestic Market Capitalization (US$ Billion), 2009-2013
Table 18: Hong Kong Commodity Indices, 2009-2018
Table 19: Hong Kong Foreign Direct Investment (US$ Billion), 2007-2011
Table 20: Hong Kong Inflation Rate (%), 2009-2018
Table 21: Hong Kong Money Market Rate (%), 2009-2018
Table 22: Hong Kong Balance of Payments (US$ Billion), 2009-2013
Table 23: Hong Kong Government Debt as a Percentage of GDP, 2009-2018
Table 24: Hong Kong Stock Market Performance, 2009-2013
Table 25: Hong Kong HNWI Wealth vs GDP Ratio, 2009-2018
Table 26: Hong Kong - Appendix One
Table 27: Hong Kong - Appendix Two