Wealth in Hong Kong: HNW Investors 2018 HNW investor base is diversified, with large elements of offshore

by Sameer Joshi or 01-Jul-2018

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.   

Critical Success Factors -

  • Target Female Investors - Targeting local female investors is much more lucrative than elsewhere in Asia Pacific, with not only a larger percentage of the market than is typical in the region but a growing share of the market.
  • Target Expats - The Hong Kong HNW market has a large expat component, and providers need to be able to onboard these much sought-after clients.
  • Offer a Package Service - While demand is consistently strong for advisory and discretionary mandates, this is coupled with above-average demand for key planning services such as tax, pensions, and general financial planning. For a complete package, wealth managers need to bundle these with investment management.
  • Bonds and Alternative Investments - New investment classes such as the growing green bond market that combine socially responsible investing with stable returns are the best way to appeal to the growing demand for bonds and alternatives, rather than impact investment.