HONG KONG — Hong Kong's wealth management sector is receiving a particular boost in 2025 on top of years of steady growth owing to a brisk stock market and new investment options for an expanding high-net worth clientele in Asia.

According to the Hong Kong Monetary Authority, total assets under management of major private banks in Hong Kong grew by 14 percent in the first half of this year compared to the end of 2024.

Standard Chartered said the number of affluent clients in Hong Kong grew 8 percent in the first half of the year with net new money from such clients up 35 percent. HSBC's wealth management business added 600,000 clients.

The surge in asset and wealth management is driven both by growing wealth in the Asia-Pacific region and Hong Kong's inherent strengths including a mature financial market and a robust banking system, said HKMA Chief Executive Eddie Yue.

Private wealth in the Asia-Pacific is among the fastest-growing worldwide. The number of individuals with a net worth of over $10 million in Asia surpassed 850,000 in 2024, up 5 percent year-on-year. Among them, over 470,000 are from the Chinese mainland, accounting for 20 percent of the global total, according to the Wealth Report 2025 published by real estate consultancy Knight Frank.

"Hong Kong offers mainland high-net-worth individuals access to global assets. Foreign investors, increasingly heartened by China's economic prospects, can find here Chinese assets to keep in their portfolios," said Pau Ka-Yan, tax partner of Deloitte China.

The Hong Kong bourse has recorded a brisk amount of trading so far this year as global investors continued to increase their holdings in awe of the economic vitality of the Chinese mainland and Hong Kong, market observers noted.

By the end of July, total market capitalization of Hong Kong's securities market rose 44 percent year-on-year. By mid-July, the 52 initial public offerings raised HK$124 billion ($15.8 billion) in total, nearly seven times the value recorded in the same period last year.

To bolster the wealth management sector, the Hong Kong Special Administrative Region's government has introduced tax incentives for family offices and enhanced financial services. Now it is tapping the potential of digital assets.

Total transaction value of digital asset-related products and tokenized assets in banks surged 233 percent to HK$26.1 billion in the first half of the year, local data showed. The licensing process for fiat-referenced stablecoin issuers began after the Stablecoins Ordinance took effect on Aug 1.

"The availability of digital asset-related products has given Hong Kong a unique edge in the eyes of high-net-worth clients, who are developing an appetite for new asset types," said Pau.

Analysts expect the wealth management business to sustain growth in the coming years as market connectivity strengthens between the Chinese mainland and Hong Kong. The SAR government is working to launch a renminbi counter for stock connect schemes so that mainland investors can buy Hong Kong stocks with greater ease.

Global banks have announced plans to expand their wealth management businesses in Hong Kong.

David Liao, co-chief executive of Asia and Middle East of HSBC, said the company will boost its private banking team this year and upgrade services through wealth centers across Hong Kong.

Xinhua