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International Finance
Finance Wealth Management

HNWIs wealth to reach $1.4 trillion by 2019 in Hong Kong

Though world market conditions aren’t good, Hong Kong is attractive to local developers as well as foreign institutions September 30, 2015: The Hong Kong Wealth Report 2015 wealth management market research says number of Hong Kong HNWIs is forecast to grow by 15.6%, to reach 231,186 in 2019, while HNWI wealth is projected to grow by 25.8% to reach US$1.4 trillion. Despite unfavourable world market...

Though world market conditions aren’t good, Hong Kong is attractive to local developers as well as foreign institutions

September 30, 2015: The Hong Kong Wealth Report 2015 wealth management market research says number of Hong Kong HNWIs is forecast to grow by 15.6%, to reach 231,186 in 2019, while HNWI wealth is projected to grow by 25.8% to reach US$1.4 trillion.

Despite unfavourable world market conditions, the Hong Kong wealth management market is attractive not only to local developers but also foreign institutions, as it holds substantial wealth resources. Core HNWIs – also called core millionaires – consist of two wealth bands: mid-tier millionaires and lower-tier millionaires. As their name implies, core millionaires are the base of the wealth pyramid, with 98.6% of Hong Kong HNWIs being identified as such. Core HNWIs collectively accounted for 60.9% of Hong Kong HNWI wealth in 2014, which is well below the global average of 70%.

Companies featured in this Hong Kong wealth management market research include Orion Partners, KCS Ltd, China Asset Management (Hong Kong) Ltd Financial Partners Ltd, The Henley Group Ltd, RBC Trust Company, Orangefield ICS TRUST Private Client Services, HSBC Private Banking, Standard Charted Bank (Hong Kong) Ltd, Nomura International (Hong Kong) Ltd, Vontobel Wealth Management (Hong Kong) Ltd, Hang Seng Bank Ltd, Chi Yu Bank and the bank of East Asia Ltd.

Much of the growth in Hong Kong wealth management market and private banking sector has been driven by the country’s volume of High Net Worth Individuals (HNWIs) and Ultra-HNWIs during the last decade. Private Banks and institutions will look to reinforce and centralise their operations over the forecast period, as well as allocate more resources to better understand their client base and provide higher levels of service. This report provides comprehensive analysis of the HNWI population and Hong Kong wealth management market. In addition to reviews of the performance and asset allocations of HNWIs and UHNWIs, the report contains insight into the key drivers of wealth. There is also detailed analysis of the development of the market, along with the challenges and opportunities available in the wealth management and private banking sector in Hong Kong.

UAE Wealth Report 2015: The UAE HNWI population is forecast to grow by 8.6% to reach 57,451 in 2019, while HNWI wealth is projected to grow by 30.7% to reach US$364.1 billion. There were 50,595 HNWIs in the UAE in 2014, which held US$263 billion in wealth. The UAE HNWI population grew by 4.8% in 2014, following a 7.6% increase in 2013. Companies featured in this UAE wealth management market report include Emirates Investment Bank, ADCB Wealth Management, Union National Bank Private Banking, Mashreq Private Banking, ADIB Wealth Management, Emirates NBD Private Banking, National Bank of Abu Dhabi Private Banking, Sharjah Islamic Bank, Dubai Islamic Bank Wealth Management and Emirates Investment Bank.

Japan Wealth Report 2015: To provide the most comprehensive analysis of Japanese HNWI wealth, this Japan wealth management market report calibrated the total wealth held by HNWIs across six major asset classes: alternatives, real estate (excluding primary residences), cash and deposits, fixed-income, equity and business interests. Research also analysed liquid and investable assets to provide further insight into the Japanese HNWI sector and the opportunities it presents for wealth sector professionals. In 2014, business interests was the largest asset class for Japanese HNWIs, with 29.8% of total HNWI assets, followed by equities with 25.6%, real estate with 19.7%, fixed-income with 9.8%, cash and deposits with 7.9% and alternatives with 7.1%. Alternative assets held by Japanese HNWIs increased during the review period, from 7.0% of total HNWI assets in 2010 to 7.1% in 2014; HNWI allocations to commodities decreased from 1.6% of total assets in 2010 to 1.5% in 2014.

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