Against a backdrop of rising global uncertainties, international investors have cast a resounding vote of confidence in Hong Kong with tangible capital flows. The Securities and Futures Commission (SFC) released its Survey on Asset and Wealth Management Activities 2024 on July 16, revealing that the total assets under management (AUM) in Hong Kong's asset and wealth management sector surged by 13% year-on-year to HK$35.1 trillion (US$4.5 trillion) by the end of 2024. Net fund inflows skyrocketed 81% to HK$705 billion, with net inflows into asset management and fund advisory businesses jumping over 5.7 times to HK$321 billion.
Financial Secretary Paul Chan highlighted in a blog post that the sector's robust growth was buoyed by strong stock market performance, benefiting both asset management and the broader fund industry. During discussions with financial institutions and investors from Europe, the U.S., and Southeast Asia, Chan noted their strong optimism toward the prospects of mainland China and Hong Kong markets.
Chan emphasized that international investors consistently expressed confidence in Hong Kong's resilient and secure financial system, its vast growth potential, and the heightened need for diversified investments amid geopolitical shifts—factors intensifying their interest in the city. This sentiment drove an 88% year-on-year surge in net inflows into SFC-authorized funds established in Hong Kong, reaching HK$163 billion in 2024. The upward trend continued into 2025, with net inflows hitting HK$237 billion by May.
Given current macroeconomic conditions and local developments, Chan projected sustained growth for Hong Kong's asset and wealth management industry, expressing confidence that the city would become the world's largest cross-border wealth and asset management hub within two to three years.
Hong Kong's diversified strengths bolster global investor confidence
Chan attributed the sector's expansion to years of strategic development and global promotion. The SFC report underscored Hong Kong's international character, with overseas investors consistently accounting for over 54% of total AUM. Assets from North America, Europe, and other Asia-Pacific regions grew steadily in 2024, each contributing double-digit percentages to the total.
According to him, Hong Kong's unique advantages under "One Country, Two Systems"—including free flow of capital, goods, and information, a freely convertible currency under the Linked Exchange Rate System, a common law legal framework, and seamless alignment with global market regulations—have fortified international confidence. The city's vibrant stock and IPO markets further reinforced its appeal.
Wealth management hub leads Asia in asset scale
The Financial Services and the Treasury Bureau (FSTB) noted that Hong Kong's asset and wealth management sector delivered exceptional performance over the past year, emphasizing that the inflows represented not just capital but a market-endorsed "vote of confidence"—particularly amid global volatility.
The bureau highlighted increasingly diversified asset allocation strategies among Hong Kong managers, with non-equity assets rising by 13 percentage points over five years to 59%, enhancing resilience against rapid global changes.
Meanwhile, private banking and wealth management AUM grew 15% to HK$10.4 trillion, while the number of licensed asset managers increased by 4% to 2,212, reflecting the industry's expanding scale. SFC-authorized funds established in Hong Kong saw steady growth, with net asset values rising 22% to over HK$1.6 trillion by end-2024 and a further 21% to HK$1.99 trillion by May 2025, signaling long-term capital commitment and market synergy.
Cross-border wealth management: No. 1 in Asia
Hong Kong's offshore RMB financing activities also expanded, with outstanding RMB loans reaching HK$724 billion in 2024 (up from HK$192 billion in 2022 and HK$441 billion in 2023). The FSTB noted that Hong Kong ranks first in Asia and second globally in cross-border wealth management AUM, with cross-border wealth growing faster than any other region at US$231 billion—a 9.6% annual increase, outperforming the global average. The city also leads Asia in hedge fund scale, reinforcing its dominance in alternative investments.
The findings align with Boston Consulting Group's (BCG) Global Wealth Report 2025. Under Secretary for Financial Services and the Treasury Joseph Chan stated that Hong Kong's asset and wealth management sector is advancing toward higher-quality growth, with optimized ecosystems in fund inflows, product innovation, and diversified strategies. This not only cements Hong Kong's status as an international financial center but also positions it as a critical global capital hub, creating broader opportunities for local professionals and financial services.
(Source: Wen Wei Po; Journalist: Chow Siu-kei; English Editor: Darius)
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