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Hong Kong SFC Asset & Wealth Management Report 2022:  $3.9 Trillion Asset & Wealth Management AUM with 54,322 Staff, 64% Non-Hong Kong Investors & 36% Hong Kong Investors, $1.14 Trillion Private Banking & Wealth Management AUM with 100 Institutions, 10,365 Staff & 3,492 Relevant Private Wealth Practitioners

11th August 2023 | Hong Kong

The Hong Kong Securities & Futures Commission (SFC) has released the Asset & Wealth Management Report for 2022, providing key insights into Hong Kong Asset Management, Wealth Management & Private Banking industry.  In 2022, the total Assets under Management (AUM) for Asset & Wealth Management is $3.9 trillion (HKD 30.5 trillion), Asset Management & Fund Advisory AUM is $2.86 trillion (HKD 22.3 trillion), Private Banking & Wealth Management AUM is $1.14 trillion (HKD 8.9 trillion) and Assets under Trusts AUM is $640 billion (HKD $5 trillion).  In 2022, Hong Kong AUM decreased 14% (year-on-year), while worldwide AUM decreased 15%.  In 2022, there are a total of 54,322 staff in the Asset & Wealth Management industry.  Assets from non-Hong Kong investors account for 64% and Hong Kong investors account for 36%.  Asset Management AUM account for 57% of total AUM in Hong Kong in 2022, and 50% of the Asset Management AUM are invested in equities.  For Private Banking & Wealth Management with $1.14 trillion AUM (HKD 8.9 trillion), there are 100 institutions, 10,365 staff and 3,492 private wealth management practitioners.  Private Banking & Wealth Management by product – Listed equities 42%, Cash and deposits 17%, Private funds 14%, Public funds 7%, Bonds 7%, Managed accounts 4%, Others 9%.  Private Banking & Wealth Management by investor base – Hong Kong 47%, Mainland China 16%, APAC (Exclude Hong Kong & China) 18%, North America 5%, Europe 5%, Others 9%.   Private Banking & Wealth Management Investor Breakdown – Corporations / financial institutions / funds 46%, Individuals 28%, Family Offices & Trust 17%, Non-Professional Investors (Including retail investors) 4%, Institutional, corporate & others 4%, Charities 1%.  See below for key summary & findings.  View Hong Kong SFC Asset & Wealth Management Report 2022 here

“ $3.9 Trillion Asset & Wealth Management AUM with 54,322 Staff, 64% Non-Hong Kong Investors & 36% Hong Kong Investors, $1.14 Trillion Private Banking & Wealth Management AUM with 100 Institutions, 10,365 Staff & 3,492 Relevant Private Wealth Practitioners “

 



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Hong Kong SFC Asset & Wealth Management Report 2022

Hong Kong, Asia’s leading financial centre

The Hong Kong Securities & Futures Commission (SFC) has released the Asset & Wealth Management Report for 2022, providing key insights into Hong Kong Asset Management, Wealth Management & Private Banking industry. 

 

Hong Kong SFC Asset & Wealth Management Report 2022

2022 Hong Kong Summary:

  1. Asset & Wealth Management AUM$3.9 trillion (HKD 30.5 trillion)
  2. Asset Management & Fund Advisory AUM – $2.86 trillion (HKD 22.3 trillion)
  3. Private Banking & Wealth Management AUM – $1.14 trillion (HKD 8.9 trillion)
  4. Assets under Trusts AUM – $640 billion (HKD $5 trillion)
  5. Hong Kong AUM – Decrease 14% (year-on-year), Worldwide decrease 15% (yoy)
  6. Total Staff in Asset & Wealth Management 54,322
  7. Assets from non-Hong Kong investors – 64% (Hong Kong investors: 36%)
  8. Asset Management AUM – 57% of total AUM in Hong Kong
  9. Asset Management AUM invested in equities – 50%
  10. Net inflow for Asset & Wealth Management: – $11.2 billion (HKD 88 billion)
  11. Net inflow for China Mainland-related licensed corporations and registered institutions – $16.8 billion (HKD 132 billion)
  12. AUM of China Mainland-related licensed corporations and registered institutions – $328 billion (HKD 2.56 trillion)
  13. Total Hong Kong-domiciled SFC-authorised funds – 911
  14. Hong Kong-domiciled SFC-authorised funds AUM – $165 billion (HKD 1.28 trillion)
  15. Total SFC-authorised ESG funds – 177
  16. SFC-authorised ESG funds AUM – $142 billion (HKD 1.1 trillion)
  17. Total SFC-registered open-ended fund companies – 112 (208 sub-funds including 31 ETFs, $1 billion AUM)
  18. Total Licensed Asset Management firms2,069 (2022: 1,979)

2022 Private Banking & Wealth Management Summary:

  1. Private Banking & Wealth Management AUM$1.14 trillion (HKD 8.9 trillion)
  2. Private Banking & Private Wealth Management institutions – 100
  3. Private Banking & Private Wealth Management institutions Staff – 10,365 
  4. Private Wealth Management Relevant Practitioners – 3,492 
  5. By Product – Listed equities 42%, Cash and deposits 17%, Private funds 14%, Public funds 7%, Bonds 7%, Managed accounts 4%, Others 9%
  6. AUM by Investor Base – Hong Kong 47%, Mainland China 16%, APAC (Exclude Hong Kong & China) 18%, North America 5%, Europe 5%, Others 9%
  7. Investor Breakdown – Corporations / financial institutions / funds 46%, Individuals 28%, Family Offices & Trust 17%, Non-Professional Investors (Including retail investors) 4%, Institutional, corporate & others 4%, Charities 1%

 

Hong Kong SFC Asset & Wealth Management Report 2022

1) Private Banking & Private Wealth Management

  • Total AUM –  $1.14 trillion (HKD 8.9 trillion)
  • Decrease 15% from 221, Net inflow of $15.4 billion (HKD 121 billion)
  • Total: 100 institutions 
  • Licensed corporations – 57
  • Registered institutions – 43
  • Total Staff – 10,365 (+23%)
  • Total Private Wealth Management Relevant Practitioners – 3,492 

 

Private Banking & Private Wealth Management AUM:

Total AUM –  $1.14 trillion (HKD 8.9 trillion)

  • RIs Private Banking & Private Wealth Management – $850 billion (HKD 6.66 trillion)
  • RIs Asset Management – $144 billion (HKD 1.13 trillion)
  • LCs Private Banking & Private Wealth Management – $119 billion (HKD 932 billion)
  • LCs Asset Management – $29 billion (HKD 234 billion)

Private Banking & Private Wealth Management AUM 

  • RIs Private Banking & Private Wealth Management – 74%
  • RIs Asset Management – 13%
  • LCs Private Banking & Private Wealth Management – 10%
  • LCs Asset Management – 3%

LCs ~ Licensed Corporations
RIs ~ Registered Institutions

Private Banking & Private Wealth Management AUM by Investor Base:

  • Hong Kong – 47%
  • Mainland China – 16%
  • APAC (Exclude Hong Kong & China) – 18%
  • North America – 5%
  • Europe – 5%
  • Others – 9%

Investor Breakdown:

  • Corporations / financial institutions / funds – 46%
  • Individuals – 28%
  • Family Offices & Trust – 17%
  • Non-Professional Investors (Including retail investors) – 4%
  • Institutional, corporate & others – 4% 
  • Charities – 1%

Investor by AUM:

  • Corporations / financial institutions / funds – $511 billion (HKD 4 trillion, -14% from 2021)
  • Individuals – $327 billion (HKD 2.56 trillion, -11%)
  • Family Offices & Trust – $194 billion (HKD 1.52 trillion, -15%)
  • Non-Professional Investors (Including retail investors) – $49.5 billion (HKD 387 billion, -10%)
  • Institutional and corporate – $48 billion (HKD 376 billion, -44%)
  • Charities – $3.9 billion (HKD 31 billion, -11%)

By Product:

  • Listed equities – 42%
  • Cash and deposits – 17%
  • Private funds – 14%
  • Public funds – 7%
  • Bonds – 7%
  • Managed accounts – 4%
  • Others – 9%

AUM by Product:

  • Listed equities – $477 billion (HKD 3.73 trillion, -25%)
  • Cash and deposits – $198 billion (HKD 1.55 trillion, No change)
  • Private funds – $159 billion (HKD 1.25 trillion, -7%)
  • Bonds – $3.9 billion (HKD 624 billion, -10%)
  • Public funds – $798 billion (HKD 664 billion, -23%)
  • Managed accounts – $41 billion (HKD 321 billion, -12%)
  • Others – $103 billion (HKD 811 billion, No change)

AUM by Invested Assets (Invested Region):

  • Hong Kong – 34%
  • Mainland China – 8%
  • North America – 22%
  • Europe – 15%
  • APAC (ex-Hong Kong & China) – 10%
  • Japan – 2%
  • Others – 9%

 

2) Asset & Wealth Management

  • AUM from non-Hong Kong investors – 64% ($2.43 trillion, HKD 19 trillion)*
  • AUM from Hong Kong investors – 36% ($3.81 trillion, HKD 29.7 trillion)*

*Excludes REITs and assets held under trusts attributable to non-LCs / RIs.

Investor Base:

  • Hong Kong – 36%
  • North America – 23%
  • Europe – 11%
  • APAC – 14%
  • Mainland China – 9%
  • Others – 7%

No. Staff By Job Function:

  • Total – 100% (54,322)
  • Sales & Marketing – 57%
  • Supporting units – 10% (5,220)
  • Asset management – 8% (4,334)
  • Fund administration – 7% (3,611)
  • Risk management / legal and compliance – 6% (2,990)
  • Research / analysis – 5% (2,788)
  • Corporate planning & business management – 4% (1,951)
  • Dealing / trading – 3% (1,913)

 

3) Asset Management & Fund Advisory

  • Asset Management & Fund Advisory AUM 2022 – $2.86 trillion (HKD 22.3 trillion)
  • Growth – Decrease 14% mainly due to changes in the values of underlying investments 
  • Asset management & fund advisory business of LCs (including REITs) – $2.54 trillion (HKD 19.9 trillion)
  • No. of licensed firms – 2,069 (2021: 1,979)
  • No. of licensed individuals – 14,119 (2021: 13,786)

AUM by Type of Institutions:

  • Asset Management LCs – $2.23 trillion (HKD 17.5 trillion) / 78%
  • Fund Advisory LCs – $282 billion (HKD 2.21 trillion) / 10%
  • Asset Management RIs – $167 billion (HKD 1.31 trillion) / 6%
  • Asset Management ICs – $138 billion (HKD 1 trillion) / 5%
  • REITs LCs – $24.4 billion (HKD 191 billion) / 1%

 

Investor Type: 

  • Professional Investors – 72%
  • Non-Professional Investors (Including retail investors) – 28%
  • Asset Management & Fund Advisory AUM (Exclude REITs) – $2.82 trillion (HKD 22.1 trillion)

Investor Breakdown:

  • Corporations / financial institutions / funds – 47%
  • Non-Professional Investors (Including retail investors) – 28%
  • Governments / Sovereign wealth fund / central banks – 12%
  • Institutional and corporate – 7% 
  • Individuals – 3%
  • Family Offices & Trust – 2%
  • Charities – 1%

Investor by AUM:

  • Corporations / financial institutions / funds – $1.3 trillion (HKD 10.3 trillion, -11% from 2021)
  • Non-Professional Investors (Including retail investors) – $795 billion (HKD 6.22 trillion, -22%)
  • Governments / Sovereign wealth fund / central banks – $35.3 billion (HKD 2.76 trillion, -10%)
  • Institutional and corporate – $202 billion (HKD 1.58 trillion, +3%)
  • Individuals – $86 billion (HKD 674 billion, -12%)
  • Family Offices & Trust – $63 billion (HKD 499 billion, -3%)
  • Charities – $19 billion (HKD 151 billion, -41%)
  • Total AUM – $2.82 trillion

Product Type:

  • Public funds – 36%
  • Managed accounts – 29%
  • Private funds – 20%
  • Pension funds (include Hong Kong MPF & ORSO) – 7%
  • Others – 8%

AUM by Product Type:

  • Public funds – $1.02 trillion (HKD 7.98 trillion, -14%)
  • Managed accounts –  $814 billion (HKD 6.37 trillion, -20%)
  • Private funds – $567 billion (HKD 4.44 trillion, +1%)
  • Pension funds (include Hong Kong MPF & ORSO) – $198 billion (HKD 1.55 trillion, -12%)
  • Others – $227 billion (HKD 1.78 trillion, -17%)

Assets Managed by Location ($2.54 trillion / HKD 19.9 trillion):

  • Managed in Hong Kong – 57% (no delegation / sub-contract)
  • Others – 43% (includes delegation / sub-contract)

Assets Managed in Hong Kong – Invested Assets ($1.46 trillion / HKD 11.4 trillion):

  • Invested in APAC – 63%
  • Invested Outside APAC – 37%

Assets Managed in Hong Kong – Invested Assets by Region:

  • Hong Kong* – 23%
  • Mainland China* – 22%
  • North America – 16%
  • Europe – 14%
  • APAC (ex-Hong Kong & China) – 14% 
  • Japan – 4%
  • Others – 7%

*45% invested in Hong Kong & Mainland China

Assets Managed in Hong Kong – Invested AUM by Region:

  • Hong Kong – $336 billion (HKD 2.63 trillion, -12%)
  • Mainland China – $318 billion (HKD 2.49 trillion, -11%)
  • North America – $239 billion (HKD 1.87 trillion, -10%)
  • Europe – $207 billion (HKD 1.62 trillion, -4%)
  • APAC (ex-Hong Kong & China) – $200 billion (HKD 1.57 trillion, -18%) 
  • Japan – $61.3 billion (HKD 480 billion, -15%)
  • Others – $96.4 billion (HKD 754 billion, -29%)

Assets Managed in Hong Kong – By Asset Class:

  • Equites – 50%
  • Bonds – 27%
  • Collective investment schemes – 11%
  • Cash & money markets – 7%
  • Others – 5%

Assets Managed in Hong Kong – Asset Class by AUM:

  • Equites – $731 billion (HKD 5.72 trillion, -11%)
  • Bonds – $400 billion (HKD 3.13 trillion, -16%)
  • Collective investment schemes – $156 billion (HKD 1.22 trillion, -10%)
  • Cash & money markets – $105 billion (HKD 824 billion, -24%)
  • Others – $68 billion (HKD 539 billion, +3%)

 

4) Assets under Trusts

AUM – $640 billion (HKD $5 trillion)

By Region:

  • Hong Kong – 37%
  • Mainland China – 12%
  • APAC (ex-Hong Kong & China) – 23%
  • North America – 11%
  • Europe – 13%
  • Japan – 1%
  • Others – 3%

AUM by Region:

  • Hong Kong – $251 billion (HKD 1.97 trillion, +14%)
  • Mainland China – $76 billion (HKD 597 billion, -24%)
  • APAC (ex-Hong Kong & China) – $147 billion (HKD 1.15 trillion, +316%)
  • North America – $70 billion (HKD 549 billion, -45%)
  • Europe – $80 billion (HKD 627 billion, -8%)
  • Japan – $3.8 billion (HKD 30 billion, -71%)
  • Others – $21 billion (HKD 171 billion, -25%)

By Type of Funds:

  • Pension funds (including MPF and ORSO) – 36%
  • Public funds – 34%
  • Others* – 30%

*including government / sovereign wealth funds / central banks, family offices and private trusts, charities, and other corporates)

AUM by Type:

  • Public funds – $216 billion (HKD 1.69 trillion, +13%)
  • Pension funds (including MPF and ORSO) – $228 billion (HKD 1.79 trillion, No change)
  • Others – $193 billion (HKD 1.51 trillion, +6%)

 

5) Asset & Wealth Management Business of Mainland–related LCs and RIs 

  • AUM – $327 billion (HKD 2.56 trillion, +1%)
  • No. of LCs & RIs – 157
  • No. of Staff – 3,825 

LCs ~ Licensed Corporations
RIs ~ Registered Institutions

 

6) Asset Management & Fund Advisory Business of Mainland–related LCs and RIs  

AUM – $263 billion (HKD 2.05 trillion)

By Client Type:

  • Corporations / financial institutions / funds – 85%
  • Non-Professional Investors (Including retail investors) – 5%
  • Governments / Sovereign wealth fund / central banks – 5%
  • Individuals – 3%
  • Family Offices & Trust – 1%
  • Charities – 1%
  • Institutional and corporate – 1% 

By Product Type:

  • Managed accounts – 64%
  • Private funds – 16%
  • Public funds – 13%
  • Pension funds – 6%
  • Others – 1%

 

7) China & Hong Kong

  • Hong Kong RMB deposit – 60% of all offshore RMB deposits, RMB 891.7 billion ($123 billion, 2023 May)
  • 2022 Offshore RMB bonds (dim sum bonds) issuance – RMB 330 billion ($45.7 billion)
  • Mainland-Hong Kong Mutual Recognition of Funds (MRF) scheme – 47 Mainland MRF funds (RMB 13,786 million AUM), 37 Hong Kong MRF funds (RMB, 1,130 million AUM)
  • No. of SFC-authorised RMB Investment Products & non-RMB denominated unlisted fund – 799
  • Value of SFC-authorised RMB investment products – RMB 176 billion ($24.4 billion)

 

8) Hong Kong Recent Developments & Outlook

  • Family office & other tax initiatives – Profits tax concession to eligible family-owned investment holding vehicles managed by single family offices in Hong Kong for years of assessment on or after 1 April 2022
  • ETF Connect – Launched on 4 July 2022, the scheme made fund products eligible for trading under Stock Connect for the first time, marking a key milestone in mutual market access.  Average daily turnover of Southbound ETF trading reached $4.64 billion in June 2023. 6 Hong Kong ETFs eligible for southbound trading under the scheme and 131 Mainland ETFs (including 76 on the Shanghai Stock Exchange and 55 on the Shenzhen Stock Exchange) eligible for northbound trading.
  • Greater Bay Area Wealth Management Connect (WMC) – Number of participating investors growing by 55,500 and total cross-boundary remittance reaching around RMB4.7 billion.
  • ETFs and leveraged and inverse products – 174 SFC-authorised ETFs were listed on the Stock Exchange of Hong Kong Limited (SEHK), including 25 leveraged and inverse (L&I) products, with total market capitalisation of $362 billion (June 2022: $414 billion).  first green bond ETF tracking the Bloomberg MSCI Asia ex Japan USD Green Bond Index in July 2022.
  • Virtual asset futures ETFs – SFC authorised the first batch of virtual asset futures ETFs during the year. These ETFs primarily invest in virtual asset futures traded on the Chicago Mercantile Exchange including the world’s first ether futures ETF and Asia’s first bitcoin futures ETF.
  • Mutual recognition of funds – Promotes cross-border offerings of eligible Hong Kong public funds to the Mainland and other overseas markets through mutual recognition arrangements
  • Open-ended fund companies – SFC registered 69 OFCs with 126 sub-funds, including 37 SFC-authorised funds which comprised 10 ETFs with a total market capitalisation of over $250 million. The SFC registered 4 re-domiciled private OFCs between April 2022 and June 2023.
  • Real Estate Investment Trusts – Legislative amendments to introduce a statutory compulsory acquisition regime and a scheme of arrangement mechanism for REITs
  • Investment-linked assurance schemes – Investment-linked assurance scheme (ILAS) products offered to the Hong Kong public must comply with enhanced requirements (30/4/23)
  • Licensing/ registration of depositaries of SFC-authorised funds – RA 13 will come into operation on 2 October 2024.
  • Pooled retirement funds – Strengthen investor protection and ensure the regulations for these funds are up-to-date and fit for purpose.
  • Asset managers – Revised Fund Manager Code of Conduct (20/11/22) (Green & Sustainable Finance)
  • ESG funds – 188 SFC-authorised ESG funds with AUM of $151.7 billion (2023 March)
  • Orderly Market, Unauthorised CIS alert list – Suspected Unauthorised CIS Alert List on the SFC’s website



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