Assets Managed By Funds In Hong Kong Leapt 80% In 2003

by Mary Swire, Tax-News.com, Hong Kong

08 July 2004

The Hong Kong Securities and Futures Commission reported on Tuesday that total assets managed by funds in the city surged 80% in 2003 compared to the previous year's total.

According to the figures, which include asset management and advisory businesses, in addition to private banking firms, total assets rose to HK$2.947 billion in 2003 from HK$1.635 billion in 2002.

Within this total, licensed corporations reported HK$2.317 billion worth of assets and accounted for 79% of the total fund management business.

Meanwhile, registered institutions, which took part in the survey for the first time, reported HK$630 billion funds and accounted for much of this sharp increase in the overall total.

The survey found strong interest from overseas funds which amounted to HK$1.860 billion, representing 63% of the total assets in the fund management business.

In addition, the percentage of assets managed in Hong Kong had steadily grown from 42% of the assets under management in 2000 to 53% in 2003.

Of the $1.194 billion worth of assets managed in Hong Kong, 73% or $878 billion was invested in Asia, including $481 billion in Hong Kong and Mainland China.

Commenting on the data, Alexa Lam, the SFC's executive director of intermediaries and investment products observed that: "The fund management business has generally benefited from market appreciation and renewed interest in investing in financial products."

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