Hong Kong Fund Management Booms

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

23 July 2007

The combined fund management business in Hong Kong rose 36% to HK$6.15 trillion (US$786.4 billion) in 2006, the Hong Kong Securities and Futures Commission has announced.

According to the Commission's latest fund management activities survey results, asset management, which accounted for the largest share of the combined fund management business, recorded impressive growth of 27.5% last year.

Advisory business and other private banking activities grew 67.1% and 54.5%, indicating a broadening in the range of fund management activities conducted in Hong Kong.

Of the total $6.1 trillion of non-REIT fund management business, 62.1% was sourced from non-Hong Kong investors.

A total of $4.13 trillion worth of assets were managed in Hong Kong, accounting for 56% of the asset management business in 2006, up from 53% in 2003.

The Commission's Executive Director of Intermediaries & Investment Products, Alexa Lam observed that the results underscore the strength of Hong Kong's asset management business.

"We will continue our efforts to ensure that Hong Kong captures the growth opportunities in wealth management in the region. To this end, we will work in partnership with the industry to develop new platforms and introduce new products," she commented.

“Hong Kong will strive to maintain its position as both the hub for global capital and the centre for management of the wealth that the Mainland has started to export in search of overseas investment opportunities and risk diversification. The SFC will continue to work in close partnership with the Mainland regulators to ensure that Hong Kong provides the Mainland with the best wealth management platform. In short, our aim is for Hong Kong to become the one-stop supermarket where Mainland investors can shop for the best wealth management service and products the world has to offer," Lam concluded.

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