Core Insights - The Private Wealth Management Association (PWMA) and KPMG China released the tenth annual report on Hong Kong's private wealth management, indicating a three-year high in client confidence towards Hong Kong as a preferred wealth management center [1] - 100% of member firms express optimism about the future development of Hong Kong's private wealth management industry over the next five years, a significant increase from 76% in 2024 [1] - Despite geopolitical instability and macroeconomic uncertainties, the industry maintains a positive outlook on overall prospects [1] Client Confidence - In 2025, 44% of private wealth management firms report that clients are increasingly inclined to choose Hong Kong as their preferred wealth management center [1] - The demand for opening new accounts and asset allocation in Hong Kong has nearly doubled, with 59% of firms indicating an increase in demand, significantly higher than 34% last year [1] Industry Resilience - The report highlights Hong Kong's resilience in the face of global economic headwinds and its ability to adapt to changing client needs as key factors driving the increase in client confidence [1] - The chairman of the PWMA, Lu Choi-yun, noted that Hong Kong is clearly on a growth trajectory, with collaborative efforts from both private and public sectors yielding results [1] - The assets under management (AUM) in the private wealth management sector grew by 15% year-on-year to HKD 10.404 trillion, with net inflows increasing by 13% over the year [1]

Core Viewpoint - The Hong Kong government's policy report aims to strengthen its position as an international financial center through a combination of measures focused on economic and livelihood improvements [1] Financial Measures Highlights - The report outlines four key highlights to consolidate Hong Kong's status as an international financial center: expanding capital market connectivity, deepening the offshore RMB ecosystem, innovating financial products and infrastructure, and enhancing regional and international cooperation [2] - Initiatives include assisting mainland tech companies in financing through a "Tech Enterprise Line" and incorporating Real Estate Investment Trusts (REITs) into the "connectivity" framework to improve liquidity [2] - The Hong Kong Monetary Authority plans to establish new RMB funding arrangements to support enterprises with long-term RMB financing needs and increase the issuance of RMB bonds [2] - The establishment of a Hong Kong gold central clearing system and regional gold reserve hub is also highlighted, along with expanding digital asset products for professional investors [2] Market Efficiency and Attractiveness - The report proposes measures such as the "Tech Enterprise Line" and "same share different rights" to optimize the listing mechanism and shorten the stock settlement cycle to T+1, which aligns with international standards [3] - These initiatives are expected to reduce counterparty risks, accelerate capital turnover, and attract high-frequency trading and international investors, thereby enhancing the attractiveness of Hong Kong's financial market [3] - The establishment of a regional gold reserve hub is anticipated to enrich Hong Kong's financial market functions and strengthen its global financial market influence [3] Strengthening Internal and External Connectivity - The report's focus on financial infrastructure upgrades, product innovation, and deepening the RMB ecosystem is seen as a way to enhance global capital flow efficiency and attract international investors to RMB assets [4] - The development of the gold market and the shortening of the settlement cycle are complementary, facilitating mainland enterprises' global asset allocation and encouraging international investors to participate in RMB asset trading [4] Market Ecosystem Improvement - The proposed measures are expected to enhance the market ecosystem, attract more funds to Hong Kong, and reinforce its role as a key platform for mainland enterprises going global [5] - The Hong Kong Securities and Futures Commission emphasizes the importance of regulatory flexibility and foresight to ensure effective implementation of reforms while safeguarding financial security [5]