Group 1 - Hong Kong's asset and wealth management sector is experiencing significant growth, with total managed assets increasing by 13% year-on-year to HKD 35.1 trillion (USD 4.53 trillion) by the end of 2024, driven by a net inflow of HKD 705 billion (USD 91 billion) [1] - Private banking and wealth management segments saw a 15% increase in managed assets, reaching HKD 10.4 trillion (USD 1.3 trillion) [1] - The net asset value of Hong Kong-registered funds increased by 22% to HKD 1.64 trillion (USD 211 billion) by the end of 2024, with further growth of 21% to HKD 1.99 trillion (USD 256 billion) by May 2025 [1] Group 2 - Hong Kong is recognized as a leading international asset and wealth management hub, ranking alongside Switzerland as the top cross-border wealth management center, with a cross-border wealth total of USD 231 billion and a year-on-year growth rate of 9.6% [2] - The net inflow for asset management and fund advisory services surged by 571% to HKD 321 billion (USD 41.3 billion) in 2024 [2] - The number of licensed asset management institutions in Hong Kong increased by 4% to 2,212 [3]

Core Insights - Hong Kong's asset management sector is experiencing significant growth, with total managed assets increasing by 13% year-on-year, reaching a total of 35.1 trillion HKD (4.53 trillion USD) by the end of 2024 [1] - Net inflows into the asset management sector surged by 81%, driven by a net inflow of 705 billion HKD (91 billion USD) [1] - The private banking and wealth management segment saw a notable increase, with managed assets growing by 15% to 10.4 trillion HKD (1.3 trillion USD) [1] Asset Management Growth - The total value of assets managed in Hong Kong rose to 35.1 trillion HKD (4.53 trillion USD) as of the end of 2024, marking a 13% increase from the previous year [1] - The sector experienced a substantial net inflow of 705 billion HKD (91 billion USD), reflecting a strong demand for asset management services [1] Private Banking and Wealth Management - Private banking and wealth management services contributed significantly to the growth, with managed assets increasing by 15% to 10.4 trillion HKD (1.3 trillion USD) [1] Investment Diversification - Asset managers in Hong Kong are diversifying their investment strategies, with 59% of managed assets allocated to markets outside of mainland China and Hong Kong [1] - Over the past five years, non-equity investments have increased by 13 percentage points to 59%, indicating a shift towards more diversified asset allocation strategies in response to a rapidly changing global environment [1]

Core Insights - Hong Kong is recognized as the largest cross-border wealth management center in Asia and ranks first globally in the investment management sector [1][2] - The "New Capital Investor Entry Scheme" has received over 1,500 applications, expected to bring in over HKD 46 billion in investments by June 2025 [1][2] - The government is enhancing the talent pool for wealth management and family offices, including a pilot training program and inclusion of relevant professionals in the talent list [1][5] Implementation of the New Capital Investor Entry Scheme - The scheme allows asset owners investing HKD 30 million to settle in Hong Kong, with over 670 applicants already approved [2][3] - As of June 2023, the total investment amount from verified applications exceeds HKD 21 billion, with nearly 40% in SFC-recognized funds, around 30% in stocks, and over 10% in bonds [3] Optimizations and Measures - The government has implemented measures to relax net asset review requirements, shortening the review period from two years to six months [3][4] - Monthly application numbers have doubled since the optimization measures were introduced, indicating growing confidence among applicants [4] Family Office Development - The family office team has assisted over 190 family offices in establishing or expanding operations in Hong Kong, with an additional 150 planning to do so [5][6] - The government aims to support at least 200 family offices by 2025, reflecting confidence from high-net-worth individuals in Hong Kong's prospects [5] Additional Support for Wealth Management - The government is optimizing the mutual recognition of funds between mainland China and Hong Kong and supporting the listing of qualified alternative asset funds in Hong Kong [6] - A simplified company migration mechanism has been implemented to attract more foreign companies and family offices to establish in Hong Kong [6]