Hong Kong has overtaken Switzerland and become the largest among global wealth management centers – thanks to the influx of capital from mainland China and the revival of the local stock market. This was reported by Bloomberg.
According to a report by the Boston Consulting Group (BCG), by the end of last year, cross-border assets registered in Hong Kong grew by 10.7% to $2.9 trillion.
BCG forecasts that the rapid accumulation of capital in Asia will increase the gap between Hong Kong and Switzerland to nearly $600 billion by 2030. This trend will be supported by China's industrial dominance and the revival of the IPO market in Hong Kong.
BCG also notes that private wealth worldwide has been growing at the fastest rates since 2021, despite tariffs and macroeconomic instability, and currently amounts to $333 trillion. Hong Kong and Singapore form an ecosystem that serves Asian capital and is gradually expanding, while Switzerland, the United States, and the United Kingdom remain the main channels for placing capital from Europe, the Middle East, and Latin America.
To regain its attractiveness after years of pandemic restrictions and political changes, Hong Kong is aggressively promoting its low taxes, rapidly developing capital markets, and significant talent pool.
This strategy is working: geopolitical tensions, particularly instability in the Middle East, are prompting the ultra-wealthy to redirect their capital to Asia.
Christopher Hui, Hong Kong's Secretary for Financial Services and the Treasury, recently stated that the government plans to expand tax incentives. He also noted that there has been a noticeable increase in participants from the Middle East at recent ultra-wealthy summits.
