In a recent analysis, Helen Kan, Executive Director and Deputy CEO of China CITIC Bank International, discussed the significant recovery of the wealth management market in 2024. This resurgence has been largely fueled by the US Federal Reserve's rate cuts and China's economic stimulus initiatives. As a result, Hong Kong's assets under management (AUM) have surpassed HK$30 trillion, with projections indicating a robust annual growth rate of 7.6% from 2022 to 2027 [117d0f98].
The shift towards digitalization has also been notable, with over 80% of digital sales transactions being conducted online by October 2024. This trend underscores the increasing reliance on technology within the wealth management sector, aligning with the findings from the Hubbis Asia Private Wealth Investment Sentiment Survey, which highlighted that 65% of respondents recognize AI and machine learning as vital tools for enhancing investment strategies [7c9cd7fd].
Moreover, the launch of Wealth Management Connect 2.0 and new CIES schemes is expected to further enhance the wealth management landscape in Hong Kong. These initiatives aim to provide more comprehensive solutions tailored to the needs of high-net-worth individuals [117d0f98].
As the demographic landscape shifts, with Hong Kong's aging population projected to reach 40% of those over 65 by 2050, there is a growing emphasis on enhancing wealth solutions and technology investments to meet evolving client needs. This demographic change aligns with the survey's findings that 52% of respondents prioritize capital preservation, indicating a cautious approach to investments amidst changing economic conditions [7c9cd7fd].
In summary, the insights from both Helen Kan and the Hubbis survey illustrate a dynamic and evolving wealth management landscape in Asia. With a focus on digital transformation, demographic shifts, and strategic investment approaches, the sector is well-positioned for continued growth and adaptation in the coming years [117d0f98][7c9cd7fd].