Hong Kong's wealth management industry is set for significant growth driven by mainland Chinese investors, whose share of assets under management in the city is forecast to rise from 59% to 68% by 2030, according to a report from the Hong Kong Association of Banks and Deloitte China.
- Mainland investors' asset share in Hong Kong to increase to 68% by 2030
- Banks recommend easing Wealth Management Connect rules and expanding product ranges
- Government urged to boost yuan internationalization and launch IPO connect scheme
What happened
A joint report by the Hong Kong Association of Banks (HKAB) and Deloitte China reveals that mainland Chinese investors will significantly increase their contribution to Hong Kong's wealth management industry through 2030. The share of local assets under management controlled by mainland clients is forecast to grow from 59% to 68% within five years. This trend persists despite recent tax tightening by Beijing on cross-border gains.
The report, based on a survey of 147 banks, emphasizes that rising demand among mainland investors for international portfolio diversification, intergenerational wealth transfer, and family office services will drive this expansion. Hong Kong is recognized as the world’s largest cross-border wealth management center, continuing to link mainland China with the global financial system.
Why it matters
Mainland investors dominating Hong Kong’s wealth management sector presents substantial growth opportunities for banks and financial service providers. Institutions that offer integrated solutions—including portfolio construction, family governance, succession planning, and digital asset custody—are expected to capture the most value as client needs become increasingly sophisticated.
Despite Beijing’s tougher tax rules on offshore wealth, the mainland government supports Hong Kong’s role as an international wealth hub, as outlined in China’s five-year plan through 2030. Enhancing cross-boundary financial linkages, especially via expanded programs like Wealth Management Connect, is essential to maintaining and growing Hong Kong’s competitiveness in this sector.
What to watch next
Key developments to monitor include Hong Kong government efforts to ease restrictions on the Wealth Management Connect scheme, such as relaxing investor eligibility, increasing quotas, and broadening product offerings to include medium-risk and higher-return investments. These changes aim to attract a wider and more diverse mainland investor base.
Banks are also calling for new initiatives, including a connect scheme for initial public offerings that would enable mainland investors to subscribe to Hong Kong listings, alongside expanding yuan usage through currency inclusion in the Stock Connect program. Additionally, the integration of the Greater Bay Area financial corridor and advancements in technology like artificial intelligence and quantum computing are expected to shape the market landscape over the next five years.