Paul Chan: Hong Kong's wealth management scale up 20% year on year, becoming the world's largest cross-border wealth management center

Hong Kong Financial Secretary Paul Chan Mo-po said at the Private Wealth Management Association (PWMA) summit that according to a survey published by the Securities and Futures Commission in July, the total value of Hong Kong's asset and wealth management business grew 20% year on year to more than HK$42 trillion, making the city the world's largest cross-border wealth management center. Paul Chan Mo-po pointed out that Hong Kong currently has more than 3,300 single family offices, up 25% from two years ago; the New Capital Investment Entrant Scheme has received about 4,300 applications, expected to bring in about HK$150 billion in investment. As global interest rates remain at relatively high levels and geopolitical changes unfold, investors are placing greater emphasis on risk management and asset allocation diversification. He said artificial intelligence is becoming an important engine of global wealth creation. The wealth of mainland tycoons grew more than 20% last year to US$1.8 trillion, with the technology sector contributing significantly; the new generation of entrepreneurs is younger and more willing to take risks and invest in private markets. Paul Chan Mo-po also said the world is entering a large-scale wealth transfer cycle, with more than US$100 trillion in wealth expected to change hands in the United States over the next 20 years, and similar developments will gradually emerge in Asia. Future wealth holders will increasingly come from second-generation family members and female investors, whose investment preferences differ from those of the previous generation, and attention must be paid to three major trends in the future: where wealth flows, where it comes from, and how it is passed on.