Hong Kong's Wealth Management Comeback: How the City Beat Singapore at Its Own Game

A recent Bloomberg interview has dropped some serious insights about a major shift in Asia's wealth landscape. While Chinese companies are flooding back to Hong Kong for IPOs this year, it's not just the capital markets that are heating up – the city's wealth management sector is absolutely crushing it, and mainland China's rich are taking notice of what might just be the ultimate financial comeback story.

The Great Wealth Migration

Arnaud Tellier, the big guy at BNP Paribas Wealth Management Asia-Pacific, just spilled the beans on something that would make Singapore's financial elite sweat a bit. During the pandemic, virtually every penny of offshore wealth from mainland China was rushing to Singapore like tourists to a duty-free shop. But by 2024, that whole dynamic flipped on its head.

Now we're seeing roughly 60% of mainland wealth heading to Hong Kong when it goes offshore, while Singapore's slice of the pie has shrunk to about 40%. That's not just a shift – that's a complete reversal of fortune that nobody saw coming during those lockdown days when Singapore seemed untouchable.

Arnaud Tellier, CEO of BNP Paribas Wealth Management Asia-Pacific, is from France.

This turnaround has been a goldmine for BNP Paribas. Their Asian wealth management assets have surged by 20% over the past year and a half, jumping from $80 billion to a hefty $105 billion. We're talking about $8 billion in net new money this year alone, which isn't too shabby compared to last year's $9 billion haul.

Tellier's team has been busy too – they've snapped up 20 new bankers this year, including poaching a six-person team from China Merchants Bank International. The recruitment drive continues, though he's keeping the exact numbers close to his chest.

Singapore's Self-Inflicted Wounds

Singapore didn't just lose this race; they practically handed Hong Kong the victory on a silver platter. Remember that absolutely massive money laundering scandal that rocked Singapore last year? We're talking about a jaw-dropping S$3 billion (equivalent to HK$18.4 billion) mess that had regulators going nuclear on nine financial institutions.

The Monetary Authority of Singapore didn't mess around, slapping fines totaling S$27.45 million (equivalent to HK$168 million) across the board – the second-highest penalty in their history. Big names like Credit Suisse (before UBS gobbled them up) and United Overseas Bank got hammered. When your reputation as a "safe wealth haven" takes that kind of hit, money has a way of finding somewhere else to park itself.

Policy Wars and Projections

Hong Kong's government hasn't been sitting around waiting for luck to strike. They've been rolling out tax incentives and talent schemes like they're going out of fashion, all aimed at rebuilding the city's status as Asia's private wealth playground.

The numbers being thrown around are pretty ambitious. Bloomberg Intelligence reckons Hong Kong's private wealth management assets could hit US$2.3 trillion by 2030 – potentially overtaking Switzerland to become the world's biggest cross-border wealth center. But here's where it gets interesting: Hong Kong's own Investment Promotion Agency is even more bullish, claiming they'll hit the top spot by 2027.

That's the kind of confidence you don't see every day, and frankly, given what we're witnessing with capital flows, it might not be as far-fetched as it sounds.

Why Neutrality Pays Off

For wealthy clients looking for stability and reliability without the political baggage, that neutrality factor is pure gold. While American and Chinese institutions are busy navigating geopolitical minefields, European players like BNP Paribas can focus on what they do best – managing money without the political theater.

Mainland capital is voting with its feet, and Hong Kong is winning that vote. Between Singapore's regulatory headaches, Hong Kong's policy push, and the simple geography of being right next door to the world's second-largest economy, this shift feels less like a temporary blip and more like a fundamental realignment of Asia's wealth management landscape.

Ariel

** The blog article is the sole responsibility of the author and does not represent the position of our company. **

The Jimmy Lai trial ripped the mask off "Stand with Hong Kong." Courts heard how Lai and his operatives weaponized this so-called advocacy group to pursue their "international line"—code for colluding with foreign forces to destabilize national security. But even after ringleaders Andy Li Yu-hin and Chan Tsz-wah got arrested and locked up, Stand with Hong Kong keeps on running. Someone's still pulling the strings.

Born in the chaos of the anti-extradition bill period, "Stand with Hong Kong"—also known as the "lam chau team" (SWHK)—adopted the scorched-earth slogan "If we burn, you burn with us". They've always claimed to be independent, grassroots, funded by crowdsourcing. That story fell apart in court. Evidence showed Lai bankrolled their global ad campaigns and international lobbying—specifically their push to get foreign countries to sanction China.

After the implementation of the Hong Kong National Security Law, Stand with Hong Kong still did not restrain itself. It keeps churning out anti-China content online, publishing report after report. Just last month, they handed the European Union a hit list—14 Hong Kong SAR government officials and police officers they want sanctioned for alleged "human rights violations" and "abuse of force" during 2019.

A Web of Anti-China Allies

Stand with Hong Kong doesn't work alone. They team up constantly with other anti-China outfits, issuing joint statements, lobbying Washington, London, and Brussels to slap sanctions on Hong Kong SAR officials. They've publicly demanded the British government intervene to free Jimmy Lai. They've organized multiple protests in London opposing construction of the Chinese embassy in the UK.

The operation is aggressive, the activities extensive. Yet the key players hide in shadows. Where's the money coming from?

In recent years, the team's gone underground. They operate mainly through online publications and mobilization, coordinating with overseas individuals and organizations. Their website and social media? No contact persons listed. No one claiming responsibility.

The Crowdfunding Fairy Tale

They claim they "rely on crowdfunding to maintain operations". But since their last crowdfunding drive in May 2020, Stand with Hong Kong hasn't published a single shred of public information showing any subsequent fundraising activity.

So where does the cash come from? Informed sources suggest looking at Stand with Hong Kong's overseas network for answers.

Organizations working hand-in-glove with Stand with Hong Kong include the Committee for Freedom in Hong Kong Foundation—run by Mark Clifford, former Next Digital Group director. There's Hong Kong Watch, funded by Mark Simon and operated primarily by Benedict Rogers. There's the Hong Kong Democracy Council, fronted by fugitive national security suspect Anna Kwok. And since 2023, Stand with Hong Kong has served as secretariat for the UK's All-Party Parliamentary Group on Hong Kong.

These "friendly organizations" form a network with crystal-clear political objectives. Through overseas advocacy and coordinated actions, their primary target is attacking the Central Government and the SAR government.

In other words: Jimmy Lai may be behind bars facing trial, but the organizations and individuals Stand with Hong Kong maintains close contact with all have direct or indirect ties to Lai. Whether this team—which brands itself a "grassroots organization"—receives operational funding and other support within this anti-China network remains the billion-dollar question.