SFST's speech at BEA Union Investment's 18th Anniversary Celebration
Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the BEA Union Investment's 18th Anniversary Celebration today (October 27):
Brian (Co-Chief Executive of The Bank of East Asia, Limited (BEA), Mr Brian Li), Adrian (Co-Chief Executive of BEA, Mr Adrian Li), Mr Haagmann (member of the Executive Board of Union Investment, Mr André Haagmann), Janet (Chief Executive Officer of BEA Union Investment, Ms Janet Li), distinguished guests, ladies and gentlemen,
It is my great honour to address you today at BEA Union Investment's 18th Anniversary Celebration. I would like to extend my heartfelt gratitude to BEA Union Investment for hosting this distinguished gathering and for your remarkable 18 years of outstanding performance in serving Hong Kong's asset management sector. It is a privilege to join you in celebrating this milestone, and to reflect on the bright future ahead for Hong Kong's asset and wealth management industry.
Hong Kong's strength in asset and wealth management
Over the past years, we have witnessed remarkable performance for the asset and wealth management sector of Hong Kong. Hong Kong has firmly established itself as Asia's leading fund management hub, with our asset and wealth management business reaching an impressive HK$35 trillion last year, equivalent to 11 times of our GDP (Gross Domestic Product). This growth was driven by an 81 per cent surge in net fund inflows, fueled by facilitating policies that have attracted new capital for management in our city. Notably, 54 per cent of these assets were sourced from investors outside the Chinese Mainland and Hong Kong, reinforcing our status as an international wealth management hub. This momentum has continued into this year, with Hong Kong-domiciled SFC (Securities and Futures Commission)-authorised funds recording net inflows of HK$270 billion in the first half of the year. Also, in the latest Global Financial Centres Index, Hong Kong maintained the top three positions globally in the "banking", "investment management", "insurance" and "finance" sectors, underscoring our position as Asia's premier asset and wealth management hub as recognised by international investors.
The robust fund management ecosystem in Hong Kong is a cornerstone of our ambition as a global financial centre, attracting diverse capital and expertise that promote economic growth and innovation. The presence of world-class fund managers strengthens our position as a centre for international investment, connecting Asia with global markets. Our city is home to over 650 private equity firms, managing over US$230 billion in capital as of June this year, making Hong Kong the second-largest private equity hub in Asia. Also, Hong Kong hosts at least 2 700 single family offices, and we are Asia's largest cross-boundary wealth management centre. Market research indicates that we are on track to become the global leader for cross-boundary wealth management in a few years' time.
Progressive regulatory reforms on asset and wealth management
Our regulatory framework continues to evolve in support of this vibrant industry. In February this year, regulators issued a circular clarifying requirements for authorising closed-ended funds that invest mainly in private and less liquid assets, such as private equity, private credit, and infrastructure equity or debt. This encourages sizable alternative asset funds, particularly those with regular income streams, to list in Hong Kong. Additionally, the Mandatory Provident Fund (MPF) Schemes Authority clarified in May this year that MPF funds may invest in approved listed private equity funds, providing greater flexibility in their fund allocation choices.
To enhance operational efficiency, regulators have issued a circular to streamline suitability assessments for sophisticated professional investors. This initiative simplifies processes, improves client experiences, and facilitates more seamless transactions, ensuring that sophisticated professional investors can operate and allocate assets with agility in our dynamic market. These measures reflect Hong Kong's unwavering commitment to fostering a business-friendly environment catering to the needs of global wealth management.
Ladies and gentlemen, I congratulate BEA Union Investment once again on 18 years of excellence and leadership in Hong Kong's wealth management industry. Your success is a testament to the strength and dynamism of our financial ecosystem. Hong Kong's forward-thinking policies and strategic vision position our city as the ultimate destination for wealth management. I invite global investors, family offices, and financial institutions to leverage our robust platform to achieve their wealth preservation and growth objectives. Together, let us continue to build a vibrant and prosperous future for Hong Kong as the world's leading wealth management hub.
Before I conclude, I encourage all financial market participants to actively participate in the coming Legislative Council General Election on December 7 by casting your votes. It is of utmost importance for accelerating the development of Hong Kong's economy and our markets. Thank you.
Source: AI-found images
