By Jianxin Zhou
Hong Kong’s private wealth management industry has made a notable recovery in 2023, as detailed in a recent report from KPMG in partnership with The Private Wealth Management Association (PWMA).
The report indicates a resurgence in Assets Under Management (AUM), with inflows nearly tripling compared to the previous year. Additionally, it points to the increasing role of Artificial Intelligence (AI) in the sector and offers a positive outlook for the market, even amid global uncertainties.
Despite persistent global challenges such as geopolitical tensions, fluctuating interest rates, and digital disruptions, many firms in the private wealth management sector are optimistic about the market’s future.
The report indicates that a majority of industry leaders feel confident about the next five years, largely due to significant wealth opportunities in Mainland China. Surveyed firms anticipate that Assets Under Management (AUM) from this region will continue to rise during this period.
While Mainland China continues to be a major source of wealth, firms are increasingly looking to emerging markets in Southeast Asia and the Middle East.
Hong Kong’s status as a leading hub for family offices is a key driver of optimism, with a significant majority of respondents highlighting the sector’s growth potential. Furthermore, many firms are prioritizing engagement with the next generation of wealth.
