Hong Kong Continues To Grow Its Fund Management Business
Friday, July 22, 2011
The Securities and Futures Commission (SFC), in its annual
survey of fund management activities, confirmed that such business in Hong Kong
reached over HKD10 trillion (USD1.3 trillion) last year, up 18.6% compared to
The increase outperformed the previous annual record of USD9.6bn achieved in
2007, and suggested a return of investor confidence in global financial markets
and continuing inflows of investment capital into the Asia Pacific region. It
also found that Hong Kong continued to be a preferred location for international
Overseas investors contributed HKD6.6 trillion (or 66%) of Hong Kong’s
total fund management business, excluding real estate investment trusts (REITs).
The number of intermediaries engaging in asset management business also grew
in 2010 by about 10% from 2009.
Licensed asset management and fund advisory houses continued to contribute
the largest proportion of total asset management business in Hong Kong. Their
aggregate business amounted to HKD7.3bn in 2010, recording a year-on-year increase
of 13.3% from 2009.
Some other highlights of the survey include that, for non-REIT asset management
business, almost HKD4.2bn of assets were managed in Hong Kong and 79.7%
of these assets were invested in Asia; other private banking business grew more
than 32% to HKD2.2bn; and the market capitalisation of SFC-authorized REITs
recorded a growth of approximately 39% to HKD103bn, in 2010.
The report also highlighted the three key aspects that the SFC has been focusing
on to enhance the status of Hong Kong as a leading asset management centre
- strengthening the regulatory framework for public offers of investment products;
contributing to the process of renminbi internationalisation and fostering closer
ties with the Mainland market; and developing exchange-traded-fund (ETF) market
and implementing new measures to enhance transparency of synthetic ETFs.
The SFC’s Acting Chief Executive Officer Alexa Lam said: "Hong Kong
will strive to fortify its position as an international asset-management centre
and an offshore renminbi centre. The SFC will continue to work with all to capitalise
on our robust regulatory framework and local asset-management expertise to attract
international investors to select Hong Kong as an investment platform.”