HNWI Asset Allocation in Hong Kong to 2015

HNWI Asset Allocation in Hong Kong to 2015

Synopsis

This report is the result of WealthInsight's extensive research covering the HNWI population and Wealth Management industry in Hong Kong. This report provides detailed figures on the current and expected HNWI asset allocations of Hong Kong's HNWI to 2015.

Summary

This report provides the latest asset allocations of Hong Kong's HNWI. The report also includes projections of the volume, wealth and asset allocation of Hong Kong's HNWI to 2015 and a comprehensive and robust background of the local economy, including, uniquely, detailed analysis of economic and political risks to HNWI wealth creation

Scope

The report features:

• Independent market sizing of Hong Kong's HNWI
• Volume, wealth and allocation trends from 2007 to 2011 - Volume, wealth and allocation forecasts to 2015
• Current insights into the drivers of HNWI wealth

Reasons To Buy

• The WealthInsight HNWI Database is an unparalleled resource and the leading database of its kind. Compiled and curated by a team of expert research specialists, the HNWI Database comprises up to one hundred data-points on over 100,000 HNWI around the world. With the HNWI Database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI universe in each of the countries and regions we cover.
• Comprehensive forecasts to 2015.

Key Highlights

• There are over 184,700 HNWIs in Hong Kong with an average wealth of US$4.6 million per person and a combined wealth of US$845 billion. After Singapore, Hong Kong has the second highest population density of HNWI in the world, with approximately 1 in 40 people from Hong Kong being HNWIs.
• Real estate is the largest asset class for HNWIs in Hong Kong, which accounts for 31% of total HNWI assets, followed by business interests, which accounts for 22% of assets.
• Real estate and alternatives were the best performing asset classes over the review period (2007-2011), driven by strong local property markets, an influx of investors from mainland China and the rise in commodity prices.
• Over the forecast period, WealthInsight expects a movement away from property assets and towards equities. Alternative allocations are also projected to increase substantially, as investors increase hedge fund, private equity and, in particular, holdings of collectables. Cash holdings will decline slightly while fixed income allocations will be boosted by the emergence of the dim sum market.

Companies Mentioned

International banks:

• ABN Amro
• ABSA Asia Ltd
• ANZ Private Bank
• Bank of America (Asia) Ltd
• Bank of Taiwan
• Banque Pictet
• Banque Privée Edmond de Rothschild
• Barclays Wealth
• BNP Paribas
• Citi Private Bank
• Credit Suisse
• DBS Bank
• Deutsche Bank
• EFG Bank
• Fubon Bank
• Goldman Sachs
• J.P. Morgan Private Clients
• Julius Baer
• Morgan Stanley Asia Limited
• RBS Coutts
• Rothschild
• Standard Chartered Private Bank
• The Iyo Bank, Ltd
• UBS AG
• Wayfoong Finance Ltd
• Local Banks
• Bank of East Asia
• Chi Yu Bank
• Chong Hing Bank Limited
• Dah Sing Bank Limited
• Hang Seng Bank Ltd
• MEVAS Bank Limited
• Tai Sang Bank Ltd.
• Tai Yau Bank Ltd.
• Wing Hang Bank Ltd.
• Wing Lung Bank

Chinese banks:

• Agricultural Bank of China
• Bank of China
• Bank of Communications
• China CITIC Bank
• China Construction Bank
• China Everbright Bank
• China Merchants Bank
• China Trust Commercial Bank Limited
• Industrial and Commercial Bank of China
• Nanyang Commercial Bank
• Hong Kong Life Insurance
• ICICI Venture Funds and Va Tech Wabag
• JPMorgan Chase and First Capital Securities Co
• Morgan Stanley and Huaxin Securities Co Ltd
• Ajia Partners (Hong Kong) Ltd.
• AMC Group - Asset Management China
• HSBC Family Office Services Ltd.
• Lombard Odier Darier Hentsch Ltd.
• KCS Services Limited
• The Pacific Bridge Companies
• RMA Partners
• VP Wealth Management Ltd.
• Wealth Management Group
• Financial Advisors
• Brogan & Scaltrito
• CIT Commercial Services (Asia) Ltd
• Xinhua Finance Ltd
• Uni-Asia Finance Corporation

• 1 Introduction
  • 1.1 What is this Report About?
• 2 Executive Summary
• 3 Wealth Sector Fundamentals
  • 3.1 Political Background of the Wealth Sector
  • 3.2 Economic Background to the Wealth Sector
  • 3.3 Benchmarking Hong Kong Wealth in Context
• 4 Analysis of Hong Kong HNWI Investments
  • 4.1 Analysis by Asset Class
  • 4.1.1 Changing trends in liquid assets - equity, fixed-income and cash and deposits
  • 4.1.2 Trends in alternative assets
• 4.1.3 Trends in "art, wine and wheels"
• 4.1.4 Trends of investments in real estate
• 4.1.5 Trends of investments in cash and deposits
• 4.1.6 Trends of investments in fixed income
• 4.1.7 Trends of investments in equity
• 4.1.8 Trends of investments in business interest
• 4.2 Analysis of foreign investments
• 4.2.1 Trend of investments in mainland China
• 4.2.2 Trend of investments in rest of the Asia-Pacific region
• 4.2.3 Trend of investments in North America and Europe
• 4.2.4 Trend of investments in Africa, Middle East and Latin America
• 5 Appendix
• 5.1 Pertinent Regulations
• 5.1.1 Regulations on banks
• 5.1.2 Regulations on foreign banks
• 5.1.3 Regulations on real estate
• 5.1.4 Regulations on foreign investment
• 5.1.5 Regulations on capital investment
• 5.1.6 Regulations on leverage buyouts and M&A
• 5.1.7 Regulations on hedge funds and derivatives
• 5.1.8 Regulations related to taxes
• 5.2 Key Economic Trends and Drivers
• 5.2.1 National wealth indicators
• 5.2.2 Financial market indicators
• 5.2.3 Banking indicators
• 5.2.4 Trade indicators
• 5.2.5 Other indicators
• 6 About WealthInsight
• List of Tables
• Table 1: HNWI Wealth Band and Group Definitions
• Table 2: HNWIs - Liquid Asset Composition (%), 2007-2015
• Table 3: HNWIs - Liquid Asset Composition (%), 2007-2015
• Table 4: HNWIs - Alternative Asset Composition (%), 2007-2015
• Table 5: HNWIs - Trends of Investments in Alternative Assets (%), 2007-2015
• Table 6: HNWIs - Trends in "Art, Wine and Wheels", 2006-2010
  • Table 7: HNWIs - Foreign Allocations by Asset Class (%), 2007-2015
  • Table 8: HNWIs - Trends of Foreign Investments, 2007-2015
  • Table 9: Real GDP Growth Rate (%), 2006-2015
  • Table 10: GDP Per Capita, 2006-2015
  • Table 11: Gross Savings as a Percentage of Real GDP, 2006-2015
  • Table 12: Domestic Market Capitalization and P/E Ratio, 2006-2010
  • Table 13: Housing Price Index, 2006-2010
  • Table 14: Commodity Indices, 2006-2015
  • Table 15: Foreign Direct Investment (US$ Billion), 2006-2015
  • Table 16: Investments of FIIs in Equity Products, 2006-2009
  • Table 17: Inflation Rate (%), 2006-2015
  • Table 18: Repo Rate (%), 2006-2015
  • Table 19: Balance of Payments (US$ Billion), 2006-2010
  • Table 20: Stock Market Performance, 2006-2010
  • Table 21: External and Fiscal Debt as Percentage of GDP, 2006-2015
  • Table 22: HNWIs Wealth vs GDP Ratio, 2006-2010
  • Table 23: Capital Formation as a Percentage of GDP, 2006-2015
  • Table 24: Disposable Income as a Percentage of GDP, 2006-2015
• List of Figures
  • Figure 1: HNWI Wealth Band and Group Definitions
  • Figure 2: HNWI Wealth Sector Market Attractiveness, 2007-2015
  • Figure 3: HNWIs - Hong Kong vs Rest of the World and the Asia-Pacific Region
  • Figure 4: HNWIs - Asset Class Composition, 2007-2015
  • Figure 5: HNWIs - Changing Trends in Total Liquid Assets (%), 2007-2015
  • Figure 6: HNWIs - Liquid Assets Composition (US$ Billion), 2007-2015
  • Figure 7: HNWIs - Trends of Investments in Alternative Assets (US$ Billion), 2007-2015
  • Figure 8: HNWIs - Trends in "Art, Wine and Wheels", 2006-2010
  • Figure 9: HNWIs - 2015 Foreign Asset Allocation vs Growth
  • Figure 10: HNWIs - Global Distribution of Foreign Investments, 2007-2015
  • Figure 11: Real GDP Growth (%), 2006-2015
  • Figure 12: GDP Per Capita, 2006-2015
  • Figure 13: Gross Savings as a Percentage of Real GDP, 2006-2015
  • Figure 14: Domestic Market Capitalization and P/E Ratio, 2006-2010
  • Figure 15: Housing Price Index, 2006-2010
  • Figure 16: Commodity Indices, 2006-2015
  • Figure 17: Foreign Direct Investment (US$ Billion), 2006-2015
  • Figure 18: Investments of FIIs in Equity Products, 2006-2009
  • Figure 19: Inflation Rate (%), 2006-2015
  • Figure 20: Repo Rate (%), 2006-2015
  • Figure 21: Balance of Payments (US$ Billion), 2006-2010
  • Figure 22: Stock Market Performance, 2006-2010
  • Figure 23: External and Fiscal Debt as Percentage of GDP, 2006-2015
  • Figure 24: HNWIs Wealth vs GDP Ratio, 2006-2010
  • Figure 25: Capital Formation as a Percentage of GDP, 2006-2015
  • Figure 26: Disposable Income as a Percentage of GDP, 2006-2015