Wealth Management In Hong Kong 2007

Published by: Datamonitor

Published: Nov. 8, 2007 - 46 Pages

Table of Contents

Overview

Catalyst

Summary

Executive Summary

Market Context

Competitive Dynamics

Table of Contents

Table of figures

Table of tables

Market Context

Introduction

The Hong Kong economy has recovered from recent adverse events

After shocks in 1998 and 2001, Hong Kong's economy has picked up again

Hong Kong has experienced long periods of deflation

Interest rates has been increasing

The stock market has been rising

As a result Hong Kong's savings and investment market has grown strongly

Despite a slowdown in 2004, deposits have been growing

Direct equity balances have grown strongly

Mutual fund investments have increased significantly

Direct bond balances were small but increasing

Trends in Hong Kong products and services

The Premier Banking proposition centers on premium deposits, financial planning and credit cards

Premium deposit accounts allow clients to hedge currency risk

Financial planning offers clients tailored investment advice

Credit card accounts and total debt has increased in 2006

And of course Hong Kong is a major offshore FS centre

Regulation

Market entry rules for banks

Despite a slowdown in 2004, Hong Kong's affluent population and onshore liquid assets has increased strongly

2008-9 will be characterized by struggling economies worldwide

Rising interest rates, excessive borrowing and negative savings rates have combined in a perfect storm that will upend most of the world's economies

The widespread securitization of loans will compound this problem

And the US economy is not healthy enough to 'expand' itself out of this market

Foreign direct investment may also boost the economy, however foreign investors are pulling money out of the US markets

A continued Treasury sell-off may further depress the dollar and force interest rate hikes ...

Another major terrorist attack in the US would destabilize the economy further

Market capitalization will fall worldwide as US stock markets continue their jitters

There were more than 1.1 million wealthy individuals in Hong Kong in 2006

Wealthy individuals in Hong Kong currently hold USD372.4 billion in onshore liquid assets

Hong Kong's wealthy population represents an attractive market for onshore wealth management

There will be more than 1.7 million wealthy individuals living in Hong Kong by 2011

Wealthy individuals in Hong Kong will hold almost USD600 billion in onshore liquid assets by 2011

Data

Competitive Dynamics

Introduction

Hong Kong's competitive landscape is saturated

The locally incorporated licensed banks

The foreign incorporated licensed banks

The representative foreign banks

Wealth Management operations

Bank of China Hong Kong

Citibank

Hang Seng

HSBC

Standard Chartered Bank

ABN AMRO

JPMorgan

APPENDIX

Definitions

Aggregate

CAGR

High net worth (HNW)

Premier banking population

Liquid assets

Liquid asset bands

Methodology

Global Wealth Model Methodology

The UK sub model

Asia-Pacific sub model

Forecasting methodology

Continuous refinement to the understanding of liquid wealth distribution

Datamonitor's wealth numbers compared with other wealth numbers

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Macroeconomic factors of Hong Kong, 2002-06

Table 2: Onshore retail liquid asset balances of Hong Kong in USDm, 2002-06

Table 3: Onshore retail liquid asset balances of Hong Kong in HKDm, 2002-06

Table 4: Aggregate credit card accounts and receivables in Hong Kong, quarterly 2005-06

Table 5: Number of wealthy individuals segmented by liquid asset band, 2002-06

Table 6: Aggregate onshore liquid assets segmented held by wealthy individuals, by liquid asset band, 2002-06

Table 7: Number of wealthy individuals segmented by liquid asset band, 2007-11

Table 8: Aggregate onshore liquid assets segmented held by wealthy individuals, by liquid asset band, 2007-11

Table 9: Selected locally incorporated wealth services, June 2007

Table 10: Selected foreign incorporated private banking brands, June 2007

Table 11: Selected of representative banks in Hong Kong, June 2007

List of Figures

Figure 1: The Hong Kong economy has turned around in recent years

Figure 2: The market capitalization of the Hong Kong Exchanges increased sharply in 2006

Figure 3: Hong Kong onshore retail savings and investments balances in USDbn, 2002-06

Figure 4: Hong Kong had almost 11 million credit card accounts totaling HKD72.2bn in receivables in 2006

Figure 5: Wealthy individuals declined in 2004 but recovered strongly by 2006

Figure 6: Aggregate onshore liquid assets of wealthy Hong Kong residents grew 14.3% compound annually from 2002-06

Figure 7: The number of wealthy individuals in Hong Kong is expected to grow 7.5% compound annually from 2007 to 2011.

Figure 8: Aggregate onshore liquid assets of wealthy Hong Kong residents will grow 8.3% compound annually from 2007-2011

Abstract

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