Chinese banks outpace rivals in Hong Kong wealth growth on IPO boom, capital flows

The wealth management businesses of Chinese investment banks in Hong Kong are growing faster than those of international rivals, as a buoyant initial public offering (IPO) market and rising cross-border flows strengthen their competitive edge.

“Chinese investment banks are seeing accelerated growth … because [their] base is smaller and the current market environment favours them,” said Wang Lei, CEO of Huatai Financial Holdings (Hong Kong), in an interview with the South China Morning Post, adding that foreign rivals were also expanding, but at a slower pace.

“Hong Kong is a key centre for Chinese residents’ global asset allocation,” said Wang, who chairs the private wealth management committee at Huatai Securities. “Its wealth management market is increasingly entering a state of intensified competition.”

Regulators’ data is backing up this assessment. A survey published in July by the Securities and Futures Commission (SFC) showed that assets under management of mainland-related firms in Hong Kong grew 15 per cent to HK$3.09 trillion (US$448 billion) in 2024, outperforming the industry average for a fifth consecutive year.

Their net fund inflows jumped 68 per cent to HK$256 billion in 2024, while headcount rose 5 per cent year on year, the survey said.

Meanwhile, some foreign private banks have been retreating from Hong Kong. Banque Internationale a Luxembourg, the Grand Duchy’s oldest bank, shut its Hong Kong wealth management office in early 2025, while Liechtenstein’s VP Bank closed its Hong Kong office in 2024 after 18 years.

South China Morning Post