The private wealth management industry in Asia is expected to grow by at least 6% annually over the next five years, according to a new survey by Bloomberg Intelligence. The survey, which gathered insights from 100 senior private wealth management practitioners in Hong Kong and Singapore, highlights the region’s rising affluence and increasing diversification needs as key growth drivers.
Hong Kong and Singapore are projected to become the world’s fastest-growing cross-border wealth hubs, potentially surpassing Switzerland. Bloomberg Intelligence estimates that Hong Kong could manage $2.9t in cross-border wealth by the end of 2025. The survey also indicates that the cross-border wealth managed in these cities is expected to grow by an average of 12% annually, outpacing the global growth rate of 10%.
Mainland China is anticipated to be a significant source of new clients, with 30% of new clients expected to come from there in the next three to five years. The Middle East is also emerging as an important market, as wealthy individuals seek to diversify their investments in Asia.
The survey reveals a growing risk appetite among private banking clients, with increased interest in equities, private equity, and digital assets. Technology is identified as a crucial driver for attracting new money, with 72% of respondents ranking it among the top three most important factors.
Sharnie Wong, Senior Industry Analyst at Bloomberg Intelligence, noted, “Our survey shows industry leaders are decidedly optimistic about the next five years, with sustained inflows and a rising risk appetite coming through.” The full survey is available to Bloomberg Terminal subscribers.
