Hong Kong is building on its position as the world’s largest cross-boundary wealth management centre, with firms reporting stronger demand for new accounts and asset booking, according to a recent report.
Despite a more complex geopolitical and economic environment, 94% of firms remain moderately or highly optimistic about the market’s prospects over the next five years, finds the 11th edition of the Hong Kong Private Wealth Management Report 2026, released by the Private Wealth Management Association ( PWMA ) and KPMG China.
Private banking and private wealth management assets under management rose 24% to a record HK$12.9 trillion ( US$ 1.64 trillion ) in 2025 – according to data from the SFC Asset and Wealth Management Activities Survey 2025 – while net fund inflows increased 79% year on year.
Notably, 77% of firms, the report points out, noted increased demand for new accounts and asset booking in Hong Kong, compared with 59% in the previous year, while none indicated a decline.
At a time when geopolitical uncertainty continues to reshape global capital flows, the findings suggest that Hong Kong’s role as a trusted international wealth management hub is becoming increasingly important.
Industry participants also point to the city’s breadth of investment opportunities, wealth planning capabilities and international connectivity as the key drivers of continued inflows.
“Just a year after we saw Hong Kong firmly back on its growth trajectory,” shares Amy Lo, the PWMA executive committee’s chair, “the city has claimed its place as the world’s top cross boundary wealth management hub.
“This milestone is a testament not only to the remarkable resilience and agility of our industry and talent, but also to the close collaboration between the public and private sectors. And, despite heightened geopolitical uncertainty, clients continue to view Hong Kong as a trusted platform for managing and booking wealth.”
Connectivity central to future growth
The industry sees an opportunity to expand trusted, well-regulated channels that support sustainable growth. Firms in the report highlight the Wealth Management Connect scheme, deeper Greater Bay Area integration and broader market access as important catalysts for connecting clients with opportunities while maintaining robust safeguards.
And some 79% of report respondents say Greater Bay Area initiatives would be critical or moderately important to their offshore Hong Kong business over the next five years.
Support for broader investment connectivity is equally strong, with 91% of firms supporting wider access to Star Market and ChiNext shares for qualified professional investors.
Increasing regulated investment options, the report notes, could further reinforce Hong Kong’s position as a gateway between the Chinese mainland and international capital markets.
“Expanding regulated investment channels, enhancing product breadth and strengthening international wealth corridors are key to sustaining Hong Kong’s leadership as a global cross-boundary wealth centre,” points out Vivien Khoo, the PWMA’s CEO and managing director. “Product diversity remains a major driver of inflows, while collaboration across the ecosystem continues to broaden investment opportunities for clients.
“With 91% of firms increasing their focus on next-generation clients, the industry is also building the specialist capabilities needed to serve future wealth owners.”
Maturing digital asset role
Digital assets are becoming an increasingly established element of portfolio construction. Following increased regulatory clarity in Hong Kong, a meaningful portion of member firms have taken concrete steps to expand their offering and develop infrastructure, reflecting a longer-term vision of integrating digital and tokenized assets into overall portfolio construction.
Over the past year, the proportion of firms actively developing a digital asset trading platform, product range or custody service, the report shares, has increased from 16% to 25%. A further 13% already offer these services, while 28% plan to invest in them over the next two to three years, highlighting the broad-based industry commitment to the asset class.
Product momentum is also building, with 43% of firms having added crypto exchange-traded funds or products, and 17% having launched or distributed tokenized products.
Over a 10- to 15-year horizon, as liquidity, interoperability and valuation standards mature, tokenization is set to make traditionally illiquid private and real-world assets more accessible to serve evolving client and next-generation wealth needs.
AI adoption accelerates
Artificial intelligence ( AI ) is gaining ground across the private wealth management industry, with firms increasingly putting it to practical use. Some 88% of firms, the report finds, report moderate or significant progress in adopting AI, generative AI or agentic AI technologies, compared with 56% a year earlier.
However, most current applications remain focused on accelerating existing tasks rather than redesigning operating models. The next phase of value creation, the report suggests, will depend on firms’ ability to integrate data, re-engineer workflows and operationalize proven use cases at scale.
As well, there is growing focus on governance, workflow integration and talent development as firms seek to realize the full benefits of AI.
“Hong Kong’s leadership is something to celebrate, but staying at the top starts with how we serve our clients,” says Jia Ning Song, KPMG China’s head of banking and capital markets for Hong Kong. “Their needs are becoming more diverse, across markets and generations, yet relationship managers still spend too much time on work that takes them away from those conversations.
“AI gives us a real opportunity to change that. Success should not be measured by how many tools we deploy, but by how much more time our people can devote to clients and how effectively they anticipate emerging needs. The goal is not simply a more efficient industry. It is a more responsive one.”
