According to the Securities and Futures Commission, the combined fund assets which includes assets under management of both real estate investment trusts and non-REIT businesses scaled up to HK$16trn ($2.06trn, £1.21trn) during 2013.
This performance comes after a 40% on-year growth registered by the industry at the end of 2012 when assets surged to a record high of HK$12.5bn
Alexa Lam, SFC’s deputy chief executive and executive director of investment products, international and china attributed the country’s “strength” in product innovation and in particular the renminbi products as the “key driver” behind the growth of its fund management business.
Going forward, Hong Kong regulator said it is committed to maintain its lead as the centre for creation and development of renminbi assets, products and services. Furthermore, SFC is working with its Chinese countepart on mutual recognition of funds between Mainland and Hong Kong, which it believes is a significant milestone in the renminbi internationalisation journey.
Commenting on the asset growth Lam said: “The record high assets under management (AUM) of our combined fund management business at the end of 2013 ranks us among the top asset management hubs in Asia ex Japan.
Significant inflows of overseas capital underscore the value and attractiveness of our open markets and our role as an international asset management centre.”
The latest fund management activities survey indicates that Hong Kong continued to be a preferred platform for international investors to invest in Asia with contributions from overseas investors reaching a historic high of HK$11.38trn, which represents 72% of the total fund management business.
Increasing number of firms setting up or expanding their operations to conduct asset management and fund advisory activities was among other reasons attributed for the asset growth.
The number of asset management companies increased to 950 at the end of 2013 from 892 a year ago, while the latest March-end tally showing further rise to 967.
Other key statistics:
- Non-REIT assets management business recorded a year-on-year increase of 38.5% in total assets to HK$11.42trn in 2013.
- Other private banking business increased by 2.7% to HK$2.75trn.
- Fund advisory business grew by 11.6% to HK$1.66trn.
- Market capitalisation of REIT business was at HK$177bn, up by 1.7%
- Insurance companies reported a 1.7% rise in their assets under management to HK$364bn.
- Of the total non-REIT assets under management, 51% was managed in Hong Kong.
