The Securities and Futures Commission’s annual survey of fund management activities found that international investments accounted for 71% of the city-state’s fund management business, while assets managed in Hong Kong increased by nearly 18% to a record level of $6.9bn.
The survey also found that 72.5% of the assets managed in Hong Kong were invested in Asia, while fund advisory business decreased by 3% to $1.6bn.
The SFC defines the fund management business as the overall value of assets reported in the sub-sectors of asset management, fund advisory, private banking (broadly categorised as “non-REIT fund management business”) as well as SFC-authorized real estate investment trusts (REITs).
Source: Securities and Futures Commission
“The latest survey underscored the trend of sustained growth in assets managed in Hong Kong, driven by our role as an intermediary for capital between the mainland financial markets and the rest of the world,” said Julia Leung, the SFC’s executive director of investment products.
“The launch of the mainland-Hong Kong Mutual Recognition of Funds scheme on 1 July will further encourage growth in this area and promote Hong Kong as a fund domicile and investment management centre.”
The report also points out that ongoing regulatory improvements are “fundamental” to Hong Kong’s development as an international asset management centre.
“In this connection, the SFC will continue to work closely with mainland and overseas regulators as well as stakeholders to maintain an effective and progressive regulatory framework for the benefit of both the financial industry and investing public,” the SFC said.