With a population of approximately 80 million across the 11 cities of the Greater Bay Area, wealth generation in this region has been growing steadily over the past decade, and this growth is expected to continue in the future.
According to Zhitong Finance, Liao Caiyun, Chairperson of UBS Group Wealth Management Asia and CEO of UBS Hong Kong, stated that the group currently manages $780 billion in wealth in the Asian region, with nearly one-third coming from clients in the Greater Bay Area, including Hong Kong. With a population of over 80 million across the 11 cities of the Greater Bay Area, wealth generation in this region has been continuously growing over the past decade, and this growth is expected to persist. She noted that Hong Kong and Singapore are core markets for UBS Wealth Management.
The ‘UBS Tower,’ located above the West Kowloon high-speed rail station in IGC, will commence operations in the fourth quarter of this year, becoming UBS’s new Hong Kong headquarters. Liao Caiyun revealed that part of the reason for relocating the office to West Kowloon is its proximity to the high-speed rail station, allowing access to Greater Bay Area clients within a one-hour drive. She also mentioned that many clients from Southeast Asia, Europe, and the Middle East have shown interest in investing in the Greater Bay Area and are highly attentive to regional developments.
Liao Caiyun further highlighted that the Hong Kong government’s active implementation of various talent entry schemes and the new capital investor entry scheme over recent years has helped attract more family offices to Hong Kong. The recent recovery of Hong Kong’s capital market, primarily driven by the initial public offering (IPO) market, along with improvements in Hong Kong’s property market, has boosted investor confidence, positively impacting Hong Kong’s wealth management business.
In addition, UBS Group released its first global report targeting the next generation of wealth holders. The report reveals that over the next two to three decades, an estimated $83 trillion in private wealth is expected to change hands globally, marking the largest transfer on record. The survey also found that 72% of next-generation respondents in the Asia-Pacific region are more inclined to seek assistance from wealth management advisors and family affairs specialists for wealth management.
The report indicates that 79% of next-generation respondents primarily allocate their investments to stocks and bonds, while approximately 51% of next-generation respondents allocate investments to real estate or passive investment funds. However, they are gradually broadening their investment scope, with about 22% and 16% of respondents participating in private equity investments and direct investments (Direct Investment), respectively, including involvement in unlisted AI or robotics-related companies.