The recently released Securities and Futures Commission’s Asset and Wealth Management Activities Survey 2024 highlights Hong Kong’s remarkable progress in asset and wealth management last year, further cementing the city’s status as a preeminent international hub.

The asset and wealth management business saw a robust year-on-year growth of 13 percent in total assets under management (AUM), reaching HK$35.1 trillion ($4.47 trillion) at year-end. Net fund inflows surged 81 percent to HK$705 billion.

The private banking and private wealth management sector also demonstrated robust growth, with AUM increasing 15 percent to HK$10.4 trillion and net fund inflows rising 13 percent to HK$384 billion. The growth was driven by the increased value of clients’ portfolio assets and sustained net fund inflows.

Moreover, consistent with Hong Kong’s role as an international financial center, the investor base is well-diversified in terms of geography, with investors from outside the Chinese mainland and Hong Kong consistently accounting for over 54 percent of total AUM in recent years. Over the past five years, AUM from investors in the rest of Asia-Pacific, North America and Europe have expanded steadily, with each accounting for a considerable share in double digits.

Indeed, in an era of mounting global financial uncertainties, Hong Kong stands at the forefront as a beacon of stability and strategic investment. The city’s ascent within the asset management world isn’t coincidental — it’s the product of deliberate foresight, regulatory agility, and in general, the product of being one of the world’s most important financial centers, enhancing its status year after year.

For example, Hong Kong ranked third globally in the Global Financial Centres Index (GFCI) Report published a few months ago by Z/Yen from the United Kingdom and the China Development Institute from Shenzhen, retaining its place from the previous issue in September.

Despite geopolitical tensions, economic headwinds and evolving regulatory landscapes, Hong Kong continues to stand tall among financial powerhouses. Its strategic location, deep capital markets and robust financial infrastructure make it a critical gateway between the Chinese mainland and the rest of the world.

In addition to this, Hong Kong’s robust rule of law and sound legal system are widely recognized in the international community. The city was ranked 23rd out of 142 jurisdictions surveyed in the 2024 World Justice Project Rule of Law Index — the same position it held in 2023.

Hong Kong’s asset and wealth management prowess offers an offshore haven for the mainland’s affluent people, while its stock and bond markets provide fundraising avenues for mainland enterprises requiring foreign exchange for expansion. However, the essence of Hong Kong’s success as a superconnector is inextricably linked to the mainland’s fortunes.

Embracing opportunities from the Guangdong-Hong Kong-Macao Greater Bay Area development and actively engaging in China’s 14th Five-Year Plan (2021-25), the Hong Kong Special Administrative Region leverages unwavering support from the central government to augment its role, embracing advancements such as the digital yuan and environmental, social and governance initiatives.

Embracing opportunities from the Guangdong-Hong Kong-Macao Greater Bay Area development and actively engaging in China’s 14th Five-Year Plan (2021-25), the Hong Kong Special Administrative Region leverages unwavering support from the central government to augment its role, embracing advancements such as the digital yuan and environmental, social and governance initiatives

Also, one of the strengths of Hong Kong’s asset management industry comes from the fact of it being the world’s most important renminbi offshore hub. According to the Society for Worldwide Interbank Financial Telecommunication, more than 70 percent of global offshore RMB payments are processed in Hong Kong, meaning it is the world’s largest offshore RMB clearing center. The city serves as the conduit for China’s onshore financial system to connect with international markets. Its developed regulatory system, English common law heritage and significant liquidity make it the ideal platform for cross-border use of the digital yuan.

Over the three years to end-2024, the value of dim sum bonds issued (mainly in Hong Kong) trebled, with annual issuance reaching 1.7 trillion yuan ($236.93 billion) last year. This ecosystem drives investor confidence, supports RMB‑based products, and provides pathways for institutional investors — mainland or international — to lock in efficient, onshore‑like access via Hong Kong’s trusted legal and operational frameworks.

Furthermore, the HKSAR enhancing its role as an asset management hub is clearly consistent not only with the Greater Bay Area blueprint, but also with the country’s 14th Five-Year Plan, in which the central government again recognized Hong Kong’s potential at the national level and reaffirmed its commitment to support the special administrative region in strengthening its status as an international financial, trade and logistics hub.

Undoubtedly, Hong Kong will benefit from pursuing deeper economic integration with the mainland by leveraging many initiatives (such as the Wealth Management Connect Scheme and Hong Kong becoming a family-office hub) while enhancing its status as one of the world’s most important financial centers.

To sum up, the 2024 SFC survey offers more than figures — it reveals a purposeful strategy bringing asset management eminence to Hong Kong’s doorstep. AUM growth, fund inflows, mainland synergy, global investor diversification, RMB strength, regulatory responsiveness, structural innovation — all these combine to solidify Hong Kong’s role not just as a regional center but as a global asset‑management powerhouse.

In a landscape where financial hubs jockey for position, Hong Kong stands tall. The data confirms it — not through hype, but measured, consistent delivery. The city has garnered the trust of sovereigns and institutions, the respect of global market peers, and the confidence of a growing base of retail and private‑banking clients.

To sustain this trajectory, Hong Kong must carry forward its pragmatic adaptability — dialing into ESG (environmental, social and governance) and digitalization, nurturing cross‑border ties, reinforcing talent ecosystems, and safeguarding investor protection. But with 2024’s revelations as the new baseline, the city is no longer simply participating in the asset‑management race — it’s leading it.

The author is a fintech adviser, a researcher and a former business analyst for a Hong Kong publicly listed company.

The views do not necessarily reflect those of China Daily.