Hong Kong a ‘pivotal global financial hub’: Knight Frank

Its urban prosperity is the best amongst new wealth hubs. 

Hong Kong has been named a “pivotal global financial hub” and international asset management centre, joining Shanghai, Singapore, Sydney and Dubai as one of 5 new wealth hubs, reports Knight Frank.

The city stood out for its regulatory frameworks, capital markets, and connectivity to the Chinese mainland, the real estate consultancy firm said in the 2024 edition of its "Rise of the Super Wealth Hub" report series.

The report assessed the habitability and attractiveness of wealth hubs insix core areas:   urban prosperity, governance & talent, legal framework, enterprise excellence, lifestyle, and opulence. Knight Frank indicated a score between 0 and 1, with 1 being the highest

Hong Kong scored over 0.8 in three categories: legal framework (0.91), urban prosperity (0.85), and enterprise excellence (0.8). It also got passing marks for governance and talent (0.66).

In contrast, it scored 0.54 in lifestyle and 0.44 in opulence, lower than Singapore, Dubai, and Sydney, and beating out or equalling only Shanghai in these categories. 

Wealthy residents on the rise
Hong Kong is particulary seeing a rise in ultra-high net worth (UHNW) dwellers as well as family offices.

Hong Kong's UHNW population saw a 2.5% annual increase in 2023, reaching 5,957 individuals, noted Christine Li, head of research for Knight Frank Asia Pacific.

“Projections suggest this figure could rise to 7,290 UHNWs by 2028, a 22.4% surge from 2023, outpacing growth rates in other Asian markets like Japan, Singapore, Taiwan, and Thailand,” Li said.

Family offices primed for growth
Its family office landscape is primed to grow, particularly the wealth management sector, which is expanding at a compound annual growth rate of 7.6%. It is on track to surpass Switzerland by 2027. 

As of end-2023, there are over 2,700 single-family offices in Hong Kong, according to Knight Frank.

Hong Kong has also been named as an ideal location for multinational corporations and entrepreneurs thanks to its attractive tax rates of 2% to 17%. 

Major art events like Art Basel Hong Kong as well as numerous galleries, museums, and a zero-tariff art market underscores its role as a regional arts hub, according to Knight Frank.

“Amidst ongoing turbulence, changes in legislation, and subsequent new barriers for family offices in other locations, we anticipate that Hong Kong’s position as a global hub for family offices will continue to grow,” said Ho-Pin Tung, head of private office at Knight Frank Hong Kong.