Hong Kong Fund Managers Record Strong Growth
The annual Fund Management Activities Survey (FMAS) released by the Securities and Futures Commission (SFC) has shown that the combined fund management business in Hong Kong rebounded significantly to a record high of almost HKD12.6 trillion (USD1.62 trillion) at the end of 2012, representing year-on-year growth of 39.3 percent.
The SFC pointed out that the latest survey indicates that Hong Kong continued to serve as an investment platform for attracting capital from non-Hong Kong investors. Overseas investors contributed just over HKD8 trillion (or 64.6 percent) to the total fund management business, excluding real estate investment trusts (REITs), last year. Their contribution has consistently remained above 60% over the past five years.
"There has been overall growth in different types of fund management business activities from an increasing pool of market players," said Alexa Lam, the SFC's Deputy Chief Executive Officer and Executive Director of Investment Products, International and China. "With an integrated network of institutions, availability of financial expertise, a diverse investor base, and a robust and transparent regulatory framework, Hong Kong continues to be recognized as an international asset management center in Asia."
Licensed asset management and fund advisory corporations continued to contribute the largest proportion of the combined asset management business. Their aggregate asset management and fund advisory businesses amounted to HKD9.2 trillion at the end of 2012, up 47.9 percent from at end-2011.
Registered institutions recorded an 18.8 percent increase in their aggregate asset management and other private banking businesses to nearly HKD2.9 trillion, while insurance companies reported a 24.7 percent increase in their assets under management to USD358bn, at end-2012.
Other highlights of the survey included a rise of 43.1 percent in non-REIT asset management business HKD8.25 trillion, with, of that amount, HKD5.7 trillion of assets (or 69.2 percent) being managed in Hong Kong and 80 percent of thee assets managed in Hong Kong being nvested in Asia.
The FMAS report noted that the SFC has continued its efforts in maintaining high market standard to protect the investing public, through ongoing monitoring of investment products, enhancing product disclosure and reinforcing investor education, and in strengthening its cross-border collaboration with Mainland China to support RMB internationalization, by facilitating the development of a broader range of available RMB investment products.
"The SFC will continue to work with the Mainland regulatory authorities, the Hong Kong Government and the industry to further enrich product offerings and promote Hong Kong as a platform of choice for international asset managers and investors to access the Mainland markets as well as the natural and preferred platform for Mainland liquidity and players as they continue to venture out into the world," Lam added.
The FMAS has been conducted annually since 1999 to help the SFC assess the industry's state of affairs for policy setting and operations planning. This year, a total of 485 entities responded to the survey on a voluntary basis. They included 417 licensed asset management and fund advisory houses, 46 registered financial institutions and 22 insurance companies.