Hong Kong Wealth Boom Lifts Banks, Draws Firms Back

Hong Kong wealth boom momentum is lifting bank profits and drawing global firms back to the city, as wealth and investment management income grows at double-digit rates, industry executives said.

HSBC reported a 50% jump in deposits in its latest quarterly results, with about 70% of the increase coming from non-residents, while the Hang Seng Index is up more than 30% year to date.

Peter Stein, chief executive of the Asia Securities Industry and Financial Markets Association, said mainland Chinese money remains the main driver as investors seek offshore diversification, but he added that inflows are also arriving from Asia and the Middle East as some capital shifts away from the United States.

Private-markets firm Adams Street Partners and buyout group Ardian are among the firms setting up in Hong Kong as the Hong Kong wealth boom continues to reshape the city’s financial resurgence.