Singapore and Hong Kong Banks Set to Gain as Asian Wealth Shifts to Markets

Asian wealth management growth could increasingly favour banks in Singapore and Hong Kong as household assets shift from deposits and property towards equities, bonds, funds and alternative investments, according to Morgan Stanley.

The trend is expected to increase demand for private banking, investment management and advisory services as household wealth across Asia continues to expand.

Morgan Stanley said Singapore should benefit from its position as a centre for family offices and cross-border capital, while Hong Kong retains significant strengths in equities, renminbi-related business and fixed-income markets.

Banks combining wealth management with corporate banking and capital-markets capabilities are particularly well positioned to capture the opportunity.

Morgan Stanley highlighted DBS, OCBC and UOB in Singapore, together with HSBC and Standard Chartered.

Bank of China (Hong Kong) could also benefit as renminbi internationalisation expands and wealthy clients allocate more capital to market-based investments.