《毕马威:2023年香港私人财富管理报告(英文版)(52页).pdf》由会员分享,可在线阅读,更多相关《毕马威:2023年香港私人财富管理报告(英文版)(52页).pdf(52页珍藏版)》请在三个皮匠报告上搜索。
1、 Kong Private Wealth Management Report 2023Executive summaryIndustry overviewGrowing the marketRegulationTechnologyTalent and ways of workingAbout the PWMAAbout KPMGContact us0306950Contents 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of indepen
2、dent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.3Hong Kong Private Wealth Management Report 2023Executive summaryGlobal uncertainty will continue to affect the private wealth management industry in Hong Kong but opportun
3、ities in Chinese Mainland market,the growing family office segment and Government and regulatory reforms provide reason for optimism The eighth annual Hong Kong Private Wealth Management report,jointly authored by the Private Wealth Management Association(PWMA)and KPMG China,provides an in-depth vie
4、w into the industry landscape,evolving challenges and emerging growth opportunities.The macroeconomic and geopolitical environment will continue to impact the private wealth management sector in the Hong Kong(SAR).Rising interest rate rises,which may persist in the medium term,have impacted investme
5、nt returns and ongoing geopolitical tensions,in particular between the United States and China,which are likely to be a more permanent feature,have impacted sentiment.At the same time,however,our survey found many positive drivers including regulatory reforms and policy initiatives to attract new so
6、urces of wealth.Challenges for the industryHong Kongs private banking and private wealth management sector experienced a decline in assets under management(AUM)and a drop in net inflows last year,although the drop in AUM is consistent with the poorer market returns observed in 2022.Uncertainty is al
7、so weighing on the outlook for the sector and firms expect to see slower growth in AUM in the years to come.However there are signs of a brighter outlook,with more clients expressing a willingness to take on investment risk.The regulatory environment continues to be cited as a key pain point for bot
8、h member firms and their clients,in particular with regards to suitability and KYC.However,the industry has been in discussion with the regulators in Hong Kong about the pain points and is now seeing results,such as the new guidance for Sophisticated Professional Investors(SPI).Evolving opportunitie
9、s On a more positive note,the ongoing wealth creation in the Chinese Mainland will continue to be a major source of growth for the industry as Hong Kong remains as the key wealth management centre for the Chinese Mainland.Hong Kongs unique attractions including its physical and cultural links mean t
10、hat the city is well placed to remain the first choice for wealth management for Chinese Mainland clients.2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited b
11、y guarantee.All rights reserved.Hong Kong Private Wealth Management Report 20234In addition to the growth expected from the Chinese Mainland many firms noted that they expected to see more fund inflows and AUM sourced from the Middle East and South East Asia in the future-widening Hong Kongs investo
12、r base.A continuing development has been the growth of the family office segment,which the Hong Kong SAR Government has been encouraging through a range of measures including new tax incentives announced earlier this year.Looking forwardOur survey and interviews reflect that,despite the challenges p
13、osed by Covid-19 restrictions and external headwinds,the citys many advantages as a private wealth management hub remain intact.While geopolitical tensions are a concern for members and clients what is often lost is the strength of Hong Kong as a wealth management hub.There is a need for a more proa
14、ctive articulation and marketing of Hong Kongs strengths,including the advantages of the One Country,Two Systems framework,the US dollar-linked exchange rate and the free flow of capital,to reassure existing clients and attract prospective clients.With the end of Covid restrictions,with support from
15、 the regulators and the Government to grow the private wealth management sector further,and with significant opportunities to grow AUM there are clearly reasons to be optimistic about the industrys future even in the current uncertain climate.The report is largely based on a survey of PWMA member in
16、stitutions and their clients,and supplemented by the results of the SFCs Asset and Wealth Management Activities Survey 2022.Almost 80%of member firms-33 out of 42-responded to the PWMA survey,as well as more than 200 clients.We also conducted interviews with industry executives and other stakeholder
17、s in Hong Kong to hear their insights on the latest developments and trends.The surveys and interviews were carried out between June and August this year.We would like to thank all the survey respondents and interviewees for taking the time to participate in this report.2023 KPMG,a Hong Kong(SAR)par
18、tnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.5Hong Kong Private Wealth Management Report 2023More proactive marketing of Hong Kongs strengths to rea
19、ssure existing clients and attract prospective clientsNew sources of wealth in the Middle East and Southeast Asia offer potential but require ongoing efforts to secure new clients.Industry engagement with the Hong Kong government and regulators should continue to strengthen Hong Kongs position as th
20、e leading private wealth management centreAUM decreased in 2022 which was largely correlated to the wider market performanceHong Kong retains its strengths and benefits as a leading private wealth management hubTax incentives for family offices and SPI show the benefit of engagement with government
21、and regulators.ActionsKey takeaways 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Re
22、port 20236Industry overview The difficult macro environment and geopolitical uncertainties are likely to remain as challenges for the industry while the ambition for ESG investing is not materialising yet Challenging market environment2022 saw a decline in assets under management(AUM)for Hong Kongs
23、private banking and private wealth management business,mostly reflecting the challenging market environment during the year.Net fund inflows were positive but down compared to the year earlier.Total AUM of Hong Kongs private banking and private wealth management business stood at HK$8,965 billion as
24、 at the end of 20221,a 15%decrease from the previous year,largely due to changes in the value of investments held by clients.(Figure 1)Figure 1:Private Wealth Management AUM in Hong Kong(HKD trillion)10.9%20166.27.87.69.111.310.69.0200022Market return Net inflows2022CAGR6.3%16.
25、2%-10.9%-15.3%10.69.00.1(1.1%)(1.7)(-16.4%)Source:Asset and Wealth Management Activities Survey 2022,SFC1 SFC Asset and Wealth Management Activities Survey:https:/www.sfc.hk/-/media/EN/files/COM/Reports-and-surveys/AWMAS-2022_E.pdf 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG
26、global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.7Hong Kong Private Wealth Management Report 2023Note:Weighted average ranking per survey resultsThe drop in AUM corresponds with the broader m
27、arket performance during the year.The Hang Seng Index(HSI)and the Hang Seng China Enterprises Index(HSCEI)were down 15.5%and 18.6%respectively.In the Chinese Mainland,the Hang Seng China A Industry Top Index and the Hang Seng Stock Connect China A 300 Index declined by 19.6%and 21.2%respectively2.In
28、 the US,the S&P 500 fell 18.1%in 20223,and the Nasdaq Composite dropped by 34%4.Net fund inflows to Hong Kong amounted to HK$121 billion(US$15 billion),a drop of around 80%from HK$638 billion and HK$656 billion in 2021 and 2020,respectively.The private wealth management sector faced a number of chal
29、lenges in 2022 that may have contributed to this reduction in inflows.General economic performance in the Chinese Mainland and Hong Kong was down in 2022 largely due to the continuing effects of Covid restrictions in Hong Kong and the Chinese Mainland,which have now lifted.This had a knock-on effect
30、 on stock market performance,the volume and value of IPOs and general sentiment which likely contributed to the fall in net inflows.While the private wealth management industry should not be complacent,this drop in AUM is correlated to the overall market.Looking forward there remains reason to conti
31、nue to be optimistic about Hong Kongs resilience as a wealth management centre with a recent report by a global consultancy stating that Hong Kong would become the worlds leading offshore wealth centre,overtaking Switzerland,by the end of 20255.Events that had an impact on the industry in 2022-2023W
32、hile the ending of most of the Covid-19 restrictions was a boost to the private wealth management industry in Hong Kong,facilitating the return to normal operations,2022 was still an eventful year for the sector.Member firms said that of the events affecting the industry in 2022,rising inflation and
33、 consequent interest rates increases had the biggest impact.(Figure 2)Figure 2:Ranking of the greatest impacts on the Private Wealth Management industry in last 12 monthsGreatest impacts on the PWM Industry4thRegulatory uncertainty within certain industries in China3rdFears of an economic recession2
34、ndTensions between U.S.and China1stHigh inflation and interest rates2 Hang Seng Indexes 2022 Year-End Report:https:/.hk/static/uploads/contents/en/dl_centre/other_materials/20221230e.pdf 3 S&P Global Market Intelligence:https:/ Nasdaq 2022 Review and Outlook:https:/ BCG Global Wealth Report 2023:htt
35、ps:/ 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 20238There is a considerab
36、le jump from last years survey,where rising inflation was ranked fourth among events having an impact on the industry by member firms,behind Covid,the geopolitical situation and Chinese policy changes.Higher inflation and interest rates seem likely to remain a key concern going forward.While it is i
37、mpossible to predict when they will fall,it seems likely that higher interest rates are here for the next 12 to 24 months at least,and the private wealth management sector will need to consider how they can continue to best serve their clients investment needs.Industry concerns about the futureLooki
38、ng ahead,the external environment also dominates the key concerns for both member firms and clients as they plan for the future.Amid higher interest rates and persistent inflation in many developed economies,the macroeconomic environment and market volatility has remained as the top concern of the i
39、ndustry,according to member firms.(Figure 3)As noted above,the point at which interest rates start to reduce,and the extent of that reduction,is difficult to predict but it is likely to remain an issue for the short-medium term.Figure 3:Ranking of concerns with regards to the Private Wealth Manageme
40、nt industryNote:Weighted average ranking per survey results.As some options are updated in 2023 survey,2021 and 2022 rankings are adjusted accordingly,the total number of options were 13 and 12 in 2022 and 2021 respectively202321039574Macroeconomic environment and market volati
41、lity Financial risk(credit,market,liquidity,capital)Geopolitical tensionsAnti-money laundering(AML)and tax evasion Conduct practices Regulatory environmentTechnology and information security,including cyber securityGovernance and operating model(including outsourcing arrangementsTalent attraction an
42、d retention Competition from other financial hubsThreat of new entrants 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.9H
43、ong Kong Private Wealth Management Report 2023Figure 4:Expected annual growth in industry AuM per year in next 5 years An increasing concern is geopolitical tensions,which jumped from number 11 in last years survey to become the second biggest concern this year.Interviewees pointed to the recent US
44、Executive Order that further restricts investment in Chinese technology as a sign that the US-China tensions are unlikely to ease in the near future.Unlike interest rates,which are cyclical,the geopolitical tensions are likely to be a longer-term issue for the private wealth management sector and Ho
45、ng Kong in general.Given the likely persistent nature of these geopolitical concerns,the industry will need to work with other stakeholders,such as government and regulators,to articulate Hong Kongs strengths as a wealth management hub and address concerns of investors.The regulatory environment and
46、 talent were rising concerns for member firms,moving up to third and fourth place,compared to last years survey.The threat of new entrants,however,which was ranked fourth last year,fell to the bottom of the table.The challenging external conditions have affected the industrys outlook.Forecast annual
47、 AUM growth for the next five years is subdued,with considerably more member firms(15%)expecting to see under 5%growth compared to last years survey(8%).Meanwhile,18%of member firms anticipate growth of greater than 10%in this years survey,compared to 25%a year earlier.(Figure 4)30%0-5%6-10%11-12%20
48、%58%67%67%6%8%15%2022202120236%3%22%18%2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management
49、 Report 202310Note:Weighted average ranking per survey results1stTensions between the U.S.and China2ndHigh inflation and interest rates 3rdFears of an economic recession 4thRussia/Ukraine conflictMember firms outlook for the next few years is muted,which is a reflection of the global environment wit
50、h AUM growth expected to revive when market conditions improve.Clients share broadly the same concerns about the future as member firms.In our client survey,US-China tensions was ranked as having the largest impact on investment outlook and risk tolerance,followed by high inflation and interest rate
51、s.However,despite these concerns,clients may be becoming more optimistic about the future.In this years survey,30%of respondents said that their willingness to take on investment risk in the next 12 months had increased,compared to 21%of respondents in last years client survey.(Figures 5 and 6)Figur
52、e 5:Macro trends impacting investment outlook and risk tolerance of clientsFigure 6:Clients change in willingness to take on investment risk across all asset classes for the next 12 months versus the last 12 monthsSignificantly increased30%Slightly increasedNo changeSlightly deterioratedSignificantl
53、y deteriorated202220237%6%14%24%25%31%34%28%20%11%2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.11Hong Kong Private Weal
54、th Management Report 2023Figure 7:Level of client demand for new accounts to be opened,and/or client assets to be held in the following booking centresIncreasedRoughly the sameReduced Hong KongSingaporeOutside of East Asia(e.g.,Dubai)Multi-shoring trend picks up pace Multi-shoring-opening accounts i
55、n two or more jurisdictions to spread risk and diversify investment-is a significant trend in the industry revealed by this years survey.Demand for Singapore as a booking centre has increased significantly,with 70%of member firms reporting a higher client demand for new accounts to be opened,and/or
56、client assets to be held in Singapore.(Figure 7)There is also interest in other jurisdictions,with 21%of member firms seeing increased demand for new accounts to be opened outside of East Asia.21%40%70%70%30%24%9%30%6%2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organis
57、ation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 202312Figure 8:Clients accounts in other jurisdictionsThe client survey shows the same trend,with the proportion
58、of clients with accounts booked in Singapore rising to 73%compared to 64%in last years survey.(Figure 8)Besides Singapore,the percentage of clients with accounts in the US also increased to 17%from 11%in the previous year.While this trend may be considered concerning on the face of it,our discussion
59、s with the industry on the results indicate that the impact is less significant.Many noted that what is critical is that the relationship and assets are still being managed from Hong Kong with the opening of accounts being part of a risk diversification strategy of using dual booking centres across
60、Hong Kong,Singapore and other locations.Most private wealth management firms already operate with the ability to book client assets in multiple jurisdictions,so this has minimal impact on most firms.For those firms without that capability this may be a client need that should be addressed.One interv
61、iewee also suggested that this multi-shoring trend may have peaked,as they had seen a significant slowdown this year in demand for new account opening in Singapore,compared to 2022.However,multi-shoring seems likely to become a permanent feature of Hong Kongs private wealth management landscape and
62、the industry will need to consider the potential impact.At present there is no indication that the management of assets is being moved and the industry should continue to focus on ensuring Hong Kong remains the preferred location for clients to manage their assets.SingaporeSwitzerlandUKUSOther66%14%
63、16%22%5%64%14%14%10%11%73%15%16%6%17%202120222023 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.13Hong Kong Private Weal
64、th Management Report 2023Figure 9:Ranking of trend/theme with respect to clients product preference in the context of current high inflation and high interest rate macroeconomic environmentInvestors seeking protection against inflation and growth Given the macroeconomic factors,it is not surprising
65、that member firms report that relatively low-risk investment options are the most popular with clients.Low-risk cash and cash alternatives were by far the top investment choice,favoured by 91%of clients at member firms,followed by structured products(61%).(Figure 9)Preference for holding cash and ca
66、sh alternativesPrivate market Investments (e.g.,Private equity,private debt,venture capital,hedge funds)Structured Products that provide upside potential and downside protectionBroad asset class diversification/discretionary portfolio solutionsFixed income productsNew economy(e.g.,Biotech,Healthcare
67、,Tech,AI,etc.)Geographic diversification91%61%58%39%24%15%9%At the same time,however,clients are showing an increased risk appetite and growing interest in alternative investments as they seek growth amid the global uncertainty.2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG glob
68、al organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 202314Interestingly given the market environment,clients risk appetite has increased,with more clients
69、expressing a greater willingness to take on investment risk compared to last years survey.Their top investment objectives remain unchanged,with“protecting portfolio value against inflation”being the top choice,followed by“value opportunities in a recessionary environment”.(See Figure 12 in next sect
70、ion on ESG.)To meet these goals,clients may be willing to take on more risk,and some investors are broadening their scope in terms of product preference,including alternative investments.Interviewees noted that they had seen increasing interest in alternatives among their clients,in search of higher
71、 yielding investments.Interviewees said that this shift of focus to alternatives includes increased interest from clients in hedge funds,private equity,private credit and investment in distressed assets.A wider range of products outside the equities market would help satisfy this demand and provide
72、more choice for investors.Approximately half of the clients surveyed said that they had geographical investment priorities.Among these clients,Developed Asia was the primary focus,followed by North America and emerging Asia ex-China.Chinas ranking in fourth place suggests that investors are currentl
73、y looking for higher growth opportunities in other markets.ESG investing:misalignment between ambition and realityWhile ESG investment has been a hot topic for some time,our survey suggests that the gap between ambition and reality in this area remains.Member firms and clients continue to state thei
74、r increasing interest in allocating more AUM to sustainable products.However,the actual proportion of investment being allocated to ESG has not started to rise to meet that stated ambition.Clients are becoming more interested in ESG products.Firms ranked“providing sustainable investment advice and r
75、elated products to clients”as the number one focus area,ahead of digital platforms and next-generation wealth.Figure 10:The percentage of my organisations AuM in ESG investments in Hong Kong currentlyFigure 11:In five years,the percentage of my organisations AuM in ESG investments in Hong Kong is ex
76、pected to be0-10%11-20%21-30%30%6%6%6%88%86%94%3%3%3%3%3%0%0-10%11-20%21-30%30%9%22%39%42%25%27%14%9%40%24%42%6%202120222023 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private Englis
77、h company limited by guarantee.All rights reserved.15Hong Kong Private Wealth Management Report 2023Firms continued to indicate that they expect growth in the proportion of AUM invested in sustainable products.(Figures 10 and 11)58%of firms said that they expect to have greater than 10%of AUM invest
78、ed in sustainable products in five years time.This ambition to invest more in ESG has dropped from the previous two years,when around 75%of firms said that ESG investment would be above 10%.However,member firms stated ambition is still a long way from the reality of their ESG investment as the vast
79、majority-88%-of member firms currently have less than 10%of AUM invested in sustainable products.Most notably,this percentage has barely changed from previous years.So while the intention to increase allocation to sustainable investment has been stated for several years,the actual investment in ESG
80、has not started to rise to meet this ambition.The client survey had similar results,with 48%of respondents saying they plan to increase the proportion of their assets invested in ESG to more than 10%over the next five years.(Figure 12)However,when prioritising their current investment objectives,onl
81、y 19%said that they prioritised sustainable investments,and this is ranked at number six out of eight investment objectives/priorities,with their key objectives being a desire to focus on capital preservation and growth opportunities.Member firms interviewed for this survey also reported a significa
82、nt increase in interest among their clients in discussing sustainable investing.They said that this trend was particularly evident among the next generation,but most clients are also now more willing to learn about ESG options,where previously some had not wanted to know.That this interest in sustai
83、nable investing has not yet translated into reality may be due to the macroenvironment,which means that investors are currently focusing on protecting their portfolios and finding value above all other considerations.In this years survey,77%of clients said that protecting their portfolio value again
84、st inflation was a priority,compared to 70%last year,while 61%said that finding value opportunities in a recessionary environment was a priority,down from 67%last year.Beyond the external environment,there is no single reason for the fact that investment in ESG has not gained more traction,and the b
85、lockers to greater adoption may differ among financial institutions.There is a great deal of variation within the industry,with some private wealth management firms having a strong focus on ESG,while others are not proactively growing the segment.One possible reason is that RMs do not have enough in
86、formation or knowledge about the range of products that are available.The lack of a clear definition and standards for ESG investment is also an issue for firms and could put them at risk of accusations of greenwashing.ESG is a growth area that is seeing rising interest from clients.Member firms sho
87、uld investigate the specific factors that they are experiencing in constraining growth in this segment and consider how to address them in the longer term.One interviewee also noted that there is an opportunity for Hong Kong to develop the“S”part of ESG through a focus on philanthropy,where Hong Kon
88、g has an edge over other wealth management hubs.Indeed,while philanthropy has remained low on the list of objectives for clients,it has grown from 2%in 2022s survey to 6%this year.Figure 12:Proportion of assets/portfolio that clients would like to be invested in ESG and sustainable investments in fi
89、ve years0-5%6-10%11-20%21-30%30%20222021202321%15%24%31%28%20%27%41%32%15%11%17%6%5%7%2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All righ
90、ts reserved.Hong Kong Private Wealth Management Report 202316Virtual assets a minority,but growing,interest among clientsLast year was particularly tumultuous for the virtual assets sector,so it is not a surprise that member firms are remaining cautious about virtual assets trading,with 82%adopting
91、a wait-and-see approach and 88%having no plans to offer cryptocurrency trading and custody services.(Figure 13)Figure 13:Firm-wide plans pertaining to virtual assetsCurrently taking a wait-and-see approach Planning to invest in Virtual Assets trading and/or custody services for clients in the next 2
92、-3 yearsCurrently developing Virtual Assets trading and/or custody services for clients3%82%15%The last 12 months saw significant upheaval in the virtual asset sector with the collapse of FTX being the most notable event.However,the Hong Kong SAR Government has stated its intent to develop the city
93、into a hub for the virtual assets sector,with recent regulatory developments including a new licencing regime for Virtual Assets Trading Platforms.In last years survey,member firms said that concern about the regulatory environment was the main barrier to greater investment in virtual assets,so the
94、increased clarity provided by the regulators on their requirements for virtual asset trading platforms and distribution by intermediaries may ease this concern.Figure 14:Proportion of assets/portfolio clients would like to be invested in virtual assets1-5%10%2022202339%31%34%47%18%18%9%4%Virtual ass
95、ets remain a minority interest among clients,but appetite is rising.This year,9%of clients indicated that they would like to have more than 10%of their portfolio allocated to virtual assets,up from 4%in 2022.At the same time,the proportion of clients who want to keep their portfolio allocation to le
96、ss than 1%also dropped considerably,from 47%to 34%.(Figure 14)So while clients want to keep their virtual assets investments at a fairly low level,the interest is there and the amount of investment that they intend to allocate to the sector is set to increase.Given that there are other options for c
97、lients to access these asset classes,such as direct investment on crypto exchanges or with hedge funds,it may be worthwhile for private wealth managers not to“wait and see”for too long before deciding to develop virtual asset trading or custody services for their clients.2023 KPMG,a Hong Kong(SAR)pa
98、rtnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.17Hong Kong Private Wealth Management Report 202320222023Work with stakeholders,such as government and
99、 regulators,to address concerns around geopolitical tensions by articulating Hong Kongs strengths as a wealth management hubContinue to develop Hong Kong as the preferred choice for investors to manage their assets regardless of booking location.Member firms should review what is blocking an increas
100、e in sustainable investment so they can capture the growing interest in ESG among clientsGeopolitical tensions are likely to remain an issue the industry needs to contend with over the longer termMulti-shoring has become an established feature of managing Hong Kong clients accountsGap between ambiti
101、on and reality in ESG investing is not closingActionsKey takeaways 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Ko
102、ng Private Wealth Management Report 202318Growing the marketChinese Mainland,particularly the GBA,continues to be the most important source of business while family offices are becoming an important growth driver Key growth drivers:Chinese Mainland,next-generation and family officesThere was very li
103、ttle change year-on-year in where member firms see the top opportunities to grow the private wealth management market.Further penetrating the Chinese Mainland market remained the top opportunity,followed by targeting the second(or third)generation,and attracting more family offices to set up in Hong
104、 Kong-the same top three opportunities as in last years survey.(Figure 15)There remain huge opportunities in the Chinese Mainland market,including the continued expansion of the middle class,with median wealth rising from US$3,155 in 2000 to US$30,696 in 20226,as well as growth in the number of high
105、-net-worth individuals.Chinese Mainland:huge opportunitiesThe Chinese Mainland market remains the number one opportunity for growth,according to member firms.This is not surprising,given the wealth creation taking place across the Chinese Mainland,including in the Greater Bay Area(GBA).Under recent
106、Chinese Mainland policies,such as the 14th Five Year Plan and the Outline Development Plan for Guangdong-Hong Kong-Macao Greater Bay Area,one of Hong Kongs key roles is the international wealth management centre for China and the GBA specifically.Therefore Hong Kong should expect to continue to bene
107、fit from the growing wealth created in the Chinese Mainland.The Chinese Mainland will continue to be an attractive market for private wealth managers for the foreseeable future.Members expect the proportion of Hong Kong-based AUM sourced from Mainland China to increase from 36%today to 46%in five ye
108、ars time.(Figure 16)This is a drop compared to the results of the previous two surveys,which were around 50%.This appears to be a reflection of the industrys focus on developing new sources of wealth to manage with plans to seek more clients from other markets.Of member firms exploring other markets
109、,Southeast Asia and the Middle East were the top two locations(see discussion later in this report).6 UBS Global Wealth Report 2023:https:/ 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a
110、 private English company limited by guarantee.All rights reserved.19Hong Kong Private Wealth Management Report 2023Figure 15:Ranking of the main opportunities to grow the Hong Kong wealth management marketFigure 16:A comparison of the estimated percentages of where member firms believe Hong Kong-bas
111、ed AUM for the PWM industry comes from today and will come from in five years timeNote:Weighted average ranking per survey results.As some options are updated in 2023 survey,2021 and 2022 rankings are adjusted accordingly,the total number of options were 11 in both 2022 and 2021.202320221
112、2346578910Further penetrating the Mainland China marketAttracting more IPO fund raising activities in Hong KongTargeting the second(or third)generationAttracting more offshore clients residing in other marketsTargeting female clientsAttracting more family offices to set up in Hong KongDeveloping wea
113、lth in the ASEAN blocOther(please specify)Targeting young entrepreneursTargeting less wealthy customer segments through digital channels202220212023Mainland China Hong KongOther Asia-Pacific Other Global 34%33%28%46%49%51%13%11%11%7%7%10%202220212023Mainland China Hong KongOther Asia-Pacific Other G
114、lobal 41%40%37%36%38%41%15%13%14%8%9%8%TodayIn five years time 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong P
115、rivate Wealth Management Report 202320Greater Bay Area opportunitiesAs an important contributor to Chinas economic growth and wealth creation,the GBA will continue to be a key driver of growth of Hong Kongs position as a wealth management centre in the next five years.However,the ability of the indu
116、stry to better access and serve clients in the GBA,including through schemes such as Wealth Management Connect,remain limited.The Wealth Management Connect scheme in its current form is limited in scope and more suited to retail customers,and is therefore of little interest to private wealth manager
117、s in Hong Kong.Enhancements Figure 17:Ranking of challenges“The Greater Bay Asia Cross-Boundary Wealth Management Connect”pose Top challenges GBA WMC pose4thRelatively limited geographical coverage(i.e.,currently limited to the 9 cities in the Greater Bay Area)3rdThere are restrictions on the types
118、of Southbound products available for investment by Mainland clients(e.g.,low-medium risk level funds)2ndThere are barriers to cross-border services(e.g.,Hong Kong bank staff are not allowed to provide advisory services to clients that are located in Mainland China)1stIndividual investment limits are
119、 inadequate(e.g.,The investment quota of RMB 1m per individual investor)to the Wealth Management Connect that would most benefit the private wealth management sector include increasing the individual investment quota,allowing Hong Kong staff to provide advisory services to clients across the GBA,and
120、 increasing the range of“Southbound”investment products available to Chinese Mainland clients.(Figure 17)While enhancements to the scheme are widely expected,the lack of a clear road map for widening direct access to the HNWI market is a concern for member firms,making it difficult for them to plan
121、strategies for the GBA and how to best serve this potential market.Note:Weighted average ranking per survey resultsNext generationTargeting the second and third generation of investors,particularly from the Chinese Mainland,has consistently been ranked as one of the key growth drivers of the private
122、 wealth management industry in Hong Kong.The size of the under-39 age group among clients has increased significantly,according to one interviewee.The investment approach of the younger generation differs from the first generation in a number of ways.They are seeking full-scale wealth planning solut
123、ions that include philanthropy,emigration and overseas studies.While the first generation of Chinese clients are very hands-on and want to control their investments,the next generation are more hands off and seeking discretionary solutions.They are more focused on asset allocation,with a core and sa
124、tellite approach.2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.21Hong Kong Private Wealth Management Report 2023To under
125、stand and serve these clients it is likely that firms will have to develop their approach to wealth management to be more like the European model.Family offices an increasingly important source of business Growing the family office segment is a priority of the Hong Kong Government and also of privat
126、e wealth managers in the city,and this has been a consistent trend over the past few years.A large majority(94%)of member firms agreed that family offices are an increasingly important source of business for their organisation.(Figure 18)Figure 18:Member firms views on family offices being an increa
127、singly important source of business for their organisationStrongly agreeSomewhat agreeSomewhat disagreeStrongly disagree Neutral6%0%0%50%44%The growth in family offices has been a key trend for the past few years,but at the same time,Hong Kong faces strong competition in attracting family offices fr
128、om other jurisdictions,particularly Singapore.The private wealth management industry has made considerable efforts in recent years including cooperation with the Government and regulators to enhance the environment in Hong Kong for family offices.InvestHK set up its dedicated family office team in 2
129、021.In this years Budget Speech,the Government allocated HK$100 million to InvestHK over the next three years to attract family offices,and it also recently announced that the family office teams activities will be expanded to provide services around philanthropy and education needs.Earlier this yea
130、r,the government also announced a family office tax incentive that introduced a 0%tax rate on profits for UNHWIs and their family members on qualifying transactions.These initiatives have been welcomed by the industry,and the family office tax inventive has already generated significant client inter
131、est.This close engagement with policymakers and regulators to develop a small number of initiatives and execute them well has been successful and should serve as a model for future initiatives.To build on this success will take continued effort from the government and regulators to make sure that Ho
132、ng Kongs family office landscape is as good as,if not better,than that of other jurisdictions.Many private wealth managers are already taking action to enhance their family office offerings.To attract more family office clients to Hong Kong,many member firms have set up a dedicated family office tea
133、m and an EAM desk to serve this segment.They are also providing more bespoke and private access investment opportunities,and have increased their marketing and promotion to this segment.As member firms are seeking to attract family offices from different locations,including the Chinese Mainland,Sout
134、heast Asia and the Middle East,they will need to ensure that they understand the key factors that will attract these different types of clients,and that they can tailor their offerings to suit them.The growth in family offices has been a key trend for the past few years,but at the same time,Hong Kon
135、g faces strong competition in attracting family offices from other jurisdictions,particularly Singapore.The private wealth management industry has made considerable efforts in recent years including cooperation with the Government and regulators to enhance the environment in Hong Kong for family off
136、ices.2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 202322One particular area
137、of note is ensuring Hong Kong continues to have the best access to investment products in both public and private markets as this is a key ingredient for a successful wealth management centre.Hong Kongs public market is well known but the industry needs to work with policymakers to ensure it remains
138、 a pre-eminent listing venue.Equally important is attracting alternative asset managers such as hedge funds or private equity firms to continue setting up in Hong Kong as this asset class is increasingly important for family offices and Hong Kongs HNWIs.Another element of Hong Kongs wider ecosystem
139、to support family offices and HNWIs is its expertise in the lifestyle factors such as art and wine collection that are important to many private wealth clients.When comparing Hong Kong to competing jurisdictions,it is worth noting that Hong Kong does not have a requirement for family offices to get
140、approval.There are likely many family offices already established here that are not explicitly registered as such.The tax incentive scheme will provide more data when family offices apply for the incentive but may not provide a full picture of the extent of family offices operating in Hong Kong.One
141、possible issue regarding growing the family office sector is that the proportion of member firms who are concerned about Hong Kongs depth of advice and services such as tax,succession planning and family governance has increased from 31%in both 2021 and 2022 to 42%in 2023.(see Figure 21 in Regulator
142、y section)This was a surprising finding in this years survey as Hong Kong has traditionally been seen as having depth in these areas.As a contrast,the client survey reflects continuing confidence in Hong Kongs provision of ancillary services with Hong Kong ranked as the best booking centre for famil
143、y office-related services(eg family trusts,tax,accounting services).(see Figure 19 in below section)While it is not clear if concerns over Hong Kongs depth of advice are accurate,the city should not be complacent about this area,and should continue to invest in strengthening the range of professiona
144、l services available in the city as they are a key part of the citys status as a wealth management centre.2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited b
145、y guarantee.All rights reserved.23Hong Kong Private Wealth Management Report 2023Seeking new corridors for private wealth clientsWhile the Chinese Mainland is expected to remain the biggest source of AUM for the industry in Hong Kong,there are also potential opportunities in other global locations.O
146、f the 39%of member firms currently targeting,or planning to target,international sources of wealth,all are targeting Southeast Asia,and around a half are targeting the Middle East.These areas are also among the key target locations for Hong Kong as part of the Governments efforts to enhance Hong Kon
147、gs position as an international financial centre and wealth management hub.Highlighting the end of the citys travel restrictions,Government officials and senior banking executives carried out a number of high-profile visits to the Middle East and Southeast Asia earlier this year to promote the citys
148、 financial sector.These visits have been very successful in terms of generating a lot of interest and raising Hong Kongs profile as a private wealth management centre,not just in the Middle East and Southeast Asia but also in Europe.However,member firms said that this had not yet translated into a s
149、ignificant increase in investment from these regions.Inflows from these regions likely will take time and continued focus.There is a great deal of wealth creation taking place across both the Middle East and Southeast Asia that could provide significant new markets for the Hong Kong private wealth m
150、anagement sector.However,continued efforts will need to be made to ensure that Hong Kong does not miss out on this opportunity.Unlike with the Chinese Mainland,Hong Kong cannot offer Middle East and Southeast Asian clients the advantages of cultural similarity and proximity.In addition,Hong Kongs ma
151、ny advantages as a private wealth management centre are not so well known in other jurisdictions.So the Government and industry will have to make more efforts to promote Hong Kong and its many strengths to these regions,including follow-up visits,to attract more investment to Hong Kong from these lo
152、cations.Competition between booking centres and key criteriaHong Kong scores very highly compared to other major wealth management hubs in most key attributes as a wealth management centre,and is ranked top in almost all areas including ease of onboarding,range of investment options and investor pro
153、tection(Figure 19)Figure 19:Ranking of the global wealth management centers in terms of different given dimensions Note:Weighted average ranking per survey resultsWorstBestEase of onboardingRange of non-investment related services (family trust,tax,accounting,etc.)Ease of trading Investor protection
154、Political stabilityRange of investment optionsProximity/ConnectivityPersonal transaction reporting requirements Regulation/JurisdictionHKHKHKHKHKHKHKHKSGSGSGSGSGSGSGSGSGCHCHCHUSCHCHCHCHCHHKUKUSCHUKUKUKUKUKUKUSUKUKUSUSUSUSUSUS 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global
155、 organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 202324There is only one dimension where Hong Kong does not take the top spot-political stability-where it
156、 drops to third,behind Singapore and Switzerland.Clients have noted that political stability is the most important factor when selecting a booking centre or Relationship Manager(RM)location(Figure 20)which underlines the importance of the industry working with other stakeholders to articulate the st
157、rength and stability of Hong Kong as a wealth management centre.Hong Kongs many advantages include the One Country,Two Systems framework,which provides a legal and commercial environment which is trusted and understood by international investors while also having close access to the huge Chinese Mai
158、nland market.Further benefits that provide stability include the dollar peg,rule of law and free flow of capital.Figure 20:Ranking of factors in selecting the booking centre and/or RM location in terms of importanceNote:Weighted average ranking per survey resultsThe most important factors for select
159、ing location4thLevel of investor protection3rdLegal environment2ndProximity to main country of residence1stPolitical stabilityPromoting the citys benefits and its stable environment will be particularly important if Hong Kongs private wealth managers are to access the opportunities in other location
160、s such as the Middle East and Southeast Asia.In general,investors who are already based in Hong Kong are happy having their assets booked in the city.However,clients who are not familiar with the city tend to be more likely to have concerns about opening accounts in Hong Kong.While there is no doubt
161、 that Hong Kong faces strong competition for family offices and for private wealth management clients more broadly,several interviewees noted that Hong Kongs physical,language and cultural connections with the Chinese Mainland provide a unique and very strong draw in attracting Chinese clients to Ho
162、ng Kong.2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.25Hong Kong Private Wealth Management Report 2023Industry should c
163、ontinue to lobby the Hong Kong Government to provide a future road map on the opening up of the GBA Continued engagement with Government and regulators is key to developing policies to attract family offices.Private wealth management sector and Government should work together to promote Hong Kongs s
164、trength and stability as a wealth management hub to existing clients and potential investors from new sources such as the Middle East and Southeast AsiaChinese Mainland market remains key driver of growth Family offices will be an increasingly important source of business Hong Kong ranks highly as w
165、ealth management hub,but political stability is a concernActionsKey takeaways 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reser
166、ved.Hong Kong Private Wealth Management Report 202326RegulationHong Kongs regulatory environment remains a challenge,however,industry engagement with regulators has resulted in recent reforms which should remove some of the hurdlesRegulatory environment remains a concern A majority(73%)of member fir
167、ms continued to identify the regulatory environment as the primary constraint for Hong Kong as a private wealth management centre,down from 81%last year.(Figure 21)This drop may reflect the expected impact of the recent regulatory changes(anticipated but released after the survey period)in certain a
168、reas that have streamlined processes and reduced the burden on firms.Figure 21:Ranking of the biggest constraints Hong Kong as a wealth management centre is facing 202120222023Challenging regulatory environmentConcerns over Hong Kongs political situationLimited access to Mainland China assetsLimited
169、 private banking talent poolLack of government supportLimited access to other international assetsOther(please specify)Limited depth of advice and services in areas such as tax,succession planning,family governance3%15%33%42%45%48%70%73%3%31%31%31%56%39%56%81%3%13%38%31%53%44%66%78%2023 KPMG,a Hong
170、Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.27Hong Kong Private Wealth Management Report 2023Hong Kong regulators have been providing i
171、ncreased regulatory guidance over the past few years following discussions with the private wealth management industry.It is expected that these changes to the regulatory environment will have a positive impact and the sector will see considerable benefits from the recent enhancements,in particular
172、the new guidelines for Sophisticated Professional Investors(SPI).The new SPI guidelines were jointly issued by the HKMA and SFC in in late July,near the end of the survey and interview process for this report.However,the industry had been in discussions with the regulators beforehand and had had the
173、 opportunity to review and comment on the draft.Suitability and the appropriateness of rules for sophisticated investors has been a major issue in recent years.In last years survey,66%of clients said that they would like the suitability and disclosure process to be more streamlined and less time-con
174、suming.The industry has been lobbying the government on this issue,so the new SPI guidance is not only a very welcome development for member firms and clients,but also a good example of the benefit of successful cooperation between the industry and the regulators.Suitability and KYC are the biggest
175、pain points In line with last years survey,sales practices and suitability including complex products were listed as the biggest pain point for member firms.This was followed by KYC/AML requirements.This is backed up by clients,who say that providing their source of wealth is their biggest pain poin
176、t.(Figures 22 and 23)Figure 22:Ranking of the biggest pain points among Hong Kong regulatory requirements from member firms experience in terms of time required or administrative effortTop pain points among Hong Kong regulatory requirements for membersNote:Weighted average ranking per survey results
177、4thProduct due diligence3rdDisclosures to clients2ndKnow your customers(KYC)and anti-money laundering(AML)1stSales practices and suitability,including complex products20234thRegulatory reporting3rdDisclosures to clients2ndKnow your customers(KYC)and anti-money laundering(AML)1stSales practices and s
178、uitability,including complex products2022 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Managem
179、ent Report 202328Figure 23:Ranking of the biggest pain points among Hong Kong regulatory requirements from clients experience in terms of time required or administrative effort Top pain points among Hong Kong regulatory requirements for clientsNote:Weighted average ranking per survey results4thPortf
180、olio reporting requirements3rdThe need for my advisor to make lengthy verbal risk disclosures when I wish to trade products 2ndOnboarding requirements(excluding source of wealth)1stProviding source of wealth20234thThe need for my advisor to check whether the products I wish to trade are suitable for
181、 me or not3rdOnboarding requirements(excluding source of wealth)2ndThe need for my advisor to make lengthy verbal risk disclosures when I wish to trade products 1stProviding source of wealth 2022This years survey revealed some contradictions among clients on suitability and disclosures.A significant
182、 proportion,77%of surveyed clients,said they would be willing to remove suitability checks and disclosure requirements if it significantly reduced the time to trade.This tallies with member firms views:83%said that the plans to simplify suitability obligations for sophisticated professional investor
183、s would have a positive impact.(Figures 24 and 25).However,when clients were asked about views on the process and protection,62%indicated that they considered the level of protection offered to be appropriate-albeit about half of those also said that wanted the process streamlined.30%said that the p
184、rocess was appropriate,while 32%said that they appreciate the level of protection while also wanting the process to be streamlined.(See below in Figure 26).The interpretation of these results is that clients will welcome more streamlined processes but ultimately still value investor protection and a
185、re looking for their private wealth manager to protect their interests.Guidance for Sophisticated Professional InvestorsWhile suitability requirements is ranked as the top regulatory pain point by member firms,the new SPI guidelines should reduce this issue going forward.The SPI guidelines set out a
186、 proportionate and risk-based approach with simpler requirements for private wealth managers in areas including product due diligence,suitability assessment and risk disclosure.This streamlined approach only applies to sophisticated investors who meet the qualifying criteria,which includes having po
187、rtfolio of at least HK$40M,or net assets of at least HK$80M,and having relevant knowledge or trading experience.More than 80%of member firms surveyed said that they expect that the SPI framework will bring a positive impact in terms of client experience and will ease the administrative burden(Figure
188、 24).2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.29Hong Kong Private Wealth Management Report 2023Figure 24:Member fir
189、ms views on the impacts of streamlining measures outlined in the HKMA/SFC joint consultation to simplify PWMs suitability obligations when servicing Sophisticated Professional Investors(SPI),particularly improvement in client experience and administrative burden within their firmSignificant positive
190、 impactMarginal positive impactNo impactMarginal detrimental impactSignificant detrimental impact49%33%12%3%3%Figure 25:Clients willingness to remove this requirement given that it significantly reduces the time required to conduct clients trades by eliminating suitability checks and lengthy risk di
191、sclosures23%77%NOYES2023 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 202330
192、Figure 26:Clients views on the process of checking product suitability and disclosing potential product risks and other information before their trades are executedI dont believe the process provides me with sufficient protectionI believe the process is appropriateI believe the process should be str
193、eamlined,but I appreciate the level of protection it offersI believe the process is too time-consuming and the level of protection it offers is unnecessary in my case202220236%24%30%10%15%39%32%27%23%As noted above,protection remains important to many investors,with 32%of clients saying that the sal
194、es process should be streamlined,but that they also appreciate the level of protection the suitability framework offers them.More clients(15%in 2023 compared to 10%in 2022)feel that the current process does not provide sufficient investor protection.(Figure 26)However,these results do not delineate
195、the views of more sophisticated and experienced investors,who are more likely to understand various investment products features and associated risks in depth and therefore do not benefit from lengthy disclosures during the sales process.The new SPI guidelines will benefit this more experienced cust
196、omer segment in particular.The SPI guidelines should help to serve the varying needs of investors when it comes to balancing protection and speed of trading.Qualifying as an SPI and making use of the streamlined processes will be optional,meaning clients can choose whether they want to opt in to tak
197、e advantage of the streamlined trading processes.The industry has broadly welcomed the new guidelines,which are expected to smooth the sales process for experienced investors while reducing administrative tasks for private wealth managers.2023 KPMG,a Hong Kong(SAR)partnership and a member firm of th
198、e KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.31Hong Kong Private Wealth Management Report 2023Besides suitability,KYC/AML is seen as a major pain point by member firms and clients.
199、The private wealth management industry should continue to work with the regulators to suggest recommendations for improvement in the current regime for KYC/AML.A potential focus could be around KYC source of wealth,which is the number one pain point for clients.In March this year,the HKMA issued Sma
200、rt Tips for Private Banking,which provided more guidance on establishment of sources of wealth and source of funds including dos and donts and examples of good practice in a range of possible scenarios.This should help firms to avoid implementing policies that are overly conservative and that exceed
201、 the regulators guidelines.RegTech adoption has increased significantly The relatively slow adoption of Regtech by the private wealth management sector,compared to other segments of the banking sector,has been noted in previous editions of this report.There has been a noted improvement this year,wit
202、h 45%of member firms having implemented RegTech solutions,up from 31%in last years survey.The common barriers that member firms mention when it comes to the implementation of RegTech have remained the same,with the primary barriers being budget and resource constraints,lack of available mature solut
203、ions,and the banks complex legacy architecture.(Figure 27)These hurdles to fintech adoption were also mentioned in a recent HKMA report,supported by KPMG,which also found a lack of alignment of expectations between banks and fintech solutions providers,particularly when implementing new solutions7.T
204、he bespoke nature of private wealth managers operating models and services make it more difficult to apply technology solutions.Adapting Fintech solutions for their internal requirements would involve considerable effort in dealing with external providers,so many would prefer to carry out their tech
205、nology upgrades in-house.The fact that there has been such an increase in RegTech use over the past year while the major barriers have remained largely the same may reflect the efforts of the HKMA to encourage adoption.One member firm interviewee stated that the HKMA had played a key role in definin
206、g the RegTech adoption path and highlighting attractive solutions,and that this blueprint had encouraged private wealth management firms to adopt RegTech solutions.In addition,the regulator in Hong Kong has been asking organisations if their talent has RegTech skills,and has included RegTech as a fa
207、ctor in assessing certified professionals.These moves have helped to encourage the faster adoption of technology to comply with regulatory requirements.Figure 27:Ranking of barriers in implementing Regtech solutions20232022132456N/AN/AN/ABudget/resource constraintsData is not in a form that can be e
208、asily digitisedLack of available mature solutionsLack of flexibility within group policyDifficulties working with vendorsComplex legacy architectureDo not perceive significant added value vs traditional solutionsLack of suitably skilled talent to implementOther(please specify)123456788Note:Weighted
209、average ranking per survey results.New options were added in 2023,so previous years data is not available for those options.Ranking position may be duplicated if the weighted average of options are the same.7 A Bridge to the Future:Hong Kong Fintech Promotion Roadmap:https:/www.hkma.gov.hk/media/eng
210、/doc/key-information/guidelines-and-circular/2023/20230825e1a1.pdf 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Ko
211、ng Private Wealth Management Report 202332Figure 28:Ranking of challenges in understanding and meeting the HKMAs Operational Resilience(OR-2)requirementsNote:Weighted average ranking per survey resultsNo Challenge(1)(10)5Significant ChallengeSecuring Board Approval of the Hong Kong OR-2 Framework4.7
212、91st5.24Definition of Severe but Plausible Scenarios2nd5.27Definition of Tolerances for Disruption3rd5.45Definition of Critical Operations4th5.97Mapping of Interconnections and Interdependencies(e.g.,with third party organisations)5thOperational resilience Operational resilience has been a key prior
213、ity for banks in Hong Kong as they have been working to meet the deadline for compliance with the first part of the HKMAs Operational Resilience 2(OR-2)regime,in terms of having their OR framework developed and approved by their boards by 31 May this year.The framework ensures that banks are prepare
214、d for disruption to services,including those provided by third parties,and also requires increased accountability from senior executives regarding operational resilience.The turmoil that Hong Kong has experienced in recent years,with the Covid-19 pandemic following months of protests in the city,dem
215、onstrated how serious disruption can happen very quickly and unexpectedly,and made clear how important it is for banks to be prepared for upheaval.To meet the OR-2 requirements,banks were required to understand where vulnerabilities lie in their systems,define their tolerance for disruption,and test
216、 a number of severe-but-plausible scenarios.Member firms generally provided neutral responses when asked about the challenges of developing an OR-2 framework,indicating that meeting the OR-2 deadline was not particularly burdensome.Some member firms have been able to leverage their global frameworks
217、,as other jurisdictions have rolled out similar requirements as those in Hong Kong.(Figure 28)2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.
218、All rights reserved.33Hong Kong Private Wealth Management Report 2023Following the introduction of the SPI guidelines,the industry should build on this success and continue its engagement with regulators to improve the regulatory landscapeMember firms should make use of the new SPI guidelines to off
219、er more flexibility to their clients on tradingMore private wealth management firms should consider using RegTech to help them to deal with the regulatory compliance burdenKYC and suitability remain key regulatory pain points Guidelines for Sophisticated Professional Investors(SPI)are expected to ea
220、se suitability and disclosure challengesSignificant increase in RegTech adoptionActionsKey takeaways 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by gua
221、rantee.All rights reserved.Hong Kong Private Wealth Management Report 202334TechnologyClients are seeking more advanced digital services to provide greater autonomy in investment decisions.Firms are making strides to meet this demand,but some gaps persistFintech developments Broadly,the industry is
222、in favour of fintech solutions,with 91%of member firms agreeing that the use of technology brings more opportunities than threats.(Figure 29)Clients are also broadly happy with the digital services that are available,however,there are a few gaps where member firms have an opportunity to expand their
223、 online services to better meet client demand.This positive attitude towards embracing emerging technologies is in line with the HKMAs Fintech 2025 ambitions and is bearing fruit in the continued satisfaction of clients in the digital services on offer.As noted earlier,there has also been a notable
224、uptick in the number of member firms making use of RegTech solutions.However,there are also gaps between client expectations and services available in a few areas relating to digital offerings,and member firms have an opportunity to better serve their clients by offering them the ability to do more
225、online.Figure 29:To what extent do you think that fintech solutions introduce more opportunities(through collaboration)than threats(through competition)?Strongly agree91%AgreeNeither agree or disagreeDisagreeStrongly disagree 202321%70%9%0%0%0%Clients perception of digital offerings remains higher t
226、han firms viewMany member firms have been rolling out new digital services and enhancing their online offerings over the last few years.As in last years survey,clients perception of member firms digital offerings are 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisa
227、tion of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.35Hong Kong Private Wealth Management Report 2023Exceeding expectations Exceeding expectations80%63%Meeting expectations Meeting expectations Mostly meeting
228、expectations Mostly meeting expectations Not meeting expectations Not meeting expectations Well below expectations Well below expectations 20222022202320238%6%3%0%39%16%46%15%33%32%28%45%16%47%13%31%4%5%7%6%Figure 30:Clients comments on their private wealth managers digital offeringsFigure 31:Member
229、 firms thoughts on their digital offering relative to customer expectations:largely positive and exceeds member firms own perception of their customers expectations.In this years survey,80%of clients stated that their digital expectations were being met,compared to 63%of member firms who believe the
230、y are meeting their clients expectations.(Figures 30 and 31)This is an improvement on last year,when 48%of member firms said they believed that they met clients expectations.The improvement in firms rating of their own offerings indicates that their investment in digital capabilities is delivering r
231、esults in terms of perceived client satisfaction.While customers are happy with the digital services available to them member firms are continuing to invest in their online offerings.Firms noted that they are also looking ahead and planning how to serve new clients in the future,who may have differe
232、nt expectations of the level of digital services available.Clients seeking more investment autonomyResponses to a number of different questions about digital offerings show that clients would like to be able to do more online.Among the digital investment-related services currently available,clients
233、said that access to research,portfolio construction and“actionable ideas”-such as the ability to transact or to be referred to a relationship manager(RM)by clicking a link when reading research-were the most useful.(Figure 32)When it comes to areas where clients would like to see improvement,“scope
234、of online services”was the first choice,while second and third ranked were“self-service capabilities”and“access to real-time data”.(Figure 33)2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited
235、,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 202336Figure 32:Ranking of the most useful digital services that clients Private Wealth Manager provides from a research and investment perspective Note:Weighted average ranking per survey
236、results.New options were added in 2023,so previous years data is not available for those options.20232022123456723N/A14N/AN/AAccess to researchFinancial goals advice planningPortfolio construction,rebalancing and financial planning simulation toolsInvestment suitability checks and disclosuresActiona
237、ble Ideas(e.g.,The ability to transact and/or be referred to an RM by clicking on a link when reading research/investment ideas)Other(please specify)Transaction execution capabilityFigure 33:Ranking of areas that clients feel the most need for member firms to improve in:Note:Weighted average ranking
238、 per survey results202322132658478Scope of online servicesSpeed of serviceDegree of self serviceUser interfaceOther(please specify)Access to real-time data and informationDegree of customisationSpecialist features e.g.,analysis tools,investment goals,etc.Cybersecurity 2023 KPMG,a Hong Kon
239、g(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.37Hong Kong Private Wealth Management Report 2023Figure 34:Communication medium preference for
240、 different elements of the client-advisor relationship:These findings indicate that clients increasingly want to take more control of their investments and carry out more of their own investment research,portfolio construction and trading online.This is in line with a trend seen during the pandemic,
241、when client adoption of digital offerings increased.This may indicate that self-service and increased autonomy is a future trend as clients become more comfortable using technology to meet their investment and wealth management needs.When asked about means of communications,clients also remain keen
242、on digital options,especially in areas such as research and portfolio reporting.The ability to view portfolio statements,communicate with RMs via instant messaging apps such as WeChat or WhatsApp,and receive alerts on market developments were viewed as the most useful of current admin-related digita
243、l services.These results are broadly similar to last years findings.In addition,71%of clients said they would prefer to receive investment research through digital channels,and 65%indicated a preference for online trading.Additionally,51%of clients indicated that they would like to receive investmen
244、t recommendations via digital channels.(Figure 34)Account onboardingInvestment researchInvestmentrecommendationTradingPortfolio reviewPortfolio reportingPeriodic KYC reviewNon-financial advice40%71%51%65%47%65%48%37%7%13%26%29%13%10%24%33%15%8%13%4%11%10%13%6%38%8%10%2%29%15%15%24%Digital channels(m
245、obile,web,tablet)Video conferenceTelephoneIn-person 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Weal
246、th Management Report 202338Misalignment between client expectations and firms plansAlthough clients are keen to do more online,some of the key services that they value are either not currently offered or being developed by member firms.For example,although“Portfolio construction,rebalancing,and fina
247、ncial planning simulation tools”was ranked by clients who have access to this service as the second most useful among research and investment digital services,52%of member firms do not offer these tools and have no plan to roll them out in the next two years.“Actionable ideas”(eg the ability to tran
248、sact or to be referred to an RM by clicking a link)for clients are also not on the agenda for 43%of member firms.(Figure 35)Figure 35:Availability of clients solutions(now and in 2 years)Portfolio statements view and interactionElectronic mailbox for client correspondenceEducational materialAccess t
249、o researchInvestment suitability checks and disclosuresProactive alerts in relation to market eventsAccount opening and/or KYC support Actionable IdeasPersonalisation of the customer accountPortfolio consolidation across other booking centresFinancial goal advice planningChatbotPortfolio consolidati
250、on across other banksAI-driven personalized investment recommendationsPortfolio construction,rebalancing and financial planning simulation toolsProactive alerts and/or ability for clients to make choice in relation to voluntary corporate actionsCompliant communication through third party channelsAva
251、ilable nowPlanned in 2 yearsNot planned/NA79%67%55%55%52%39%30%27%24%24%24%18%18%15%12%9%3%15%12%27%24%27%27%39%36%52%33%27%30%15%18%27%24%27%6%21%18%21%21%34%31%37%24%43%49%52%67%67%61%67%70%2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent membe
252、r firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.39Hong Kong Private Wealth Management Report 2023Similarly,34%of surveyed firms do not currently plan to introduce communication via third-party platforms like WeChat and WhatsApp,al
253、though clients that have access to this service rank it as the second most useful among useability and administration related digital services.Given the diversity of client segments,private wealth managers will have to consider the expectations of different generations and customer types when it com
254、es to online communication and investment activities.It was noted that some clients are extremely digital savvy,while others are not comfortable with using technology such as meeting platforms like Zoom.Firms plan more streamlining and automation In terms of internal solutions,member firms are plann
255、ing to introduce more automation and workflow tools to streamline their processes.Within the next two years,more than 70%of member firms will have rolled out streamlined applications and improved infrastructure(such as workflow tools for client onboarding)as well as automation of product due diligen
256、ce/product suitability.This should help to solve some of the pain points for both clients and member firms around KYC and suitability processes discussed previously in this report.However,there is less enthusiasm for using big data analytics of customer behaviour to cross-sell products,or to use tec
257、hnology to generate advice for RMs,with half of member firms planning to make no investment in these areas.This suggests that some firms are not ready to invest in AI-based solutions for advising clients,and will continue to rely on the knowledge and experience of their client-facing staff.It is als
258、o to be expected that bigger banks will move first as they have more resources to invest in new technologies,while smaller and more niche operators will wait.2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG Inter
259、national Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 202340Figure 36:Ranking of the key risks due to the adoption of Large Language Model/Generative AI(e.g.,ChatGPT):Key risks from GenAI4thOther3rdIncreased regulatory and/or l
260、egal risk2ndThe provision of,or reliance upon,inaccurate and or biased information1stClient and/or bank data security related risksGenerative AIThe emergence and widespread adoption of Large Language Models(LLM)and Generative AI like ChatGPT has been a key talking point for many industries in 2023.A
261、reas where this new technology is expected to have the most significant impact for private wealth managers are data analysis(such as customer,portfolio and product data,and clients interaction with the firm),the provision of investment advice,and AML/KYC related activities,according to our member su
262、rvey.Additionally,a number of member firms noted during the interviews for this report that they were exploring use cases around product analysis,summarising investment content for RMs,and synthesising policies and procedures.Suitability rules is one possible use for Generative AI,including cross-bo
263、rder suitability rules,which are very complicated.The new technology will be able to simplify this process and help in answering RMs questions.The way that Generative AI can present information in a script format provides other potential uses.For example,it could create a document comparing differen
264、t types of funds in a way that is easy for clients to understand.While there is a great deal of interest in the industry about the potential use cases for the new technologies and how they may be deployed in the future,there are also some concerns.Key concerns around the use of LLM and Generative AI
265、 are risks related to data security and the possibility of producing inaccurate or biased information.(Figure 36)These issues mean that member firms currently have very limited appetite to use Generative AI for direct-to-client advice provision or handling personal data.Note:Weighted average ranking
266、 per survey results 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.41Hong Kong Private Wealth Management Report 2023There
267、 is demand from clients for more online services including digital communications and trading Member firms should stay up to date with the potential use cases of Generative AI,which may offer a range of uses such as analysing conversations and providing information to clients Clients want more auton
268、omy to make investment decisions onlineMember firms continue to invest in improving their online offerings Private wealth managers are exploring use cases for Generative AIActionsKey takeaways 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent memb
269、er firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 202342Talent and ways of workingIndustry should focus on longer term initiatives to address the persistent talent gap.RMs are especially i
270、n demand,with technical expertise their most valued attributeTalent gap eases but RMs still in high demand The number of relevant practitioners and RMs in member firms has remained very consistent with last year.Member firms reported a total of 3,610 relevant practitioners in 2022,up slightly from 3
271、,503 in 2021,and 2,331 RMs in 2022 compared to 2,282 in 2021.Fewer people leaving the industry has helped to ease the talent gap,but RMs remain by far the most in-demand roles,which is consistent with prior years.(Figure 37)Figure 37:Ranking of roles/functions where the talent gap is most critical20
272、222023Relationship managersProduct specialists(e.g.,Alternative investments)ComplianceSpecialist IT and digital(including cybersecurity)Risk control specialistsPortfolio managersProject/change managementPhilanthropy advisorOther(please specify)ESG specialists6%8%21%24%22%82%5%16%38%33%55%6%15%27%27%
273、30%41%43%86%Note:New options were added in 2023,therefore previous years data is not available for those options 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company li
274、mited by guarantee.All rights reserved.43Hong Kong Private Wealth Management Report 2023There was also a notable increase in demand for product specialists,such as experts in alternative investments,with 55%of member firms reporting a talent gap,up from 43%a year earlier,as well as an increase in de
275、mand for risk control specialists to 30%,up from 22%previously.While the shortage of compliance talent has eased,it is still an issue with 33%of member firms reporting a talent shortage in this area.When hiring new talent,the primary sources have remained consistent,with acquiring from peer organisa
276、tions and referrals from existing RMs being the top two choices.The other side of this trend is that private wealth management firms continue to see a lot of churn as their RMs leave for peer firms.This demand is being driven by a number of different factors.Supply of RMs had already been lacking bu
277、t the growth of the industry has created even more demand for experienced staff.The short-term solution for private wealth management firms has been to hire from peer organisations.Given that it takes several years for an RM to develop the required skills and knowledge,it makes sense that acquiring
278、talent that already have experience in the field is more efficient,rather than recruiting more junior staff that will not be able to operate as effectively.What is clear is that the industry needs to focus on the long term to train more dedicated talent to break this cycle.It was noted that some oth
279、er jurisdictions have had regulatory support to train the local workforce,and that Hong Kong may benefit from taking a similar longer-term view to help solve the talent crunch.Hong Kong has made efforts in this area and the Government has launched a number of initiatives to attract talent to the ind
280、ustry and to enhance the skills of current staff.These include the Wealth and Asset Management Pilot Programme,backed by the Financial Services and the Treasury Bureau,which was launched in 2016 and provides professional training for in-service practitioners in the sector.In addition,the PWMA-HKMA A
281、pprenticeship Programme includes summer apprenticeships for university students,giving them a broad range of experience in the private wealth management sector and potential job offers after graduating.Other developments include the Governments plans to launch an Academy for Wealth Legacy under the
282、Financial Services Development Council.These are welcome developments,but to ease this perennial talent gap for RMs in particular,the industry and Government may need to do more to build on and expand the programmes and initiatives it has launched to date.The importance of having experienced RMs is
283、borne out by clients who continue to say that the most valued attribute is“knowledge and expertise of financial products”while relationship and rapport was viewed as less important.This suggests that an RMs overall technical expertise is more important to clients,and that it is worth the effort for
284、firms to retain experienced staff and invest in developing their technical skills.(Figure 38)Figure 38:Ranking of attributes in a relationship manager in terms of importance to clients:The most important attributes in a RMNote:Weighted average ranking per survey results4thRelationship/rapport with m
285、e and/or my family members3rdPortfolio management expertise2ndAbility to listen well and tailor offerings to my needs1stKnowledge and expertise of financial products20234thRelationship/rapport with me and/or my family members3rdPortfolio management expertise2ndAbility to listen well and tailor offer
286、ings to my needs1stKnowledge and expertise of financial products2022 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong
287、Kong Private Wealth Management Report 202344Beyond remuneration:attracting and retaining RMsRemuneration is,unsurprisingly,the most important factor that member firms selected when trying to increase the attractiveness of the RM role.(Figure 39)Although the importance of remuneration has dropped to
288、88%from 94%in last years survey,it remains the most crucial element when it comes to attracting RMs.Figure 39:Ranking of factors that increase the attractiveness of the relationship manager role202220212023RemunerationRelief of administrative burdenOpportunities for personal developmentClear career
289、pathMore supportive IT infrastructureFlexible working arrangementsOther(please specify)Programs arounddiversity and inclusionReduce risk of regulatory liability3%3%3%12%24%36%0%50%30%30%31%30%33%72%94%45%70%88%0%0%19%27%36%73%82%Note:New options were added in 2023,therefore previous years data is no
290、t available for those options.2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.45Hong Kong Private Wealth Management Report
291、 2023Figure 40:The importance of diversity and inclusion in member firms hiring process to their business success:However,remuneration is not the only factor,and relief of the administrative burden is a clear second when it comes to factors that increase the attractiveness of the RM role,according t
292、o member firms.This has remained consistent over the past few years.There has been a notable increase in member firms that say opportunities for personal development are important in the attractiveness of the RM role,mentioned by 45%of member firms compared with 33%last year,while a clear career pat
293、h has also increased in importance.This suggests that more member firms are looking past remuneration and offering both career and personal development to their RMs as a way to attract and retain valuable member of staff.Diversity&InclusionDiversity&Inclusion(D&I)has become an increasingly important
294、 consideration in the hiring process for financial services firms globally,and 73%of member firms said that they value D&I in the hiring process.(Figure 40)A member firm highlighted that D&I is not just about gender and ethnicity,but also about hiring individuals from different backgrounds and encou
295、raging diversity of opinions.In addition,well-being and work-life balance were mentioned as related elements to create a varied and inclusive workplace that will attract and retain quality talent.40%33%0%18%9%1234Degree of ImportanceLeast importantMost important573%2023 KPMG,a Hong Kong(SAR)partners
296、hip and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 202346D&I is also viewed as an element in creating a working envi
297、ronment that will foster the growth of talent and help to retain the best talent.While remuneration is the most important factor in attracting and retaining staff,the employee experience-being seen as a good place to work and develop a career-is an increasingly important factor.One member firm noted
298、 that their D&I policies had been successful in attracting and retaining junior RMs who are often women with young families.This demographic has traditionally had a high turnover,but a more flexible environment and initiatives like mentoring new parents have increased retention rates.Fewer people le
299、aving the industry While talent is a perennial issue across financial services,the private wealth management sector has seen some relief in the last year as the proportion of people leaving the industry has slowed.Last year,53%of member firms reported that more talent was leaving the industry;this y
300、ear the figure dropped to 30%.(Figure 41)Of those leaving the industry in Hong Kong,fewer are leaving the city,compared with last years results.Last year,8%of those leaving the industry were remaining in Hong Kong,in this years survey,18%of those leaving the industry are staying in the city(Figure 4
301、2).This may reflect the return of normality in the Hong Kongs business and living environment now that the borders have reopened after the end of the Covid restrictions.Some interviewees remarked on the Hong Kong Governments efforts since the end of Covid to promote Hong Kong as a place to work and
302、visit,but added that more should be done to spread the word about the citys lifestyle benefits and career opportunities,to help attract the top talent needed to serve the private wealth management sector.YesDeparting the PWM industryNoDeparting Hong KongBoth20222022202320238%18%53%39%30%39%47%53%70%
303、43%Figure 41:Do you feel that more talent is leaving the industry?Figure 42:Are leavers departing the PWM industry,departing Hong Kong or both?2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limite
304、d,a private English company limited by guarantee.All rights reserved.47Hong Kong Private Wealth Management Report 2023The industry should continue to work with stakeholders to build a pipeline of talent for the long-term Besides remuneration,member firms should focus on the employee experience as a
305、means to attract and retain talentMember firms should consider taking a broad approach to D&I,such as offering more flexibility for new parents,which has helped to retain talentTalent gap is most acute for RMs,who are most likely to be recruited from peer organisationsTalent leaving the industry has
306、 eased compared to the previous yearD&I becoming more important in hiring and retentionActionsKey takeaways 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited
307、 by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 202348About the PWMAEstablished in 2013,PWMA is an industry association,whose mission is to foster the growth and development of the private wealth management industry in Hong Kong.The main objectives of PWMA are:Position H
308、ong Kong as the leading private wealth management hub in the regionAdvocate the growth and development of the industry in Hong KongPromote proper conduct,integrity and professional competence on the part of PWM practitionersProvide a forum for members to discuss and exchange views on trends and chal
309、lenges faced in the industryAct as a unified industry voice through dialogue with government officials,regulators,trade bodies and non-governmental organizations.2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG I
310、nternational Limited,a private English company limited by guarantee.All rights reserved.49Hong Kong Private Wealth Management Report 2023About KPMGKPMG China has offices located in 31 cities with over 15,000 partners and staff,in Beijing,Changchun,Changsha,Chengdu,Chongqing,Dalian,Dongguan,Foshan,Fu
311、zhou,Guangzhou,Haikou,Hangzhou,Hefei,Jinan,Nanjing,Nantong,Ningbo,Qingdao,Shanghai,Shenyang,Shenzhen,Suzhou,Taiyuan,Tianjin,Wuhan,Wuxi,Xiamen,Xian,Zhengzhou,Hong Kong SAR and Macau SAR.Working collaboratively across all these offices,KPMG China can deploy experienced professionals efficiently,wherev
312、er our client is located.KPMG is a global organization of independent professional services firms providing Audit,Tax and Advisory services.KPMG is the brand under which the member firms of KPMG International Limited(“KPMG International”)operate and provide professional services.“KPMG”is used to ref
313、er to individual member firms within the KPMG organization or to one or more member firms collectively.KPMG firms operate in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world.Each KPMG firm is a legally distinct and separate entity a
314、nd describes itself as such.Each KPMG member firm is responsible for its own obligations and liabilities.KPMG International Limited is a private English company limited by guarantee.KPMG International Limited and its related entities do not provide services to clients.In 1992,KPMG became the first i
315、nternational accounting network to be granted a joint venture license in the Chinese Mainland.KPMG was also the first among the Big Four in the Chinese Mainland to convert from a joint venture to a special general partnership,as of 1 August 2012.Additionally,the Hong Kong firm can trace its origins
316、to 1945.This early commitment to this market,together with an unwavering focus on quality,has been the foundation for accumulated industry experience,and is reflected in KPMGs appointment for multidisciplinary services(including audit,tax and advisory)by some of Chinas most prestigious companies.202
317、3 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Hong Kong Private Wealth Management Report 202350Contact usPeter Stein CEO an
318、d Managing Director Private Wealth Management Association+852 2537 1661 peter.steinpwma.org.hkJennifer Hsieh Executive Director Private Wealth Management Association+852 3758 2204 jennifer.hsiehpwma.org.hkPrivate Wealth Management AssociationAndrew Weir Senior Partner,Hong Kong,Vice Chairman,KPMG Ch
319、ina and Global Head of Asset Management,KPMG International+852 2826 7243 Chee Hoong Tong Partner,Wealth&Asset Management KPMG China+852 3927 4609 Paul McSheaffrey Senior Banking Partner KPMG China +852 2978 8236 KPMG 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisa
320、tion of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.51Hong Kong Private Wealth Management Report 2023This report was written by Paul McSheaffrey,Chee Hoong Tong,Helen Sloan and Ivan Wang.Research and analysis
321、was conducted by Helen Sloan,Ivan Wang,Jerry Wu,Daryus Jokhi.Designed by Pui Lam Chan.Acknowledgments 2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by gu
322、arantee.All rights information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.Although we endeavour to provide accurate and timely information,there can be no guarantee that such information is accurate as of the date i
323、t is received or that it will continue to be accurate in the future.No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.2023 KPMG,a Hong Kong(SAR)partnership and a member firm of the KPMG global organisation of inde
324、pendent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Printed in Hong Kong(SAR).The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Private Wealth Managem
325、ent Associationhttps:/www.pwma.org.hk/Publication number:HK-STR23-0001Publication date:September 2023For a list of KPMG China offices,please scan the QR code or visit our website:https:/ publication is printed on Novatech paper which is FSCTM Certified.Acid-free.Elemental Chlorine Free(ECF).EU Flowe
326、r Environmental Certificate.EMAS Environmental Certificate.ISO 14001 Environmental Certificate.Certificated for packaging in direct contact with dry and non-greasy foodstuffs.Cover 250 gsm Novatech matt white paper.Text pages 135 gsm Novatech matt white paper.Printed using environmentally friendly soy ink.