Hong Kong overtakes Switzerland as world's top cross-border wealth hub
Hong Kong has surpassed Switzerland to become the world's largest cross-border wealth management centre, driven by geopolitical shifts and client demand for diversification, according to banking executives at the Global Financial Leaders' Investment Summit.
Hong Kong has officially surpassed Switzerland this year to become the world's largest cross-border wealth management centre, according to Laurent Ramsey, managing partner of the Pictet Group. Speaking at the "Global Wealth Management 2.0" forum during the 5th Global Financial Leaders' Investment Summit on Wednesday, Ramsey attributed the shift to escalating geopolitical conflicts in recent years, which have driven clients towards greater diversification and decentralisation of their wealth management.
Ramsey explained that clients increasingly require more service centres, wealth accounting centres, and offshore financial centres. He cited examples of European clients accounting for their wealth in Hong Kong.
Giorgio Pradelli, chief executive of EFG International, said asset diversification is crucial for ultra-high-net-worth individuals, who need different "baskets" to protect their assets in different jurisdictions. She stressed that wealth management centres serve different clients and that there is a complementary relationship between centres, rather than a zero-sum game.
Christel Rendu de Lint, co-chief executive of Vontobel, added that Hong Kong has combined stability and competitiveness over the past four years, leading to a return to prosperity and development. During the same period, he said, Switzerland was busy dealing with the aftermath of Credit Suisse. He acknowledged that Hong Kong's development has proven that combining stability and competitiveness is feasible.