Hong Kong’s appeal as a holiday destination may be declining among mainlanders, but as a wealth management center, the city is attracting more high net worth individuals from China seeking to go out and venture into global investment markets.
Bank of China’s Hong Kong unit set up its private banking division three years ago, and mainland customers now account for about half of the assets under its management, the bank told Wen Wei Po. China also accounts for about half of its total number of customers.
Along with wealth management, these clients usually use other banking services as well, bringing additional business opportunities.
With its better understanding of mainland culture, Bank of China has an edge in attracting these wealthy mainlanders.
There are over one million mainlanders with investible assets exceeding 10 million yuan (US$1.58 million), according to a study. To tap the promising market and meet increasing demand, the bank is looking to boost its private banking team to 200 people from 50 in the next three years.
Looking at the whole of Asia, the lender believes China’s One Belt, One Road initiative will boost economies and individual wealth in the region.
That is why it is also targeting Southeast Asian markets and aiming to boost its client assets in Asia to US$70 billion in three years.
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