Private banks boost Hong Kong hiring to woo rich mainland clients

HONG KONG - Wealth managers are ramping up hiring in Hong Kong to cater to an inflow of mainland Chinese money.

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UBS Group is adding staff as it looks to double the assets it manages for millionaire clients in Greater China over the next three to five years. Bank of Singapore has boosted staff in Hong Kong by 30 per cent, while Swiss wealth manager Julius Baer Group grew its office space in Hong Kong by 40 per cent in 2023, along with hiring.

For the city, it is a welcome reprieve after years of political turmoil, rigid Covid-19 pandemic restrictions and an exodus of people. Led by policies to entice the rich, the push is likely to see private wealth assets nearly doubling to US$2.3 trillion (S$3.1 trillion) by 2030 as Chinese investors seek offshore diversification, according to Bloomberg Intelligence.

"This year, we've seen an increase in mainland Chinese clients due to various government initiatives," said Mr Jamee Wong, head of private client for Greater China at UBS' wealth management arm. "We're strategically expanding our team in Hong Kong by hiring new client advisers and team heads."

Hong Kong has been rolling out the red carpet for family offices and the wealthy, with tax concessions and residency plans. Affluent Chinese have moved billions to the city, seeking higher-yielding investments and snapping up insurance. A flow of cash to rival Singapore has also slowed after the island state stepped up scrutiny following a blockbuster money laundering case.

While Chinese have for years sought to park their money offshore, President Xi Jinping's push for "common prosperity" has accelerated that process. The slowing economy and sinking real estate prices have also prompted the wealthy to look overseas.