Hong Kong poised to attract more of Asia’s wealth as measures draw family offices: JPMorgan’s Hong Kong CEO

‘Hong Kong is probably going to be one of the biggest wealth centres in the world, and Singapore is catching up very quickly,’ says Harshika Patel
The support Hong Kong’s government has laid out to foster Hong Kong as a family office hub is working, she says

Banking & finance

Mia Castagnone

Published: 9:00am, 10 Nov 2023

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Asia is creating wealth faster than any other region, and Hong Kong is in position to manage the “lion’s share” of that wealth, according to Harshika Patel, JPMorgan’s Hong Kong chief executive and the newly appointed head of the bank’s Asia private banking unit.

“I’m very excited about the broader wealth creation agenda in Asia-Pacific,” Patel said during an interview. “Hong Kong has the lion’s share of the wealth creation at this point in time in the region because of the significant role it continues to play in the economic and financial development of the Greater China region.”

Asia’s two hubs for banking - Hong Kong and Singapore - “both have a very positive future ahead of them,” said Patel, who succeeds Kam Shing Kwang in the bank’s private banking role. “Hong Kong is probably going to be one of the biggest wealth centres in the world, and Singapore is catching up very quickly.”

Harshika Patel, CEO of JPMorgan Hong Kong and newly appointed head of the company’s private banking unit in Asia, pictured in Central on November 8, 2023 Photo: Edmond So

The Asia-Pacific region is expected to experience the biggest growth in wealth among ultra-high-net-worth (UHNW) individuals by 2026, according to Knight Frank’s Wealth Report 2022. Meanwhile, Chinese cities added millionaires at the fastest pace in the world over the last decade, with Hangzhou topping the list, according to a report from consultancy Henley & Partners.

There are around 80,000 UHNW families, defined as having more than US$30 million in investable assets, in China, of which more than 20 per cent live in the Greater Bay Area, according to the Hong Kong government.

The support that Hong Kong’s government has laid out to foster Hong Kong as a family office hub has ensured families are comfortable to set up their family offices here, Patel said.

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The city’s Chief Executive John Lee Ka-chiu proposed a revamped investment migration programme for wealthy individuals and their families during his recent policy address. The programme would fast track residency for those with at least HK$30 million invested in local stocks or other assets.

Other measures the city has introduced for the affluent include tax breaks for family offices as well as plans to provide art storage facilities and easier rules for setting up charities. The government has set a target of attracting 200 new family offices to the city by 2025.

Hong Kong has “always been a thriving international financial centre”, but like other parts of the world, it has had to navigate several macroeconomic challenges like geopolitics, inflation and supply chain constraints, Patel said.

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This has affected the private wealth management sector in Hong Kong, which experienced a decline in assets under management and a drop in inflows last year as investment returns suffered, according to the KPMG 2023 wealth management report.

Even so, Patel said she is “confident that Hong Kong is going to go from strength to strength”.

“There’s lots of macro and geopolitical considerations that are playing through clients’ minds, but they’ve all got global ambitions,” said Patel. “All our clients are ambitious for their companies and for their personal fortunes.”

The bank will be celebrating its 100th anniversary in Hong Kong next year. Patel said the company has a series of events lined up to celebrate the 100th year, focused on three pillars: the bank’s clients, employees and the Hong Kong community.

“When you’ve had that much continuity in a region, my message to Hong Kong would be that JPMorgan plans to be here for the next 100 years,” she added.