Currently, with a large amount of the Chinese Mainland (hereinafter referred as to the Mainland) capital pouring into Hong Kong, there are 4 hot trends in terms of bank account opening, cross-boarder wealth management, insurance purchasing and real estate investment.

1. Rush to bank account opening:

Despite higher entry thresholds for Hong Kong bank account opening, yet it still boost the Mainland investors’ enthusiasm. Banks such as Hang Seng and HSBC have seen a surge in new clients, with non-local residents accounting for a significant proportion, especially those from the Mainland.

2. Cross-boundary wealth management connect “Southbound Service”:

“Southbound Service” is available to the Mainland residents to purchase eligible wealth management products in Hong Kong, and the amount of cross-border remittance has surged by more than 60 times, showing the strong demand for freer asset allocation.

3. Hong Kong’s insurance boom:

New policy premiums from Mainland visitors hit a record high in the first quarter, up more than 60% year-on-year. Hong Kong Endowment Plan attracts middle-and-high-net-worth families with high expected returns, becoming the preferred choice for risk hedging and appreciation.

4. Buying property in Hong Kong: 

After the “Removal of spicy measures”(the Hong Kong government’s decision to completely withdraw all demand-side management cooling measures in the housing market), Hong Kong saw a record purchase surge by Mainland buyers. In addition, the number and cost of registrations in both the primary and secondary markets reached record highs, leading to a significant reduction in taxes and fees.

Why does Hong Kong attract so many affluent individuals ? They are three major reasons.

Firstly, as interest rates on the Mainland continue to fall, Mainlanders are eager to transfer their money into overseas bank accounts for seeking higher returns. Secondly, some affluent Chinese are returning to Hong Kong as Singapore and the United States tighten restrictions on investment. Thirdly, the wealthy people adopt risk diversification strategies by allocating cross-border assets. This is also a major incentive for Mainland funds flooding into Hong Kong.

With ever closer bond between Hong Kong and the Mainland, we are fully confident that Hong Kong will still emerge as an international hub for capital flows for the Mainland for a long time to come.