Enhancing the distribution network and broadening investor participation in Hong Kong

October 2023

The distribution landscape in Hong Kong is at a turning point and the speed of change reshaping the environment cannot be understated. The ever-evolving shift in investors’ mindsets, a profound shift in investor demographics and innovation are prompting a re-think in how investment products and services are offered. With this, a new breed of technology-driven actors such as digital wealth advisors and platforms have entered the market with new business models and value propositions. This has provided a challenge to banks and insurance companies who are seen as incumbents and the dominant players in the market currently.

In addition, intensifying pressure across the value chain to improve financial inclusion has been building in recent years. Pockets of this has been occurring with innovation democratizing investment opportunities and the gradual opening of alternative assets to a broader base of investors. Alternatives are expected to become less alternative in the future and this trend is already playing out in various jurisdictions across the globe as innovation and product structuring have provided the asset class an avenue to reach a larger base of investors.

The next stage of disruption is already underway. Fund distributors are now required to deliberate meticulously on many considerations from investor segmentation, client experience, brand loyalty and trust, and most importantly how to distribute products and which products will likely succeed in the future.

For a deeper discussion, please contact our PwC contacts listed below or Gaven Cheong at Tiang & Partners.

Tiang & Partner is an independent Hong Kong law firm and a member of the PwC network.