Funds Distribution in Hong Kong

June 2022

The pace of change relentlessly reshaping the asset and wealth management (AWM) industry cannot be understated. With this, the profound shift in investor expectations and technological developments has impacted how industry players distribute their investment products and partake in market access programmes. Against this backdrop, digital channels to promote and distribute products continue to gain traction and is increasingly important, as the profile of the investor base shifts to a younger cohort of investors who are more attuned with technology. Recently launched digital platforms now represent a new service delivery model and empowers investors with access to comprehensive information about investment accounts – with some ensuring a holistic portfolio level view and personalised intelligence.

In Hong Kong, the outlook for the funds distribution environment is favourable as wealth creation and assets under management (AUM) accelerates in the Asia-Pacific region. Recently, the Wealth Management Connect (WMC) Scheme in the Greater Bay Area (GBA) was launched linking the wealth management markets in mainland China and Hong Kong. Moreover, the further build out of other market access programmes, such as the launch of the ‘Southbound’ leg on the Bond Connect and the recently announced inclusion arrangements of Exchange Traded Funds (ETFs) in the Stock Connect, have provided industry players an avenue to rethink product and distribution strategy.

Going forward, Hong Kong’s track record of innovating in investment products and distribution will ensure asset and wealth managers are provided with a conducive environment to level up the way they reach and interact with a wider base of retail and institutional investors.