According to the annual Fund Management Activities Survey released by the Securities and Futures Commission (SFC), the combined fund management business in Hong Kong rebounded to HK$8,507bn at the end of 2009, an increase of 45.5% from 2008.
Overseas investors contributed HK$5,388bn, or 63.9%, to fund management business – excluding real estate investment trusts (REITS). Meanwhile, the survey found an increasing number of Chinese-related firms gained exposure to other markets using Hong Kong as a springboard.
The largest growth came from the licensed asset management and fund advisory houses, recording the biggest year-on-year increase of 50.3% in the value of their aggregate asset management and fund advisory businesses to HK$6,447bn. Registered institutions recorded a 29.8% increase in assets under management to HK$1,811bn, while insurance companies reported a 44.6% increase to HK$175bn in 2009.
In addition, the survey found non-REIT asset management business increased by 57.1% to HK$5,824bn – of this amount, HK$3,577bn worth of assets were managed in Hong Kong and 81.3% were managed within Asia.
The market in exchange traded funds (ETFs) has also grown significantly in the region, with a total of 62 ETFs registered in Hong Kong by the end of June 201, while the trading volume of ETFs has increased by 12.5% year-on-year to an average daily turnover of HK$1,966m in the first half of this year.
“The asset management industry in Hong Kong has proven its mettle in 2009,” said Alexa Lam, the SFC’s deputy CEO and executive director of policy, China and investment products.
“As other major markets around the world continue with their financial market reforms, we must work together with the industry to make sure that Hong Kong continues to be a quality market and a platform of choice.”
